Responsibility to notify of the foreign ownership cap in a public company

Decree 155/2020/ND-CP guiding the implementation of the Securities Law allowing foreign investors to hold dominant positions in operating enterprises in the fields and trades that are not subject to the state holding controlling shares, or the areas where investment and business are prohibited, the conditional business fields in which the state limits the percentage of foreign ownership.

Foreign investors can easily find the foreign ownership cap information when investing in publish companies that have been listed on the stock market. According to the provisions of law, its defining the responsibility to notify the maximum foreign ownership ratio of a public company, whereby when the company completing the registration to become a public company, it has the responsibility to determine of investment and business lines and carrying out procedures for notification of the foreign ownership cap.

Foreign investors make investments on the Vietnamese stock market in the form of: (i) directly investing and trading on the Vietnamese stock market in accordance with the law on securities and securities markets; (ii) indirectly invest in the form of entrusting capital to securities investment fund management companies, branches of foreign fund management companies in Vietnam.

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