Library

Bank laws Vietnam: Foreign investors to participate in bank restructuring

ANT Lawyers – To support foreign resources in the process of restructuring the system of credit institutions in Vietnam, the Government has encouraged foreign organizations and individuals to cooperate with the bank of Vietnam to accumulate capital by buying shares or by merging with the weak bank in Vietnam in accordance with the law. Decree 69/2007/ND-CP enacted by the Prime Minister, provides guidelines for foreign investment and investors to buy shares of the Commercial Bank of Vietnam.

Accordingly, when a Vietnamese bank is listed in the securities market, foreign investors have the possibility to purchase shares of that bank in accordance with the Law on securities and securities market.

Besides, this Decree provides that a strategic foreign investor is allowed to purchase 15% stake in a domestic bank. In special cases, the Prime Minister could also allow a foreign investor to purchase more 20% stake in a domestic bank, at the proposal of the State Bank of Vietnam. In the future, if the Decree 69/ND-CP might be amended a new provisions could include the allowance for strategic foreign investors to purchase more than 20% stake in a domestic bank, without the need to submit to the Government for a grant. But according to the Decree 69, the total shares owned by all foreign investors and relevant persons must not exceed 30% of the chartered capital of that bank. Under the Decision 254 announced in 2012 by the Government, amending Decreee 69 as kind of roadmap for bank restructuring Vietnam, will amend as follows: in special cases, for the process of restructuring, the government may allow investors to purchase more 30% of chartered capital. The new regulations that are developed might replace Decree 69/2007/ND-CP and will be based on the percentage of shares owned by a shareholder as defined in the Credit Institutions Act 2010 and the policy that encourages foreign investors to to participate in the process of bank restructuring. If this new amendment will be passed it will be an opportunity for investors to participate more in the Vietnamese financial market and participate in the process of restructuring bank in Vietnam.

How ANT Lawyers Could Help Your Business?

The changes of laws will be monitored by ANT Lawyers. For advice or service request, please contact us via email ant@antlawyers.vn or call our office at (+84) 24 730 86 529

ANT Lawyers

Recent Posts

Decree No. 147/2024/NĐ-CP: A Comprehensive Framework for Internet and Information Management in Vietnam

With the rise of the digital age, Vietnam has experienced rapid growth in internet usage,…

1 week ago

The Employment in Vietnam Guide: 12 Key Legal Answers for Foreign Companies Entering the Market

Foreign companies entering Vietnam's thriving market face unique legal questions, especially around employing local talents.…

3 weeks ago

13 Critical Steps To Respond to Thailand’s Tough Anti-Dumping Investigation on Cold Rolled Stainless Steel

On October 3, 2024, Thailand’s Department of Foreign Trade (DFT) had officially launched an anti-dumping…

1 month ago

13 Essential Facts You Must Know About Setting Up a Vietnam Representative Office to Test the Market

Introduction For foreign businesses eyeing the fast-growing Vietnamese market, setting up a Vietnam Representative Office…

2 months ago

Anti-Dumping Investigation on Wood Fiber Boards from Thailand and China (AD21)

On September 25, 2024, the Ministry of Industry and Trade officially initiated an anti-dumping investigation…

2 months ago

Kick-Off Event of the 2024 International Mediation Writing Competition in Vietnam

The Weinstein International Foundation (WIF) has officially launched the 2024 International Mediation Writing Competition (IMWC2024).…

2 months ago