Vietcombank Securities Co.,Ltd - Công ty TNHH Chứng khoán Ngân hàng Ngoại thương Việt Nam

1. General issues of instruction for opening an account (foreign investors only)

Are there any limitations for securities’ transactions?

What source of funds can Investors used for securities transactions?

2. Steps to Open a Securities transaction account

Apply for a trading code

Open a Transaction account in Vietcombank Securities (VCBS)

Open a foreign currency current account and a VND current account in VIETCOMBANK (a Foreign depository member)

Close Securities transaction account in other securities company (if any)

3. Securities trading instruction

Can Investors use Internet or Telephone to place an order?

How to place BUY/SELL orders

4. Remittance of capital

How to remit capital into Vietnam?

How to withdraw capital?

1. General issues of instruction for opening an account (foreign investors only)

Who are Foreign Investors?
Foreign Investors are:
- Organizations established in compliance with foreign law, foreigners (residents and non-residents), non-residents who are Vietnamese living abroad.
- Foreign partners (individuals and organisations) in foreign-invested enterprises using distributed profits or other legal incomes in Vietnam to purchase, and sell securities in Stock Trading Centre.

Are there any limitations for securities’ transactions?
Yes!
- Foreign Investors can buy maximum 30% of total shares issued by a joint-stock company, up to 30% of total investment certificates of an investment fund. - No limitation is imposed on bond holding.

What source of funds can Investors used for securities transactions?
Foreign investors shall use the following sources of funds to purchase securities:
- Foreign currency remitted from abroad into Vietnam in accordance with current provisions of foreign exchange control:
- Foreign currency deposited in accounts with banks that are permitted to engage in foreign exchange activities in Vietnam;
- Distributed profits from foreign investors’ direct investment activities in Vietnam;
- Funds received by foreign investors from transfer, liquidation, dissolution of their direct investment activities in Vietnam in accordance with current provisions;
- Income from export of goods, services into Vietnam by foreign investors in accordance with current provisions:
- Salaries, bonuses and other legal incomes of foreign individuals in Vietnam in accordance with current provisions.

2. Steps to Open a Securities transaction account

Apply for a trading code

For INDIVIDUAL INVESTORS:
Foreign investors shall submit a set of application documents to Hochiminh Securities Trading Center - HSTC through a Custodian member. Documentation includes:
- 01 Securities Trading Code Registration Form (accomplished by Custodian member)-Form 01/DK-MS
- 01 Securities Trading Code Registration Form (accomplished by foreign investors)-Form 02/DK-MS
- Additional Information sheets (verified by authorized agency in home country or by their Consulate in Vietnam)-Form 04/DK-MS

Copies of the following documents, certified by The public notary of Vietnam - Criminal record of individual investor issued by home country authorities (notarized by their Consulate in Vietnam);

For ORGANISATIONAL INVESTORS:
Foreign investors shall submit a set of application documents to HSTC through a Custodian member. Documentation includes:
- 01 Securities Trading Code Registration Form (accomplished by Custodian member)-Form 01/DK-MS
- 01 Securities Trading Code Registration Form (accomplished by foreign investors)-Form 02/DK-MS
- Additional Information sheets (verified by authorized agency in home country or by their Consulate in Vietnam)-Form 03/DK-MS

Copies of the following documents, certified by The public notary of Vietnam
- The company’s establishment license;
- The company’s business license (registered in home country);
- The branch’s business license (registered in Vietnam, if any);
- The mandate of the institution’s Board of Directors appointing representative of the organisation;
- Criminal record of representative issued by home country authorities (notarized by their Consulate in Vietnam )

Open a Transaction account in Vietcombank Securities (VCBS)

For INDIVIDUAL INVESTORS:
After being assigned a Trading code, foreign investors accomplish “Contract for opening securities transaction account” with VCBS. Documentation includes:
- Application for opening transaction account in VCBS: 02 copies.
- Application for securities transaction using Internet or Phone service (upon Investors’ request)
- 01 copy of investor’s passport (the origin is required for examination)
- 01 copy of trading code certificate (the origin is required for examination)

For ORGANISATIONAL INVESTORS:
After being assigned a Trading code, foreign investors accomplish “Contract for opening securities transaction account” with VCBS. Documentation includes:
- Application for opening transaction account in VCBS: 02 copies.
- Application for securities transaction using Internet or Phone service (upon Investors’ request)
- 01 copy of representative’s passport (the origin is required for examination)
- 01 copy of trading code certificate (the origin is required for examination)

Copies of the following documents, certified by The public notary of Vietnam
- The company’s establishment license;
- The company’s business license (registered in home country);
- The branch’s business license (registered in Vietnam, if any);
- The mandate of the institution’s Board of Directors appointing representative of the organisation.

Open a foreign currency current account and a VND current account in VIETCOMBANK (a Foreign depository member)
These accounts are used for:
- Exchanging foreign currency into Vietnamese Dong for trading securities in Vietnam.
- Exchanging Vietnamese Dong into foreign currency for remitting abroad principal amount, profits, dividends, coupon payment.

For INDIVIDUAL INVESTORS:
1. Documentation for opening VND and Foreign Currency current account in Vietcombank.
- Application for opening account: 02 copies
2. Application for Automatic Fund Transfer (upon Customer’s request)-Form NHBL 06-06/99: This is to exchange foreign currency into Vietnamese Dong automatically.

For ORGANISATIONAL INVESTORS:
1. Documentation for opening VND and Foreign Currency current account in Vietcombank.
- Application for opening account: 03 copies-Form NHBL 20-06/99
- Copies of the following documents certified by the public notary of Vietnam: The company’s Establishment Licence; The company’s Business Licence; The Decision of appointment of Account Holder; The Decision of appointment of Financial Controler
2. Application for Automatic Fund Transfer (upon Customer’s request): This is to exchange foreign currency into Vietnamese Dong automatically.

Note:
- Balance in investors’ cash account will be paid interest rate at equal to rate of current account

Close Securities transaction account in other securities company (if any)
1. Investors request the securities company to terminate their account.
2. Investors present their “Contract for opening transaction account” with Vietcombank Securities and request transferring the balance in their securities custody and transaction account to new account opened at VCBS.

If Investors open account at VCBS Head office in Hanoi:
+ Cash balance can be transferred to VCBS’ investors account No.: 001.1000385967 at Vietcombank HO, 198 Tran Quang Khai Street, Hanoi city
+ Securities balance can be transferred to Investors’ custody account as in “Contract for opening transaction account”

If investors open account in VCBS Branch in Hochiminh City:
+ Cash balance can be transferred to VCBS-Branch’ account number: 007.100.071.7927 at Vietcombank Hochiminh- Tandinh Branch, 72 Phạm Ngọc Thạch Street, Hochiminh City
+ Securities balance can be transferred to Investors’ custody account as in “Contract for opening transaction account”
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3. Securities trading instruction

Can Investors use Internet or Telephone to place an order?
YES! Please follow these steps:

STEP 1. Fulfill the Agreement of Using Internet and Phone services for Securities transaction.

STEP 2. Get password for securities transaction using Internet and Phone services from VCBS brokers. Customers are advised to change their provided password at the soonest.

STEP 3. Instruction for securities transaction:

* Using Phone service:
- Call a provided number in VCBS to place an order. Every number-changing will be noticed immediately.
- Provide VCBS broker the following information: Full name, ID number, Trading Code and PASSWORD together with: Securities, Buy or Sell order, Volume and Price. Upon confirming exactly, the Broker will place the order at Securities Trading Center in the fastest time. The whole conversation will be recorded by VCBS.
- At the end of a trading day, customers’ matching-orders will be informed by VCBS notices or it can also be seen in customers’ internet account.

* Using Internet service:
- Access Internet address: http://www.vcbs.com.vn - Click mouse on “GIAO DỊCH TRỰC TUYẾN” or “CYBER INVESTOR” button in the web, type in your provided access code and your 1st password.
- Click mouse on MUA (means: BUY) or BÁN (SELL) to place an order. The information typed in must includes of Securities, Price, Volume,...
- Click mouse on ĐẶT LỆNH (PLACE AN ORDER) and type your 2nd password to confirm.
- Click mouse on CHẤP NHẬN (ACCEPT) to transfer the orders to VCBS trading system.

Note: Orders may have 05 statuses:
+ Nhập: Stand-by (Your orders are accessing into our system)
+ Duyệt: Acceptance (Your orders are accessed into Vietnam securities trading system)
+ Đã đóng: Match (Your orders are matched)
+ Giải phóng: Fail (Your orders are failed to match)
+ Một phần: Partial match (Orders are matched partially) It is customers’ responsibility to fulfill the buy/sell order sheets and to return them to VCBS office within a trading day.

STEP 4. Password changing within 01 month is required for confidential purpose.

STEP 5. It is customers’ responsibility to keep their passwords safe – not VCBS’ obligation

STEP 6. Call VCBS Brokers if you want to cancel using Internet or Phone service for securities transaction.

How to place BUY/SELL orders
To place an order, Investors can use one of the following methods:
- Using VCBS - Cyber Investor service at: http://www.vcbs.com.vn (Read carefully instructions on how to Place orders using Internet service)
- Using phone service (See instructions on how to Place orders using Phone service)
- Placing order at VCBS trading floor

1. Place a SELL order: Fill all necessary information in SELL order sheet:
- Date
- Investors’ name (or representative’s name), passport, trading account
- Securities, volume, price
- Trading method: bidding vs. direct negotiation
- Validity
- Investors’ signature (or representative’ signature)

2. Place a BUY order: Fill all necessary information in BUY order sheet:
- Date
- Investors’ name (or representative’s name), passport, trading account
- Securities, volume, price
- Trading method: bidding vs. direct negotiation
- Validity
- Investors’ signature (or representative’s signature)

3. Cancel BUY/SELL orders
- Orders can only be cancelled if it was unmatched or partially-matched in the first session of a trading day. (A day has 02 trading sessions)

4. Remittance of capital

How to remit capital into Vietnam?
Foreign currency remitted from abroad for the purpose of trading securities must be sold to bank where foreign investors have accounts with (in VND and foreign currency).

Note: We strongly recommend your using of Vietcombank as depository bank to ensure timely and proper execution as VCBS’ network is connected and fully integrated with Vietcombank’s

How to withdraw capital?

STEP 1: Purchase of foreign currency for withdrawal
- Upon the completion of tax liabilities in accordance with Vietnamese Law and Regulation, foreign investors shall be permitted to use VND in securities transaction account to purchase foreign currency for withdrawal.
- Foreign investors shall only be permitted to withdraw the principal amount one year after the date of transfer-in, with the exception of being permitted by the Law.
- Foreign investors shall NOT be imposed any time restriction for remitting abroad profit, dividends, coupon payment derived from the capital invested.

STEP 2: Withdraw principal and profit gained from securities transaction.

Documents required:
- 01 application to buy foreign currency applied with Vietcombank Foreign Currency department, in which the money’s origin should be specified.
- 01 confirmation issued by Vietcombank (Vietcombank Foreign Exchange Department) to prove the amount of foreign currency that Vietcombank has previously bought from Investors.
- 01 confirmation issued by VCBS to prove investors’ total amount invested and profit gained from trading securities.