Foreigners allowed to own 49% of commodity exchange

May 03, 2018 - 10:30

Foreign investors will be allowed to contribute capital to establish commodity exchange in Việt Nam as per Decree No. 51/2018/NĐ-CP, which will be effective from June 1, 2018.

Foreign investors may contribute up to 49 per cent capital to establish the commodity exchange in Việt Nam. — Photo www.anangtawiah.com

Viet Nam News

HÀ NỘI — Foreign investors will be allowed to contribute capital to establish commodity exchange in Việt Nam as per Decree No. 51/2018/NĐ-CP, which will be effective from June 1, 2018.

However, their ownership in the exchange should not exceed 49 per cent of its charter capital. Foreign investors are also permitted to trade goods on the commodity exchange as clients and can become members of the exchange (brokers or traders) without ownership restraint.

A brokerage member must have a charter capital of VNĐ5 billion (US$220,000) or more while a trading member must have at least VNĐ75 billion.

The decree stipulates that the commodity exchange must have a charter capital of at least VNĐ150 billion ($6.6 million) and an IT system that meets technical requirements in processing purchase and selling orders as well as a software solution with a capacity of tracing transactions, payment and delivery for at least five years.

The Ministry of Industry and Trade will be responsible for verifying and granting the establishment licence.

The decree, which was issued on April 9, amends and supplements a number of articles of the government’s Decree No. 158/2006/NĐ-CP, dated December 28, 2006, on the conditions for the establishment of commodity exchange. — VNS

Tags Vietnam Vietnam News news commodity exchange foreign capital contribution

Trà Vinh helps businesses increase trade, exploit FTAs

Economy

Việt Nam promotes coconut exports, enhances industry value

Economy

Catalysing Việt Nam's green future: EU's role in Cần Thơ, Trà Vinh's energy transition

Economy

Transition to sustainability an urgent task: policymakers

Economy

Việt Nam needs $14 billion to develop EV charging stations

Economy

Incentive mechanisms needed for semiconductor industry: PM

More on this story

Economy

More companies lift foreign ownership limit to 100%

Three companies have opened up the foreign ownership limit to 100 per cent, the State Securities Commission announced.

Economy

VN-RoK trade relations flourish

Việt Nam has become the favourite new destination for investors from the Republic of Korea (RoK)—a shift that Việt Nam welcomes as evidence of its growing economic stature.

Economy

Việt Nam makes trade surplus of US$3.39bn

Việt Nam made a trade surplus of US$3.39 billion in the first four months of 2018, in which foreign direct investment (FDI) sector, including fuel, took the lead with $11.17 billion.

Economy

Novaland lists convertible bonds in Singapore

Property developer Novaland Investment Group Corporation on Wednesday announced that it successfully listed its US$160 million offering of convertible bonds on the Singapore Exchange Limited last week.

Economy

Vinamilk’s profit down by 9% in first quarter

Dairy giant Vinamilk reported a fall of nine per cent in its consolidated net profit in the first quarter of this year, reaching over VNĐ2.68 trillion (US$118 million).

Economy

Vietnam Airlines to hold annual shareholder meeting

Shareholders of Vietnam Airlines will gather at the annual general meeting in Hà Nội on May 10, the third one since the company completed equitisation in 2015, to discuss a series of important issues including the modification of the internal management regulations.

Economy

Shares dip on poor confidence

Việt Nam’s benchmark VN Index tumbled yesterday, driven by poor investor confidence in the banking and energy sectors.

Economy

MoIT continues to cut administrative procedures

The Ministry of Industry and Trade (MoIT) has decided to remove and simplify 54 administrative procedures in 10 sectors under its management including energy, import-export and food safety.

Economy

New Zealand’s import of rambutan expected to boost VN’s fruit export

Rambutan is the third Vietnamese fruit after mango and dragon fruit to be exported to New Zealand. Hoàng Trung, Director of the Ministry of Agriculture and Rural Development's Plant Protection Department (PPD), talks to Việt Nam News reporter Tố Như about the challenges in receiving the “green light” from New Zealand and the advantages the opportunity presents to the country.