Ministry of Justice’s review meeting of the draft Law amending and supplementing 7 Laws on September 9th – Photo: Ministry of Justice
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Speaking at the meeting, the representative of the Ministry of Finance said that some laws on finance and budget have been passed by the National Assembly and implemented for a long time. However, with the changing socio-economic situation, these laws have encountered difficulties and obstacles in their implementation and need to be reviewed and amended.
Following the direction of the Government and the Prime Minister, the Ministry of Finance has urgently reviewed and evaluated the implementation of the Laws under its jurisdiction. Seven Laws have been identified for amendment and supplementation, including: Securities Law; Accounting Law; Independent Audit Law; State Budget Law; Law on Management and Use of Public Assets; Tax Administration Law; and National Reserve Law.
Representative of the Ministry of Finance – Photo: Ministry of Justice
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Regarding the Securities Law, discussions focused on proposed amendments to facilitate corporate bond issuance and those related to clearing and settlement for securities transactions.
Facilitating corporate bond issuance
On the conditions for issuing corporate bonds to the public, the representative of the Vietnam Bond Market Association (VBMA) said that the draft Law has added two conditions: “having collateral or bank guarantee” and “except for the case of credit institutions offering subordinated debt that meets the conditions to be counted as Tier 2 capital”. However, in reality, efficient businesses with healthy finances can obtain unsecured loans and issue unsecured bonds. Whether a bond has collateral or not is a structural feature reflected in its issuance price and left to the market to balance based on supply and demand.
Therefore, the VBMA representative suggested removing the requirement for public bond offerings to have collateral or a payment guarantee and providing guidelines on organizations acting as collateral managers for secured bonds and allowing international financial institutions to provide payment guarantees.
 Representative of VBMA – Photo: Ministry of Justice
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Concerning the extension of the lock-up period for professional securities investors to 3 years, the VBMA representative considered this a rather long period, which would make private placements less attractive to investors and restrict their ownership and rights. Therefore, the VBMA proposed retaining the current one-year restriction on transfers after the completion of the offering for privately placed shares, convertible bonds, and bonds with warrants, as stipulated in Point c, Clause 1, Article 31 of the 2019 Securities Law.
Mr. Pham Van Hung from the Vietnam Chamber of Commerce and Industry’s (VCCI) Legal Department suggested that bonds are an important channel for businesses, so amendments to bond issuance regulations should be cautious and ensure stability. He advised against tightening rules on private placements, which could disrupt corporate funding.
 Mr. Pham Van Hung, VCCI’s Legal Department – Photo: Ministry of Justice
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Commercial banks and branches of foreign banks to clear and settle only on the derivatives market
To upgrade the stock market, the Ministry of Finance proposed amending Point a, Clause 4, Article 56 of the Securities Law regarding clearing members’ clearance and settlement of securities transactions on the trading system (including derivatives and underlying securities listed/registered for trading on the system). However, the State Bank of Vietnam’s representative suggested that commercial banks and branches of foreign banks only clear and settle on the derivatives market, as engaging in clearance and settlement on the underlying market would create risks in the relationship between banks and affect their liquidity.
 Representative of the State Bank of Vietnam – Photo: Ministry of Justice
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Concluding the meeting, regarding the consistency with Resolution No. 126/NQ-CP dated September 1, 2024, of the Government on the law-building session in August 2024, Deputy Minister Tran Tien Dung requested the drafting agency to clarify some contents of the Securities Law, such as the responsibilities of relevant organizations and individuals and the methods and mechanisms for checking and controlling securities activities. These clarifications aim to enhance transparency in the stock market and address difficulties and obstacles for the people and businesses.
Deputy Minister Tran Tien Dung concludes the meeting – Photo: Ministry of Justice
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