Foreigners Allowed to Own 49 per cent Stake in Vietnamese Public Firms
Prime Minister Nguyen Tan Dung has signed a decision allowing foreign investors to hold at most 49 per cent stake in a public joint stock company in the stock market of Vietnam from June 1 this year.
The new ownership rate in unlisted companies is raised from current 30 per cent and equal to the rate in listed ones. However, the holding in local commercial banks is still capped at 30 per cent.
This is a move to help push up the over-the-counter (OTC) market, local media said.
Foreign investors can also buy a 49 per cent stake in a public securities investment fund or a public securities investment firm. As for bonds, issuers are mandated to decide on the maximal ownership for foreign players.
Only foreign companies with securities investment licenses are permitted to contribute a 49 per cent stake to set up a securities firm, and only foreign fund management firms or foreign insurers are approved to buy 49 per cent stake in a local fund management firm.
The PM’s decision on foreign holding in unlisted shares will create legal framework for the Hanoi Stock Exchange to open an equity trading market for public companies (Upcom) in June this year
Vietnam now has more than 1,500 public companies. (Local sources)
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