- HM&P: Vietnam International Law Firm
- HM&P: Vietnam International Law Firm
- 02873080839
- https://hmplaw.vn/
Investment
Vietnam is facing a big question in the global investment attraction competition: will we be bold enough to build a breakthrough investment support mechanism or will we continue to choose a safe and prudent path to limit risks to the state budget?
After nearly four decades since opening up to attract foreign investment, Vietnam is facing a new turning point in development policy. If the first phase of the renovation process is shaped by the goal of attracting as much foreign direct investment (FDI) as possible to replenish the economy, the current context poses another requirement: investment capital flows need not only to be larger, but to create higher value.
In a private equity deal, the attention of the business is usually focused on the amount of money the fund will invest, the valuation of the business or the percentage of shares to be transferred. However, for the investment funds themselves, the most important question is often asked just before the conclusion of the transaction: how and when will the fund divest?
For many years, Vietnam has always been considered one of the most attractive consumer finance markets in Southeast Asia. The population size of over 100 million people, the young population structure, the per capita income are continuously improving along with the accelerating speed of digitalization, which has created favorable conditions for the development of consumer credit.
If designed in the right direction, the Law on Derivatives Trading not only serves the goal of hedging risks for domestic enterprises but also gradually helps to form an influential commodity trading center in the region. The Ministry of Industry and Trade earlier this year proposed to develop a separate Law on Trading in Derivatives instead of just adding some provisions in the 2005 Commercial Law for a reason.
After more than 5 years of implementation, the Securities Law 2019 has contributed to creating a relatively complete legal framework for the Vietnamese stock market. However, the current economic, technological and capital market development requirements have changed significantly. It is worth noting that the amendment to the Securities Law being consulted by the Ministry of Finance in June 2026 is not a comprehensive reform like in 2019, but an amendment with very specific goals: removing legal bottlenecks to serve economic growth, upgrading the stock market and creating space for new financial models .
Many businesses believe that Initial Public Offerings (IPOs) officially start when the company offers shares to the public or lists them on the stock exchange. However, from the perspective of legal and corporate governance, IPOs actually started a long time ago. Even for many large-scale enterprises, the preparation process can take from two to three years before the date of submission to the State Securities Commission. Because when IPO, businesses not only sell shares to investors but also have to prove to the market that they are transparent enough, compliant enough and have enough management capacity to become a public company.
The Law on Investment 2025 and its guiding documents are making one of the most important changes to the mechanism for managing foreign investment flows into Vietnam. Not only amending the investment process, the new investment legal system also requires the redesign of the foreign exchange management mechanism to suit the mobilization practice of international capital flows and modern investment models.
The Law on Investment 2025 opens up a notable change for foreign investors: in some cases, investors can establish businesses before completing the procedures for issuing an Investment Registration Certificate (IRC). However, this flexibility also poses a new requirement: investors must design industries, capital structures, investment plans and compliance obligations right from the time the enterprise has not officially had a licensed investment project.
On March 31, 2026, the Government issued Decree 96/2026/ND-CP guiding the implementation of the Law on Investment 2025 (Decree 96), marking an important step forward in perfecting the legal framework for investment in Vietnam. In the context of competition to attract investment capital between countries, especially in the fields of high technology, digital economy and green economy, this Decree clearly shows the strong reform orientation in the direction of simplifying procedures, strengthening post-inspection and selecting high-quality capital flows of Vietnam.
Margin trading is a popular financial service that allows investors to buy securities with loans from securities companies, with the purchased shares and assets on the account as collateral. This service helps to increase purchasing power and amplify profits for investors, but at the same time amplifies risks. When the market fluctuates adversely, the value of collateral declines rapidly can lead to disputes over escrow contracts between investors and securities companies over the performance of obligations, handling of collateral, interest rates and compensation for damages.
The plaintiff argued that the bank had arbitrarily revalued the assets and extended the security obligation beyond the original agreement, while the bank invoked the provision on security for future obligations to affirm the validity of the mortgage contract. The appellate civil case No. 109/2024/DS-PT between Mr. Ha Anh D, Ms. Pham Thi Thanh T and K3 Commercial Joint Stock Bank related to the dispute over the mortgage contract for a third-party loan raises many important legal issues . In this article, we will clarify the role of the principles of transparency, voluntariness, and equality in contracting, especially clarifying the legality and limitation of the scope of the mortgage contract when performing the contract.
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