Public companies as well as public securities investment companies are now subject to new regulations on foreign ownership on Vietnam’s stock market, according to the State Securities Commission of Vietnam (SSC).

Public companies that have not yet notified their maximum foreign ownership ratio as prescribed in Decree No. 155/2020/ND-CP must conduct procedures for doing so before submitting an application for listing registration and listing transfer, etc.

When public companies change their investment and business line; or the law on foreign ownership for investment and business lines changes; or there is a change in the operating company; or the company’s charter stipulates a change in the maximum foreign ownership ratio, they must carry out procedures for notifying such change within 30 days.

Public companies must pay attention to international commitments, specific laws, and market access conditions for foreign investors regarding the determination of the maximum foreign ownership ratio for each industry.

In terms of the responsibility to register the securities trading code, according to the provisions of Article 141 of Decree No. 155, public companies, public securities investment companies, closed-end securities investment funds, and other economic organizations with foreign investment must apply the conditions on foreign ownership ratios and procedures for investment in the stock market when there are foreign investors holding more than 50 per cent of charter capital.

In addition, foreign-invested economic organizations that have not yet registered their securities with Vietnam Securities Depository (VSD) and whose foreign investors hold more than 50 per cent of charter capital must register a trading code before opening securities trading accounts and securities depository accounts.