Gov’t eases conditions for offshore indirect investment

Thursday, Feb 14, 2019 18:01

Securities companies will need to demonstrate three consecutive years of profits to be eligible for an offshore indirect investment licence. — Photo SSI

The Government has issued a new decree to facilitate business conditions for offshore indirect investment, credit information activities and intermediary payment services under the management of the State Bank of Viet Nam (SBV).

Under Decree No. 16/2019/ND-CP, which will take effect on March 20 this year, securities, fund management and insurance firms will be permitted to register for an offshore indirect investment licence after three consecutive years of profits rather than five. Profit figures must be demonstrated through financial statements and independent audits approved by the Ministry of Finance in accordance with regulations.

The decree will also remove various other infrastructure and personnel requirements.

According to the decree, offshore indirect investment is in the form of the purchase and sale of securities or investments through overseas securities funds or other intermediary financial institutions.

The Government will also remove the condition that requires financial companies to record their banking operations in their business licences issued by the SBV.

The decree will also abolish unnecessary barriers to issuing certificates of deposit, promissory notes and bonds to mobilise capital such as minimum operating times and shareholder and board of director approval.

To qualify for a central bank licence to provide credit information activities under the decree, a credit information firm must receive pledges from at least 15 credit institutions and foreign bank branches to provide the company with information. — VNS

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