Vietnam PM Urges to Study Licensing Wholly Foreign Fund Management Firms
Vietnamese Prime Minister Nguyen Tan Dung has asked the Ministry of Finance to inspect a mechanism of giving license to the 100 percent foreign-owned fund management companies in a bid to help stabilize stock market.
Vo Thi Huyen Lan, chief representative of Jaccar Capital, said the establishment of the wholly foreign-owned fund management firms will have positive effects on the development of Vietnam’s stock market.
Once established, the wholly foreign fund managers will help attract more foreign investment flows, especially indirect foreign investment, increase demand (to balance supply) and boost the development of local stock market, she said.
Deputy Director of BIDV Fund Management Joint Venture Nguyen Nhan Nghia shared the view, saying that this kind of company will also improve transparency and help better manage operations of investment funds.
However, the mechanism will face difficulties, Nghia said, explaining that the foreign fund representatives have tax of 0.1 percent for a transaction, but the 100 percent foreign-owned fund companies will have to pay a tax of 20 percent for a transaction.
Vietnam now has more than 25 domestic fund management companies and a lot of representative offices of foreign fund management firms. (Laborer, VnEconomy)
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