New rules clear a path for foreign capital

Prime Minister Nguyen Tan Dung on June 18 signed Decision 88/2009/QD-TTg on the promulgation of a regulation regarding contributions of capital by foreigners investing in Vietnamese enterprises.

The regulation, composed of 4 chapters and 13 articles, defines conditions that foreign investors need to meet to contribute capital to, or buy shares in, Vietnamese businesses.

It also details the levels of capital that eligible foreign investors are allowed to contribute, the number of shares they are entitled to buy, the form capital contributions and share purchases may take, and modes of payments.

The regulation allows foreign investors to use shares as collateral in securing credit while requiring them to ensure they fulfill their civil obligations stipulated under Vietnamese law.

nhandan, vietnamplus

>   Circle K joins Vietnam’s retail market (22/06/2009)

>   Property rules eased for overseas Vietnamese (22/06/2009)

>   Two largest packaging plants in Southeast Asia inaugurated (22/06/2009)

>   Hanoi grants licenses for 120 FDI projects (22/06/2009)

>   Shrimp exports down (22/06/2009)

>   Three more service providers to join mobile market (22/06/2009)

>   Export firms resume buying rice (22/06/2009)

>   Why is real estate market in fever? (22/06/2009)

>   Vietnam wants to improve investment climate (22/06/2009)

>   Chevron may begin work on $4 bln Vietnam project by August (22/06/2009)