Firms were eager for the long-awaited proposal to increase foreign stakes in listed companies. — Photo baodautu

HA NOI (Biz Hub) — Firms were eager for the long-awaited proposal to increase foreign stakes in listed companies, but some were cautious over unexpected acquisitions.

The State Securities Commission's proposal to increase foreign stakes in listed companies from the current 49 per cent to 60 per cent is now under scrutiny amid the Law on Enterprise being amended.

Nguyen Mai Thanh, General Director of REE Corporation (REE), among the largest listed companies by capitalisation and liquidity in the market, said on Tuesday at a news conference held by Nhip Cau Dau Tu magazine that the company was willing to let foreign investors hold a larger stake.

However, local enterprises should be empowered with greater decision-making rights to prevent the risk of being acquired by foreign firms she was quoted by Vnexpress online newspaper, as saying.

Chairperson of Traphaco, a pharmaceutical company, Vu Thi Thuan, said that injection of foreign capital was essential.

She noted that some sectors related to social security, including the pharmacy industry, should be given careful consideration when the Government raises foreign stakes.

According to Andy Ho, Managing Director of VinaCapital, firms were ready for an increase in foreign stakes.

He said that regulation might give a boost to the stock market in Viet Nam, which was levelling off. It could improve liquidity with local investors showing interest in gold and dollars, he added.

Still, companies' market capitalisation, management efficiency, turnover and profit growths were of greater concern to foreign investors, he said.

However, Vice Director of HCM City Stock Exchange Tran Thi Anh Dao, urged companies to be careful in selecting strategic investors.

Previously, it had been mentioned that securities firms would be the first to be allowed to increase foreign stakes. — VNS