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Update news foreign ownership ratio
Vietnamese banks have been increasing their foreign ownership ratios to attract investment and improve financial strength.
The Ministry of Construction (MOC) has proposed offering preferences to real estate firms that develop low-cost housing with the selling price of no more than VND20 million per square meter.
The State Bank of Vietnam (SBV) affirmed that regulations are in line with international commitments, which show Vietnam's management rights in the field of payment services.
The Prime Minister has agreed to raise the maximum foreign ownership ratio in Vietnam’s aviation enterprises by 4 percent only.
VietNamNet Bridge - With the government’s Decree 60, businesses now have the right to lift the foreign ownership ratio ceiling to 100 percent.
VietNamNet Bridge - While institutional shareholders register to divest shares of listed banks, inside shareholders and relatives of the members of the board of management are rushing to collect shares.
VietNamNet Bridge - After separating from HSBC, Techcombank plans to spare no room for foreign investors, and VP Bank, which has been prospering in the last four years, is no longer eager to seek foreign partners.
VietNamNet Bridge - A number of leading corporations have lifted the foreign ownership ratio limit after the government issued Decree 60.
While Vietcombank and VietinBank have proposed to lift the foreign ownership ratio ceiling to 35-40 percent to satisfy requirements of the Basel II Accord, ABBank and SCB want higher foreign ownership ratios to speed up the restructuring process.
VietNamNet Bridge - Decree 60 took effect in September 2015, allowing Vietnamese businesses to lift the ceiling for foreign investors. However, barriers still exist.
VietNamNet Bridge - Analysts predicted that businesses would rush to open their doors widely to welcome foreign investors once the government raises the ceiling to 100 percent. However, this has not happened.
VietNamNet Bridge - More and more listed companies have asked for permission to give larger room to foreign investors in their businesses, a move which is expected to lead to a new price increase wave.
VietNamNet Bridge - Decree No 60 allowing foreign investors to hold up to 100 percent of stake in Vietnamese businesses took effect in early September. However, foreign investors still are doubtful about its enforcement.
VietNamNet Bridge - The State Securities Commission (SSC) has confirmed that only three securities companies have accepted a foreign ownership ratio of more than 49 percent.
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.
VietNamNet Bridge - Why has the Kido Group jumped into the banking sector? And why has it chosen the troubled Dong A Bank?
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.