On January 3, 2014, the Government issued Decree No. 01/2014/ND-CP regulating on foreign investors’ share purchase from Vietnamese credit institutions.
According to the Decree No. 01/2014/ND-CP, Vietnam dong is used in foreign investors’ share purchase and sale transactions in Vietnamese credit institutions.
In addition, the shareholding percentage will not exceed 5% of charter capital of a Vietnamese credit institution for a foreign individual and will not exceed 15% for foreign organization (except for the case of a foreign strategic investor whose shareholding percentage shall not exceed 20% of charter capital of a Vietnamese credit institution).
In case foreign investors purchase shares that leads their shareholding level to be 10% or more of charter capital of a Vietnamese credit institutions, they must meet the following requirements: Being ranked by international prestige credit-rating organizations from the stable level or equivalent or higher level; the share purchases does not create the exclusivity or limit the competition in the Vietnamese credit institution system; not violating seriously Law on Monetary, Banking, Securities Market within 12 months until submission of dossier of share purchase and especially having total assets at least equivalent to USD 10 billion for foreign investors being banks, financial companies, or finance-leasing companies or having the minimum charter capital equivalent to USD 1 billion for foreign investors being other organizations.
Especially, foreign investor being organization owing 10% or more of charter capital of a Vietnamese credit institution is not permitted to transfer shares owned by it for other organizations or individuals within at least 3 years from owning 10% or more of charter capital of such credit institution.
This Decree takes effect from February 20, 2014.
Source: Translated from Vietnamese version