Short selling is a crucial financial instrument widely utilized in developed stock markets such as the United States, Singapore, and the European Union to enhance market liquidity and enable investors to hedge risks against declining stock prices. These jurisdictions have established stringent regulatory frameworks to govern short-selling activities, ensuring market transparency and stability.

In Vietnam, the Law on Securities 2019 and its accompanying regulations have laid the legal foundation for regulated short-selling transactions. However, the absence of detailed regulatory guidelines has resulted in a legal gap, diminishing market attractiveness and exposing investors to uncertainties and risks. Currently, investors can only conduct short-selling transactions in the derivatives market through VN30 index futures contracts, while no supporting mechanism exists for the equities market.

Therefore, analyzing short-selling regulations in the U.S. and Singapore will provide a comprehensive perspective, clarify Vietnam’s regulatory landscape, and propose practical solutions to strengthen its legal framework. Establishing a clear and effective regulatory mechanism will not only enhance trading flexibility but also expand opportunities to attract foreign investment, improve market competitiveness, and lay a solid foundation for the sustainable development of Vietnam’s stock market in the context of global financial integration.