VietNamNet Bridge - More and more listed companies have asked for permission to give larger room to foreign investors in their businesses, a move which is expected to lead to a new price increase wave.

The EVE and MBB share price performance in the last three months

At the trading session on February 19, VHC shares of Vinh Hoan Seafood JSC sometimes saw the price hit the ceiling level at VND31,900 per share, while the closing price stood at VND31,500 per share, increasing by 5.4 percent over the session before, according to Dau Tu Chung Khoan.

The reason behind the price increase, according to analysts, was that Vinh Hoan announced it would raise the foreign ownership ratio ceiling in the company to 100 percent.

Unlike Vinh Hoan, which is the leading company in its field, the Vietnam Business Investment and Development (FID) has charter capital of approximately VND110 billion only. 

However, it also saw the FID share price increasing sharply from VND11,700 per share to VND12,600 per share on the same day. 

Analysts believe that the price increase has relation with the information about the company’s decision to raise the foreign ownership ratio ceiling to 100 percent.

Under the government’s Decree No 60/2015, which took effect on September 1, 2015, public companies, which do not operate in some special business fields, can have up to 100 percent of foreign ownership ratio. 

More and more listed companies have asked for permission to give larger room to foreign investors in their businesses, a move which is expected to lead to a new price increase wave.

A series of Vietnamese businesses announced their plans to offer larger room in their companies to foreign investors. Most recently, Everpia Viet Nam (EVE) has officially enlarged room for foreign investors since February 3. Analysts say more companies will follow the move.

At the 2015 annual shareholders’ meeting of Hoang Huy Investment & Service JSC, a truck trading company, shareholders agreed on the plan to raise the foreign ownership ratio ceiling to 100 percent.

A source said that Vinamilk, the nation’s leading dairy producer, is following necessary procedures to cut down some business fields. The source said this aims to make it more favorable to implement the plan to lift the foreign ownership ratio.

Nguyen Son, director of the State Securities Commission’s (SSC) Market Development Department, also thinks that the boards of directors of many companies would consult with their shareholders about the plans to lift foreign ownership ratio limits in this year’s shareholders’ meeting season.

Regarding the 267 business fields listed as ‘conditional business fields’ in the Investment Law, according to Son, the Ministry of Planning and Investment and appropriate agencies are checking relevant documents and will submit reports to the Prime Minister soon.

Analysts said they can see great opportunities for investors now. Since February 3, EVE shares have seen the price rising from VND25,600 to over VND30,000 per share. This means that investors could make big profits if they bought EVE before February 3.


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