Vietnam to consider opening up to foreign-owned fund management companies
April 22 – Vietnam is considering opening the country to overseas fund management companies in accordance to its accession to the World Trade Organization (WTO) in 2007.According to the finance ministry, the proposal is has already been sent to the Prime Minister for approval that will allow investors to establish 100 percent foreign-owned fund management companies.
The move hopes to entice foreign investment and improve the economy. The proposal calls for investment firms managing securities worth at least US$300 million and have a minimum registered capital of $500 million.
The draft specified that only when WTO commitments are met that fund management companies will be allowed to handle money raised outside the country.
Presently, foreign fund management companies are required to operate only with a local partner. There are 31 such companies existing in the country today along with Vietnamese investment managers.
According to Bloomberg, Dominic Scriven, director of Dragon Capital in Ho Chi Minh City explained that the expansion of the industry will improve regulation and management of foreign funds.
“In the long term, the broadening of the fund management business will bring more money into the country,’’ added Bui Thi Kim Oanh, an investment manager based in Hanoi.