Vietnam amends time frames in continuing process to improve stock market transparency

25 January 2024

On 30 December 2023, Vietnam Ministry of Finance Circular No. 69/2023/TT-BTC (“Circular 69”) came into force. Circular 69 amends and supplements several articles in Circular No. 57/2021/TT-BTC dated 12 July 2021 on the reorganisation of the country’s securities market (“Circular 57”). Circular 57 sets out a roadmap for the reorganisation of the stock trading market, bond trading market, derivatives trading market, and trading market for other types of securities in Vietnam.

The restructuring of the securities trading markets in Vietnam is being undertaken to promote transparency and align the markets with international standards. The measures outlined in Circular 69 aim to enhance the efficiency and effectiveness of securities trading, bolster investor confidence, and contribute to the overall development of Vietnam’s capital markets.

This article sets out the key points of Circular 69.

Overview

Circular 69 amends and supplements the Ho Chi Minh City Stock Exchange’s (“HoSE”) mandate under Circular 57 to reorganise the trading market for stocks, fund certificates, and covered warrants in accordance with the Securities Law and its associated regulations. The reorganisation process is expected to be completed no later than 31 December 2026. This is an extension of the time limit previously prescribed by Circular 57 as 30 June 2025.

Listing time frames

HoSE will accept listing applications for new stock trading from organisations meeting the listing conditions outlined in Decree No. 155/2020/NĐ-CP dated 31 December 2020 relating to the implementation of the Securities Law and having contributed charter capital of at least VNĐ120 billion at the time of listing registration.

The Hanoi Stock Exchange (“HNX”) will accept listing applications from eligible organisations that have contributed charter capital of at least VNĐ30 billion at the time of the listing registration. These applications must be submitted before 1 July 2025. From 1 July 2025, HNX will no longer accept new listing applications.

Circular 69 also includes provisions concerning the transfer of shares of listed organisations from HNX to HoSE by 31 December 2025 to streamline and consolidate securities trading activities within a unified market. HNX will complete the transfer of shares of organisations registered for trading to HoSE by 31 December 2026, after which HNX will no longer accept new trading registration documents.

Where an organisation has submitted a stock listing registration application to HNX before 1 July 2025 but the listing has yet to be approved, HNX is responsible for transferring the organisation’s listing registration dossier to HoSE before 8 July 2025.