New circulars for foreign ownership ratio in enterprises still not issued Two circulars from two ministries are needed to bring into force the government’s decree on lifting foreign ownership ratios in Vietnamese enterprises. One circular has been released. The second has not.   The Ministry of Finance (MOF) has fulfilled its promise: the circular guiding the implementation of the government decree No 60 dated June 26, 2015 on lifting the foreign ownership ratio ceiling came out in August. However, the ceiling on foreign ownership ratios for certain business fields is still unclear. The information can only be found in a Ministry of Planning and Investment (MPI) circular. But the circular has not been released. MOF’s Circular No 123 was released on August 19. It sets the regulations on foreign investors’ activities in the Vietnamese stock market. The circular also shows the required procedures and documents for public companies to increase the foreign ownership ratios in accordance with Decree No 60. This is one of three circulars needed, and the most important one for the decree to be brought into life. The other two circulars show the procedures for issuance and listing. However, the circular is still not enough for enterprises to increase foreign ownership ratios. They still do not know the percentage they can offer to foreign investors. It is still necessary to refer to the list of conditional business fields, which must be promulgated by MPI. Under Decree No 60, there is no limit on foreign ownership ratio in public companies which operate in unconditional business fields. Meanwhile, limitations will still be imposed in some other business fields. MPI is reportedly compiling the list of the conditional business fields. If things go as planned, the circular will come out in August as requested by the government. Securities companies are the most pleased about the release of the new circular, because they don’t have to refer to MPI’s list of unconditional business fields. The foreign ownership ratios in the companies will be determined by shareholders’ assembly. The circular also clearly stipulates that the foreign institutions which can satisfy the requirements mentioned in Article No 21 and Article No 1 of the Decree No 60 can possess 51 percent or more of the chartered capital of securities trading companies. Other investors can have less than 51 percent of the companies’ chartered capital each. The HCM City Securities Company (HSC) is believed to be the first securities company that offers additional room to foreign investors. The board of directors’ resolution on August 18 says HSC will follow necessary procedures to lift the ceiling foreign ownership ratio in HSC to 100 percent once legal documents are released. TBKTSG