Vietnam Proposes Biometric Authentication for Securities Trading: Impact on ABS, BID

Overview

The Ministry of Finance is seeking comments on a draft circular that would mandate biometric authentication for the first online securities transaction of each login session. The proposal aims to enhance security and prevent account lending used in market manipulation. While experts support the intent, they warn of potential inconvenience to investors and negative impacts on market liquidity, which could affect securities companies such as An Binh Securities (ABS) and BIDV Securities (BSC, part of BID).

Key Facts

• The draft circular requires biometric authentication for the first online securities transaction per login session.
• The regulation is intended to prevent account lending and market manipulation, a common issue in recent enforcement cases.
• Nguyen The Minh, Director of Investment Banking at ABS, supports the move but warns it may reduce trading speed and liquidity.
• Bui Nguyen Khoa, Deputy Director of Research at BSC (BIDV Securities), says biometrics can ensure “right person, right account” but is not a complete solution.
• Experts suggest applying biometrics only to margin accounts or reducing frequency to once per day instead of per login.
• The proposal is still in draft form and open for public comment.
• ABS closed at VND 3,000 (+3.45%) and BID at VND 43,000 (-1.83%) on May 23, 2026.

What Happened

Vietnam’s Ministry of Finance has released a draft circular regulating electronic transactions on the securities market. The key proposal is to require biometric authentication for the first online transaction of each login session. This measure is designed to verify the identity of the person executing the trade, thereby curbing the practice of lending accounts to others for market manipulation.

In comments to Tuoi Tre newspaper, Nguyen The Minh of ABS noted that many recent manipulation cases involved account lending. He supports the biometric requirement but cautioned that it could slow down trading and cause inconvenience, especially since many trading apps automatically log out after a period of inactivity. Bui Nguyen Khoa of BSC added that biometrics help ensure “right person, right account” but are not a silver bullet. Both experts suggested alternatives such as applying the rule only to margin accounts or reducing authentication frequency to once per day.

Market Context

ABS (listed on HOSE) and BID (listed on HOSE) are directly affected as securities firms that would need to implement the new authentication procedures. On May 23, 2026, ABS shares rose 3.45% to VND 3,000, while BID fell 1.83% to VND 43,000. The broader market has been volatile, and any regulatory change that could reduce trading liquidity may weigh on brokerage revenues. The proposal comes amid ongoing efforts to tighten market oversight and improve transparency.

Strategic Significance

For long-term investors, the biometric authentication proposal represents a regulatory push to enhance market integrity, which could reduce manipulation and improve investor confidence. However, the potential for reduced trading activity and inconvenience may pressure short-term trading volumes and brokerage fees. Securities firms like ABS and BID may need to invest in technology upgrades and user experience improvements to mitigate negative impacts. The final form of the regulation will determine whether the benefits of security outweigh the costs of friction.

What to Watch

• Finalization of the draft circular and any changes to authentication frequency or scope.
• Implementation timeline and whether a pilot phase is introduced.
• Feedback from securities companies and investor associations during the comment period.
• Impact on trading volumes and brokerage revenues in subsequent quarters.
• Potential for similar biometric requirements in other financial services (e.g., banking).