Building Legal Framework for Internet-based Securities Transactions
The Vietnam Association of Financial Investors (VAFI) has recently sent a letter to the Ministry of Finance and the State Securities Commission, proposing the building of a legal framework for Internet-based securities transactions. According to VAFI, the biggest benefit of online transactions is that investors will not have to come to trading floors to complete procedures relating to securities transactions. Therefore, overseas Vietnamese and foreign investors in every corner of the world will have an opportunity to buy more shares with amounts they can save from going to Vietnam for traditional transactions.
However, some securities companies, such as VCBS (Vietcombank Securities Company), have offered online transaction services but on a smaller scale. Investors still have to make their payment and orders directly with securities companies under existing regulations and online transactions have been used by only a handful of Vietnamese regular customers.
It is expected that the National Assembly will adopt the Law on Electronic Transaction, which will take effect from July 1, 2006. However, within a programme of action of the State Securities Commission, there is no task for the building of a legal framework for Internet-based securities transactions.
Since the local bourse became operational, some securities companies have proposed that Internet-based transactions should be permitted to create favourable conditions for market participants. Vietnam doesn’t yet have any mechanism for online transactions. VAFI and many investors and securities companies said they hoped that the State Securities Commission would build a mechanism for Internet-based transactions. Also, the commission should publicly announce plans of the drafting board and the content of the framework and its completion roadmap, so that market participants can make their own plans.
Quynh Chi
Vietnamese
