A number of changes are expected to attract foreign investment into the Vietnamese stock market, under a new regulation being drafted by the State Securities Commission.

One of the hindrances to foreign investors has been the ability to obtain judicial status, an application process that normally takes around three to six months to complete. The commission's draft circular would require foreign investors to submit copies of a valid passport or other identification instead of a completed judicial profile when applying for a transaction code with the Vietnam Securities Depository.

In addition, only papers issued by the competent agencies in the country of origin will need to be legalised under the laws of Vietnam , with documents prepared by the foreign investors themselves only requiring notarisation in accordance with their own national laws. These papers would not be required to be translated into Vietnamese.

Processing time for the whole process would be reduced to five days, and the depository centre may even issue code numbers on a temporary basis to investors who cannot immediately provide sufficient documents. Such codes would be valid for six months.

Securities analysts expected the new rules would help foreign investors avoid losing opportunities on the Vietnamese market and help boost foreign investment into the nation's still-infant market.

The proposed rules would also broaden the concept of foreign investors to include closed-end funds, fund members, and investment companies in which foreign investors hold over 49 percent of equity.

"The extended concept of foreign investors will considerably support the stock market in the effort to attract foreign capital," a source from the commission told the newspaper Dau tu chung khoan (Securities Investment).-VNA