![]() On July 1, 2016, the Vietnamese Government issued Decree No. 86/2016/ND-CP regulating the conditions for securities investment and business. The Decree applies to many agencies and entities involved in the Vietnamese securities market, including branches in Vietnam of securities business organisations and foreign organisations to own charter capital of a securities business organisation in Vietnam. Besides this, Decree 86 solves the problems of implementation of Decree No. 60/2015/ND-CP by supplementing a number of new contents related to the main problems, such as ownership by foreign investors, and establishment and operation of a branch in Vietnam by a foreign securities company.Conditions for a foreign organisation to own 51 percent or more of the charter capital of a securities business organisation in Vietnam To own 51 percent or more charter capital of a securities business organisation in Vietnam, a foreign organisation must meet requirements applicable to shareholders and capital contributing members of a securities business organisation stipulated in Decree No. 58/2012/ND-CP, among other conditions. These include: the purchase of shareholding or of the capital contribution portion must be passed by both members’ council/owner of the foreign organisation and the securities business organisation in Vietnam; only equity and other lawful sources shall be used to purchase shares or capital contribution; especially, financial statements for the most recent year of the foreign organisation must be prepared and audited in accordance with the law of the foreign country in conformity with international accounting and auditing standards. Conditions, application filing and procedures for establishment and operation of a branch in Vietnam of a foreign securities company In addition, the branch must meet the additional requirements: it is currently lawfully operating and is not undergoing consolidation, merger, separation, dissolution or bankruptcy; it is permitted to conduct the securities activities which it proposes to register for its branch in Vietnam; and the specialised branch regulator of the home country of such company has signed a unilateral or bilateral cooperative agreement with the State Securities Commission of Vietnam for the purpose of exchanging information and coordinating in management, inspection and supervision of securities and securities market activities. Conditions for establishment and operation of a branch in Vietnam of a fund management company The branch that the foreign fund management company proposes to establish in Vietnam must have sufficient material facilities and staff satisfying the conditions stipulated by the law on establishment, organisation and operation of fund management companies as applicable to domestic fund management companies, and must satisfy conditions on the legal capital for the branch of a foreign fund management company in Vietnam which is required to be VND25 billion and the capital contribution in order to establish the branch of a foreign fund management company in Vietnam which must be in Vietnamese dong. ––––––––––––––––––– |
Vietnam
Related Articles by Firm
Trade remedies in Vietnam
On April 20, the Ministry of Industry and Trade issued a circular detailing provisions on trade remedies.
Guidelines for food safety rules further streamlining administrative procedures
On February 2, 2018, the government promulgated Decree No. 15/2018/ND-CP guiding some articles of the Law on Food Safety 2010 (Decree 15) ...
Vietnam: New law supports start-ups and SMEs
On June 12, 2017 the National Assembly of Vietnam issued Law No. 04/2017/QH14 on supporting small and medium-sized enterprises (the SME Support Law), which took effect on January 1, 2018 ...
Vietnam: Licensing procedures for foreign investors clarified
The simplification of administrative procedures has now been widely acknowledged as an aim of the Vietnamese government as part of its wider plan to attract more foreign investment ..
Vietnam: New regulations on liquor trading
On September 14, 2017, the government promulgated Decree No. 105/2017/ND-CP on liquor trading (Decree 105) ...
Vietnam: New decree for registration of security measures
The government recently issued a decree to streamline the procedures and requirements for registration of security measures, and improve information disclosure for secured assets ...
VIETNAM: New regulations on technology transfer
The Law on Technology Transfer No. 80/2006/QH11 (the 2006 LOTT) was issued on November 29, 2006 when Vietnam was preparing for its accession to the WTO ...
Vietnam Labelling goods circulated in the Vietnamese market
Since its promulgation in 2006, Decree No. 89/2006/ND-CP on labelling products is based on legal documents that, so far, have been invalidated ...
New regulation on title retention in Vietnam
The retention of title, a legal concept recognised throughout the world, has now officially become one of the security measures for the performance of obligations in Vietnam ...
Vietnam Update – Q2, 2017
Including electronic visas, IPRs taxes, import/export rules, new tax regulations for farmland use, management of investment projects and commercial mediation ...
An obvious advance in resolving “.vn” domain name disputes
In a previous article regarding the challenges of resolving “.vn” domain name disputes in Vietnam, we mentioned the recent increase in the number of .vn domain names and the increase in the number of .vn domain name disputes...
Vietnamese citizens allowed to game at casinos
On January 16, 2017, Vietnam’s government issued a decree that allows citizens to game at casinos. Decree No. 03/2017/ND-CP on casino business operations (Decree 03) took effect on March 15, 2017...
Vietnam update
The start of 2017 saw a handful of new regulations that affect business in Vietnam. Indochine Counsel have briefed them and outlined the most important changes from each new regulation, ranging from the Civil Code to minimum wage and from accountancy ...
New capital adequacy regulations in Vietnam
The State Bank of Vietnam (SBV) recently released regulations requiring banks and foreign bank branches in Vietnam to maintain a minimum capital adequacy ratio (CAR) of 8 percent from 2020...
Administrative sanctions in the securities market
On November 1, 2016 the Vietnamese government issued a new decree on sanctions against administrative violations in the securities market...
Pharmacy activities
More than 10 years since its implementation, Vietnam has revised and supplemented the regulatory framework for the pharmaceutical industry to reflect the realities of practice ...
Vietnam Update
Vietnam has passed new regulations governing forex agents, tax, food safety and other aspects which affect conducting business in the country.
Transfer of a registered domain name in Vietnam
Pursuant to Article 49 of the Law on Telecommunications No. 41/2009/QH12, holders of a registered national ...
New guidance on PPP in Vietnam
Decree No. 15/2015/ND-CP of the Government on public private partnership investment forms (the ‘PPP’) went into ...
Increased penal liabilities for crimes relating to food safety and hygiene
Food safety and hygiene are on red alert in Vietnam. According to local papers and media, food poisoning happens almost everyday ...
New regulation of Vietnam on re-organisation of credit institutions
On December 31, 2015 the State Bank of Vietnam (SBV) promulgated Circular No. 36/2015/TT-NHNN regulating the ...
Client Alert - Vietnam
New regulations affect business in Vietnam. They cover topics ranging from social insurance to stock market actions to real estate trading floors.
New guidance for real estate brokers and trading floors
On December 30, 2015 the Ministry of Construction issued Circular No. 11/2015/TT-BXD (Circular 11) regulating the issuance of real estate ...
Guidance on mortgages of residential houses yet to be built
On December 9, 2015 the State Bank of Vietnam issued Circular No. 26/2015/TT-NHNN guiding on procedures for mortgage and ...
Vietnam Alert - January 2016
New regulations on food safety inspection, stock market actions and offshore direct investment affect the way of doing business in Vietnam. This edition also looks at how the US Foreign Account Tax Compliance Act affects international banking and local accounts ...
Resolving disputes over domain names in Vietnam
This article focuses on resolving disputes over domain names which are identical or confusingly similar to registered trademarks/trade names in Vietnam. According to ...
Enterprise registration in Vietnam – IPRs contributed as capital and IPRs as part of an enterprise name
Similar to the former 2005 Law on Enterprises, the new Law on Enterprises No. 68/2014/QH13 dated November 26, 2014 (New LOE 2014) allows the contribution of ...
New decree on enterprise registration
On November 26, 2014 the National Assembly of Vietnam adopted a new law on enterprise (2014 Enterprise Law) which takes ...
Indochine's Vietnam Client Alert
The September Client Alert contains updates on topics from new rules for intellectual property enforcement to a review of more changes in the new enterprise law which are likely to affect many businesses in Vietnam.
Relaxation of restrictions on share transfer by the founding shareholders under the new enterprise law of Vietnam
One of the notable points of the new law on enterprises, dated November 26, 2014 (Law on Enterprise 2014), is the relaxation of restrictions on the founding shareholders’ ordinary shares during the ...
New Vietnam bank guarantee provisions
On June 25, 2015 the State Bank of Vietnam promulgated Circular No. 07/2015/TT-NHNN on bank guarantees, effective as of August 9, 2015 (Circular 07), to replace Circular No. 28/2012/TT-NHNN dated October 3, 2012 ...
New investment law – new provisions on licensing procedures for foreign investors
On November 26, 2014 the National Assembly of Vietnam adopted a new law on investment (2014 Investment Law) which will take effect on July 1, 2015 and replace the current ...
New Regulations Affecting Business in Vietnam
Vietnam has issued new regulations that affect PPPs, derivative securities, cross border provision of public information and employment. Here are the most important changes from each new regulation.
Vietnam approves new decree on PPP investment form
On February 14, 2015, the government of Vietnam enacted Decree No. 15/2015/ND-CP (Decree 15) regulating the investment in the ...
Vietnam: Client Alert for March 2015
This issue discusses the new decree governing notary offices in Vietnam and the new Ministry of Finance circular detailing the payment forms for enterprises in the country. Moreover, it gives some tips on legal networking in Southeast Asia.
New provisions for foreign investors and conditional investment sectors under the law on investment 2014
On November 26, 2014, the Vietnamese National Assembly passed a new law on investment (LOI). The LOI appears to make …
Notable changes of the new law on real estate business
real estate business No. 66/2014/QH13 (the New REB Law), which will take effect on July 1 2015 and replace the law on real estate …
Enterprise Law 2014 – an institutional breakthrough for Vietnam’s economy
On November 26, 2014, the same promulgation day of Investment Law 2014, the National Assembly of Vietnam promulgated a new enterprise law with many positive new regulations and meaningful …
Foreign exchange control of foreign direct investment
On August 11, 2014 the State Bank of Vietnam enacted Circular No. 19/2014/TT-NHNN (Circular 19) guiding the foreign exchange control of foreign direct investment activities in Vietnam …
E-commerce in Vietnam
Vietnam has been ranked 15th for Internet users internationally, however only 20 percent of those users in Hanoi and Ho Chi Minh City use the internet for online shopping1. The Vietnam E-Commerce and …
New procedural rules for setting up a general information website and social network
Under the Vietnamese regulations of Internet service and online information, social network is defined as an information system that provides its users with such …
Remarkable changes in FOREX Rules
On July 17th, 2014 the Government issued Decree No. 70/2014/ND-CP (Decree 70) guiding the implementation of a number of articles of Ordinance No. 28/2005/PL-UBTVQH11 dated December …
More restrictions on multi-level marketing in Vietnam
On May 14th, 2014 the Government issued Decree No. 42/2014/ND-CP on the management of multi-level marketing activities (Decree 42) to replace the previous Decree No. 110/2005/ND-CP, …
Draft Law on Enterprise in Vietnam
In an effort to further improve the business environment, and create an equal playing ground for the community of the enterprises doing business in Vietnam, the Government of Vietnam has recently …
New guidance on labour contracts
Decree No. 44/2013/ND-CP, dated May 10th 2013, (Decree 44) addresses a number of issues as set out under the Labor Code 2012. Some of the issues addressed include: (i) rules for participating in compulsory …
New schedule for foreign owned capital to implement trading and related activities
On May 21st, 2007 the Ministry of Trade (currently Ministry of Industry and Trade (MOIT)) promulgated Decision No. 10/2007/QD-BTM to announce the schedule for implementation of trading …
For unified PPP legislation in Vietnam
With the goal of developing a comprehensive and unified legal framework for public-private partnership (PPP) model for infrastructure projects, …
Significant points of the Land Law 2013
It has been over ten years since the promulgation of Land Law No.13/2003/QH11, dated November 26th, 2003 (Land Law 2003). …
Re-registration of FIEs in Vietnam
Foreign-invested enterprises (FIEs) have, on the whole, been considered an attractive channel for investment in the Vietnam market …
Significant changes on tax administration
On July 22nd, 2013 the Government issued Decree No. 83/2013/ND-CP (Decree 83) detailing a number of articles of the Law on …
Development trends in the regulation on goods distribution and trading activities conducted by foreign traders
To provide guidance to Vietnam’s commitments made upon its accession to the WTO on market openings, the Government …
Some changes of rules in distribution and trading sector for foreign invested enterprises
On April 22nd, 2013 the Ministry of Industry and Trade issued Circular No. 08/2013/TT-BCT on trade in goods by foreign invested …
Related Articles
Who’s Afraid of AI? - Tech Tales with Paul Haswell
Join Paul Haswell, a partner at K&L Gates in Hong Kong, as he explores the transformative impact of technology on the legal profession in his new column for IHC Magazine. Paul offers insights into the challenges and opportunities for ...
Related Articles by Jurisdiction
Vietnam: New law supports start-ups and SMEs
On June 12, 2017 the National Assembly of Vietnam issued Law No. 04/2017/QH14 on supporting small and medium-sized enterprises (the SME Support Law), which took effect on January 1, 2018 ...
Tightening regulations on corporate bonds issuance in Vietnam
Decree 81 is said to be an attempt to tighten and control corporate bonds issuance in Vietnam in the wake of a worrisome proliferation ...
Latest Articles
Who’s Afraid of AI? - Tech Tales with Paul Haswell
Join Paul Haswell, a partner at K&L Gates in Hong Kong, as he explores the transformative impact of technology on the legal profession in his new column for IHC Magazine. Paul offers insights into the challenges and opportunities for ...