CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Investment
Vietnam's new law encourages full foreign ownership and investment funds
Anh Kiet - Nguyen Anh 20:08, 2017/12/16
According to members of the Vietnam Business Forum’s (VBF) working group on capital market, the new law on securities should allow full foreign ownership at public companies and investment funds.
Dominic Scriven, head of the working group, said it was necessary to create a safe bond market and an “open” stock market to promote rapid and sustainable development of the capital market. The new securities law should allow firms to actively raise capital from foreign investors, except those operating in sectors of which foreign ownership is restricted as regulated, he said.
 
Vietnam Business Forum 2017
Vietnam Business Forum 2017
The working group also proposed that securities companies, fund management companies, public companies and investment funds founded in Vietnam be regarded as domestic investors, regardless of the foreign ownership at these companies.

The working group called for the amended draft Law on Securities to be made public early for comments because this is a specialised law and revision would take time.

At a dialogue between the working group and the State Securities Committee (SSC) early this month, Nguyen Quang Viet, Director of SSC’s Legal Department, said the new law aimed to create favourable conditions for businesses and investors and there was a high possibility that it would eliminate limits on foreign ownership at public companies and fund management companies.



 
Viet also said the draft law would be announced in March 2018 at the earliest. Compiling a new securities law to replace the Law on Securities 2006, which proved to be outdated amidst the rapid development of the capital market in Vietnam, was identified as a major task for the Ministry of Finance in 2017.

Decree 58/2012/ND-CP and Decree No 60/2015/ND-CP were issued to amend several points of the Law on Securities 2006. Accordingly, foreign ownership at public companies was capped at 49 percent. According to Scriven, Decree 90/2011/ND-CP should also be revised to allow enterprises to issue bonds efficiently.

At December 13’s conference where amendments to the decree were discussed, Dang Van Thanh, Chairman of the Vietnam Association of Financial Investors, said the corporate bond market had not received adequate attention.

Thanh said that in Vietnam, few individual investors participated in this market and companies generally did not regard bond issuance as a major channel for raising capital in comparison with banking credit. “The corporate bond market still has significant room for growth,” Thanh said. The capital market, including bonds and stocks, developed rapidly in recent years and became an important capital raising channel for the economy.

The total capitalisation of the stock and bond market is now equivalent to more than 100 percent of the country’s gross domestic product, compared to outstanding loans, which are now worth about 130 percent of GDP. The scale of the securities market tripled in the past decade from 22 percent of GDP in 2006 to 63 percent of GDP currently.
Comments
Other news
14:43, 2024/11/18
Aircraft manufacturer Embraer seeks comprehensive aviation partnership with Vietnam
The Vietnamese leader urges the aircraft manufacturer to collaborate on technology transfer, airport construction and operation, research, and investment in Vietnam.
15:12, 2024/11/14
North-South high-speed railway to open up new economic opportunities
The government proposes a design speed of 350 km/h for the railway to ensure a modern, integrated, and forward-looking infrastructure appropriate to Vietnam’s geographical and economic conditions.
17:25, 2024/11/07
Prime Minister calls on China to pilot border economic cooperation zone
This economic cooperation zone is an initiative proposed by China and has been under negotiation with several countries, including Vietnam, since 2007.
21:55, 2024/10/22
Better links with FDI firms to support Hanoi businesses
Hanoi will continue to focus on quality projects, especially with partners such as Japan, the United States, and Europe to boost technology transfer.
15:24, 2024/09/24
Vietnam calls for more US investment in innovation, hi-tech
The Vietnamese leader called on relevant agencies to resolve any challenges faced by investors and enhance the investment climate to encourage greater US investment in Vietnam.
14:13, 2024/09/23
Vietnamese leader urges Boeing to build production facility in Vietnam
Boeing is committed to continuing to support the development of Vietnam's aviation ecosystem, focusing on aviation infrastructure, human resources training, airport construction, and aircraft maintenance facilities.