VietNamNet
Bridge – Realizing the attractive
investment opportunities in the Vietnamese stock market, a lot of foreign
investors are burning to make disbursement. However, many of them can do
nothing except seeing the opportunities missing.
Police record turns out to be the biggest
problem
Some
securities companies have reported that a lot of foreign investors, after
realizing the new investment opportunities in the Vietnamese stock market, came
to the companies to open transaction accounts. However, their legitimate
request was not accepted.
The
problem was, according to the director of a securities company, the foreign
individual investors still could not obtain the police record – a necessary
document to be submitted to the Vietnam Securities Depository Center for
getting securities trading codes.
Under
the current regulations, investors would get the trade codes just after five
days since the day they submit all necessary documents.
The
director knows a foreign investor who still could not obtain the police record
after two years of following procedures and he still could not inject money in
Vietnamese stocks.
Securities
companies complain that the requirement on the police record has made it
difficult for them to develop clients. More importantly, with the requirement
and complicated procedures, Vietnam has been missing the opportunity to attract
more foreign capital.
Especially,
this may lead to the misunderstanding about the openness and competitiveness of
the Vietnamese stock market in comparison with regional markets in the eyes of
foreign investors.
The
director went on to say that the applied regulations on the procedures for
criminal record are different in different countries. As for some countries,
like India, it is nearly impossible to get the records. This means that a lot
of investors would never be able to make investment in Vietnamese stocks.
A
manager of an investment fund has confirmed that obtaining criminal records
proves to be an impossible mission for the citizens of many countries. In other
countries, which are considered as applying open regulations, it would take
investors months to get criminal records.
After
that, the investors would have to spend several months more to have the records
confirmed by the Vietnamese embassies in the countries. In general, it takes
several months or one year to fulfill the procedures. The formalities would
discourage a lot of investors. They would rather inject money in other markets
than waiting for the opportunities to invest in Vietnam.
Meanwhile,
troubles may occur during the procedures. A senior executive of a securities
company said that foreign investors need detailed advices to obtain criminal
records. In foreign countries, one would be charged by the court if he only
beats or kills animals. If a foreigner’s criminal record just shows a general
information that he was charged by the court, he will not be able to obtain
trade record in Vietnam.
What to do?
Explaining
the regulation, the watchdog agencies said that this is a necessary method to
be sure that the capital flow to Vietnam is not “dirty money.”
Nevertheless,
experts have warned that the regulation would prevent foreign investors from
entering Vietnam. They said that in some neighboring markets, the information
in the passports would be enough to obtain a trade record.
In
fact, foreign investors not only need to show their criminal records, but also
need to follow necessary steps to obtain the accounts for portfolio investments
from the State Bank of Vietnam.
Experts
have urged the watchdog agencies to simplify the procedures, or Vietnam would
fail to attract the important capital flow, especially when Vietnam has to
compete with other regional markets to attract investors.
Manh Ha
Business & Investment Opportunities
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