What Criminal Violations in Stock Exchange in Vietnam?

   Along with the increasingly diversified securities activities, the criminal violations in the stock market are also becoming more and more sophisticated and complex. The securities lawyer in Vietnam is sharing some opinions on the practice of criminal violations in stock exchange in Vietnam to avoid.

Although in Vietnam, violations and crimes committed in the securities sector still account for a small percentage compared to other fields, but these white collar crimes have directly negatively affected trading activities in the market, in particular eroding investors’ confidence, and causing the stock market distortion.

The criminal violations in the stock market could hinder the efficient functioning of the stock market which is a component of a free-market economy, where enterprises raise funds and investors invest and trade. Vietnam is a developing economy and it is getting more serious on prosecuting this crime due to the large scale negative impacts to the financial market.

There are four violations in the securities sector that are defined as crimes, which are: Provision of false information or concealment of information in securities activities; Use of internal information for trading securities; Manipulation of securities market and Forging documents in offering or listing profile as follows:

Provide false information

The law in Vietnam charges person who deliberately provides false information or conceals information in the activities of offering, listing, trading securities, market organization, registration, depositing, clearing or paying for securities. The fine for such activities will be from VND 100,000,000 to VND 2,000,000,000 or up to 02 years’ community sentence or 03 months – 5 years’ imprisonment. Punishments incurred by a corporate legal entity that commits the offenses shall be fined from VND 500,000,000 to VND 5,000,000,000; be banned from operating in certain fields or raising capital for 01 – 03 years.

How insider trading in Vietnam is treated?

Insider trading is also considered a crime in Vietnam but its seriousness has not been emphasized strongly enough as compared with other countries with developed financial market.

Over the 20 years since the stock market in Vietnam has been established, insider traders have not been found or charged yet although the law states that any person who has information about a public company or public fund which has not been published and could remarkably affect securities price of that public company or public fund but and uses such information to deal in securities or discloses it or provides it for another person for trading securities shall be liable to a fine from VND 500,000,000 to VND 2,000,000,000 or face a penalty of 07 months – 03 years’ imprisonment. Punishments incurred by a corporate legal entity that commits the offenses shall be fined from VND 1,000,000,000 to VND 10,000,000,000.

For some reasons, in Vietnam, it has been disputed that there are challenges to prove the crime in the stock market that make the practice of investigating and charging insider trading crime difficult.

Manipulation of stock market in Vietnam

Manipulation of stock market could be in the forms of fraudsters using one or more security accounts linked to each others, to set buy or sell orders in significant volume that create unusual and fake supply and demand, to lure other small investors in great quantity to make buy and sell decisions and the fraudster later benefit by exiting their shares at high price.

Or the fraudster could use pump and dump scheme to manipulate the stock market by spreading misleading information that create a buying frenzy of the stocks to “pump” prices and later “dump” their shares at inflated price.

The the fine for the individual committing the crime is ranging from VND 500,000,000 to VND 4,000,000,000 or a penalty of 06 months – 07 years’ imprisonment; the penalty for the legal entity committing the crime is a fine ranging from VND 2,000,000,000 to VND 10,000,000,000; can be permanently shut down or be banned from operating in certain fields or raising capital for 01 – 03 years depending on the severity of the violation. Recently these criminal activities have been most popular in Vietnam and a number or cases have been prosecuted.

Forging documents

Forging documents in offering or listing profile criminal is a stock market crime in Vietnam. The law states that any person who forges documents of the offering or listing profile shall be liable to a fine of from VND 500,000,000 to VND 2,000,000,000 or face a penalty of 06 months – 07 years’ imprisonment. In addition, the offender might also be liable to a fine of from VND 50,000,000 to VND 250,000,000, be prohibited from holding certain positions because of such criminal record in Vietnam or doing certain works in related fields for 01 – 05 years.

Securities lawyer in Vietnam to distinguish signs of criminal behaviour or administrative violations

There are also disputes among law makers, legal experts and lawyers in Vietnam on whether there are criminal violations or not; or wherether there are administrative violations, or economic or civil violations for acts that could have signs of criminal behaviours. These kinds of arguments are important to help the society to find balance and defend justice in the development of economy and stabilization of the financial market in Vietnam.

Nguồn:https://antlawyers.vn/library/what-criminal-violations-in-stock-exchange-in-vietnam.html

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How Regulation on Telecommunications Changes in Vietnam?

   Proportional to Vietnam’s rapid development in various areas of its economy, the telecommunication industry has undergone through rapid development and has become a key economic sector for the country. Legal regulations on telecommunications have also been evolving to support the business practice in Vietnam.

Various regulations on the telecommunication business, for instance the Ordinance of Post and Telecommunication promulgated in 2002 created a legal framework for the telecommunication business in Vietnam and thereby promoting competition, encouraging and supporting the new market entrants. After sometime, the Vietnamese provisions on telecommunications turned out not always be compatible with the international regulations – especially when Vietnam became an official member of the World Trade Organization (WTO) and thereby had to be in line with the WTO’s international provisions. On November 23rd, 2009 the National Assembly of Vietnam passed the Law on Telecommunications that came into effect on July 1st, 2010 (“Law on Telecommunications”). The Law on Telecommunications describes and specifies general terms and provisions on the telecommunication activities in Vietnam. According to this Law on Telecommunications, Telecommunications service means the service of sending, transmitting, receiving or processing of information between two users or within a group of users of telecommunications services, including basic service and value-added service.

The government authorities perform three main tasks of state management on telecommunications in Vietnam:

i) to cater for an open competition that allows all businesses that are established under Vietnamese law and are engaged in providing telecommunication services or infrastructure therefore, to enter the market;

ii) secondly, to create a legal framework to ensure that enterprises and market participants could enter the market and handle acts of unfair competition;

iii) to create good conditions for building and modernizing telecommunication networks and for enhancing the security and defense operations of the state to improve the standards for international cooperation in telecommunication.

According to Article 5 of The Law on Telecommunications, the safety of the telecommunication infrastructure and information security are responsibilities of all organizations and individuals. The Ministry of Information and Communications shall hold the main responsibility and in cooperation with the Ministry of National Defense; the Ministry of Public Security and concerned agencies, it also shall coordinate the safety of the telecommunication infrastructure and informa­tion security in telecommunication activities.

The Law on Telecommunications also provides general principles regarding telecommunication services connected to foreign investors. According to Article 18 of The Law on Telecommunications, forms and conditions of foreign investment and capital contribution of foreign investors in telecommunication services must comply with Vietnamese laws and international treaties to which the Socialist Republic of Vietnam has signed to.

The Government shall specify forms and conditions for foreign investment and determine the maximum capital contribution of foreign investors in telecommunication services. Foreign investors who invest in telecommunication services for the first time in Vietnam must also complete formalities to obtain an Investment Certificate and the Telecommunications Business Service License. Besides guiding on the specific matters such as foreign investment in telecommunication services, the Law on Telecommunications established a legal framework that covers all matters connected with telecommunication services in an all-embracing way for the first time in Vietnam.

Professionals at ANT Lawyers work on many a variety of telecommunications, media and technology transactions and cases. Our attorney’s industry knowledge and expertise allow us to effectively support the information technology sector. We could deliver the experience and expertise needed to handle issues in both private practice and in corporate and regulatory bodies.

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