Vietnam Stock Market is in the blooming stage with a very high potential profitability; as a result, investing in securities could be a great opportunity for foreign investors to enter Vietnam market. In this paper, Duc Hung is going to introduce the process of opening a trading securities account for Foreign investors in Vietnam.
Though, established in 2000, and has experienced a certain development, Vietnam Stock Market still has enormous potential compared to other developing countries. In fact, Vietnam businesses are operating efficiently, generating continuous profit and supported by government policies as well as international agreements.
Vietnam Stock market contains 03 stock exchange including: HOSE – Ho Chi Minh Stock Exchange, HNX – Hanoi Stock Exchange and UpCom. In order to start trading stocks, foreign investors are required to have a trading account which must be opened in one among Depository member of VSD’s member list. (VSD – Vietnam Securities Depository)
There are about 70 securities corporations operating in Vietnam; however, foreign investors should open and trade securities via big firms which offer great services, advanced trading application and higher brokering quality. Ho Chi Minh Securities Corporation (HSC) which makes up the largest market share in Vietnam. HSC has been chosen by most private customers and investment funds coming from abroad due to their enormous financial resource, stable technology base and valuable services.
The process of opening accounts for foreign sector is so convenient.
Firstly, you need to prepair Personal/Company identity documents,
For Private Investors: 03 notarized copies of passports;
Step 1: Investor should have a bank account in BIDV that connects bank gateway of BIDV – Nam Ky Khoi Nghia Branch. This allows Foreign Investor to receive or transfer money from Vietnam to abroad.
Step 2: After that, Foreign investor will bring the confirmation of BIDV account opening contract along with 03 notarized copies of passports to HSC. The rest would be the work of HSC.On the other hand, HSC has the corporation with BIDV, so foreign investor could skip the first step which is opening a BIDV account. The only thing investor need to do is bring 03 notarized copies of passports to HSC. Other steps including (1) Opening BIDV (a Bank in Vietnam) account and (2) Commitment of Using FPI Account would be supported by HSC.
Noted: Each foreign investor can open only 01 trading account in Vietnam. This also means that if you already got an account in a different securities company, you need to close your current account before open a new trading account in HSC. Current Assets including cash as well as stocks could be fully transferred to the new account in HSC without interrupting your trading activities.
For Investment Funds:
The foreign investment funds are managed by Multiple Investment Managers Fund – MIMF shall be registered with many securities trading codes on the principle the portfolio of funds managed by the same fund management company shall be registered one securities trading code. Please feel free to contact Duc Hung for more details.
With a maximum of five (05) days for organizational investors and three (03) days for individual investors from the date of receipt of complete dossier, the Securities Depository Center shall issue Securities Trading Code to the investors. In case of refusal, the Securities Depository Center shall reply in writing, clearly stating the reason therefore.
Wish all the best for your investments!
If you need consultation and support in opening account process as well as investing decisions, feel free to contact me – Duc Hung – Senior Executive Broker.