Vietnam proposes easing foreign investment rules and securities sandbox

Vietnam's Ministry of Finance is proposing amendments to the Law on Investment to reduce market entry barriers and compliance costs for foreign investors. One key proposal involves removing requirements for joint ventures in certain sectors, which could allow foreign investors to own up to 100% of charter capital in specific industries. While the Ministry notes that foreign investors already hold nearly 100% in some sectors, the State Bank of Vietnam has expressed concerns that full ownership in areas like financial services, accounting, and auditing could increase capital volatility regarding global interest rates and exchange rates.

Simultaneously, the National Assembly Standing Committee has expressed support for introducing a controlled regulatory sandbox within the Securities Law. This mechanism aims to allow fintech companies, securities firms, and fund managers to test new technologies and business models—such as automated asset management and new trading methods—within a defined scope. The sandbox is intended to foster innovation and digital transformation in the market while providing regulators with the ability to monitor risks and protect investor assets before widespread implementation.