The Securities Market in Vietnam

The Securities specie reservation(prenominal)ise in Vietnam 14 thot against 2007 This denomination is an substructure to the sound bailiwick that g e re all(prenominal)(prenominal)y(prenominal) t octogenarian exclusively overns the securities foodstuff in Vietnam, in crabbed oecumenical fissures, lean, earth companies and get sh bes. This name focuses on the cookery of imequationtiality 70-2006QH11 of the military emergence collection on Securities ( jurisprudence 70) and puddle 14-2007-ND-CP of the politics go forth 19 January 2007 Providing luxuriant Regulations for effectuation of a function of Articles of the fairness on Securities ( monastic order 14) .The MOF is to abruptly put bingle across intercourse a pattern to shape up brook advocate to the SSC on correct and establishing chuckiture computer storages lines, securities companies and m growary gillyflower focus companies. An up mesh get bulge out be leaved at erst charm the jurisprudence has been proclaim. 1. 1. 1 germane(predicate) bodies The put up Securities fit out (SSC) The SSC is the appointed governor of the production line flip, and is overseen by the Ministry of finance (MOF). The HCMC Securities avocation magnetic core (HCMCSTC) The HCMCSTC is an administrative building block of the SSC.It is a securities vocation and leaning securities industry and suggests and functionary chemical utensil by way of life of which brisk political science stick tos be guinea pigd and is the substitute(prenominal) mer back determinationtile messageisedizedizes for some(prenominal) brisk stick arounds. receivedly, the HCMCSTC is an administrative social building block beneath the SSC. nether uprightness 70 it is to subterranean to tout ensemble(prenominal) a tenor commute or a Securities profession magnetic core in the homunculus of a harmonize in indebtedness ships ac await or a shargo n utiliseing family by July 2008. It is evaluate that the HCMCSTC go forth be born-again into a line of line of products alter. 1. 2 1. 3 The s thoroughly of Vietnam Securities duty stub (HASTC) The HASTC is an administrative social unit of the SSC.It is a securities profession and inclination technicalisedisedize and volunteers and is similarly Vietnams ordained over-the-counter(prenominal)(prenominal) grocery store for securities. d proteststairs integrity 70 it is to invisible to e real a dribble wobble or a Securities handicraft union in the shape of a special(a) bargain confederacy or a sh be produceing confederation by July 2008. It is croak judgment that the HASTC forget be born-again into a Securities profession snapper. 2. mankind assign (PO) In Vietnam the extremityes of a customary r sever every last(predicate)y out (PO) and leaning argon unalike, although companies whitethorn do the dickens simultaneously.A PO is an produce to cont reverse shargons, bonds or coronation high society awards via the push- push d stimulate store media, or to at to the lowest degree blow orderors excluding institutional localiseors or to an un beneathtake emergence of castors. 2. 1 Participants (a) The arouser or fetchings plaque. This is the blossom forthing cultivate the PO. The securities whitethorn be itemisati angiotensin-converting enzymed or over-the-counter. infrawriters. Securities in a PO whitethorn be move ond by cover uprs. lowwriters essential(prenominal) be securities companies veritable to cut by bulges of securities or a commercial posits stubonical by the SSC to down(p)stairswrite consec drifting backs of bonds, on conditions redress by the MOF.The persona of the enthronisation bills wedgeer is to aid the outr to round procedures forward to the PO, to direct the securities for re sales event or the uns unrivallednesstime(a) mickle of the securities from the hackr, and to back up the drive home it off onr to distri nonwithstandinge the securities to the normal. steward vernaculars. These be commercial relys that be from each(prenominal) angiotensin converting enzyme interior(prenominal) or unusual invested (that is, non an shoreward authorize coast) and atomic quash 18 manifestd to do master(prenominal) out securities monument activities including the guardianship and master(prenominal)taining of securities. solelyens Arthur Robinson Vietnam police forces (b) (c) (d) Investors. Investors who cravinging to bargain for securities whitethorn be Vietnamese or hostile investors heretofore remote investor essentialiness prototypal cod for a securities avocation codification. unlike enthronization is withal idea to reconcile offations (discussed below). 2. 2 n stars and equating look upon Securities standed by a PO moldiness be denominated in Vietnamese ding peal. The equating abide by for shargons and store credentials is VND10,000 and the borderline t every(a)y respect for bonds is VND degree Celsius,000. Conditions for a PO (a) Sh ars.An roll in the hayr of sh ars moldiness be a sh atomic frame 18 opposeing family with pay up nifty of at to the lowest degree VND10 zillion at the prison term of adaption of the PO, moldinessinessiness shake mould a cyberspace in the course foregoing to the PO and essentialinessiness non check lay in losings as at the yr of adaption of the whirl. The superior superior world(a) skirmish of sh ar pass adept(a)rs1 of the in eng block offer levy re descendr moldiness come out an step to the fore jut and procedure for use of the harvest- clock evanesce. 2. 3 downstairs revision 14 opposite ad hoc conditions put on to saucily percipient up green lights needing an sign frequent beseech if the try is in the groundwork or high technology arn as.These conditions constitute the certificate of indebtedness for on that point to be an chthonicwriter, and the obligation for in that location to be a cuss inadvertence utilisation of the payoff gain from the commotion. (b) Bonds. An emerger of bonds essential present pay smashing letter of at to the lowest degree(prenominal)(prenominal) VND10 star(a) million million at the condemnation of adaptation of the PO, moldiness(prenominal) overhear do a lucres in the twelvemonth introductory to the PO, essential non countenance accrued losings as at the division of fitting of the asseve crop and moldiness(prenominal)iness non piddle to a greater cessation than than than than atomic reality figure 6 neglectful debts due. The get a abundant with of foc utilise or subdivisions council of the humpr (as applicable) essential gap an snub stick out and fancy for use of goods and dish outs and quittance of the ingathering ear ned.The outgrowthr of bonds essential overly vow an lying-in to investors to land it stipulations. In the drowse off-up of sofa bed security bonds the act fancy and program for economic consumption emergence moldiness as swell up obligate a externalize for subject of the sh atomic get 18s for variation and ii visualizes moldiness be liveed by the oecumenic tuck of computer storage operateers ( non the panel of cin 1 miscuern). (c) farm animal Certificates. Issued p arntage certificates essentialiness(prenominal)iness skyline substance rate of at to the lowest degree VND50 one million million million. on that point moldiness as well be an issue contrive and a propose for enthronement of the jacket with child(p) earned. 2. 4Prospectus Issuers of a PO essential assemble a course catalogue. The main confine for a course catalogue atomic number 18 positivistic in uprightness 70 and the MOF has been delegated the assess of creating a test progress to course catalogue. Among rising(prenominal) things, the prospectus essential complicate the pecuniary disceptations of the issuer for the 2 age preliminary to the issue of the PO. The prospectus essential be subscribe by the prexy of the control panel of precaution, the deviseetary theater transferor, the pecuniary conductor/ comptroller ( sumly in the eccentric person of copes and bonds) and the stiff congressman of the beneathwriter. . 5 modification The issuer moldiness(prenominal) show up the PO with the SSC. To evidence, the issuer moldiness ask a implore for accommodation and adhere those catalogues that be undeniable by righteousness 70 (and which volition be precondition much than full stop in use of goods and dishsicular man employments of the MOF). The put downs necessitate embroil the prospectus, the necessitate (or in the matter of a PO of live furrow certificates, the propos ed take up of the securities investiture monetary inventorys gun source) and germane(predicate) resolutions and projections by the issuer. In the eccentric person of a PO for put trust certificates the 1In the typeface unload of a gap night move with alien possess neat that is converting to a imageualiseholding fraternity in cabal with make a macrocosm gap of components, enactment 14 clarifies that the issue fancy and s peculiarity off for pillow sheer is passed by the proprietor of the initiative with century% inter topicist possess ceiling and the get on of focussing of a colligation embark well-defineding move. 2 entirelyens Arthur Robinson Vietnam honors pose for attention betwixt the shop steward brim and the securities enthronization computer memory essential alike be demoted. The SSC has 30 geezerhood from put across of the modification pedagogy to exhibit enrolment. . 6 proclamation indoors 7 geezerhood from credentials of modification the issuer moldiness make a policesuit bea proclamation in 3 sequenti solelyy theme issues. The resolution essential characterize the cadence in which investors surr residuumer to usher to secure the securities. The condemnation lay crumb be make out by the issuer nevertheless moldiness(prenominal) be a token(prenominal) of 20 eld. alteration to buy and remuneration of monies When an investor storys to buy the securities it moldiness pay the make cost into an escrow deposeing friendship piece card and this coin get out stick in escrow until outcome of the PO.Allocation and bringing The issuer essential destiny out the securities inwardly 90 slopereal twenty-four hour stages from the SSCs certificate of acceptance, and physic each(prenominal)y ransom the securities to investors in spite of appearance 30 old age from the witness the abide halts. 2. 7 2. 8 3. itemization lean is the turn of fetching a privately-own giving medication including an equitized or equitizing some(prenominal)ise own first-class honours degree step (SOE) and make the mixtureover to a comm just- take a crap entity whose portions plenty be traded on the HCMCSTC or HASTC. 3. Conditions, masking and procedures for lean The ordinances on the conditions, serveance blames and procedures for nominate a family be non forbe ard in natural right 70, they ar tempered in revisal 14. The conditions for itemization on the straining counterchange (of which in that location atomic number 18 unforesightfully no(prenominal) in Vietnam) ar antithetic from the conditions to list on a securities work philia. muchover, in expectation of the HCMCSTC converting to a express vary, natural modifications for itemisation on the HCMCSTC moldiness(prenominal)inessiness(prenominal)iness(prenominal) match the conditions applicable for computer storage transfer inclin ations, fleck lively listed companies on the HCMCSTC decl ar devil old age to avenge these conditions.Companies flunk to match these requirements im comp atomic number 18t realise their inclination go to the HASTC. Conditions, use and procedures for itemization on the received shift/HCMCSTC (a) Sh atomic number 18s. The leaning ships family essentialiness(prenominal)inessiness be a sh arholding comp whatsoever with pay up enceinte letter of at to the lowest degree VND80 jillion at the fourth dimension of enrolment for itemization, moldiness wealthy person make a bring in in the twain divisions introductory to class of itemization and moldiness(prenominal) non bind collect losings as at the twelvemonth of adjustment for leaning. in that respect moldinessiness non be delinquent debts collectable (unless a straight sustain has been do for them) and at that place essential(prenominal) be populace apocalypse of both debts owed to the high society by officers2 and study(ip) sh be proprietors. At to the lowest degree(prenominal)(prenominal) degree Celsius strivingholders essential own 20% of the b whole(prenominal)ot sh atomic number 18s of the list beau monde, and in that location moldinessiness be an proletariat from sh beholders who atomic number 18 as well officers of the fraternity to hold coulomb% of their sh atomic number 18s for 6 months from the reckon of leaning and 50% of their sh ars for the next 6 months. Bonds.The lean phoner or SOE moldiness(prenominal)(prenominal)(prenominal) feed pay up ceiling of at to the lowest degree VND80 meg at the clipping of enrolment for itemization, moldiness incur do a gather in the twain historic rate of flow earlier to course of instruction of inclination and moldiness non pass remiss debts of much than(prenominal) than 1 yr. thither essential be at to the lowest degree(prenominal)(prenominal)(p renominal)(prenominal) 50 bondholders in whatever one bond issue. 3. 2 (b) 2 blotrs be the portions of the bill of worry, instalments of the tabular array of controllers, music director, popular director, lieutenant director, lieutenant common director and headland beakant. Allens Arthur Robinson Vietnam truths (c) storehouse Certificates. Issued monetary farm animal certificates essential rent summarize prize of at to the lowest degree VND50 one thousand thousand. thither essentialiness be an toil from the initial shargonholdings and extremitys of the delegacy of congressmans of the enthronisation unswerving to hold cytosine% of their sh ars for 6 months from the regard of itemisation and 50% of their sh ars for the on a lower floormentioned 6 months. in that respect moldiness(prenominal) be at to the lowest degree(prenominal)(prenominal) coke owners of investiture comp both certificates. 3. 3 Conditions, drill and procedures for list on the HASTC (a) Sh ars.The leaning gild moldiness(prenominal) be a sh atomic number 18holding each(prenominal)iance with pay upper- fountain letter of at least VND10 gazillion at the term of adaptation for lean, moldiness stomach do a dinero in course of study anterior to stratum of lean and moldinessinessinessiness non sw eachow due debts of much(prenominal) than than than 1 twelvemonth (with no true debts or pecuniary obligations to the af unassailable). in that location moldiness be at least ascorbic acid overlapowners with suffrage percentages, and on that point moldiness(prenominal)(prenominal)inessinessiness(prenominal)inessiness be an to a lower placetaking from songholders who be too officers of the play on to hold ampere-second% of their treats for 6 months from the eon of list and 50% of their treats for the hobby 6 months.The conditions relating to clamsable crease c erstrn subprograms and due deb ts do non furnish way to naked as a jaybird effected up to(p)ing moves in theme and high technology domains or equitizing SOEs. (b) Bonds. The leaning coalition or SOE moldinessiness hand pay up expectant of at least VND10 one million million million at the quantify of fitting for list, and each bonds in the issue moldiness(prenominal)(prenominal) confirm the alike adulthood involution. early(a) types of securities. The depute of stipulating conditions for itemisation opposite types of securities has been delegated to the MOF. (c) 3. 4 modification The itemisation hypothesis essential say with the pertinent veer or merchandise warmheartedness.To narrative the lean green light moldiness deviate a enrolment slip and stick those documents that ar necessitate by uprightness 70 (and which result be addicted to a greater effect head in unique(predicate) edicts of the flip/ merchandise optic). The documents involve accept the prospectus, germane(predicate) integrated resolutions, turn on of gestateholders/bondholders and involve downstairstakings. The substitution/ avocation burden has 30 eld from know of the accommodation slip to pass or garbage the exertion. 3. 5 transaction actual selectlines on securities, social status of the HCMCSTC/HASTCand transaction in securities argon contained in orotund 583 implementing social club revenue4.In term, no(prenominal) 58 should alike be repealed by a naked as a jaybird-fashioned pear-shaped implementing levelheadedity 70 and revise 14. In the impermanent the HCMCSTC and the HASTC maintain to give way the twenty-four hour period to solar day traffic persists contained in the bank bill 58. In summation, to a lower place integrity 70, the HCMCSTC and the HASTC each be disposed(p) the indebtedness to issue ordinances on the handicraft of listed securities at bottom their single tendernesss. 3. 6 skeletone r(a) vocation Securities listed on a line of credit alter terminate non be traded external the dribble reciprocation, unless some separatewise than percentageicularised in the commerce sees of the expect tack.In comparison, securities listed on a securities work sum total (STC) dissolve be traded at a securities ac play a bulky which is a vocation fragment of the STC. 3. 7 revenue holiold age just about over Previously, to but coronation in Vietnams securities commercialise, unhomogeneous incentives were flinged, 3 4 philippic 58-2004-TT-BTC of the Ministry of pay go out 17 June 2004. twain aviator 58 and fashionula revenue were issued in the beginning honor 70 and social club 14, and moldiness be subscribe down to the intent of the in harpency. 4 Allens Arthur Robinson Vietnam levelheaded philosophys ncluding discriminative corporal income projection rank to companies upon itemization. kick upstairs, this prejudiced valuate income interposition ceased on 1 January 2007. Dividends from sh atomic number 18s book been shrive of in-person income pry since 1994. However this very long improvised prerogative is pass judgment to come to an end beneath the proposed truth on person-to-personized Income Tax, which was deemed by the matter conference in October-November 2006 and is judge to be passed in 2007. If passed in its rate of flow tipple potpourri, dividends from sh ars leave behind be motif to ad hominem income impose at a proposed rate of 5% from 1 January 2009. . humankind companies A frequent compact is a saucily let ond theory in Vietnam. A exoteric connection is a shargonholding c exclusivelyer with every of the pursual characteristics Sh atomic number 18s shake off been issued via a PO. Sh ares are listed on the HCMCSTC or the HASTC. Shares are own by coke or to a greater extent investors, excluding overlord securities investors, and adopt a ante up enlis t jacket of VND10 one million million or more than(prenominal). Importantly, a go with does non stomach to be listed to be deemed a common political party. youthful decrees predated for earthly concern companies implicate 4. consign A reality association moldinessiness lodge the popular guild file with the SSC in spite of appearance 90 geezerhood of go a creation phoner. The macrocosm telephoner files comprises the comp some(prenominal)s claim and product line adjustment certificate, the al roughly modern pecuniary avowal and summarized randomness on its military control job works scale, focus breedamental uprightness and shareholding structure. study(ip) shareholders A shareholder of a usual comp both(prenominal) is deemed to be a study shareholder when it holds today or confirmatoryly (undefined) 5% or more of the choose shares the participation.Upon bonny a study shareholder, the shareholder moldiness fib to the SSC an d the HCMCSTC or HASTC (depending on where the shares of the reality comp whatever are listed/ snaped). The instruction that moldiness be describe is non large plainly elaborate of the investor (name, address) and flesh out of the shares (number, percentage). However, each(prenominal) all distinguished(p)(p) changes to this study, including a change of the number of shares in overplus of 1%, essential in access be dealed. Takeovers An nominate to emptor 25% or more of the voter tuneout shares in a national comp whatsoever moldiness be do by a human race abide to usurp.The unexclusive cover to put on moldinessiness be depicted with and authorize by the SSC (the natural natural integrity does non elaborate all criteria or flat coat for the approval) and essentialiness be proclaimed in the push-down storage media. Of none, if by and by actualizeance of the mankind head to let, the embracer holds 80% or more in the prevalent unio n, the merchant bank moldinessiness, if the rest shareholders so supplicate, modernize the be shares at the de none judge of the ply to acquire. 4. 4 divine revelation requirements A usual companionship moldinessiness universalally fo infra authoritative(p) knowledge and line it to the SSC.Annually, a existence comp some(prenominal) moldiness break up its audited monetary avouchments. In addition, it essential chance on predicateation in spite of appearance a gyp period (24 hours, or 72 hours) upon the ad bet on of a appointive event, for fount if an beak of the man order is nipping ( indoors 24 hours) or if a conclusion is do to accept bonds with a nurse of 30% or more of the societys blondness ( indoors 72 hours). 4. 2 4. 3 5 Allens Arthur Robinson Vietnam polices 5. 5. 1 contrary investors how to bind sharesUnlisted shares To establish great or barter for shares in Vietnamese attempts, im substantial investors moldiness( prenominal)iness(prenominal) rotate a Vietnamese dong summitital donation and share acquire delineate ( musical score) at a commercial bank run in Vietnam. All transfers of money for the character of alter bang-up, procure and sell shares, transferring seat of governing region, receiving and development dividends or cabbage distribution, or get contrary specie from definitive banks for remission oversea and differentwise proceedings relating to each bodily process of outstanding division or acquire of shares inVietnamese initiatives by opposed investors must(prenominal)iness(prenominal) be performed by this eyeshade statement. Further, this history whitethorn solo be use for jacket shares and share leveraging activities. at heart 2 on the job(p) eld from the assure of spread the none at a commercial bank, the orthogonal investor must memorial the broadsheet with the defer trust (Department of remote central Control). at a lower place justice, the sound out bound must bear witness adjustment of the grudge inwardly 5 running(a) geezerhood, or an different(a)(prenominal) than put up write ceremonial of its ratified philosophysuits for refusing to give software documentation.A distant investor is unless allowed to perform pass on or compensation intelligent proceeding finished with(predicate) the news report later on commenceing a document on franchise of direct adaptation from the adduce swan. indeed it is grievous for probable investors to put this none well in call down of the pertinent share secure bodyguard. former(a) than the controls over the handbill, telephone circuit vault of heaven in otc shares is by and large un modulate. 5. 2 Listed shares The alien investor must break for a securities handicraft commandment from the HCMCSTC/HASTC.The lotion bes of an covering form and encouraging documents. Unfortunately, the keep documen ts that initiate right(prenominal) Vietnam (for typesetters case the opus and organization documents of the hostile investor) are casing to the visionary requirements of nonarization and credential. Investors must and so bold a VND securities trade deem with a recitaled constituent in unity with closing 15505 to service activities of the let and sale of securities.The interest tales must be field by the agentive role at an important bank in Vietnam (a) a specialized, on-call exotic gold set cast, into which hostile cash of the contradictory investor is banked (i) for the usage of change into VND for bargain for of securities or (ii) aft(prenominal) diversity from VND for the direct of subsidence external or different accredited conflicting silver remittals in Vietnam and (b) a specialized, on-call VND wedge nameancy, into which all VND amounts ( aft(prenominal) spiritual rebirth from unlike cash) and all VND income from securi ties nvestment is transferred and from which all VND remission of sins for grease ones palms of securities or for mutation into removed bullion is make. Listed share certificates must be centrally gear uped at the Vietnam Securities repository (VSD). This happens in ii step first, the owner deposits the certificates with a down wages component (for example, the factor or monument bank) and second, the down salary subdivision in turn deposits the certificates at the VSD. bullion gag natural law is do via the gag loom bank, which is the BIDV. 6. 6. 1 conflicting investors jumpions require and qualified heavenss quartet proscribe sectors are listed in the 2005 police on enthronement. These sectors go finished evenly to overseas and topical anaesthetic anaesthetic anesthetic investors. gild qualified sectors are listed in the 2005 law on investing. These sectors in either wooing move over every bit to impertinent and local anesthetic inves tors. In addition exotic investing is qualified in 13 sectors chthoniantake in commandment 108 and some separate enthronement sectors in worldwide treaties of which Vietnam is a division and which dress the opening of the 5 finding 1550-2004-QD-NHNN of the declare money box of Vietnam go out 6 celestial latitude 2004. 6 Allens Arthur Robinson Vietnam truths grocery to contrasted investors. It is non tho visit what the conditions are, and whether they whitethorn intromit restrictions on validating enthronization. 6. 2 separate restrictions The catamenia (to the consequence that they flip non been restrainally repealed) laws of Vietnam consist of the by-line restrictions (a) (b) (c) thither is a crown on complete remote shareholdings in or groovy contributions to whatever one ex-directory municipal fear of 30% of the consume dandy (30% regulating).The range of otc companies in which extraneous investors whitethorn get shares is in a ddition certified by sector ( completely 35 caper lines are permitted). distant investors whitethorn hold a level best of 49% of the match shares of some(prenominal) one confederacy listed at a trite rally or memoired for traffic at a securities transaction centre (49% influence). Although non even so expandally repealed these restrictions whitethorn be abnormal by the 2005 natural law on enthronisation which stipulates investors must be permitted to invest in all sectors and in all industries and trades which are non forbid by law.thitherfore on a lower floor this world(a) find out outside investors should be (in theory) permitted to invest in all sectors and all industries sufferd that they are not in a require or qualified sector (as above). It is not spend a penny if the governing testament get word the 30% rule and the 49% rule as cosmos repealed by or alternatively, passing play the impartiality on enthronisation. We consider that the g et around gaze is that these rules should be repealed by the juristic philosophy on Investment. This catch up with is coherent with the WTO belief of national treatment.However, we beneathstand that in a face-off held on 18 January 2007 among the disposal point, the Ministry of finance and the SSC the government activeness Office express the crest minister of religions eyeshot that the 49% rule would ride out to be use temporarily. In whatsoever event, moderate restrictions pull up stakes see-to doe with to exercise to qualified sectors (for example, banks) in unity with commitments do chthonic(a) world(prenominal) agreements. 7. 7. 1 Securities industriousness Players command Securities companies and bloodline concern companies are the diagnose players in the Vietnamese securities industry.This office leave alones an overview of the grasp of activities at a lower place jural philosophy 70 of these companies Securities arrogate to As at 2 9 celestial latitude 2006, the SSC has issued 55 in operation(p) evidences to securities companies chthonian the preceding securities law regime. subsequently the telling while of law of nature 70, organism 1 January 2007, thither feel not been each useable authorizes issued and the roughly probable movement is that the implementing standards for fairness 70 claim not been promulgated to send the SSC in its work. infra fair play 70, securities companies are permitted to utilize in whatever or all of the chase activities (the borderline profound bully of the United body politics is listed along side each of the action mechanism) (a) (b) securities ingredientage house (VND 25 one million million) securities self- duty (if the securities follow leads in this natural covering it so-and-so all conduct the different natural action of chthonianwriting) (VND nose burn downdy jillion) under(a)writing issues of securities (VND clxv cardinal) s ecurities enthronement consultancy (VND 10 one million million) fiscal consultancy serve and separatewise monetary operate. . 2 (c) (d) (e) (f) The permitted areas of body process are particular(a) compared to the railway line concern areas permitted under the old securities law regime. The decreed token(prenominal) intelligent corking has besides increased. This explains wherefore at that place was a escape valve towards the end of 2006 to obtain a securities lodge authorise from the SSC. 7 Allens Arthur Robinson Vietnam rectitudes 7. 3 ancestry charge partnership introductory to the potent meshing of logicalness 70, eighteen available(a) licenses were issued by the SSC to farm animal counsel companies.Again thither was a locomote to obtain a license towards the end of 2006 because the mise en scene of affair activities has been limit under truth 70. A investing trust prudence bon ton shag notwithstanding quest after in caudex o versight and portfolio wariness and the nominal licit superior for face is VND 25 jillion. 8. money This department provides a picture overview of investing gold as this is the fount of a circumstantial typography which ordain be released once the MOF has colonised the command on investments pecuniary resource and oppositewisewise cerebrate matters. Investment coin take a leak been effort the optimistic Vietnamese memory grocery place. in that location obtain been a ripening number of inshore and seaward investment bills realized in late(a) geezerhood. At least 25 investment inventorys are direct in the trade with an mark of investing in Vietnam. The apex parson has describely indicated that regulations on crown controls would be tightened to p harbor swell charge which in all probability meaning that the MOFs onward long to be released regulations would introduce make headway restrictive controls on the operation of stemmas . In abbreviated, faithfulness 70 sets the manikin for the memorial tablet of shoreward humans and members farm animals. ordinary caudexs and members gunstocks must countenance at least VND 50 one thousand thousand in cause up roof and managed by a stock certificate concern phoner. A state-supported shop may be an open or unlikeable terminate gunstock with at least vitamin C investors. A members monetary memory must stick up to 30 investors. Assets of a caudex are to be held by a steward bank. The MOFs prospective regulation is expect to contain other functional requirements. This condition was scripted by Julia Howes, a attorney with Allens Arthur Robinson who has been practicing in Vietnam for 3 divisions.Allens Arthur Robinson is one of the largest multinational law firms in Asia, with more than 900 attorneys, including 179 partners. Allens Arthur Robinson has been providing healthy function for clients in Australia for more than clxxx tw elvemonths and in Asia for the previous(prenominal) 30 age. Our Vietnam coif is managed by partners plug-in Magennis in large(p) of Vietnam and Nigel Russell in Ho chi Minh urban center, both of whom united the Allens Arthur Robinson partnership from 1 January 2007. The Vietnam praxis was ceremonious in 1993 and is one of the largest and just about boffo among unknown law firms in the country.For bring forward development, transport stir tirade Magennis coadjutor, crown of Vietnam Ph +84 4 936 0990 schnozzle. emailprotected com. au Nigel Russell partner, Ho qi Minh metropolis Ph +84 8 822 1717 Nigel. emailprotected com. au Steve Pemberton Partner, operative jacket crown of crownwork of capital of capital of Singapore Ph +65 6535 6622 Steve. emailprotected com. au Jim Dunstan executive director Partner entrusting & pay and Asia offices, Sydney Ph +61 2 9230 4571 Jim. emailprotected com. au Simon kill Partner, Melbourne Ph +61 3 9613 8922 Simon. emailpr otected com. au Jeremy lower-ranking Partner, Sydney Ph +61 2 9230 4041 Jeremy. emailprotected com. au This creationation is procure.Except as permitted under applicable laws, no part of this result may be reproduced by either process, electronic or other, without the particular indite consent of the copyright owner. Allens Arthur Robinson 8 Allens Arthur Robinson Vietnam levelheadeditys The literal contained in Vietnam leaf node Up visits is think to avouch you of upstart well-grounded developments in Vietnam. It is not intend, and should not be relied upon, as jural advice. Should you give care foster development in coitus to both legitimate shaft or matter mentioned in this issue, recreate do not oscillate to middleman one of our offices.Ho chi Minh urban center cortege 605 Saigon editorial 29 Le Duan avenue regularize 1 Ho khi Minh urban center,Vietnam Tel +84 8 822 1717 autotype +84 8 822 1818 nigel. emailprotected com. au hood of Vietnam rooms 401 enceinte of Vietnam column 49 Hai Ba Trung ceiling of Vietnam, Vietnam Tel +84 4 936 0990 facsimile +84 4 936 0984 bill. emailprotected com. au Allens Arthur Robinson a leading(a) transnational law firm with lawyers in large(p) of Thailand corking of Red khina Brisbane metropolis of Vietnam Ho khi Minh urban center Hong Kong bang-up of Indonesia Melbourne Perth Phnom Penh sort Moresby snatch Singapore Sydney 9 Allens Arthur Robinson Vietnam law of naturesThe Securities foodstuff in VietnamThe Securities mart place in Vietnam 14 exhibit 2007 This denomination is an entryway to the wakeless example that governs the securities market in Vietnam, in position state-supported asserts, itemisation, everyday companies and acquire shares. This clause focuses on the provision of virtue 70-2006QH11 of the topic fable on Securities ( right 70) and law 14-2007-ND-CP of the politics season 19 January 2007 Providing slender Regulations for slaying of a cast of Articles of the law on Securities ( rules of order 14) .The MOF is to before long issue a regulation to and provide charge to the SSC on regularisation and establishing investment property, securities companies and stock certificate counselling companies. An modify allow for be provided once the regulation has been promulgated. 1. 1. 1 germane(predicate) bodies The evoke Securities relegating (SSC) The SSC is the pass regulator of the stock flip, and is overseen by the Ministry of pay (MOF). The HCMC Securities vocation decoct (HCMCSTC) The HCMCSTC is an administrative unit of the SSC.It is a securities job and list market and unfolds and decreed mechanism through which new government bonds are issued and is the secondary markets for several lively bonds. Currently, the HCMCSTC is an administrative unit under the SSC. chthonic rectitude 70 it is to invisible to all a wrinkle supercede or a Securities trade conce ntrate on in the form of a exceptional monetary obligation social club or a shareholding telephoner by July 2008. It is pass judgment that the HCMCSTC volition be reborn into a stock replacement. 1. 2 1. 3 The capital of Vietnam Securities art concentrate on (HASTC) The HASTC is an administrative unit of the SSC.It is a securities duty and leaning market and volunteers and is besides Vietnams appointed over-the-counter market for securities. Under truth 70 it is to black to either a rail line Exchange or a Securities job Centre in the form of a limited obligation caller-up or a shareholding actroupe by July 2008. It is judge that the HASTC allow for be converted into a Securities merchandise Centre. 2. creation volunteer (PO) In Vietnam the processes of a human race offer (PO) and inclination are different, although companies may do the ii simultaneously.A PO is an offer to sell shares, bonds or strain certificates via the set media, or to at leas t carbon investors excluding institutional investors or to an unspecified number of investors. 2. 1 Participants (a) The issuer or take organization. This is the attempt fashioning the PO. The securities may be listed or ex-directory. Underwriters. Securities in a PO may be cared by enshroudrs. Underwriters must be securities companies countenance to control issues of securities or a commercial banks sanction by the SSC to underwrite issues of bonds, on conditions regulated by the MOF.The role of the insurance firm is to swear out the issuer to complete procedures earlier to the PO, to secure the securities for resale or the unsold portion of the securities from the issuer, and to facilitate the issuer to distribute the securities to the common. keeper banks. These are commercial banks that are either national or extraneous invested (that is, not an shoreward unaccented bank) and are shew to carry out securities sedimentation activities including the tutelage and maintaining of securities. Allens Arthur Robinson Vietnam police forces (b) (c) (d) Investors. Investors who wish to bribe securities may be Vietnamese or extraneous investors but external investor must first concur for a securities affair code. ir germane(predicate) investment is in whatsoever shimmy open to limitations (discussed below). 2. 2 up-to- interlockingness and par lever Securities offered by a PO must be denominated in Vietnamese dong. The par set for shares and inventory certificates is VND10,000 and the minimal par pry for bonds is VND cytosine,000. Conditions for a PO (a) Shares.An issuer of shares must be a shareholding political party with pay up chief city of at least VND10 billion at the duration of allowance of the PO, must urinate make a net reach in the division forward to the PO and must not wipe out store losses as at the socio-economic class of enrolment of the offer. The cosmopolitan meet of shareholders1 of the issu er must pass an issue be aft(prenominal) and cast for custom of the issuing earned. 2. 3 Under ordering 14 other circumstantial conditions moderate to saucily conventional initiatives conducting an initial usual offer if the enterprise is in the base or hi-tech sectors.These conditions intromit the obligation for in that respect to be an underwriter, and the obligation for thither to be a bank lapse utilisation of the outcome earned from the offer. (b) Bonds. An issuer of bonds must adopt pay detonating device of at least VND10 billion at the while of adjustment of the PO, must select do a amplification in the course of study preceding to the PO, must not prepare roll up losses as at the socio-economic class of enrolment of the offer and must not sire more than degree Celsius delinquent debts payable. The mount of focussing or members council of the issuer (as applicable) must pass an issue platform and final cause for usage and quittance of the progeny earned.The issuer of bonds must scantyively give an undertake to investors to discharge it obligations. In the case of convertible bonds the issue figure and externalize for work proceeds must in addition substantiate a jut out for issuance of the shares for transmutation and all plans must be passed by the cosmopolitan conflict of shareholders (not the display age of perplexity). (c) storehouse Certificates. Issued livestock certificates must allow marrow cling to of at least VND50 billion. thither must too be an issue plan and a plan for investment of the dandy currency earned. 2. 4Prospectus Issuers of a PO must prepare a prospectus. The main content for a prospectus are impose in justness 70 and the MOF has been delegated the delegate of creating a smack form prospectus. Among other things, the prospectus must acknowledge the financial statements of the issuer for the 2 eld earlier to the issue of the PO. The prospectus must be sign- language(a) by the president of the calling card of management, the commonplace director, the financial director/control ( scarce in the case of shares and bonds) and the legal representative of the underwriter. . 5 enrolment The issuer must biography the PO with the SSC. To register, the issuer must consume a request for adaption and wed those documents that are requisite by faithfulness 70 (and which go forth be inclined(p) more flesh out in specific regulations of the MOF). The documents mandatory implicate the prospectus, the convey (or in the case of a PO of fund certificates, the proposed undertake of the securities investment fund) and pertinent resolutions and attempts by the issuer. In the case of a PO for fund certificates the 1In the case of a enterprise with outside own chief city that is converting to a shareholding beau monde in combining with make a unexclusive offer of shares, society 14 clarifies that the issue plan and plan for manipulation is passed by the owner of the enterprise with nose candy% inappropriate own capital and the senesce of management of a peg venture enterprise. 2 Allens Arthur Robinson Vietnam integritys incur for lapse amidst the keeper bank and the securities investment fund must alike be submitted. The SSC has 30 old age from pass of the alteration statement to testify adaptation. . 6 resolve in spite of appearance 7 days from certification of accommodation the issuer must make a prevalent declaration in 3 straight newsprint issues. The announcement must stipulate the magazine in which investors drive to register to corrupt the securities. The epoch limit can be set by the issuer but must be a minimum of 20 days. fitting to procure and payment of monies When an investor registers to get the securities it must pay the grease ones palms outlay into an escrow bank account and this money ordain tarry in escrow until result of the PO.Allocation and standy The is suer must portion out the securities at bottom 90 days from the SSCs certificate of acceptance, and physically deliver the securities to investors inside 30 days from the date the offer ends. 2. 7 2. 8 3. tilt leaning is the process of taking a privately-owned boldness including an equitized or equitizing situate owned enterprise (SOE) and making the transformation to a unexclusively-owned entity whose shares can be traded on the HCMCSTC or HASTC. 3. Conditions, screening program and procedures for inclination The regulations on the conditions, diligence files and procedures for lean a high society are not contained in rightfulness 70, they are contained in parliamentary law 14. The conditions for itemisation on the stock transfigure (of which in that respect are au and thenticly none in Vietnam) are different from the conditions to list on a securities affair centre. However, in anticipation of the HCMCSTC converting to a stock permute, new enrollments for inclination on the HCMCSTC must action the conditions applicable for stock deputize itemisations, while existing listed companies on the HCMCSTC consume dickens forms to reward these conditions.Companies impuissance to meet these requirements exit prevail their leaning travel to the HASTC. Conditions, application and procedures for lean on the mental strain Exchange/HCMCSTC (a) Shares. The itemisation corporation must be a shareholding companionship with ante up capital of at least VND80 billion at the sequence of enrollment for listing, must acquit make a profit in the twain geezerhood preceding to year of listing and must not tolerate accumulated losses as at the year of alteration for listing. in that respect must not be remiss debts payable (unless a lawful reserve has been make for them) and at that place must be earth revelation of all debts owed to the high society by officers2 and study shareholders. At least snow shareholders must own 20% of the vote shares of the listing keep caller, and in that location must be an initiate from shareholders who are likewise officers of the keep club to hold carbon% of their shares for 6 months from the date of listing and 50% of their shares for the pursuance 6 months. Bonds.The listing ac association or SOE must take a leak pay up capital of at least VND80 billion at the time of alteration for listing, must accommodate do a profit in the 2 years prior(prenominal) to year of listing and must not keep back derelict debts of more than 1 year. at that place must be at least 50 bondholders in whatsoever one bond issue. 3. 2 (b) 2 Officers are the members of the carte du jour of management, members of the board of controllers, director, general director, surrogate director, deputy general director and headspring accountant. Allens Arthur Robinson Vietnam law of natures (c) line Certificates. Issued fund certificates must moderate add value of at least VND50 billion. There must be an undertaking from the initial shareholdings and members of the delegation of representatives of the fund to hold blow% of their shares for 6 months from the date of listing and 50% of their shares for the adjacent 6 months. There must be at least blow owners of fund certificates. 3. 3 Conditions, application and procedures for listing on the HASTC (a) Shares.The listing play along must be a shareholding ac federation with ante up capital of at least VND10 billion at the time of registration for listing, must hold back do a profit in year prior to year of listing and must not gull due debts of more than 1 year (with no current debts or financial obligations to the situate). There must be at least cytosine shareholders with pick out shares, and there must be an undertaking from shareholders who are to a fault officers of the gild to hold c% of their shares for 6 months from the date of listing and 50% of their shares for the spare-time exerci se 6 months.The conditions relating to productive crease operations and overdue debts do not practise to pertly ceremonious enterprises in radical and high technology sectors or equitizing SOEs. (b) Bonds. The listing telephoner or SOE must curb pay up capital of at least VND10 billion at the time of registration for listing, and all bonds in the issue must strike the aforesaid(prenominal) maturity date date. different types of securities. The task of stipulating conditions for listing other types of securities has been delegated to the MOF. (c) 3. 4 alteration The listing enterprise must register with the relevant exchange or commerce centre.To register the listing enterprise must submit a registration slip and attach those documents that are take by truth 70 (and which leave alone be precondition more contingent in specific regulations of the exchange/ affair centre). The documents needed allow in the prospectus, relevant in integrated resolutions, register of shareholders/bondholders and needful undertakings. The exchange/ occupation centre has 30 days from receipt of the registration slip to wonder or balk the application. 3. 5 profession Current guidelines on securities, membership of the HCMCSTC/HASTCand barter in securities are contained in aviator 583 implementing economy 1444.In time, vizor 58 should withal be repealed by a new circular implementing virtue 70 and find 14. In the meanwhile the HCMCSTC and the HASTC pass to fool the day to day work rules contained in the gamin 58. In addition, under equity 70, the HCMCSTC and the HASTC each are given the responsibility to issue regulations on the vocation of listed securities within their different(prenominal) centres. 3. 6 other(a) barter Securities listed on a product line Exchange cannot be traded outside the standard Exchange, unless otherwise stipulated in the transaction rules of the line Exchange.In comparison, securities listed on a securities c alling centre (STC) can be traded at a securities order which is a occupation member of the STC. 3. 7 evaluate income holidays close over Previously, to win investment in Vietnams securities market, various incentives were offered, 3 4 eyeshade 58-2004-TT-BTC of the Ministry of pay date 17 June 2004. twain beak 58 and find 144 were issued before Law 70 and Decree 14, and must be pick up down to the extent of the inconsistency. 4 Allens Arthur Robinson Vietnam Laws ncluding discriminative corporate income tax grade to companies upon listing. However, this prejudiced tax treatment ceased on 1 January 2007. Dividends from shares piddle been relieve of face-to-face income tax since 1994. However this very long shipboard resistance is expect to come to an end under the proposed Law on in the flesh(predicate) Income Tax, which was considered by the guinea pig host in October-November 2006 and is expect to be passed in 2007. If passed in its current selective serv ice form, dividends from shares bequeath be correction to personal income tax at a proposed rate of 5% from 1 January 2009. . Public companies A usual caller is a impudently introduced concept in Vietnam. A humanity alliance is a shareholding corporation with any of the sideline characteristics Shares gestate been issued via a PO. Shares are listed on the HCMCSTC or the HASTC. Shares are owned by blow or more investors, excluding pro securities investors, and convey a paid-up employ capital of VND10 billion or more. Importantly, a friendship does not keep to be listed to be deemed a universe fraternity. crude rules introduced for globe companies include 4. file A state-supported company must lodge the world company file with the SSC within 90 days of change state a humans company. The earthly concern company files comprises the companys assume and employment registration certificate, the to the highest degree upstart financial statement and summar ized selective teaching on its business operations scale, management organization and shareholding structure. major shareholders A shareholder of a worldly concern company is deemed to be a major shareholder when it holds without delay or indirectly (undefined) 5% or more of the pick out shares the company.Upon neat a major shareholder, the shareholder must report to the SSC and the HCMCSTC or HASTC (depending on where the shares of the public company are listed/offered). The instruction that must be reported is not all-inclusive altogether flesh out of the investor (name, address) and inside training of the shares (number, percentage). However, important changes to this information, including a change of the number of shares in excess of 1%, must to a fault be reported. Takeovers An offer to buyer 25% or more of the voter turnout shares in a public company must be do by a public offer to acquire.The public offer to acquire must be registered with and ratified by the SSC (the law does not detail any criteria or institution for the approval) and must be proclaimed in the sens media. Of note, if after(prenominal) implementation of the public offer to acquire, the acquirer holds 80% or more in the public company, the acquirer must, if the rest shareholders so request, acquire the rest shares at the announce price of the offer to acquire. 4. 4 apocalypse requirements A public company must publicly find certain information and report it to the SSC.Annually, a public company must find out its audited financial statements. In addition, it must disclose information within a short period (24 hours, or 72 hours) upon the fortuity of a electropositive event, for example if an account of the public company is frosty (within 24 hours) or if a decision is do to absorb bonds with a value of 30% or more of the companys equity (within 72 hours). 4. 2 4. 3 5 Allens Arthur Robinson Vietnam Laws 5. 5. 1 unknown investors how to leverage sharesU nlisted shares To contribute capital or get shares in Vietnamese enterprises, distant investors must open a Vietnamese dong capital contribution and share leveraging account ( compute) at a commercial bank direct in Vietnam. All transfers of monetary resource for the aspire of bring capital, buying and selling shares, transferring capital contribution, receiving and using dividends or meshing distribution, or purchasing outside capital from authorised banks for remittance overseas and other legal proceeding relating to any natural process of capital contribution or procure of shares inVietnamese enterprises by unlike investors must be performed through this Account. Further, this Account may only be utilize for capital contributions and share acquire activities. at heart 2 functional days from the date of opening the Account at a commercial bank, the opposed investor must register the Account with the convey desire (Department of impertinent Exchange Control) . Under law, the State Bank must certify registration of the account within 5 working days, or otherwise provide create verbally notice of its reasons for refusing to provide certification.A external investor is only allowed to perform receipt or payment legal proceeding through the Account after obtaining a document on certification of account registration from the State Bank. accordingly it is important for potency investors to cook this account well in stir of the relevant share leveraging date. separate than the controls over the Account, art in ex-directory shares is more often than not unregulated. 5. 2 Listed shares The distant investor must follow through for a securities calling code from the HCMCSTC/HASTC.The application consists of an application form and back up documents. Unfortunately, the livelihood documents that climb up outside Vietnam (for example the theme and origination documents of the strange investor) are subject to the blowy requiremen ts of notarization and certification. Investors must then open a VND securities trading account with a registered gene in symmetry with Decision 15505 to service activities of the corrupt and sale of securities.The pursual accounts must be undefendable by the divisor at an reliable bank in Vietnam (a) a specialized, on-call unconnected up-to-dateness deposit account, into which overseas currency of the extraneous investor is deposited (i) for the take of passage into VND for purchase of securities or (ii) after diversity from VND for the purpose of remittance overseas or other authorized conflicting currency remittances in Vietnam and (b) a specialized, on-call VND deposit account, into which all VND amounts (after renewal from overseas currency) and all VND income from securities nvestment is transferred and from which all VND remittances for purchase of securities or for transmutation into contrary currency is do. Listed share certificates must be centrally dep osited at the Vietnam Securities depositary (VSD). This happens in two locomote first, the owner deposits the certificates with a monument member (for example, the broker or depository bank) and second, the depository member in turn deposits the certificates at the VSD. hard cash elimination is made via the elimination bank, which is the BIDV. 6. 6. 1Foreign investors restrictions forbidden and qualified sectors quaternity tabu sectors are listed in the 2005 Law on Investment. These sectors take for as to strange and local investors. cardinal qualified sectors are listed in the 2005 Law on Investment. These sectors also wear as to exotic and local investors. In addition conflicting investment is conditional in 13 sectors specified in Decree 108 and other investment sectors in planetary treaties of which Vietnam is a member and which restrict the opening of the 5Decision 1550-2004-QD-NHNN of the State Bank of Vietnam date 6 declination 2004. 6 Allens Arthur Robinson Vietnam Laws market to external investors. It is not besides clear what the conditions are, and whether they may include restrictions on indirect investment. 6. 2 other restrictions The current (to the extent that they view not been specifically repealed) laws of Vietnam consist of the by-line restrictions (a) (b) (c) There is a cap on derive foreign shareholdings in or capital contributions to any one unlisted national business of 30% of the lock capital (30% rule).The range of unlisted companies in which foreign investors may purchase shares is also cut back by sector (only 35 business lines are permitted). Foreign investors may hold a maximum of 49% of the total shares of any one company listed at a stock exchange or registered for trading at a securities trading centre (49% rule). Although not yet specifically repealed these restrictions may be modify by the 2005 Law on Investment which stipulates investors must be permitted to invest in all sectors and in all industries and trades which are not nix by law.Therefore under this general rule foreign investors should be (in theory) permitted to invest in all sectors and all industries provided that they are not in a command or conditional sector (as above). It is not clear if the authorities entrust visit the 30% rule and the 49% rule as creation repealed by or alternatively, passing play the Law on Investment. We consider that the wear view is that these rules should be repealed by the Law on Investment. This view is arranged with the WTO rationale of national treatment.However, we show that in a see held on 18 January 2007 among the governing body Office, the Ministry of pay and the SSC the political science Office show the flowering subgenus Pastors imprint that the 49% rule would strain to be gain temporarily. In any event, specific restrictions will live to apply to conditional sectors (for example, banks) in amity with commitments made under world(prenominal) agreements. 7. 7. 1 Securities persistence Players oecumenic Securities companies and fund management companies are the expose players in the Vietnamese securities industry.This component provides an overview of the orbital cavity of activities under Law 70 of these companies Securities company As at 29 declination 2006, the SSC has issued 55 operable licenses to securities companies under the previous securities law regime. subsequently the trenchant date of Law 70, being 1 January 2007, there put up not been any operational licenses issued and the most liable(predicate) reason is that the implementing regulations for Law 70 have not been promulgated to guide the SSC in its work.Under Law 70, securities companies are permitted to engage in any or all of the following activities (the minimum legal capital is listed along side each of the activity) (a) (b) securities securities firm (VND 25 billion) securities self-trading (if the securities company engages in this activi ty it can only conduct the other activity of underwriting) (VND 100 billion) underwriting issues of securities (VND clxv billion) securities investment consultancy (VND 10 billion) financial consultancy service and other financial services. . 2 (c) (d) (e) (f) The permitted areas of activity are limited compared to the business areas permitted under the old securities law regime. The positivist minimum legal capital has also increased. This explains wherefore there was a locomote towards the end of 2006 to obtain a securities company license from the SSC. 7 Allens Arthur Robinson Vietnam Laws 7. 3 Fund trouble companionship prior(prenominal) to the effective date of Law 70, eighteen operational licenses were issued by the SSC to fund management companies.Again there was a direction to obtain a license towards the end of 2006 because the cathode-ray oscilloscope of business activities has been certified under Law 70. A fund management company can only engage in fund manage ment and portfolio management and the minimum legal capital for substantiation is VND 25 billion. 8. monetary resource This section provides a brief overview of investment notes as this is the subject of a enlarge root which will be released once the MOF has settled the regulation on investments bullion and other cerebrate matters. Investment specie have been movement the bullish Vietnamese stock market.There have been a growth number of offshore and inshore investment specie established in recent years. At least 25 investment monetary resource are operating in the market with an design of investing in Vietnam. The crest subgenus Pastor has reportedly indicated that regulations on capital controls would be tightened to rule out capital flight which probably means that the MOFs in short to be released regulations would introduce farther regulatory controls on the operation of Funds. In brief, Law 70 sets the good example for the establishment of inshore public an d members funds.Public funds and members funds must have at least VND 50 billion in start up capital and managed by a fund management company. A public fund may be an open or unappealing ended fund with at least 100 investors. A members fund must have up to 30 investors. Assets of a fund are to be held by a steward bank. The MOFs afterlife regulation is expect to contain other operational requirements. This hold was indite by Julia Howes, a lawyer with Allens Arthur Robinson who has been practicing in Vietnam for 3 years.Allens Arthur Robinson is one of the largest international law firms in Asia, with more than 900 lawyers, including 179 partners. Allens Arthur Robinson has been providing legal services for clients in Australia for more than clxxx years and in Asia for the past(a) 30 years. Our Vietnam pull is managed by partners menu Magennis in capital of Vietnam and Nigel Russell in Ho ki Minh city, both of whom join the Allens Arthur Robinson partnership from 1 Janu ary 2007. The Vietnam practice was established in 1993 and is one of the largest and most self-made among foreign law firms in the country.For further information, entertain trace Bill Magennis Partner, capital of Vietnam Ph +84 4 936 0990 Bill. emailprotected com. au Nigel Russell Partner, Ho ki Minh City Ph +84 8 822 1717 Nigel. emailprotected com. au Steve Pemberton Partner, Singapore Ph +65 6535 6622 Steve. emailprotected com. au Jim Dunstan executive Partner Banking & finance and Asia offices, Sydney Ph +61 2 9230 4571 Jim. emailprotected com. au Simon lynch Partner, Melbourne Ph +61 3 9613 8922 Simon. emailprotected com. au Jeremy wretched Partner, Sydney Ph +61 2 9230 4041 Jeremy. emailprotected com. au This subject is copyright.Except as permitted under relevant laws, no part of this emergence may be reproduced by any process, electronic or otherwise, without the specific pen license of the copyright owner. Allens Arthur Robinson 8 Allens Arthur Robinson Vietnam Laws The material contained in Vietnam customer Updates is intend to inform you of recent legal developments in Vietnam. It is not intended, and should not be relied upon, as legal advice. Should you wish further information in relative to any legal instrumentate or matter mentioned in this issue, satisfy do not oscillate to fulfil one of our offices.Ho khi Minh City entourage 605 Saigon rear 29 Le Duan avenue partition 1 Ho chi Minh City,Vietnam Tel +84 8 822 1717 facsimile machine +84 8 822 1818 nigel. emailprotected com. au capital of Vietnam cortege 401 capital of Vietnam column 49 Hai Ba Trung Hanoi, Vietnam Tel +84 4 936 0990 fax +84 4 936 0984 bill. emailprotected com. au Allens Arthur Robinson a leading international law firm with lawyers in capital of Thailand capital of Red China Brisbane Hanoi Ho Chi Minh City Hong Kong capital of Indonesia Melbourne Perth Phnom Penh carriage Moresby strike Singapore Sydney 9 Allens Arthur Robinson Vietnam L aws