Vietnam Likely to Allow 100 per cent Foreign-invested Management Funds
The Vietnamese Ministry of Finance is mulling a plan to submit to the government of Vietnam to allow the establishment of wholly foreign invested management funds, local Securities Investment newspaper said recently.
The ministry move is aimed to help legalize operations of foreign funds, which are now operating under representative offices, and create a fair playing field for investors in Vietnam now, it noted.
However, opening room for foreign funds means local funds will face greater pressures. To restrain this, the ministry will propose the government to apply limit on operations conditions, it said.
To establish a fund in Vietnam, foreign investment funds must be three-year experienced and manage $500 million assets.
The ministry said so far 505 foreign institutional investors have operated in Vietnam and hold listed shares with the market value of $8 billion.
The statistics of the ministry showed 35 representative offices have received licenses to operate in the local market.
However, the World Bank said foreign investors hold a fourth of the official market capitalization, or $5.3 billion.
Vietnam shares closed up 3 per cent Wednesday after the market dipped for the past several weeks on an emerging capital inflow from Vietcombank’s IPO as state media reported because investors will bid a limited number of Vietcombank’s shares. (Securities Investment)
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