The Equitization of State-owned Enterprises in Vietnam: A Legal Analysis of Foreign Investment

다국어 초록 (Multilingual Abstract)

This paper provides a comprehensive legal analysis of the equitization of state-owned enterprises in Vietnam in relation with foreign investment. It explores the evolution of Vietnamese equitization policy from the early 1990s to the present, emphasizing the strategic importance of foreign investors in this process. The paper examines the Vietnamese Party-State’s perspective on equitization and how it shapes the legal framework governing foreign participation. It subsequently analyzes recent regulatory developments aimed at accelerating equitization, including changes in foreign ownership limits, information disclosure requirements, procedural improvements, and investment incentives. Despite considerable advancements in policy and legal reforms, the paper identifies persistent challenges that hinder foreign investment in the equitization process of state-owned enterprises. The Vietnamese Government has increasingly recognized the significance of augmenting foreign participation as a pivotal strategy for enhancing the performance and competitiveness of equitized enterprises. The findings of the paper thus highlight the need for Vietnam to refine its legal and regulatory frameworks to create a more transparent, stable, and attractive environment for foreign investors.