Decision No. 238/2005/QĐ-TTg On the proportion of foreign participation in the Vietnamese securities market

DECISION OF THE PRIME MINISTER

Regarding the proportion of foreign participation in the Vietnamese securities market

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

PURSUANT TO THE PROPOSAL OF THE CHAIRMAN OF THE STATE SECURITIES COMMISSION,

Pursuant to Decree No. 187/2004/NĐ-CP dated November 16, 2004 of the Government on converting state-owned enterprises into joint-stock companies;

Pursuant to Decree No. 38/2003/NĐ-CP dated April 15, 2003 of the Government on converting certain foreign-invested enterprises to operate under the form of joint-stock companies;

Pursuant to Decision No. 36/2003/QĐ-TTg dated March 11, 2003 of the Prime Minister on promulgating the regulations on capital contribution and purchase of shares by foreign investors in Vietnamese enterprises;

At the proposal of the Minister of Finance,

DECISION:

Article 1. Foreign organizations and individuals purchasing and selling securities on the Vietnamese securities market may hold:

a) Up to 49% of the total number of listed and registered-for-trading shares of a listed or registered-for-trading organization at the securities trading center. For listed or registered-for-trading organizations that are foreign-invested enterprises converted to operate as joint-stock companies pursuant to Decree No. 38/2003/NĐ-CP dated April 15, 2003, the total number of listed shares is the number of shares issued to the public according to the approved plan by the competent authority.

b) Up to 49% of the total number of listed and registered-for-trading investment fund certificates of a securities investment fund.

c) No limit on the proportion held for circulating bonds of the issuing organization.

Article 2. Foreign securities business organizations may contribute capital, purchase shares, or contribute capital to establish a joint venture to form a Securities Company or Investment Fund Management Company up to 49% of the charter capital.

Article 3. In case international treaties signed or acceded to by the Government of Vietnam differ from the provisions of this Decision, the international treaties shall be applied.

Article 4. This Decision replaces Decision No. 146/2003/QĐ-TTg dated July 17, 2003 of the Prime Minister and takes effect fifteen days after its publication in the Official Gazette.

Article 5. The Minister of Finance shall guide the implementation of this Decision. Ministers, Heads of ministerial-level agencies, Heads of agencies attached to the Government, Chairmen of Provincial People's Committees, Chairmen of Management Boards, General Directors of State-Owned Corporations, and related organizations and individuals are responsible for implementing this Decision./.