HANOI (AFP) — Vietnam will allow foreign investors to increase their stakes in non-listed companies and plans to set up a new trading floor for unlisted shareholding firms, officials said Friday.
The new ruling allows foreign firms to hold up to 49 percent of non-listed shareholding firms, up from 30 percent, said Vo Van Quang, office manager at the State Securities Commission of Vietnam.
Firms listed on the Hanoi and Ho Chi Minh City bourses have been allowed to hold stakes of up to 49 percent since 2005.
“This decision aims to widen and encourage indirect foreign investment in the Vietnam stock market,” Quang said.
The directive takes effect on June 1.
Vietnam also plans to launch a new trading floor in June for unlisted shareholding companies at the Hanoi Securities Trading Center, a senior government official told Dow Jones Newswires.
The new market is part of government efforts to help regulate the trade in unlisted companies’ shares, said the State Securities Commission official.
Vietnam has more than one thousand shareholding companies but less than half of those have been listed on either the Hanoi or Ho Chi Minh City exchanges, the official said.