DECISION

ON HOLDING RATES OF FOREIGN INVESTORS ON THE VIETNAMESE SECURITIES MARKET

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Law on Enterprises;
Pursuant to the November 29, 2005 Law on Investment;
Pursuant to the June 29, 2006 Law on Securities;
Pursuant to the Government's Decree No. 139/ 2007/ND-CP of September 5, 2007, guiding in detail a number of articles of the Law on Enterprises;
Pursuant to the Government's Decree No. 108/ 2006/ND-CP of September 22,2006, detailing and guiding a number of articles of the Law on Investment;
At the proposal of the Minister of Finance,

DECIDES:

Article 1. In this Decision, foreign investors include the following institutions and individuals:

1. Institutions established and operating under foreign laws and their overseas and Vietnam-based subsidiaries.

2. Institutions established and operating in Vietnam with foreign capital contributions accounting for more than 49%.

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4. Foreign individuals who do not bear the Vietnamese nationality and reside overseas or in Vietnam.

Article 2. Foreign investors that purchase and sell securities on the Vietnamese securities market are allowed to hold:

1. For stocks: up to 49% of total number of stocks of a public joint-stock company.

In case it is otherwise provided for by specialized laws, provisions of these laws will apply. In case the foreign holding rates are classified according to the list of specific occupations and business lines, this classification list will apply.

2. For public investment fund certificates: up to 49% of total number of investment fund certificates of a public securities investment fund.

3. For public securities investment companies: Up to 49% of charter capital of a public securities investment company.

4. For bonds: Issuing institutions may set holding limits applicable to foreign holders of their outstanding bonds.

Article 3. Foreign securities trading institutions may participate in founding Vietnam-based securities companies or fund management companies as follows:

1. Only foreign securities trading institutions may pool capital to found or purchase shares from securities companies with a maximum foreign holding rate of 49% of charter capital of these companies.

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Article 4. This Decision takes effect on June 1, 2009, and replaces the Prime Minister's Decision No. 238/2005/QD-TTg of September 29. 2005. In case of implementing Article 1 of this Decision, foreign investors hold securities at a rate higher than that specified in Article 2, they may keep their current holding rate unchanged and may only sell securities whenever they wish to trade in securities.

Article 5. The Minister of Finance shall guide the implementation of this Decision. Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of provincial-level People's Committees, chairpersons of boards of directors, directors general of state economic groups and corporations 91, and concerned institutions and individuals shall implement this Decision.

PRIME MINISTER




Nguyen Tan Dung