Vietnam’s Decree No. 51/2018/NĐ-CP: Regulations open to foreign investors

Recently, the Government of Vietnam has issued Decree No. 51/2018/NĐ-CP on amendments to some articles of Decree No. 158/2006/ND-CP elaborating the Commercial Law with respect to trading in commodities through commodity exchanges.

Decree No. 51/2018/NĐ-CP of Vietnam’s Government has introduced more open regulations for foreign investors on operations at the Commodity Exchange, to be specific:

1. Foreign investors are entitled to trade commodities through Vietnamese commodities exchanges.

2. The foreign investor is entitled to contribute capital to establish a Vietnamese foreign commodity exchange; purchase shares and stakes of the Vietnamese foreign commodity in accordance with the following regulations:

- The foreign investor is entitled to contribute capital to establish a Vietnamese foreign commodity exchange; purchase shares or stakes of the Vietnamese foreign commodity, provided his/her holding shall not exceed 49% of the charter capital.

- The foreign investor is entitled to contribute capital to establish a Vietnamese foreign commodity exchange as a client or become a member of the commodity exchange (a broker or a trader) without restraint on the ownership of charter capital.

- Procedures for capital contribution or share/stake purchase by the foreign investor are specified in the Law on Enterprises, Law on Investment and other relevant regulations of law.

View more details at Decree No. 51/2018/NĐ-CP of Vietnam’s Government, effective from June 01, 2018.

- Thanh Lam -

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