Investors at a trading room of a securities firm in Hà Nội. — VNA/VNS Photo

HÀ NỘI — Việt Nam has taken another step to deepen capital market reforms by allowing foreign investors to trade securities through global brokerage institutions and permitting foreign fund management companies to open two trading accounts, according to the Ministry of Finance's newly-issued Circular No. 08/2026.

The circular amends a number of regulations with the aim of supporting Việt Nam's upgrade to the emerging market status.

The move is intended to facilitate foreign investor participation, ensure Vietnamese equities are included in FTSE Russell's emerging market index as scheduled by September and increase the proportion of Vietnamese stocks in FTSE's index basket.

A key highlight of the new document is the introduction of a mechanism allowing foreign investors to place trading orders directly via global brokers, without the requirement to open trading accounts at domestic securities companies.

This reform responds to recommendations from FTSE Russell and other international institutions, enabling investors that already cooperate with global brokers to avoid additional contractual arrangements with local securities firms, thereby reducing procedures, time and costs, particularly for large institutional funds.

Under this model, foreign investors are still required to obtain a securities trading code and open a depository account. Once settlement is completed by the Vietnam Securities Depository and Clearing Corporation (VSDC) and the settlement bank with depository members, cash and securities will be allocated to investors' accounts.

The process mirrors practices applied in several international markets and is expected to further facilitate foreign participation in Việt Nam's stock market.

In addition, the circular removes the requirement to publicly disclose information when foreign institutional investors fail to fulfil payment obligations in non-prefunding (NPF) transactions. In such cases, securities companies are only required to report violations to the State Securities Commission (SSC), VSDC and the Vietnam Exchange (VNX) on the same day.

However, investors breaching payment obligations will be suspended from NPF trading for seven days for a first violation, and up to 180 days in cases of repeated breaches.

The new regulations also remove restrictions on the list of stocks eligible for NPF trading, addressing challenges faced by index-tracking funds when replicating benchmark indices. The circular allows securities companies to accept NPF orders for previously restricted stocks under transfer agreements with other securities firms.

Finally, foreign fund management companies are now permitted to open two trading accounts - one for proprietary trading and another for managing client transactions.

With 16 articles in total, Circular 08/2026 is expected to enhance regulatory effectiveness, ensure safe and orderly trading and settlement, and reduce systemic risks in Việt Nam's securities market. — VNA/VNS