1. For private investors, it is necessary to fly to Ho Chi Minh City. As a foreign investor, you can completely exchange on the Vietnamese stock market under Securities Law and other relating laws.
Foreign ownership of shares in companies listed on the Ho Chi Minh City Stock Exchange is limited to 49% of the company’s issued share capital(except for bank and other special industries). For bonds, foreign investors can hold 100% ownership of a particular issuer’s bonds.
Foreign investors who wish to purchase shares through the Ho Chi Minh City Stock Exchange are required to register through a custodian licensed to hold securities on behalf of foreigners – of which there are currently three: The Hongkong and Shanghai Banking Corporation, Deutsche Bank AG and Standard Chartered Bank. Beside these three, securities companies can play role of custodian unit to hold stocks for foreigners as well. Once registered, a Securities Transaction Code is issued to the foreign investor who may then open a Trading Account with one or more of the twelve licensed Securities Companies.
Basic documents required include:
* For individuals: registration form, applicant information sheet, judicial record.
* For institutions: registration form, applicant information sheet, Certificate of Incorporation, and Decision/Board resolution appointing authorized signatories.
The Investor's information need to be notified by the notary public of the home country and the Vietnamese embassy.
Then the sealed hardcopy must be sent to the securities broker, who applies for a trading code.
Fill out the application for a trading account, which you will receive from your securities broker. And send back a hardcopy.
2. Investors must open a transaction/trading account in VND with a depository member or securities company.
3. The selected depository member or securities company then opens a foreign currency demand deposit for the foreign investor, along with a special VND demand deposit into which the foreign currency that will be used to purchase stock is transferred.
After all account applications are complete, funds are deposited into the VND deposit account according to rules. Buying and trading stock is in VND.
Investors may place orders in person at the office of the selected securities company, by telephone, by fax, or online, depending upon securities company. Trading at the HOSE is conducted daily with two matching sessions at 09:20am and 10:30am local time. Securities companies normally accept orders ten minutes before matching time. If the order is matched, the investor receives the security or deposit in their account after one trading day