Vietnam Business Law is a website managed by lawyers of Venture North Law Limited (VNLaw). Venture North Law Limited (VNLaw) is a Vietnamese commercial law firm. We won the Rising Law Firm of the Year Award at the Southeast Asia Law Awards for the years 2020 and 2021 held by The Legal 500. Very few Vietnamese law firms have achieved a similar regional recognition.
Posted in: Merger & Acquisition
The Securities Law 2006 requires any securities issued by a public company to be registered with the Vietnam Securities Depository Centre (VSD). The term “securities” includes, among other things, shares, bonds, warrants, options, future, and “investment contracts”. The registration at VSD is to record the ownership rights and other rights of the securities holders.
Determination whether an enterprise is a State-owned enterprise may be important in certain context. For example,
The Government often encourages a foreign investor to acquire shares in a wholly State-owned enterprise to become a foreign strategic investor. It would be a huge PR success for a State-owned enterprise to successfully sell shares to a foreign investor during its equitisation. However, an equitisation investment is actually not ideal for a foreign investor from a legal or deal execution perspective.
If a company in which the State has voting control (e.g. having 51% or more of the voting rights) conducts a private placement of shares, the following issues may arise from the regulations on management of State capital in companies: