New stipulation on foreign investors’ purchase of shares of Vietnamese credit institutions
00:19 16/01/2014
The Government issued Decree No. 01/2014/ND-CP dated January 03, 2014 providing conditions of and procedures for share purchase, total of maximum shareholding level for foreign investors, the maximum shareholding percentage for a foreign investor in a Vietnamese credit institution; conditions for a Vietnamese credit institution to sell shares to foreign investors.
Accordingly, shareholding percentage of a foreign individual and organisation shall not exceed 5% and 15 % respectively of charter capital of a Vietnamese credit institution. Meanwhile, the shareholding percentage of a foreign strategic investor shall not exceed 20% of charter capital of a Vietnamese credit institution.
In case of share purchase that leads the shareholding level to be 10% or more of charter capital; share purchase and becoming foreign strategic investor of a Vietnamese credit institution, the Vietnamese credit institution or foreign organization shall make a dossier and send directly or via post, electronic network to the State bank of Vietnam for acceptance before performing transactions. Within 40 days after receiving full and valid dossier, the State bank of Vietnam shall consider and decide on acceptance or refusal in writing for foreign organizations' share purchase.
This Decree takes effect on February 20, 2014 and replaces Government’s Decree No. 69/2007/ND-CP dated April 20, 2004, on foreign investors' purchase of shares of Vietnamese commercial banks.