Vietnam proposes draft law for online securities account opening

The State Securities Commission of Vietnam has released a draft amendment to the Securities Law, which is expected to take effect in March 2027. A primary focus of the proposal is the digitalization of investor relations, allowing for fully online account opening, electronic contract execution, and digital transaction confirmation. This would eliminate the current requirement for investors to sign and submit physical paper documents.

The draft also proposes significant changes to Exchange-Traded Funds (ETFs). It seeks to expand the types of assets that can be used for ETF contributions beyond the current index basket and proposes exempting ETFs from the 10% investment limit for constituent stocks within their reference index. This change aims to resolve operational bottlenecks as fund sizes grow.

Additionally, the draft includes measures to reduce licensing requirements and paperwork for securities companies and fund management firms, while simultaneously raising professional standards for their legal representatives and leadership.