VietNamNet Bridge – The ceiling foreign ownership ratio may be up to 100 percent instead of 60 percent as initially planned, sources said. If this comes true, this will be a breakthrough in the policy makers’ thinking.
“We will give clear answers to the questions about the ceiling foreign ownership ratio adjustment in some months,” ThoiBaoKinhTeSaiGon quoted a Ministry of Finance’s official as saying.
Under the currently valid Decision No 55, foreign investors can hold up to 49 percent of shares in one Vietnamese listed company. The 2014 Enterprise and Investment Laws stipulate that a company is considered as “foreign invested enterprise” when foreign investors hold at least 51 percent of shares of public companies.
This means that foreign investors can hold up to 51 percent of shares issued by public companies.
The above said official from the Ministry of Finance revealed that the ceiling foreign ownership would not be as low as 60 percent as initially suggested.
“The allowed foreign ownership ratio may be as high as 100 percent in the enterprises in many business fields, except banking, insurance, telecommunication, pharmacy and national defence,” he said.
Earlier this year, the representative of the Ministry of Finance said at a workshop that the State is determined to disinvest from the business fields where the State does not need to invest in.
He went on to say that the State will withdraw 100 percent of its capital from profitable businesses, such as Vinamilk(dairy producer) and Sabeco (brewery), and foreign investors will have the right to buy the enterprises if they can.
More recently, the steering committee on Sabecoequitization suggested that the State should reduce the state’s capital in the enterprise to 36 percent through share auctions. If the suggestion gets approved, foreign investors will have the opportunity to hold more than 51 percent of Sabeco’s shares if they bid competitive prices.
According to the State Securities Commission (SSC), there would be different ceiling foreign ownership ratios to be applied to three groups of businesses.
The first one includes the businesses in conditional business fields, such as banking and telecommunication. The ceiling foreign ownership ratios will be determined by the laws in the fields.
The second one includes big equitized state-owned enterprises. The ceiling ratios will be determined by appropriate agencies which approve equitization plans.
The third group, comprising of public companies, including listed companies, will be covered by the government’s decisions, i.e the foreign ownership ratio could be up to 100 percent.
As for securities companies, the draft document allows foreign investors to buy shares and contribute capital to Vietnamese securities companies with no limitation on ownership ratios.
TBKTSG
Vietnam may offer 100 percent foreign ownership ratio in some business fields Related image(s)
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