Vietnam's stock market is fourteen times smaller than of Singapore's. However, the country is eyeing on the possibility of getting more foreign investors after easing foreign ownership restrictions. The proposal will be submitted next month by Vietnamese regulators according to sources.
Yesterday, the Chairman of the State Securities of Commission of Vietnam, Vu Bang said that the said proposal will raise foreign ownership limit for publicly traded firms from the current 49%.
He also added that the government will decide on the new ownership limit. Further, Bang said that the Ministry of Finance will submit the plan for government consideration next month.
Vietnamese regulators are looking at foreign investment as the key to the stock market growth of the country. The country's stocks are priced at US$44.6 billion compared to the stock value of Singapore that is at US$621.4 billion.
The proposal will include allowing foreign investors to buy non-voting shares to boost their holdings, he said.
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