SSC readies new policies to attract foreign investment

These involve the expansion of foreign ownership, listing shares of State-owned companies and developing derivatives to support the development of the stock market. - Photo tapchitaichinh

These involve the expansion of foreign ownership, listing shares of State-owned companies and developing derivatives to support the development of the stock market.

Sharing the news at meeting in Ha Noi yesterday, SSC Chairman Vu Bang said the commission will amend some provisions in the Decree 58/2012, which provides guidelines for the implementation of the Securities Law, with the biggest issue being increasing the participation of foreign investors in Vietnamese companies.

"If the amendments are approved during the second quarter, it will definitely attract better foreign investment flows," he said, adding that the SSC will create the utmost conditions for attracting investment from abroad.

Another measure for boosting foreign investment will be to lift the free float for listed companies with State ownership. A roadmap will be designed for State-owned enterprises (SOEs) to post listings to sell State capital and raise the number of transferrable shares.

Therefore, the SSC is seeking ways in which to urge SOEs to list shares after their equitisation. Bang revealed that a document for listing shares directly on the stock exchanges, instead of going through the unlisted public company market (UPCoM) will be published soon.

In addition, regulations for the derivative market, which are expected to be launched next year, are awaiting approval and hopefully will be introduced during this quarter, according to the SSC chairman.

"Obviously, as Viet Nam is integrating into global collaboration, we have to introduce reforms to stay inside the global stock market system," said Bang. "If liquidity and management capacity improves, we will be able to attract more foreign investment; hence more actively support the equitisation of SOEs and process non-performing loans."