Removing procedural bottlenecks for foreign indirect investors

VTV.vn - The State Bank of Vietnam has just sent a document to commercial banks requesting compliance with regulations on opening accounts for foreign investors to make indirect investments in Vietnam.

New regulations create more favorable conditions for foreign capital to participate in the market.

Accordingly, implementing the Government 's direction on the task of upgrading the Vietnamese stock market, the State Bank of Vietnam (SBV) requires commercial banks and foreign bank branches to update new regulations. Specifically, foreign investors no longer need to consularize their indirect investment account opening documents, helping to shorten the account opening time from several months to a few days. The Circular also removes the requirement for consular legalization and expands identification documents beyond passports.

In addition, banks do not have to monitor the validity of identification documents or keep customer signatures and stamps. This creates favorable conditions for foreign organizations to open money accounts and promote foreign capital flows into the Vietnamese market.

The Circular also requires all revenue and expenditure transactions related to foreign indirect investment activities in Vietnam to be carried out through indirect investment accounts, which are payment accounts in VND opened by foreign investors at licensed banks. In addition, the balance in indirect investment accounts cannot be transferred to term deposits and savings deposits, in order to control capital flows and ensure transparency in transactions.

Foreign investors are not allowed to open joint indirect investment accounts (with two or more entities opening the account) to carry out foreign indirect investment activities in Vietnam. Money transfer orders related to foreign indirect investment activities in Vietnam by foreign investors must clearly state the purpose of the transfer so that authorized banks have a basis for comparison, inspection, storage of documents and execution of transactions.

Shorten account opening time for foreign indirect investors

According to the State Bank of Vietnam, the new regulations not only improve transparency and simplify administrative procedures but also create more favorable conditions for foreign capital to participate in the market. This is considered an important step forward, contributing to removing one of the bottlenecks in the roadmap to upgrade the Vietnamese stock market.

The content of Circular No. 25 has also expanded the rights of foreign investors, bringing about the expectation of a breakthrough in attracting foreign capital flows in the stock market. Specifically, Circular 25 supplements the contents of Article 6 and a number of related clauses, creating favorable conditions for non-resident foreign investors in indirect investment activities. While many other provisions take effect from March 1, 2026 or December 1, 2025, the provisions of Article 6 and related clauses take effect immediately from the date of signing and promulgation.

Specifically, Article 6 allows foreign investors to authorize financial institutions to open, close and use payment accounts. Banks and foreign bank branches shall identify investors and authorized organizations in accordance with the law on anti-money laundering.

Circular 25 also allows the use of the SWIFT system in opening and using payment accounts, opening foreign currency accounts by electronic means and does not require biometric information verification when making electronic payment transactions.

The process of opening a securities account for foreign investors is shortened. After being granted an electronic securities transaction code (e-STC) at the Vietnam Securities Depository and Clearing Corporation (VSDC), investors will be able to open a trading account at a securities company and an indirect investment account at a depository bank.

Source: https://vtv.vn/go-nut-that-thu-tuc-cho-nha-dau-tu-gian-tiep-nuoc-ngoai-100250924095400488.htm