Can foreigners buy shares at banks in Vietnam?

Can foreigners buy shares at banks in Vietnam?

Pursuant to Article 16 of the Law on Credit Institutions 2010, it is stipulated as follows:

1. Foreign investors may buy shares of Vietnamese credit institutions.

2. The Government shall provide the conditions, procedures and maximum levels of the total share ownership rate for foreign investors and share ownership rate for one foreign investor in a Vietnamese credit institution: and the conditions for Vietnamese credit institutions to sell shares to foreign investors.

Thus, in accordance with the above, you have the right to buy shares of the bank in Vietnam.

How many shares can foreigners buy at banks in Vietnam?

Pursuant to Article 7 of Decree 01/2014/ND-CP , there are provisions on share ownership ratio for foreign investors as follows:

1. The holding of a foreign individual shall not exceed 5% of charter capital of a Vietnamese credit institution.

2. The holding of a foreign organization shall not exceed 15% of charter capital of a Vietnamese credit institution except for the case specified at Clause 3 this Article.

3. The holding of a foreign strategic investor shall not exceed 20% of charter capital of a Vietnamese credit institution.

4. The holding of a foreign investor and the concerned persons of such foreign investor shall not exceed 20% of charter capital of a Vietnamese credit institution.

5. Total shareholding level of foreign investors shall not exceed 30% of charter capital of a Vietnamese commercial bank. Total shareholding level of foreign investors at a Vietnamese non-banking credit institution shall comply with legislation applicable to public companies and listing companies.

6. In special case, to perform restructure of credit institution which is weak and faces to difficulties, to ensure credit safety of credit institution system, the Prime Minister shall decide the holding of a foreign organization, a foreign strategic investor, total shareholding level of foreign investors at a weak and restructured joint-stock credit institution, in excess of limit specified at Clauses 2, 3, 5 this Article for each specific case.

7. The holdings specified at Clauses 1, 2, 3, 4, 5, 6 this Clause include the capital amount which foreign investor entrusted for other organizations and individuals to purchase shares.

8. Foreign investors changing convertible bonds of Vietnamese credit institutions into stocks must adhere to the holdings and holding conditions prescribed in this Decree.

According to this Article, you can only buy and own no more than 5% of the charter capital of a bank in Vietnam.

Best Regards!