Another step forward in attracting foreign capital in the stock market

(Chinhphu.vn) - Circular 25/2025/TT-NHNN, recently issued by the State Bank, brings many major changes, removing legal barriers for foreign investors. The new regulations take effect immediately and are expected to create a strong push for the process of upgrading the Vietnamese stock market.

Circular 25/2025/TT-NHNN recently issued by the State Bank brings many major changes, removing legal barriers for foreign investors.

Many major changes, effective immediately

Circular 25 brings many major changes, the most prominent of which is that the contents in Article 6 and a number of related provisions take effect immediately upon signing, instead of having to wait until December 2025 or March 2026 like many other regulations. This is a very important point, because it helps promptly remove obstacles for foreign investors in the context of the approaching FTSE stock market classification assessment period.

The new Circular allows foreign investors to authorize financial institutions to open, close and use payment accounts. This regulation simplifies procedures and facilitates indirect investment in Vietnam. At the same time, foreign banks and bank branches are allowed to conduct customer identification in accordance with anti-money laundering laws without complicated procedures as before.

In particular, Circular 25 removes the requirement for consular legalization in the application for opening a payment account for foreign investors. This is a groundbreaking change, as this requirement previously made the account opening process lengthy and costly. In addition, identification documents are also expanded, not only limited to passports but also accepting other types of identity documents issued by competent foreign authorities.

Another notable new point is that banks and foreign bank branches no longer have to monitor the validity of identity documents or keep and update customer signatures and seals as before. This change both reduces administrative procedures and saves operating costs for credit institutions.

The Circular also allows the use of the SWIFT system (global financial information system) to open and use payment accounts for foreign investors, and allows the opening of foreign currency payment accounts by electronic means. Notably, electronic withdrawals and transactions on payment accounts no longer require biometric verification, helping to increase flexibility and convenience for investors.

Shorten time, open way for foreign capital flow

The process of opening a securities investment account for foreign investors currently involves many steps. After being granted an electronic securities transaction code (e-STC) at the Vietnam Securities Depository and Clearing Corporation (VSDC), investors will open a securities trading account at a securities company and an indirect investment account at a custodian bank.

Previously, opening an indirect investment capital account took a long time due to regulations on consular legalization, requiring face-to-face meetings for KYC (know your customer) and not recognizing the role of a global custodian bank. This made it difficult for foreign investors to quickly access the market.

However, with the Government's strong direction, many important documents have been issued to improve the situation. Before Circular 25, the State Bank issued Circular 03/2025/TT-NHNN (dated April 29, 2025) regulating the opening and use of Vietnamese Dong accounts for indirect investment activities. The Ministry of Finance also issued Circular 20/2025/TT-BTC amending Circular 51/2021/TT-BTC, focusing on information disclosure obligations and reporting regimes of foreign investors.

These changes, combined with Circular 25, have significantly simplified administrative procedures and shortened the time to open an account. According to the Ministry of Finance's assessment, the time to complete the dossier is now only about 2 weeks, in line with the expectations of foreign investors and at the same time approaching international practice.

Clear signal for upgrade expectation

In recent times, many legal documents have successively removed barriers, from Circular 68/2024/TT-BTC, Circular 18/2025/TT-BTC, Circular 20/2025/TT-BTC, Circular 03/2025/TT-NHNN to Circular 25/2025/TT-NHNN. All have the common goal of creating a favorable environment for foreign investors, increasing the possibility of capital flow into the market.

In particular, Circular 68/2024/TT-BTC has allowed foreign institutional investors to trade without having to have 100% of the money. This is a big step forward, demonstrating the approach to international practices, while contributing to strengthening the confidence of the investment community.

Many organizations and experts believe that these legal changes are crucial for FTSE's September 2025 stock market classification review, which will take place on October 7, 2025. The possibility of FTSE upgrading Vietnam's stock market is becoming increasingly clear.

It is estimated that if upgraded, passive index funds could pour about $1 billion into Vietnam. Active funds investing in emerging markets could also allocate $4-6 billion immediately. This would be a huge source of capital, creating a strong driving force for the stock market in the coming period.

Not only attracting foreign capital, the upgrade also helps to increase market depth, improve transparency and standardize according to international practices. According to VinaCapital experts, this will contribute to creating a sustainable investment environment, strengthening the confidence of both domestic and international investors.

Mr. Minh

Source: https://baochinhphu.vn/them-buoc-tien-thu-hut-dong-von-ngoai-tren-thi-truong-chung-khoan-102250908092906096.htm