Towards a Modern Securities Legal System in Vietnam: A Comparative Perspective from the Russian Federation

Abstract

As Vietnam continues to deepen its integration into the global economy, the imperative to establish a robust, transparent, and effective legal framework for the stock market becomes increasingly critical. A well-defined regulatory structure is essential to ensuring market integrity, fostering investor confidence, and promoting sustainable financial innovation. Against this backdrop, this article undertakes a comparative analysis of the securities laws of Vietnam and the Russian Federation—two transitional economies that exhibit significant structural similarities yet have adopted divergent approaches in formulating legal mechanisms and supervisory frameworks for their respective capital markets. Through a comprehensive assessment of the reforms introduced in the amended Vietnam Securities Law (2024), the article identifies several enduring deficiencies in the regulatory oversight system, the mechanisms for investor protection, and the facilitation of financial innovation. Notably, challenges persist in ensuring the efficiency of supervisory institutions, mitigating risks associated with market manipulation and insider trading, and enhancing corporate governance standards. In contrast, Russia’s integrated financial supervision model presents valuable insights into a consolidated regulatory approach that streamlines oversight functions across various financial sectors. Additionally, the Russian "legal sandbox" mechanism provides a controlled environment for testing financial innovations while balancing regulatory compliance with market development, and its advanced electronic disclosure system strengthens transparency and information accessibility for investors. Drawing upon these international best practices, the article sets forth a range of strategic reform proposals aimed at bringing Vietnam’s securities market framework into alignment with global standards. These recommendations emphasize the necessity of refining institutional capacity, enhancing regulatory coordination, and introducing mechanisms that safeguard market stability while fostering investor-friendly policies. The relevance of these reforms is further underscored by the expanding Vietnam-Russia bilateral cooperation, which offers a unique opportunity for knowledge exchange and legal harmonization. By integrating these progressive regulatory elements, Vietnam can fortify its stock market’s resilience and establish a more dynamic, secure, and internationally competitive financial environment.