VIETNAM DRAFTING OWNERSHIP RESTRICTION LAW, SAYS PAPER

The Vietnamese Ministry of Finance is reported by Xinhua to be drafting a regulation that would limit individuals to a 10% ownership of locally based insurers, while corporations would not be allowed to own more than 20%. The restriction would apply to domestic and foreign players alike. Phung Dac Loc, general secretary of the Vietnam Insurance Association, said that the proposed limits would ensure that no insurer was dominated by major shareholders and would facilitate sustainable development for newly created insurers. However, it was observed that foreign investing insurers would be unhappy with a cap of less than 49%, while the new regulations could limit the number of new insurers formed, the newspaper claimed.