VietNamNet Bridge - The government’s lifting of the foreign ownership ceiling in Vietnamese commercial banks has been a hot topic on all securities trading floors in recent days.

VietNamNet Bridge - While the government of Vietnam has opened the door widely to foreign investors in many business fields, it remains very cautious with the banking sector.

VietinBank, one of Vietnam’s largest commercial banks, is considering raising the foreign ownership ratio to 40 percent. If the bank’s proposal is approved, it will be the first bank with a foreign ownership of over 20 percent.

Two circulars from two ministries are needed to bring into force the government’s decree on lifting foreign ownership ratios in Vietnamese enterprises. One circular has been released. The second has not.

All the favorable conditions for the stock market to prosper can be seen at this moment: open policies, the strong recovery of the economy, interest of international investors, and strong capital flow to frontier markets.

Vietnam is emerging as one of the most attractive emerging markets, as reported in many foreign newspapers and financial newswires, after the government of Vietnam lifted the foreign ownership ratio ceiling in unconditional business fields.

VietNamNet Bridge - Foreign investment funds have said that Decree No 60 on lifting the foreign ownership ratio ceiling will mostly affect listed companies. As for other companies, the room for foreign investors remains unclear.

Enterprises in several business fields are now able to implement regulations in Decree No 60 that increase the foreign-ownership ratio in Vietnamese companies, with no need to wait for guiding documents.