Foreign stock traders allowed to open representative offices

VGP – The Ministry of Finance just introduced the Regulations on the establishment and operation of representative offices (ROs) of foreign securities trading organizations in Việt Nam.

February 25, 2009 10:02 AM GMT+7

ROs function as hubs of contact and stock market survey – Illustration photo

Accordingly, stock companies, fund managing companies, financial organizations engaging in securities brokerage, stocks trading, stock investment consulting, stock issuance guaranteeing, property management, and stock investment fund management which were established and are legally operating under foreign laws and have registered to operate in Việt Nam will be allowed to open their ROs in Việt Nam.

ROs of these traders will be managed and supervised by the State Securities Commission (SSC). All of their legal rights and interests are protected by Vietnamese laws.

The Regulations stipulate that ROs are not allowed to involve in business activities in Việt Nam. They cannot manage properties and investment capital for investors (including the parent companies).

ROs will function as hubs for contacts and stock market surveying; map out cooperation projects on securities and stock market in Việt Nam; and supervise the realization of contracts, agreements and projects.

ROs can employ Vietnamese and foreign citizens. After a recruitment of foreign employees, the parent company is required to report on the issue to the SSC within five working days.

By Hoàng Uyên