Provisions on the capital ratio of foreign investors when investing in Vietnam

4/1/2021

For the industries specified in the list of industries and trades that restrict market access to foreign investors (Link to Question 3), Foreign Investors are only allowed to own a capital amount not exceeding a certain capital ratio depending on each industry.

Below are some regulations on the capital ratio of foreign investors in a number of industries in Vietnam

Table 1. Capital ratio of foreign investors based on WTO commitments on services

STT

Industry

Ratio of foreign investor's capital

Note

1

Telecommunication without network infrastructure (CPC 752 **)

Not exceeding 65%

Joint venture is required

2

Telecommunication with network infrastructure (CPC 752 **)

Not exceeding 49%

3

Agriculture, hunting and forestry related (CPC Code 881)

Not exceeding 51%

4

Virtual private network (VPN) without network infrastructure

Not exceeding 70%

5

Virtual private network (VPN) with network infrastructure

Not exceeding 49%

6

Value added services related to telecommunications (CPC 7523 **) without network infrastructure

Not exceeding 65%

7

Added value related to telecommunications (CPC 7523 **) with network infrastructure

Not exceeding 50%

8

Film production (CPC 96112)

Not to exceed 51%

9

Movie release (CPC 96113)

10

Film projection (CPC 96121)

11

Inland waterway transportation services (CPC 7221, 7222)

Not exceeding 49%

12

Road transportation services (CPC 7121 + 7122,7123)

Not exceeding 51%

13

Sea transportation services excluding domestic transport (CPC 7211)

Not exceeding 49%

14

Container handling services (CPC 7411)

Not exceeding 50%

15

Railway transport services (CPC 7111, 7112)

Not to exceed 49%

16

Electronic games business (CPC 964 **)

18

Entertainment (theater, wave music, circus) (CPC 9619)

Not exceeding 49%

 

Table 2. Ratio of foreign investors' capital is based on Vietnamese legal documents

STT

Industry

Ratio of foreign capital in the joint venture

Note

1

Joint venture commercial banks

does not exceed 50% (except for special cases decided by the Prime Minister)

Article 46 of Decree 22/2006 / ND-CP

2

Security service business

Less than 50%

Article 3 of Decree 52/2008 / ND-CP

3

Valuation services

Maximum 35%

Article 21 of Decree 89/2013 / ND-CP

4

Enterprise valuation services for equitization

Not determined

Article 3 Circular 127/2012 / TT-BTC

5

Ship towage services

Not exceeding 49%

Article 15 of Decree 30/2014 / ND-CP

6

Air transport business

Not exceeding 30%

Clause 1, Article 11 of Decree 30/2013 / ND-CP

 

Table 3. Share ownership ratio for foreign investors in Vietnam's joint stock commercial banks

Subject

Maximum percentage of the total charter capital of the bank

Note

A foreign individual

Not exceeding 5% of the charter capital of a Vietnamese credit institution.

Article 7 of Decree 01/2014 / ND-CP

A foreign organization

Not exceeding 15% of the charter capital, except for the case of a strategic investor

Foreign strategic investor

Not to exceed 20%

A foreign investor and its related person

Not exceeding 20%

Total share ownership of foreign investors

Not exceeding 30%