Vietnam’s State Bank has introduced a new circular to simplify rules for foreign investors and help upgrade the country’s stock market status from “frontier” to “emerging.” The new rules, effective June 16, 2025, aim to remove obstacles in managing indirect investment flows.
Under Circular 03, foreign investors must use a special indirect investment account in Vietnamese dong at licensed banks for all related transactions. The new rules stop investors from placing account balances into savings and require clear transfer purposes for better tracking.
The circular also speeds up the account opening process by removing the need for consular legalization of documents, which used to cause long delays. This change makes it easier and faster for foreign investors to start trading.
This move is part of a broader plan to attract more foreign investment. Earlier this year, Vietnam improved its trading system and announced measures to encourage foreign participation. Two key steps still to come are the introduction of omnibus trading accounts, which simplify trading for fund managers, and a central clearing system planned for 2026 to improve transaction security.
These changes show Vietnam’s commitment to modernizing its stock market and attracting global investors.
Related Topics:
