LEGAL UPDATE: Did you know that the State Bank of Vietnam has recently issued a Circular guiding procedures for foreign investors to purchase shares in Vietnamese banks, including “weak” Vietnamese banks (those that have been placed under special control by the State Bank of Vietnam.
The Circular sets out details regarding the documents required as well as the procedures for such purchase.
In respect of purchasing shares in weak banks, the foreign investor must commit to provide long-term benefits to such banks as well as a detailed roadmap as to how assistance will be provided to such banks, including the re-structuring of network, improvement of financial capacity, settlement of bad debts, governance and operation, application of modern technologies, development of products and services and other measures to deal with the shortcomings of such banks.
The new Circular also allows Vietnamese banks to issue special shares to foreign investors.
Circular 38/2014/TT0NHNN (valid 1 February 2015)