The Ministry of Finance recently issued Circular 08/2026, amending regulations to facilitate the upgrade of Vietnam’s stock market to emerging market status. The goal is to create favorable conditions for foreign investors, ensuring that by September, Vietnamese stocks are structured within the FTSE Russell emerging market index as planned, while also increasing the weighting of Vietnamese stocks in the FTSE index basket.

The first key point of the new regulations allows foreign investors to place direct trading orders through global brokerage firms without needing to open trading accounts with domestic securities companies. This requirement comes from FTSE and international organizations to help groups that have already partnered with global brokerage firms avoid additional contracts with domestic securities companies, thereby reducing time, processes, and procedures for large funds participating in transactions.

With this method, foreign entities will still register a securities trading code and open a custodial account. Funds and securities, after being processed by the Vietnam Securities Depository and Clearing Corporation (VSDC) and the payment bank for the depository member, will be allocated to the investor's account. This process will enable foreign entities to participate in the Vietnamese stock market more conveniently, similar to practices in some international markets.

Secondly, the new circular does not require information disclosure when foreign organizations fail to settle non-funded transactions (NPF). If these organizations violate their obligations, securities companies only need to report to the State Securities Commission (SSC), VSDC, and the Vietnam Exchange (VNX) on the same day.

However, if they violate payment obligations, foreign investors will be prohibited from continuing NPF transactions for seven consecutive days (for a first violation) and 180 days (if violations occur over 30 consecutive days, including three payment violations).

The third main point is the removal of limits on the number of stocks that can be traded NPF. Restricting the NPF stock list created significant difficulties for investment funds in replicating indices, especially when stocks of securities companies, their parent companies, or affiliated companies, or stocks legally restricted from ownership, were part of the index structure.

An investor observes an electronic trading board at a securities company in TP HCM. Photo: An Khuong

The new circular adds a regulation allowing securities companies to accept NPF orders for the aforementioned stocks if they have an agreement with another securities company regarding the transfer of ownership. These shares will be transferred to the proprietary trading account of the other securities company, which will then be permitted to sell them.

Fourthly, the new circular includes a provision allowing foreign securities investment fund management companies to open two trading accounts. One account will serve proprietary trading activities, and the other will manage client transactions.

In addition to the main points mentioned, Circular 08/2026 comprises a total of 16 articles: 15 articles stipulating amendments and additions, and one implementation clause. The SSC expects these new regulations to enhance the effectiveness of state management over securities, ensuring safe, stable, and smooth trading and settlement activities, while limiting risks.

Tat Dat