ASEAN KEY DESTINATIONS
Vague law keeps firms, foreign investors apart
Vietnam: A recent law designed to allow foreigners to own up to 100 percent of Vietnamese firms has failed to spur investment because of the vagueness of the regulation, companies said.
In June, the Government issued Decree 60, which sought to boost foreign ownership of local companies. However, the lack of details, especially regarding rules for specific sectors, has put investment plans on hold.
Telecommunications retailer FPT Corp told Viet Nam News that the company is waiting for the Government and its agencies to provide more specific instructions to clarify some issues with the Decree 60.
So far, brokerage Sai Gon Securities Incorporation (SSI) is the only listed firm that has sought approval from the State Securities Commission (SSC) to raise foreign ownership to 100 per cent.
HCM City Securities Corporation (HSC) has not yet made a decision whether to raise its foreign ownership level, Hoang Cong Tuan, HSC's Head of Communications said.
Tuan said that new policies, including Decree 60 and the subsequent circulars issued by the SSC and the Ministry of Finance, seem not clear enough for HSC to make decisions.
Some firms may be unwilling to raise their foreign ownership levels because they don't want to lose control of their companies, Viet Capital Securities Corporation (VCSC) wrote in its recent August report.
Mobile World Investment Corporation, a retailer that competes with FPT, said that it currently has no plans to increase foreign stakes.
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