Vietnam's central bank is seeking to reduce the maximum stake investors can hold in Vietnamese banks, according to a published draft document on a regulatory change that would make the sector less attractive to foreigners.
Under the proposal, published by State Bank of Vietnam on its website, individual investors would be allowed to hold up to 3% of the shares of a credit institution, down from 5% currently.
Currently, the combined stake of foreign investors in a bank cannot exceed 30%, while the cap for stakes in companies in many other sectors is set at 49%. In February, police in Vietnam opened an investigation into transactions made by foreign investors concerning listed domestic lender Eximbank Foreign investors have repeatedly called for the caps on ownership to be raised, and they are often cited as a reason why Vietnam is still classified by index managers as a risky frontier market,Despite being an open economy that relies on foreign direct investment in its industries and whose exports are as much as its gross domestic product, Vietnam has for years limited foreigners access to its equity market.
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