Recently, the Government of Vietnam issued Decree No. 135/2015/ND-CP regulating outward portfolio investments.
According to Decree No. 135/2015/ND-CP of Vietnam’s Government, total limit of annual outward portfolio investments is established on the basis of:
a) The performance of the balance of payments in the immediately preceding year and the forecast of the balance of payments for the year when the total limit is established;
b) The size of the Government’s foreign exchange reserve;
c) The conjuncture of foreign investment activities in Vietnam and Vietnam’s outward investments;
d) The conjuncture of the macro economy and the monetary policy management goals in the year when the total limit of outward portfolio investments is established.
Decree No. 135/2015/ND-CP guides the procedures for the establishment of the total limit of outward portfolio investments as follows:
- No later than the 15th of March annually, Vietnam State Bank leads and coordinates with Ministry of Finance and Ministry of Planning and Investment to establish the total limit of outward portfolio investments for Prime Minister's ratification;
- No later than the 31st of March annually, the Prime Minister ratifies the total limit of outward portfolio investments.
- Prior to the Prime Minister's approval of the total limit of annual outward portfolio investments, Vietnam State Bank is allowed to consider and endorse the temporary registration of proprietary trading limit and trust limit for proprietary traders and trust organizations to make investments equivalent to at most 50% of the proprietary trading limit or trust limit confirmed by Vietnam State Bank in the immediately preceding year.
Other provisions can be found in Decree No. 135/2015/ND-CP of Vietnam’s Government, which takes effect from February 15, 2016.
Thu Ba
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