Thisis stated in the State Bank of Vietnam's (SBV) Circular No38/2014/TT-NHNN, which was issued on December 8, and takes effect onFebruary 1, 2015.
The circular requires foreign investors'pledges to own stakes of 10 percent or more in the credit institutions,as well as their involvement in helping the institutions to apply moderntechnology, develop products and services, and enhance managementcapacity.
The regulation related to technology, products andservices, as well as management support will also be applied in case theforeigners acquire stakes in fragile credit institutions, which aredefined or put under special supervision by the SBV.
Thecircular also stipulates procedures for specific cases where foreignersbuy shares to hold at least five percent or 10 percent of the creditinstitutions' equity.
Providing guidelines for Decree01/2014/ND-CP, issued last March, on foreign investors buying stakes inVietnamese lending institutions, the new document replaces Circular No07/2007/TT-NHNN that the central bank issued seven years ago.-VNA