Vietnam Govt OKs New Rules on Foreign Stakes in Local Firms
Prime Minister Nguyen Tan Dung has just approved new regulations for foreigners holding stakes in local firms, the Vietnamese government said on its Website on June 22.
Under the new rule, foreigners are allowed to use the shares they hold in local listed firms as collateral to take loans from banks, and they are permitted to convert freely their earnings into dollars.
Foreign companies with branches in Vietnam, foreign investors who already hold 49 per cent of stakes in local stock brokerages or that hold 49 per cent of stakes in local firms are eligible to take advantage of the new regulations, the government said.
As for 100 per cent state-owned companies, foreigners are allowed to hold stakes at rates approved by the government, it added.
Foreigners can buy stakes via initial public offering of joint stock companies, can buy approved stakes for sale in 100 per cent state-owned firms to be privatized, and can buy additional shares that local firms plan to issue.
Those foreigners who want to hold stakes in local firms must have bank accounts at local commercial banks and copies of a valid passport or identity card.
Currently, foreign investors are allowed to hold a combined 30 per cent of stakes in local banks and 49 per cent of stakes in listed firms. (chinhphu.vn)
Vietnamese
