This is one of remarkable point in Decision No. 01/2014/ND-CP dated January 3, 2014 of the Government on foreign investors’ share purchase from Vietnamese credit institutions
Accordingly, shareholding percentage of a foreign individual shall not exceed 5% of charter capital of a Vietnamese credit institution and shareholding percentage of a foreign organization shall not exceed 15% of charter capital of a Vietnamese credit institution (Shareholding percentage of a foreign strategic investor shall not exceed 20%)…
Conditions for a foreign organization to purchase share that leads the shareholding level to be 10% or more of charter capital of a Vietnamese credit institution:
Being ranked by international prestige credit-rating organizations from the stable level or equivalent or higher level; the share purchase does not cause influence to the safety, stability of the Vietnamese credit institution system; does not create the exclusivity or limit the competition in the Vietnamese credit institution system; not violating seriously Law on Monetary, Banking, Securities and Securities Market of country where foreign investor is headquartered and law of Vietnam within 12 months until submission of dossier of share purchase.
Especially, those having total assets at least equivalent to 10 billion U.S. dollar for foreign investors being banks, financial companies, or finance-leasing companies or having the minimum charter capital equivalent to 1 billion U.S. dollar for foreign investors being other organizations…
Particularly, a foreign strategic investor being organization owning 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 on February 20, 2014.
