VAFI Suggests to Raise Foreign Ownership in Listed Firms
The Vietnam Association of Foreign Investors (VAFI) has again proposed the Prime Minister to amend the Decision 238 so as to raise the foreign ownership ratio in local listed companies.
Under Decision 238, foreign investors can hold a maximum 49 per cent of stake in local joint stock companies.
However, VAFI said the ratio should be raised to 100 per cent, except for some companies in conditioned businesses.
VAFI general secretary Nguyen Hoang Hai said that higher foreign cap is expected to speed up the capital mobilization of enterprises and facilitate the participation of foreign investors in the local stock market.
The adjustment of Decision 238 would help develop the capital market of Vietnam, he said.
VAFI has earlier suggested the Government to increase foreign ownership from 30 per cent to the current 49 per cent.
Since the proposal was accepted resulting in the dissemination of Decision 238 in August 2005, the local economy has welcomed more foreign indirect investment inflow, which has reached US$1 billion to date.
Vietnam Economic Times
Vietnamese
