How Foreign Ownership Rules Impact Passive Funds

When investing in emerging markets investors must accept an increased investment risk of government intervention - such as changes to foreign equity ownership rules

Kenneth Lamont 11 August, 2015 | 4:37PM

In June this year, the Prime Minister of Vietnam announced that foreign investors would no longer face restrictions when buying shares in many Vietnamese companies.

The changes due to come into force in Vietnam in September will scrap the 49% cap on consumer goods and industrials companies, among others, allowing foreign investors to purchase up to 100% of available shares in a company.

Certain caps, such as those on financial stocks will remain in place.

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About Author

Kenneth Lamont  is a passive funds research analyst for Morningstar Europe.

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