Vietnam: Banks to Open up to More Foreign Investment?
By Thomas Butcher, Researcher & Consultant
In an interview with Bloomberg Television on January 16, Vietnamese Prime Minister Nguyen Xuan Phuc said that, perhaps even this year, the country would raise the limits of foreign ownership of banks: “We will raise the ceiling and will also expand access to the securities market.”1)
In addition to plans for various “equitizations” in which state-owned enterprises are converted into “normal” companies with shareholders, the government is to divest itself of a number of other stakes. These include not only those in the two largest breweries in Vietnam, Hanoi Beer, Alcohol and Beverage JSC - Habeco and Saigon Beer, Alcohol and Beverage JSC – Sabeco, but also such enterprises as Vinamilk (dairy products), Bao Minh Insurance Corp., and Ha Giang Mineral Mechanics JSC.
It will be interesting to see how any or all of these help restructure the country’s economy and reduce public debt.
GDP Growth % - YoY
Source: World Bank
About the Author:
Thomas Butcher is an independent writer, researcher and consultant focusing, amongst other things, on strategic materials, in particular metals. With 38 years of experience in the financial world, he has lectured and spoken at conferences around the world. Amongst other things, he writes the “Letter from North America” in the Minor Metals Trade Association's monthly publication The Crucible, and was lead author of a chapter in the British Geological Survey's Critical Metals Handbook.
The article above is an opinion of the author and does not necessarily reflect the opinion of MV Index Solutions or its affiliates.
1)Bloomberg: Vietnam’s Premier to Raise Foreign-Investor Caps on Banks, https://www.bloomberg.com/news/articles/2017-01-16/vietnam-s-prime-minister-to-raise-foreign-investor-caps-on-banks