Regarding the investment environment, the law makes an important contribution by forming a common playing field for all investors on the basis of World Trade Organisation (WTO) principles such as the most-favoured nation status and principles of public transparency principles. 

The law is the first legal document built on the principle of absolute equality in terms of competitive opportunities and conditions. The exception and special policies for domestic or foreign investors have been properly and clearly defined, with a roadmap to abolish these policies.

On the basis of separating State management from business management, the role of State management stipulated by the law has been improved, with the State playing the role of supporting, assisting and ensuring the strict enforcement of law, and not interfering in business management work.

For the securities market, the abolishment of differences in regulations on business establishment, forms of business, and business management for domestic and foreign businesses will be the basis for more foreign-invested companies to be equitised. To date, only about 5,000 foreign invested companies have been equitised.

With the enforcement of the law, a large number of foreign investors are expected to take part in the securities market, helping heat up the young stock market in Vietnam.

The law allows investors to implement forms of indirect investment in Vietnam's territories through different financial tools such as purchasing shares, holdings, bonds and other value-fixed certificates; stock investment funds; and intermediary financial institutions. In addition, stipulations on capital contributions, purchasing of shares and the merging and purchasing of businesses will also help increase both demand and supply for the securities market. 

The participation of several international financial organisations and banks in a direct investment conference held recently in Ho Chi Minh City helped confirm the attractiveness of the securities sector to foreign investors, according to head of the State Securities Commission Tran Xuan Ha. 

The majority of international investors, who consider Vietnam a potential investment destination, have attached great importance to listing the shares of Vietnamese businesses on the stock market due to the securities market’s capacity to encourage further development.

In addition, instead of restricting the capital investment of foreign investors to a maximum of 49 percent of local enterprises’ total capital investment, the Investment Law restricts only certain sensitive areas. This offers international investors more investment opportunities. 

To boost the securities sector’s development, relevant ministries and agencies need to make greater efforts, said Ha.

VNA