Apparently, the Ministry of Finance’s Circular that came out in late 2011 guiding open-ended fund establishment and management has started to attract attention. Some five funds are presently awaiting the State Securities Commission (SSC)’s approval on granting operation licences.
However, what is missing are regulations on taxation and accounting systems for open-ended funds which are in discussion and have yet to be finalised.
The average investment capital of such potential funds range from tens of billions dong to hundreds of billions dong due to flat stock market and vague legal regulations.
In addition, regulations on property investment fund have been officially stipulated in the Decision 58/2012/NĐ-CP that has recently been issued on 20 July 2012 and will take effect from 15 September 2012. This brand new fund is expected to attract a great deal of idle capital as well as to warm up the gloomy real estate market.
In fact, fund management funds rather than real estate firms are allowed to set up the above funds. Yet, what matters most is the legal framework as seeking an appropriate partner would not be a challenge given the 47 fund management companies nationwide.
Currently, the stock market has undergone comprehensive restructuring so as to enhance efficiency. Yet, an urgent task for the time being is to facilitate capital flows to be channelled into the market.