The Governor of the State Bank of Vietnam (SBV) has issued Circular No. 23/2024/TT-NHNN which simplifies administrative procedures by eliminating the need for SBV approval, easing the process for organisations to implement equity award programmes abroad.
Circular 23 amends and supplements a number of Articles of Circular No.10/2016/TT-NHNN dated 29 June 2016, providing guidance for a number of substances as stipulated in Decree No.135/2015/ND-CP dated 31 December 2015 of the Government regulating indirect investment overseas on 26 June 2024.
The new Circular replaces “Stock Purchase Rights with Preferential Conditions” with “Other Forms of Equity Award Abroad that Do Not Generate Cash Outflows,” offering organisations a broader range of equity award options for Vietnamese employees. However, it is crucial for organisations to ensure these equity awards do not result in cash outflows.
Effective from 12 August 2025, equity award programmes registered with the SBV before 12 August 2024 that involve stock purchase rights with preferential conditions must transition to other forms of equity awards abroad that do not involve cash outflows.
