This decree has created motivation for market development, however, a number of dilemmas relating to the foreign ownership limit have also arisen.
This was the first company that extended foreign ownership up 100% in September 2015, as soon as Decree 60 on extending foreign ownership took effect. After a year, the overall rate of foreign ownership has risen by 10%.
Some enterprises that interest many foreign investors are intending to withdraw from some sectors they are doing business in, in order to prepare for an extension of foreign ownership. So far, 10 companies have extended potential foreign ownership to 100%, and 10 other companies are collecting shareholder opinions on a foreign ownership extension.
Should companies with foreign ownership rates above 51% be considered as domestic or FDI companies? This issue is still being discussed as part of the draft of amended laws on investment and business, which will be submitted to the National Assembly in October.
