Foreign investors to hold max. 49% of public joint stock company stake
17:27 | 16/04/2009
VGP – Foreign investors are permitted to hold a maximum of 49% of stake of a public joint stock company from June 1, according to a new Government's decision.

 

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The Decision, signed by PM Nguyễn Tấn Dũng on Wednesday, stipulates the ownership rates applied to foreign investors trading shares on the stock markets in Việt Nam.

For bonds, issuance organizations can decide the maximum proportions for foreign investors.

Only foreign securities companies are allowed to contribute capital and purchase shares to establish securities companies in Việt Nam, but the capital can just account for a maximum of 49% of the charter capital of a securities company.

Also only foreign securities companies with securities fund management licenses or foreign insurers are allowed to contribute capital or buy stake to set up fund management companies.

Foreign investors under the Decision include:

-          Organizations set up and operate under foreign laws and their branches in other countries and in việt Nam.

-          Organizations set up and operate in Việt Nam that their foreign partners hold above 49% of their stakes.

-          Investment funds, securities companies that foreign partners contribute more than 49% of their stakes.

-          Foreign individuals bearing foreign nationalities that reside abroad or in Việt Nam.

By Hải Minh

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