Decision No. 55/2009/QD-TTg stipulates the proportion of foreign investors' participation in the Vietnamese securities market, applicable to relevant organizations and individuals. Notably, it sets a maximum ownership limit of 49% for shares, fund certificates, securities investment companies, and bonds.
Scope of application
Foreign investors include organizations and individuals established and operating under foreign laws, organizations with over 49% foreign capital contribution ratio, investment funds, securities investment companies, and foreign individuals.
Key points
- Foreign investors may hold up to 49% of the shares of public corporations, 49% of fund investment certificates, 49% of the charter capital of public securities investment companies, and may be subject to holding limits for bonds.
- Foreign securities business organizations may contribute to establish securities companies up to 49% of the charter capital, and foreign insurance business organizations may contribute to establish fund management companies up to 49% of the charter capital.
- If the proportion of foreign investors' participation exceeds the prescribed limit, they have the right to maintain their current ownership ratio but are only permitted to sell securities when necessary.
- This Decision takes effect from June 1, 2009, and replaces Decision No. 238/2005/QD-TTg.
🌐 Social impact of this document
- The ownership ratio limit for foreign investors helps protect the Vietnamese securities market, but may create difficulties for organizations and individuals wishing to participate at higher ratios.
- It enhances diversity in ownership structure, but also creates barriers for foreign investors seeking to hold large stakes.
❓ Frequently asked questions
What percentage of shares of a public corporation can foreign investors hold?
Foreign investors may hold up to 49% of the total shares of a publicly traded joint-stock company.
What percentage of the charter capital can foreign securities business organizations contribute to establish a securities company?
Foreign securities business organizations may only contribute to establish a securities company up to 49% of the charter capital.
Can foreign investors maintain their current ownership ratio when exceeding the prescribed limit?
Yes, if foreign investors wish to maintain their current ownership ratio and have a need to trade, they are only permitted to sell securities.
When does this Decision take effect?
This Decision takes effect from June 1, 2009, and replaces Decision No. 238/2005/QD-TTg.
What percentage of bonds can foreign investors hold?
This Decision does not specify a specific holding ratio for bonds, but the issuer may set such a limit.
Full text
Pursuant to …;
Article 1. In this Decision, foreign investors include the following organizations and individuals:
1. Organizations established and operating under foreign laws and branches of these organizations outside and within Vietnam.
2. Organizations established and operating in Vietnam with a foreign shareholding ratio exceeding 49%.
3. Investment funds, securities investment companies with a foreign shareholding ratio exceeding 49%.
4. Foreign individuals who do not hold Vietnamese citizenship and reside abroad or in Vietnam.
Article 2. Foreign investors buying and selling securities on the Vietnamese securities market may hold:
1. For shares: up to 49% of the total number of shares of a public joint-stock company. Where specialized laws provide otherwise, such provisions shall apply. Where the ownership ratio of foreign parties is classified according to specific industry categories, such classification shall apply.
2. For certificates of public investment funds: up to 49% of the total number of fund certificates of a public securities investment fund.
3. For public securities investment companies: up to 49% of the charter capital of a public securities investment company.
4. For bonds: the issuer may set limits on the holding ratio for bonds issued by the issuer.
Article 3. Foreign securities business organizations may participate in establishing securities companies and fund management companies in Vietnam as follows:
1. Only foreign securities business organizations may contribute capital or purchase shares to establish a securities company. The maximum foreign shareholding ratio is 49% of the charter capital of the securities company.
2. Only foreign securities business organizations engaged in securities investment fund management and foreign insurance business organizations may contribute capital or purchase shares to establish a fund management company. The maximum foreign shareholding ratio is 49% of the charter capital of the fund management company.
Article 4. This Decision takes effect from June 1, 2009 and replaces Decision No. 238/2005/QĐ-TTg dated September 29, 2005 of the Government Prime Minister. In cases where Article 1 of this Decision is implemented and the foreign investor's participation ratio exceeds the ratio specified in Article 2, foreign investors are entitled to maintain their current ownership ratio if they wish to trade, they are only permitted to sell securities.
Article 5. The Minister of Finance shall guide the implementation of this Decision. Ministers, heads of ministerial-level agencies, heads of agencies under the Government, Chairmen of People's Committees of provinces and centrally governed cities, Chairmen of Boards of Directors, General Directors of State Economic Groups, State Corporation 91, and related organizations and individuals are responsible for implementing this Decision.
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