Decision No. 238/2005/QĐ-TTg stipulates the proportion of foreign participation in the Vietnamese securities market, with no limit on bonds and a limit of 49% for listed shares and investment fund certificates. This decision replaces Decision No. 146/2003/QĐ-TTg.
Scope of application
Foreign organizations and individuals; foreign securities business organizations
Key points
- Foreign organizations and individuals may hold up to 49% of the total number of listed shares of a listed organization on the Vietnamese securities market.
- There is no limit on the holding ratio for circulating bonds issued by the issuer.
- Foreign securities business organizations may contribute capital, purchase shares, or contribute capital to establish joint ventures to form Securities Companies or Investment Fund Management Companies, with a maximum of 49% of the registered capital.
- For listed companies that are converted from foreign-invested enterprises to operate as joint-stock companies, the total number of listed shares is the number of shares issued to the public according to the approved plan by the competent authority.
- This decision replaces Decision No. 146/2003/QĐ-TTg and takes effect fifteen days after its publication in the Official Gazette.
🌐 Social impact of this document
- Reduces the burden on foreign enterprises investing in the Vietnamese securities market through the removal of limits on bond holding ratios.
- Limiting the participation ratio of foreign parties in listed shares and investment fund certificates can create a balance among investors in the market.
- Can promote the development of the Vietnamese securities market through attracting foreign investment.
❓ Frequently asked questions
What is the maximum percentage of listed shares that foreign organizations and individuals can hold?
Up to 49% of the total number of listed shares of a listed organization on the Vietnamese securities market.
What organization's circulating bonds have no limit on the holding ratio?
There is no limit on the holding ratio for circulating bonds issued by the issuer.
What is the maximum percentage of capital contribution allowed for foreign securities business organizations?
A maximum of 49% of the registered capital when contributing capital, purchasing shares, or contributing capital to establish joint ventures to form Securities Companies or Investment Fund Management Companies.
Which decision does this decision replace?
Decision No. 146/2003/QĐ-TTg.
When does this decision take effect?
This decision takes effect fifteen days after its publication in the Official Gazette.
Full text
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./.
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