State Securities Commission of Vietnam (SSC)

Overview

The State Securities Commission of Vietnam (SSC) is Vietnam's principal securities market regulator, established in 1996 and operating under the Ministry of Finance. The SSC holds comprehensive authority over the securities industry, capital markets development, investor protection, and market supervision across Vietnam's two major stock exchanges and the over-the-counter (OTC) market. The organization is instrumental in Vietnam's emerging markets integration and IOSCO compliance.

Current Leadership:

• Chairwoman: Vu Thi Chan Phuong (appointed November 2024)

• Deputy Chairpersons and Board Members (multiple)

The SSC operates as both a supervisory and development-focused regulator, balancing market oversight with initiatives to enhance Vietnam's capital market competitiveness and international standing.

Basic Identity

Classification

Inclusion Justification

What This Entity Oversees

Capital Markets Structure

Market Operators:

Stock Exchanges:

1. Ho Chi Minh City Stock Exchange (HOSE)

• Primary equities market

• Hosts ~1,200+ listed companies

• Primary focus: equity shares

1. Hanoi Stock Exchange (HNX)

• Secondary equities market

• Hosts ~400+ listed companies

• Restructuring: will focus on derivatives and bonds under 2027 reorganization plan

1. UPCoM (Unlisted Public Companies Market)

• Over-the-counter market for smaller companies

• Alternative listing pathway

• Hosts ~700+ companies

Exchange Management:

• Vietnam Exchange (VNX) - Holding company (100% state-owned)

• Subsidiary: HOSE

• Subsidiary: HNX

• Market Reorganization Plan: Under implementation, expected completion before 2027

• HOSE to focus on share trading

• HNX to focus on derivatives and bond markets

Settlement and Custody:

• Vietnam Securities Depository and Clearing Corporation (VSDC) - Centralized clearing, settlement, and custody operations

Market Capitalization (July 2025):

• Equity Markets: VND 8,316 trillion (~72.2% of estimated 2024 GDP)

• Corporate Bond Market: VND 2,500 trillion (~22% of estimated 2024 GDP)

• Listed Companies: ~1,600 companies across all three markets

Vietnam's fund market operates under SSC regulation:

Fund Categories:

• Domestic mutual funds

• Exchange-traded funds (ETFs)

• Bond funds

• Equity funds

• Mixed funds

• Real estate investment funds (REITs)

Fund Manager Requirements:

• SSC licensing with minimum capital requirements

• Professional management team with qualifications

• Compliance and risk management infrastructure

• Custody arrangements with approved custodians

• Regular reporting and disclosure obligations

Investor Protection:

• Segregation of fund assets from manager assets

• Independent custodian arrangements

• Regular audited financial statements

• Transparent fee disclosure

Corporate Disclosure Requirements:

• Quarterly and annual financial statements (audited)

• Material event notifications (within required timeframes)

• Ownership structure and related-party transaction disclosures

• Executive compensation disclosure

• ESG (Environmental, Social, Governance) reporting

Investor Rights:

• Information access and transparency requirements

• Voting rights protection in shareholder meetings

• Dividend payment protections

• Dispute resolution mechanisms

Consumer Protection:

• Mandatory arbitration and mediation frameworks

• Investor compensation arrangements

• Know-Your-Customer (KYC) requirements

• Suitability assessments for investment recommendations

SSC enforces AML/CFT standards aligned with FATF recommendations:

AML/CFT Requirements:

• Customer identification and beneficial ownership verification

• Transaction monitoring and suspicious activity reporting

• Sanctions screening against international lists

• Record-keeping and reporting obligations

• Staff training and compliance programs

• Third-party (vendor) due diligence

Regulatory Coordination:

• Coordination with State Bank of Vietnam (central bank)

• International cooperation on sanctions enforcement

• APG (Asia/Pacific Group on Money Laundering) participation

Regulatory Powers

Supervisory Functions:

1. Continuous Market Monitoring - Real-time surveillance systems

2. Periodic Examinations - On-site inspections of market participants

3. Information Requests - Authority to demand data and documentation

4. Corrective Actions - From warnings to license revocation

5. Sanctions Authority - Fines, trading bans, criminal referrals

Enforcement Priorities (2024-2025):

• Market manipulation and insider trading prevention

• Disclosure accuracy and compliance

• Anti-money laundering and sanctions screening

• Corporate governance standards enforcement

• Consumer protection and fraud prevention

• ESG commitment verification

Sanctions Framework:

• Administrative fines (significant penalty capacity)

• License suspension or revocation

• Trading restrictions and bans

• Public censure and compliance orders

• Criminal prosecution referrals (serious violations)

Regulatory Role and Function

Legal Foundation

Primary Legislation:

• Law on Securities (Law No. 54/2019/QH14) - Effective June 1, 2020

• Comprehensive modernization of securities regulation

• Enhanced corporate governance requirements

• Strengthened disclosure obligations

• Improved investor protection mechanisms

• Stricter enforcement authority

Supporting Regulations:

• Decree 155/2020/ND-CP - Detailing implementation of Securities Law 2019

• Circular Guidance from Ministry of Finance - Operational requirements for:

• Securities offerings and listings

• Trading and settlement procedures

• Information disclosure and corporate governance

• Market participant licensing and supervision

• Fund management and investment advisory services

Legal Framework Evolution:

The 2019 law represented a major regulatory modernization, introducing:

• Stricter corporate governance standards aligned with international best practices

• Enhanced disclosure obligations for listed companies and market participants

• More robust enforcement mechanisms including administrative and criminal sanctions

• Improved investor dispute resolution procedures

Licensing and Authorization Relevance

SSC maintains comprehensive licensing authority over:

1. Securities Companies - Brokers, dealers, market makers, underwriters

• Capital adequacy requirements

• Professional certifications required

• Risk management frameworks

• Client segregation requirements

1. Fund Management Companies

• Mutual funds and collective investment schemes

• Foreign investment funds

• Bond funds

• Equity funds

1. Investment Advisors and Financial Consultants

• Portfolio management services

• Investment recommendations

• Financial advisory services

1. Market Infrastructure Operators

• Exchanges and trading platforms

• Clearing and settlement providers

• Custodians and depository participants

• Information providers

Licensing Standards:

• Minimum capital requirements (tiered by business type)

• Professional competency certifications

• Corporate governance standards

• Fit and proper person assessments

Payments and Money Movement Relevance

The State Securities Commission of Vietnam (SSC) oversees securities settlement and post-trade infrastructure in Vietnam:

Payment Systems Governed or Overseen

The SSC oversees securities settlement infrastructure in Vietnam:

[Specific system names require verification from official sources]

Relationship to Other Regulators

IOSCO Membership and Compliance:

• Adherence to International Organization of Securities Commissions principles

• Regular assessments of regulatory effectiveness

• Peer reviews and mutual evaluation participation

Recent International Engagement (2024):

• Meetings with CSRC (China Securities Regulatory Commission) on market integration

• Collaboration with FTSE Russell and Morgan Stanley on index inclusion discussions

• Discussions on market upgrade and international competitiveness enhancements

Regional Participation:

• ASEAN Securities Regulators Forum (ASRF) membership

• Bilateral cooperation with regional securities regulators

• Cross-border enforcement coordination

Technical Assistance and Capacity Building:

• World Bank and IMF engagement on market development

• Technical partnerships with developed market regulators

• Exchange of best practices on regulation and supervision

Geography and Jurisdiction Notes

Important Departments and Divisions

Key Public Resources

State Securities Commission of Vietnam (SSC)

• Website: https://ssc.gov.vn/webcenter/portal/ssc

• Address: Hanoi, Vietnam

• Official Language: Vietnamese/English

Board of Directors:

• Chairwoman: Vu Thi Chan Phuong

• Multiple Deputy Chairpersons and Board Members

• Functional Departments: Licensing, Supervision, Enforcement, Legal, Economics

Notes on Naming and Language