Foreign ownership rate extension to lure oversea capital: SSI

Chairman of the State Security Commission (SSI) of Vietnam Vu Bang yesterday said that the commission has rushed to modify Decree 58 detailing Securities Law, which will extend foreign ownership rate in Vietnamese public companies to further attract foreign investment capital this year.
 
The draft decree is expected to be approved and released by the second quarter.
 
According to Mr. Bang the commission’s point of view is to create utmost advantages for foreign investors in Vietnamese stock market except banned and conditional sectors.
 
Deputy Minister of Finance Tran Xuan Ha said that the ministry has proposed to increase the foreign ownership rate for a couple of times. However ministries have presented different opinions on this matter. Therefore it is necessary to compare relevant regulations with each other before making any decision.
 
SSI said that one of important measures for the stock market development this year is to improve quality and diversity types of products.
 
The commission will assist state own enterprises to equitize, withdraw capital, list on the market and register transactions by shortening document assessment time and linking stock exchange floors with businesses in share auctions and etc...
 
In addition SSI will strictly handle those businesses that have launched Initial Public Offerings for over a year but do not register transactions in organized markets, and propose a mechanism to work with the State Bank of Vietnam in restructuring credit institutions.
 
Foreign ownership rate is capped at 49 percent in public companies in Vietnam.

By Ngoc Quang – Translated by Hai Mien

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