MSCI Emerging Market for Vietnam

by finandlife21/06/2017 08:01

1. Foreign Ownership Limits: Companies in certain conditional sectors and sensitive sectors are subject to the relevant Foreign Ownership Limit.

2. Foreign Room Level: The equity market is significantly impacted by foreign room issues.

3. Equal Rights to Foreign Investors: More information on the stock exchanges and the Vietnamese Securities Depository (VSD) websites can now be found in English. However, some company related information is not always readily available in English. In addition, the rights of foreign investors are limited as a result of the stringent foreign ownership limits imposed on both total as well as individual foreign investors.

4. Foreign Exchange Market Liberalization Level: There is no offshore currency market and there are constraints on the onshore currency market (e.g., foreign exchange transactions must be linked to security transactions). In addition, liquidity on the onshore currency market has been relatively low in the recent past.

5. Investor Registration & Account Setup: Registration is mandatory and account setup requires the approval of the VSD. The introduction of an online registration service and the shortened time for the issuance of the Securities Trading Code are seen as positive developments. However, certain supporting documents are still required to be translated in Vietnamese.

6. Market Regulations: Not all regulations can be found in English.

7. Information Flow: Stock market information is not always disclosed in English and occasionally is not detailed enough.

8. Clearing and Settlement: There is no formal clearing house and the VSD acts as the clearing agent. In addition, there are no overdraft facilities and the prefunding of trades is required. 

9. Transferability: Off-exchange transactions and in-kind transfers require prior approval from the State Securities Commission of Vietnam"

Source: MSCI

Tags:

Economics | Psychology | StockAdvisory

DISCLAIMER

I am currently serving as an Investment Manager at Vietcap Securities JSC, leveraging 16 years of experience in investment analysis. My journey began as a junior analyst at a fund in 2007, allowing me to cultivate a profound understanding of Vietnam's macroeconomics, conduct meticulous equity research, and actively pursue lucrative investment opportunities. Furthermore, I hold the position of Head of Derivatives, equipped with extensive knowledge and expertise in derivatives, ETFs, and CWs.

 

To document my insights and share personal perspectives, I maintain a private blog where I store valuable information. However, it is essential to acknowledge that the content provided on my blog is solely based on my own opinions and does not carry a guarantee of certainty. Consequently, I cannot assume responsibility for any trading or investing activities carried out based on the information shared. Nonetheless, I wholeheartedly welcome any questions or inquiries you may have. You can contact me via email at thuong.huynhngoc@gmail.com.

 

Thank you for your understanding, and I eagerly anticipate engaging with you on topics concerning investments and finance.

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