|Customers shop for phones at a The Gioi Di Dong (Mobile World) store. Foreign ownership at Mobile World Investment Co has reached the limit of 49 per cent. Foreigners will be able to lift their stakes here after Decree 60 takes effect in September. — Photo baodautu.vn
HA NOI (VNS) — At a meeting held by the State Securities Commission (SSC) on Thursday, investors and domestic companies gathered, raising concerns and offering advice about Decree 60, which was passed in June.
The decree raised limits on the level of foreign investment allowed in businesses, which would become increasingly important with major foreign trade agreements recently signed and on the horizon.
Participants were largely confused by whether or not they could or should change the amount of foreign stakes in their charter capital, especially problematic for multi-sector companies with conditional businesses on their license.
The SSC advised that listed multi-sector companies should try to keep foreign stakes at their current level until a detailed solution is provided.
According to the 2014 Investment Law, there are 267 business sectors with government-imposed conditions, including national security, defence, transportation, telecommunication and banking sectors.
These conditional business sectors have restrictions on the level of foreign investment allowed, which could range from 49 per cent to none at all.
Participants were therefore concerned since many multi-sector companies have a conditional business registered on their license, meaning they are unable to raise the foreign ownership in line with Decree 60.
Nguyen Thanh Long, SSC Vice Chairman, reiterated that companies with newly acquired conditional businesses or others caught in-between Decree 60 and the 2014 Investment Law should wait for further instruction before reducing or raising foreign stakes.
Long said the SSC and finance ministry had been working hard to find a solution to satisfy all players in the market.
Companies could also consider removing some of the conditional business sectors from their registrations in order to avoid conflicting with the Government's policies, he said.
He suggested that companies review their businesses carefully as the Government has plans to free up some of the conditional businesses for more foreign investment.
Long said that the SSC and the Ministry of Finance would work hard to find a solution and complete the guiding circular for Decree 60, which is set to go into affect in September. — VNS