Proposals will be submitted next month by Vietnamese regulators trying to ease restrictions on foreign ownership in companies in an attempt to lure greater international investment.
The outlined proposal suggests raising the level of foreign ownership investment in publicly traded companies from the current 49%.
If indeed it does ever come into force (there are no time frames known yet), it is hoped the proposal would help Vietnam’s stock market grow – its stocks are valued at $44.6 billion (1.3trillion baht) compared with $621.40 billion in Singapore.
The proposal also suggests that foreign investors will be permitted to buy non-voting shares in order to lift their holding.
Economists are however split whether the proposal will boost Vietnam’s economy, or only aid to boost foreign firms.
Under Thailand Foreign Business Law the Foreign Business Act 1999 regulates the activities of foreigners . Restrictions of various degrees of severity re placed on foreign ownership and operation of these businesses. Foreigners can only hold 100% ownership of businesses in certain areas, for example, exporting businesses and certain types of manufacturing businesses, however the majority of foreigners in Thailand register a Thai majority company. In other words, a company that has 51% or more of Thai shareholders.
Any changes to foreign ownership in Vietnam are still subject to the government’s approval.
Related Documents:Thailand Foreign Business Law
Related Documents: New Laws in Thailand Aim to Curb Foreign Dominance
{ 6 comments }
Comments on this entry are closed.