Proposals will be submitted next month by Vietnamese regulators seeking to ease restrictions on foreign ownserhip in companies in an attempt to lure greater international investment.
The outlined proposal would look to raise the foreign ownership investment in publicly traded companies from the exisiting 49%.
If implemented, 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 will also allow foreign investors to buy non-voting shares in order to boost their holding.
Any changes to foreign ownership in Vietnam are still subject to the government’s approval, and there are no time frames for implementations, however economists are however split whether the proposal will boost Vietnam’s economy, or simply benefit foreign firms.
In Thailand, the Foreign Business Act 1999 regulates the activities of foreigners under Thailand Foreign Business Law. The act places restrictions of various degrees of severity on foreign ownership and operation of these businesses. Foreigners can hold 100% ownership of businesses in non-restricted categories, such as exporting businesses and certain types of manufacturing businesses, however the majority of foreigners in Thailand register a Thai majority company. This is a company that has 51% or more of Thai shareholders.
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