Vietnam Ministry of Finance proposes new auditing and derivatives regulations

The Vietnamese Ministry of Finance is drafting new regulations to enhance the legal framework for the country's financial markets. One proposal involves a circular regarding independent auditing for entities of public interest. This measure aims to improve state management of auditors and auditing organizations by clarifying responsibilities for document processing and approval. The draft includes provisions for suspending or revoking the status of auditors and firms, specifically citing poor service quality or serious errors as grounds for suspension periods ranging from 12 to 24 months.

Additionally, the Ministry is working on amendments to Circular 58 to expand the derivatives market by introducing stock index options, including both call and put options. This includes defining underlying assets, contract types, and execution methods.

In related market news, FTSE Russell has maintained the list of 27 Vietnamese stocks eligible for the FTSE Global All Cap Index following its September review. Experts note that while the transition from frontier to secondary emerging market status is significant, improving Vietnam's national credit rating to investment grade would further drive international capital into both domestic stocks and bonds.