On 26 June 2015, the Government issued Decree No. 60\/2015\/ND-CP to amend and supplement certain provisions of Decree No. 58\/2012\/ND-CP on detailing and guiding the implementation of certain provisions of the Law on Securities and the Law on amending and supplementing certain provisions of the Law on Securities (\u201cDecree 60\u201d).
\nMore flexible foreign ownership ratio in public listed companies
\nPreviously, foreign ownership ratio in public listed companies is the same for all sectors and subsectors. Decree 60 now provides different foreign ownership ratio for each sector and subsector, in particular:
\n–\tRequirements on foreign ownership limits in international treaties to which Vietnam is a party will prevail;
\n–\tIn case public listed companies do business in sectors, subsectors where foreign ownership limits are stipulated by the investment law and its related requirements, such limits will apply;
\n–\tIn case public listed companies do business in conditional sectors or subsectors applicable for foreign investors but there is not yet a specific requirement on foreign ownership limit, such limit would be 49%;
\n–\tIn case public listed companies do business in different sectors or subsectors with different requirements on foreign ownership limits, the applicable foreign ownership limit will not exceed the lowest foreign ownership limit required for sectors or subsectors that the company does business in, except otherwise stipulated by the international treaties;
\n–\tThere would be no limit on foreign ownership ratio for other public listed companies, except otherwise stipulated by the company\u2019s charter.
\nDecree 60 is thus expected to have a positive impact on the development of the securities market by attracting more foreign investment in the market and expedite the current equitization process.
\nUnlimited foreign investment in Government bond
\nDecree 60 allows foreign investors to make unlimited investment in Government bonds, bonds guaranteed by the Government, bonds of the provincial authority or enterprises.
\nForeign investors may also invest in securities investment fund certificates, shares of securities investment companies, non-voting shares of public listed companies, derivative securities, and depository receipts without limit.
\nNew delisting requirements
\nIf the listing company does not meet the listing requirements after its offer for sale, issues 50% or over of its existing shares in exchange for shares or contribution part in another company, the securities delisting is compulsory.
\nThe company may also voluntarily delist their securities with the condition that there is approval of at least 51% of the voting shares of all shareholders (not including major shareholders) instead of 50% in the previous requirement. The delisting can only be conducted after at least two years from the listing date on the stock exchange.<\/p>\n
—o0o—<\/p>\n
Please do not hesitate to contact Mr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.<\/p>\n
INTERESTED IN DOING BUSINESS IN VIETNAM? VISIT: www.vietnamlaws.xyz<\/p>\n
THANK YOU VERY MUCH<\/p>\n","protected":false},"excerpt":{"rendered":"
On 26 June 2015, the Government issued Decree No. 60\/2015\/ND-CP to amend and supplement certain provisions of Decree No. 58\/2012\/ND-CP on detailing and guiding the implementation of certain provisions of the Law on Securities and the Law on amending and supplementing certain provisions of the Law on Securities (\u201cDecree 60\u201d). More flexible foreign ownership ratio … <\/p>\n