Some 46 out of 105 securities companies in Vietnam are estimated to be currently enjoying foreign capital inflows. In all likelihood, 100 percent foreign invested ones will come following the issuance of the guidance circular.
Among these 46 firms are 13 with foreign ownership ratio reaching the cap rate of 49pct; 3 businesses with 40pct; 8 companies with 5pct-30pct and the other 22 below 5pct.
The total amount of foreign capital mounted to 4,510.13 billion dong making up 19.70pct of these 46 firms’ combined charter capital and 12.88pct of current 105 securities companies’.
Also, foreign capital accounts for some 16.62pct of total charter capital of 27 listed securities firms, eight of which enjoy the foreign ownership ratio of above 10pct.
According to Decision 58/2012/ND-CP guiding the implementation of the Law on Securities effective on 15 September 2012, foreign investors can make capital contributions to domestic securities companies by either acquiring 49pct of stake or setting up brand new 100 per cent foreign invested securities firms.
Given the current foreign ownership ceiling ratio of 49pct at listed enterprises, unlisted ones are likely to be the potential targets where foreign investors could obtain 100pct stake. The draft circular on the concerned issues that has been finalised and brought forward to the Ministry of Finance is expected to be available this year.
Among 19 unlisted foreign invested securities companies are 12 firms with foreign ownership of some 44pct-48pct which could witness much change once the State Securities Committee and Ministry of Finance have given a nod to the purchasing of the remaining stake.
Alternatively, nearly 60 other firms without foreign investment capital which are mostly of small size and perfunctory performance in the context of economic gloom could be an option. Despite sluggish operation, many would call off dissolution on hopes for selling licenses which are temporarily halted for the time being.
Given the capital difficulties, poor securities services, the market opened up to overseas capital would be what investors long for.