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Vietnamese State Companies Can No Longer Invest in Real Estate, Banks

Beginning in December, state-owned companies will no longer be able to invest in the real estate or banking sectors.

As part of an effort to reform the economy, government officials approved the new regulation, which forbids investment in banks, stock or real estate by state-owned enterprises (SOEs), reports Thanh Nien.

Companies must also formulate a plan to divest their current holdings in these areas, if necessary, however those SOEs whose core business is real estate may continue to operate in the sector. There may be some exceptions to the rule, however companies will be required to receive government approval beforehand.

In addition to implementing the official ban on real estate and bank investments, authorities have also cautioned SOEs against investing in sectors in which they lack expertise, according to the Wall Street Journal.

The new rule also defines which sectors are open to SOEs, including essential public services, defense and security, national power grids nuclear power plants and money printing.

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[Photo by Nguyen Xuan Thanh Son]

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