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Vietnam plans tax breaks, reforms to attract investors



Vietnam plans reforms to attract foreign investors to its stock market, aiming to sustain capital inflows for its fast-growing economy. Proposed measures include tax breaks, fee incentives for fund managers, streamlined account-opening rules, and mandatory English disclosures, according to State Securities Commission vice-chairman Bui Hoang Hai. The country is expediting a new trading system to improve settlement and pursuing an upgrade to emerging-market status in FTSE Russell indexes. Recent steps, such as removing prefunding requirements for foreign equity trades, aim to address barriers to foreign investment. Challenges remain, including foreign ownership limits in key industries like banking and transport. Vietnam’s VN Index fell 2.8% in three months amid U.S. tariff concerns, but achieving emerging-market status could draw USD5-6bn in capital inflows, according to FTSE Russell.


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