Vietnam Agrees to Lift Foreign Ownership Limit in Listed Firms

The Government of Vietnam has recently decided to raise the foreign ownership ratio in listed companies in an effort to further develop the local stock market.

 

Accordingly, foreign investors will be allowed to buy a stake of up to 49 per cent in a listed firm, instead of 30 per cent as regulated currently.

 

“The move will help create a powerful wave of foreign participants in the stock exchange in the coming time,” said Nguyen Doan Hung, deputy chairman of the State Securities Commission (SSC). “The securities market will become busier in the immediate future but in the long-term, the market will be stable as the prices will follow the quality of stocks.”

 

Hung from SSC said the expansion of the foreign ownership ratio in listed companies has been expected by foreign investors for a long time. He added that they have acquired all shares permitted in some attractive stocks such as REE, Sacom, Gemadept and Savimex.