The State Securities Commission (SSC) has recently announced that it signed on to Appendix A of the International Organisation of Securities Commission's Multilateral Memorandum of Understanding (IOSCO MMoU) on September 18 in Luxembourg.

"This is an important milestone, a new stage of deep integration with the international capital market to attract investment into Vietnam," the SSC said.

The memorandum sets an international benchmark for cross-border cooperation critical to combating violations of securities and derivatives laws. In 2011, Vietnam joined Appendix B, which offers measures to countries wanting to fully participate in the cooperation and information exchange.

Following two years of compliance with Appendix B, Vietnam has been accepted as a signatory of Appendix A, where parties commit to support each other in the enforcement of cross-border supervision.

"It proves that the global market has recognised the development of the Vietnamese stock market," said a statement from the SSC.

The memorandum was developed in 2002, aiming to strengthen market surveillance and information exchange between member countries.

Countries not eligible for Appendix A were considered to have inconsistent and non-transparent legal frameworks, the SSC said.

It noted that Financial Stability Committee would rate a market based on its membership with the IOSCO MMoU.

"Countries not party to the memorandum face disadvantages in attracting foreign investors."

The SSC stated that being party to level A of the memorandum would earn domestic capital markets credibility and a better reputation with foreign investors.

The SSC added that it would be able to gain from the experience of other countries in cross-border trading to mitigate the risks of cross-border transactions to the financial market.-VNA