On 24 August 2009 the State Securities Commission of Vietnam (the "SSC") issued Official Letter 1748/UBCK-QLKD (the "Official Letter 1748") regarding short sale transactions in the securities market.

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Pursuant to the Article 71.9 of the 2006 Law on Securities, securities companies may conduct the sale of, or permit the client to sell, securities which are not under the ownership of the client and lend the client securities to sell (known as short sale transactions) in accordance with the regulations of the Ministry of Finance. However, the Ministry of Finance has not issued such regulations.

To that extent, in Official Letter 1784, the SSC states that due to the lack of such regulations, securities companies may not carry out short sale transactions. The SSC intends to conduct an inspection of securities companies and will deal with the securities companies who infringe this regulation.