Global Trade Alert

On 26 June 2015, the Vietnamese prime minister signed decree 60/2015/ND-CP amending decree 58/2012/ND-CP specifying the law on securities.
 
Ownership caps on public companies largely scrapped
With the latest changes, the foreign ownership caps of 49% on public companies have been largely scrapped. However, restrictions shall continue to apply if so specified in Vietnam's WTO schedule, international agreements or other Vietnamese laws. The ownership limits will also continue to apply in sectors "conditional for foreign investment". 
According to a press release by the prime minister's office, "for public companies not under the circumstances specified above, the percentage of foreign ownership is unrestricted, unless the company's charter stipulates otherwise." These provisions will also apply for state entreprises conducting an IPO.
 
Scrapped foreign ownership restrictions on other financial instruments
The ownership caps were also scrapped for bonds, derivatives and non-voting shares in Vietnamese public companies.
 
Requirements for foreign investors in the financial sector
Foreign investors may possess majority shares in securities or fund management companies in Vietnam only if they possess the required licence in their home country and have at least 2 years of experience in the financial sector in their country of origin.
 
International offering of investment funds allowed
Furthermore, fund management companies were allowed to conduct offshore offerings as well as offshore listings of fund certificates from the onshore fund.
 
Local content requirement for real estate investment funds
The new decree on securities also introduces a requirement for real estate investment funds to invest at least 65% of their net assets into qualifying Vietnamese real estate or shares of real estate companies with revenues of at least 65% in their core business.
 
The provisions will come into force on 1 September 2015.