State-owned firms told to limit overseas investments

A State-owned single-member limited liability company may not contribute more than 20 per cent of the charter capital in an overseas firm in such fields as banking, securities and insurance and must ensure that at least 70 per cent of their own charter capital is invested in their principal line of business.

Total capital contributions of a parent company in affiliate companies must also not exceed 30 per cent of charter capital.

These limits are prescribed in Ministry of Finance Circular No 117/2010/TT-BTC, issued August 5.

Tags: Vietnam companies, Vietnam enterprises, Vietnam state-owned firms

Posted by VBN on Aug 25 2010. Filed under Enterprises. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry