Under Circular 08/2026 issued by the Ministry of Finance on February 3, foreign investors can submit orders via overseas securities firms acting as representatives, with orders routed directly into the trading systems of Vietnamese brokerages.

The change is one of several measures in response to recommendations by index provider FTSE Russell, as Vietnam seeks inclusion in its emerging-market indices, with a review expected in September 2026.

International funds that already maintain relationships with global brokers will no longer be required to open separate trading accounts or sign contracts with each local securities firm in Vietnam.

Despite the use of overseas intermediaries, all cash and securities will continue to be cleared, settled and held in custody within Vietnam in line with domestic regulations, the ministry said.

For non-prefunding (NPF) transactions, the Circular introduces a risk-handling mechanism designed to limit market disruption. If a foreign institutional investor fails to meet settlement obligations, the local brokerage must report the case to the State Securities Commission and relevant authorities, but the breach will not be publicly disclosed.

Sanctions remain strict. Investors breaching settlement obligations will be suspended from NPF trading for seven consecutive trading days for a first violation, and up to 180 days for repeated offences within a short period.

The Circular also removes previous restrictions on which stocks could be traded under the NPF model, a change that had complicated index-tracking strategies for foreign funds, particularly when shares of brokerage-related firms were included in major indices.

In addition, foreign fund management companies are now allowed to open two separate trading accounts in Vietnam – one for proprietary trading and another for managing client portfolios – in line with international practice.

The Ministry of Finance said the measures demonstrate the government’s commitment to strengthening the legal framework and enhancing the attractiveness of Vietnam’s stock market to foreign investors.

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