The Ministry of Planning and Investment (MPI) is drafting a decree on merger and acquisition (M&A) of enterprises involving foreign parties in the direction of facilitating domestic and foreign enterprises to acquire shares of one another.
The draft specifies legal procedures for M&A activities, especially by setting unified regulations on foreign investors’ holding rate in trading transactions which is specified differently in the Enterprise Law, the Investment Law and the Securities Law, according to Mr. Ngo Cong Thanh, an official of the MPI’s Foreign Investment Agency.
M&A currently account for merely around 5% of total foreign investment in Vietnam, which, however, are expected to increase in the near future together with the rising number of foreign enterprises investing and doing business in the country.-