Foreign Investors Capped at 49 Per Cent Stake in Public Companies

Foreign investors are permitted to hold a maximum of 49 percent of stake in a public joint stock company from June 1, according to the Decision No. 55/2009/QD-TTg of the Prime Minister dated April 15, 2009. The decision stipulates the ownership rates applied to foreign investors trading shares on the stock markets in Vietnam.

 

However, the holding ratio of foreign investors at Vietnamese banks is still capped at 30 per cent.

Foreign investors are also allowed to keep at most 49 per cent of stake in a public securities investment company. For bonds, issuing organisations 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 Vietnam, but the capital can just account for a maximum of 49 per cent of the charter capital of a securities company.

 

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.