The newly issued Decree 245/2025/ND-CP introduces a significant shift in Vietnam’s approach to foreign investor ownership. Under the new regulations, enterprises are no longer permitted to independently determine foreign ownership ratios. Instead, they must adhere to a standardized legal framework set by the State. Integration with prudence The maximum share that foreign investors may hold in a public company—commonly referred to as the foreign ownership limit—has long been viewed as a protective measure for domestic enterprises during the integration process. However, foreign investors with substantial financial resources and valuable expertise in management can significantly contribute to the growth and development of these enterprises. That said, opportunities often come hand-in-hand with the risk of foreign takeovers lacking sufficient safeguards. To mitigate this, the Government initially imposed a foreign ownership cap of 49% during the early stages of economic integration, with even stricter limits applied to sectors deemed vital to national economic security. This regulation not only protected domestic enterprises but also provided them with valuable time to adapt to the dynamics of international cooperation. A pivotal shift occurred with the introduction of Decree 60/2015/ND-CP, which raised the foreign ownership cap to 100% in sectors where the State imposed no restrictions. Furthermore, […]