Law No. 56 a major policy breakthrough for Vietnam's stock market development

The Law No. 56, effective January 1, 2025, is one of the major legal breakthroughs in recent years that will enhance the transparency and operational efficiency of the Vietnamese stock market.

The law, approved on November 29, 2024 by the National Assembly - the country's legislature, amends and supplements several laws under the Ministry of Finance’s management, including the Law on Securities.

For detailed implementation guidance, the Government and the Ministry of Finance have issued decrees and circulars, thereby creating a comprehensive legal framework for the law’s enforcement.

"The law was built around three main policy groups which aim to perfect the legal framework and improve the transparency and efficiency of the stock market," deputy chairman of the State Securities Commission (SSC) Hoang Van Thu told a recent conference held by the commission.

The event, held on October 10, aimed to disseminate amendments and supplements to the Law on Securities and related guiding documents.

Thu said the first group of policies seeks to enhance the transparency and efficiency in securities offerings. They align with the Government’s policy of raising the quality of securities listed on the market.

"The goal is to enhance the quality of public companies participating in the market and improve the professionalism of public offerings," he noted.

In the second group of policies, the law revises and improves regulations to strengthen market oversight, prevent fraudulent activities, protect investor rights, and build greater market confidence.

The third policy group aims to remove practical bottlenecks, simplify administrative procedures, and promote the upgrading and maintenance of Vietnam’s market classification.

To implement these policies, the Ministry of Finance has issued Circular No. 19, which provides regulations on registration dossiers for public companies and submitted to the Government Decree No. 24, guiding the management of securities offerings and settlement.

Thu stressed that Circular No. 19 introduces a new approach by clearly defining the responsibilities of participating organizations and agencies, reducing dossier evaluation time, and helping enterprises more quickly access the market.

He highlighted that the Central Counterparty Clearing (CCP) model is expected to be operational by early 2027. The implementation of the CCP model demonstrates the Government’s strong commitment to enhancing technical infrastructure, market safety, professionalism, and international integration.

“One notable reform is Decree No. 245/2025/ND-CP, which amends Decree No. 155/2020/ND-CP. This decree represents a breakthrough in improving transparency and efficiency in securities offerings - essentially focusing on improving the quality of products entering the market,” Thu explained.

He emphasized that Decree No. 245 embodies administrative reform and digital transformation, aiming to provide online public services for market participants.

“This reflects the concerted efforts of the SSC, stock exchanges, and Vietnam Securities Depository and Clearing Corporation to create the most favorable conditions for enterprises and market members,” he said.

During the conference, SSC departments presented the key contents of the amended law, explained the rationale behind each regulation, and gathered feedback from businesses, professional organizations, and market participants.

Many enterprises assessed that the latest amendments and supplements will make the market more transparent and professional, while facilitating capital mobilization to support sustainable economic development.