The Vietnamese government extended foreign ownership limit (FOL) for public companies (excluding banks) up to 100% (current limit: 49%) starting on 1st September.
This is a long awaited development, as most (i.e 9 out of top 30 stocks by market cap) Vietnamese blue chips are at maximum foreign room and are normally traded at premium.
In addition to reduced paperwork (no consular authentication, online trading code registration), liquidity support (shortening settlement date, allowing intraday trading), Vietnam is hoping to lure more foreign investors by offering more tradable investment ideas, with the aspiration of being upgraded into an emerging market status.
Source: Bloomberg, Data as of 24 Aug 2015
About the Author:
Ms. Phuong Hoang joined SSI Research & Investment Advisory at the beginning of 2007, and her involvement has awarded her with 8 years of experiences and insights into the Vietnamese Stock Market. Sectors under her coverage included conglomerates, steel, pharmaceuticals, oil & gas and she is currently spearheading equity strategy. Ms. Phuong Hoang was made Head of Institutional Research and Investment Advisory in 2011. In 2013 & 2014, she was awarded with the Best Country Analyst and Best Strategist -Vietnam and under her leadership, SSI Research took home the major award categories in the highly publicized Asiamoney Brokers Poll 2013 & 2014, including Best Country Research-Vietnam.
Prior to joining SSI, Ms. Phuong spent 4 years at the Netherlands Embassy in Vietnam, where she provided investment advisory to Dutch companies and organisations that invest in Vietnam and another 2 years in the transportation sector.
Ms. Phuong obtained a MSc in Information Management & Finance from the University of Westminster, UK, and underwent an intensive training regimen at Daiwa Capital Market’s Institute of Research in Hong Kong in 2008.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.