State Securities Commission of Vietnam maintains stance on the self-determination of foreign ownership of enterprises

VCN - According to the representative of the State Securities Commission, the drafting agency still maintains the regulations that do not empower enterprises to determine the ownership ratio of foreign investors.
Looking back on 20 years of external activities of the State Securities Commission Looking back on 20 years of external activities of the State Securities Commission
Failure to hold General Meeting of Shareholders, enterprise may request an extension Failure to hold General Meeting of Shareholders, enterprise may request an extension
State Securities Commission: investors worrying about Covid-19 epidemic  State Securities Commission: investors worrying about Covid-19 epidemic
0938-4142-quy-yynh-vy-yiyu-kiyn-yyu-ty-yyi-vyi-nha-yyu-ty-nyyc-ngoai
The State Securities Commission of Vietnam maintains the stance on the self-determination of foreign ownership of enterprises.

According to the latest information from the State Securities Commission, in the final draft of aDecree detailing a number of articles in the Law on Securities 2019, the drafting agency still maintains a clause that does not empower enterprises to decide the ownership rate of foreign investors.

According to Mr. Bui Hoang Hai, Director of the Securities Offering Management Department (State Securities Commission), the draft Decree stipulates that the rate of ownership from foreign investors in public companies is unlimited, except for a number of industries that have other treaties and laws. Compared with current regulations in Decree No. 60/2015 / ND-CP, this content removes the phrase "unless otherwise provided in the company's charter". This means the draft new decree will not give public companies the right to decide on the foreign ownership ratio (not exceeding the maximum rate specified in international treaties or specialized laws) as currently.

After the publication of the draft Decree, there were many conflicting opinions from businesses, especially specific businesses such as the banking sector. Enterprises stated the reason is that they want to keep the right to decide foreign limits for plans to cooperate with strategic investors and will "get a better price" when selling to retail investors.

Explaining the reason why the State Securities Commission decided not to change this regulation in the final draft, Mr. Hai said this is firstly aimed at transparency in the market, ensuring the interests of foreign investors investing in Vietnam.

“When foreign investors invest in a business, they will have to research the market situation, have to make a specific plan and submit it to all levels. Then, when the leader makes a decision to invest in a business, the enterprise in Vietnam will submit to the General Meeting of Shareholders to lock the ownership. With this process, foreign investors will evaluate Vietnam's stock market as not transparent.”

Another reason mentioned by the State Securities Commission is to be consistent with the current legal regulations. The Law on Investment stipulates that, except for conditional business lines and industries specified in the treaties, no distinction between foreign and domestic investors, foreign investors will be allowed market access as domestic investors.

In the Enterprise Law, shares are freely transferable, except for the case specified in Clause 3, Article 119 of this Law and the company's charter provides for restrictions on share transfer. Where the company's charter provides for restrictions on share transfer, these provisions will only take effect when it is stated in the shares of the respective shares. Therefore, if empowering businesses to lock foreign limits themselves, it will limit the freedom of transfer of company shareholders.

“The drafting agency removes the phrase"unless otherwise provided in the company's charter"and believes this is consistent with the current regulations. Currently, there are still many different opinions, and these views were expressed in the Conference on the appraisal of the draft Decree of the Ministry of Justice. Up to now, we have not received a final evaluation opinion of the Ministry of Justice, when officially received, we will decide whether to adjust or not,” said Mr. Bui Hoang Hai.

By Thuy Linh/Dieu Huong

Related News

Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there are still difficulties, the economy is gradually returning to a high growth trajectory. In that context, it is necessary to let fiscal policy return to normal state.
State-owned commercial banking sector performs optimistic growth, but more capital in need

State-owned commercial banking sector performs optimistic growth, but more capital in need

VCN - According to the report sent to the National Assembly before the 8th Session of the Government on investment, management and use of state capital in enterprises nationwide in 2023, the business performance of the state-owned commercial banking sector achieved positive growth.
Ba Ria-Vung Tau Customs cultivates a stronger relationship with enterprises

Ba Ria-Vung Tau Customs cultivates a stronger relationship with enterprises

VCN - Ba Ria - Vung Tau Customs Department held a conference to review the development of Customs - Business partnership.
Tax sector determines to take enterprises as the center of service

Tax sector determines to take enterprises as the center of service

VCN - That was the affirmation of Deputy General Director of the General Department of Taxation Mai Son at the Tax - Customs forum in 2024 organized by Vietnam Financial Times on the afternoon of October 16, 2024.

Latest News

M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ceiling and safety threshold approved by the National Assembly, ensuring national financial security, increasing proactive response to risks arising from external and internal causes of the economy.
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

VCN - Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment; renovating, upgrading, expanding, and constructing new construction items in projects that have been invested in and constructed in the past.
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.

More News

Striving for average CPI not to exceed 4%

Striving for average CPI not to exceed 4%

VCN - According to the report of the Ministry of Finance, there are still some factors that put pressure on price levels in the remaining months of 2024, so the Ministry has updated 2 scenarios of average inflation in 2024 increasing in the range of 3.7-3.92%.
Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

Delegating the power to the government to waive, lower, or manage late tax penalties is suitable

VCN - Discussing in groups about the project "1 law amending 7 laws" in the financial sector according to the program of the 8th Session on October 29, 2024, National Assembly delegates proposed that the Government should be assigned to make specific regulations on decentralization, granting the right to exempt and reduce taxes, and handling penalties for late payment of taxes...
Removing difficulties in public investment disbursement

Removing difficulties in public investment disbursement

VCN - According to the report of the Investment Department (Ministry of Finance), the estimated disbursement from the beginning of the year to October 31, 2024 is VND 355,616.1 billion, reaching 47.43% of the 2024 plan, reaching 52.29% of the plan assigned by the Prime Minister.
Stipulate implementation of centralized bilateral payments of the State Treasury at banks

Stipulate implementation of centralized bilateral payments of the State Treasury at banks

VCN - The Ministry of Finance (MOF) gathers feedback on the draft Circular regulating the management and use of accounts of the State Treasury opened at the State Bank of Vietnam (SBV) and commercial banks.
Rush to finalize draft decree on public asset restructuring

Rush to finalize draft decree on public asset restructuring

VCN - According to the Ministry of Finance, the draft Decree regulating the rearrangement and handling of public assets is being urgently completed by the Ministry of Finance to submit to the Government for promulgation.
Inspection report on gold trading activities being complied: SBV

Inspection report on gold trading activities being complied: SBV

The State Bank of Vietnam (SBV) has announced that inspections on compliance with legal policies in gold trading activities of credit institutions and gold trading businesses have been completed and an inspection report is being compiled.
Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

Budget revenue in 2024 is estimated to exceed the estimate by 10.1%

VCN -The Government estimates that state budget revenue in 2024 will exceed VND 172.3 trillion, up 10.1% over the estimate, of which tax and fee revenue will reach 13.1% of GDP.
Ensure timely and effective management and use of public asset

Ensure timely and effective management and use of public asset

VCN – In order to promptly and effectively implement public asset management and use, ensuring compliance with legal regulations, the Ministry of Finance has just issued an official dispatch requesting ministries, branches and localities to comply with regulations in the Government’s Decree No. 114/2024/ND-CP dated September 15, 2024.
Accelerating decentralization in public asset management

Accelerating decentralization in public asset management

VCN - Amending the Law on Management and Use of Public Assets aims to improve regulations on accelerating decentralization and improving efficiency in management and use of public assets, and promoting financial resources, ensuring that the unified application the Law on Management and Use of Public Assets and other legal documents.
Read More

Your care

Latest Most read
M&A activities show signs of recovery

M&A activities show signs of recovery

Mergers and acquisitions (M&A) activities in Vietnam have been showing signs of recovery in recent months as several large companies announced finished deals, which may create a ripple effect in the M&A market.
Fiscal policy needs to return to normal state in new period

Fiscal policy needs to return to normal state in new period

VCN - To recover the economy during and after the Covid-19 pandemic, fiscal policy has been flexibly and promptly managed, becoming a solid foundation to help businesses and the economy gradually overcome difficulties. After nearly 5 years, although there
Ensuring national public debt safety in 2024

Ensuring national public debt safety in 2024

VCN - Since the beginning of the year, public debt management has been conducted proactively and effectively, meeting the need of raising capital for development investment. At the same time, debt indicators by the end of 2024 are guaranteed within the ce
Removing many bottlenecks in regular spending to purchase assets and equipment

Removing many bottlenecks in regular spending to purchase assets and equipment

Decree No. 138/2024/ND-CP, which has just been issued, is expected to contribute to resolving bottlenecks in allocating funds for purchasing assets and equipment
Continue to handle cross-ownership in banks

Continue to handle cross-ownership in banks

VCN - The situation of excess share ownership, cross-ownership between credit institutions (CIs), CIs and enterprises, although has decreased significantly compared to previous periods, is still complicated and requires continued inspection and control.
Mobile Version