Vietnam to raise foreign ownership limit at State-owned banks

Responding suggestion from Timothy F. Geithner, president of Global Warburg Pincus Investment Fund, during Tuesday meeting in Ha Noi, Deputy Prime Minister Vuong Dinh Hue said the government would consider reducing the State's holdings commercial banks including BIDV, Vietinbank, Vietcombank, and Agribank.
 
Geithner, who is former US Treasury Secretary, suggested that the government increase the foreign ownership limit in commercial banks to attract more foreign investment and facilitate non-cash payment in Vietnam.
 
Hue affirmed that Vietnam committed to open market to foreign investors, especially in the service sector, according to the roadmap in bilateral and multilateral free trade agreements.
 
The government included in the draft revised Law on Investment and Law on Enterprises stipulations about non-voting shares to enable foreign investors to increase their ownership while ensuring the control of risks, added Hue.

The two bills will be discussed and adopted at the ninth session of the 14th National Assembly in May 2020.
 
Geithner appreciated Vietnam’s efforts in improving business and investment environment, and attention to developing financial services, including digital banking and online payment.

Source: Tuoi Tre