20 Nov 2018
VIETNAM: 100% Overseas Ownership Approved for Majority of Listed Companies
Overseas investors are to be permitted to acquire a 100% stake in the majority of the country’s listed companies. This is a change to the previous practice that saw such ownership capped at 49% for listed enterprises in about 200 different business sectors. Under the terms of the changed legislation, which is set to be implemented in early 2020, such restrictions on overseas ownership will only apply to banks (capped at 30%) and for companies in the security, defence, telecommunications or insurance sectors (capped at 49%).
There is no change, however, in the existing legislation that entitles overseas investors to establish wholly-owned enterprises in the country, while domestic businesses are still allowed to stipulate their own overseas ownership limits.