According to the latest draft of new Investment Law, foreign investors will be required to obtain the M&A Approval (which is a must-have approval before conducting procedures of changing a company’s shareholders) in the following cases:
- An increase of foreign ownership in a target company engaging in business lines which are conditional to foreign investors in terms of market access;
- An increase of foreign ownership in a target company from less than 51% to 51% or more of the paid-up capital of the target company;
- An increase of foreign ownership in a target company where foreign ownership of the paid-up capital is already 51% or more; or
- The target company is utilizing land located within areas having an effect on national security, such as sea-islands, borderlands and coastal areas etc. which has been issued with land use right certificate.
The new Law on Investment is expected to be considered and adopted by the National Assembly in its current meeting, which is presently taking place in May and June 2020.
