Current tax policy discouraged investors to put money into private equity funds and also limited the accessibility of capital in these funds, they said.
Foreign individual and organisational investors (along with domestic individual investors) are imposed a tax of 0.1 per cent on every fund transaction, while domestic organisations are only required to pay a tax of 25 per cent on actual capital gains and domestic individual investors only 20 per cent.
Stocks fell by midday on Tursday, with positive news on inflation and a fuel price cut failing to revive buying interest, a broker and an analyst said on Thursday.
The government estimated that inflation fell below 10 percent in May for the first time since October 2010, which could give the central bank more room to ease policy to boost flagging growth.
On Wednesday, a state-run newspaper reported the government cut retail petrol prices for the second time this month.
The proposal was included in a recent draft circular on the restructuring of credit institutions, for which the central bank is seeking opinions from relevant agencies and individuals before approval.
The proposal also requires credit institutions to submit a feasibility plan for any mergers, have a minimum chartered capital after merger equivalent to the authorized capital and meet other ratios as defined by the laws to ensure healthy operation.
Sun Life, Canada’s No. 3 life insurer, said it will own 49 percent of the new entity, PVI Sun Life. Financial details of the transaction were not disclosed.
“The company aims to become a market leader in the sector,” Sun Life said in a statement. It expects the joint venture to commence operations before the end of the year, subject to regulatory approval.
PVI Holdings is a Hanoi-listed subsidiary of state oil and gas group Petrovietnam, and is the leading non-life insurer in Vietnam.
Toronto-based Sun Life is active in at least five Asian countries and has targeted growth in the region under new Chief Executive Dean Connor.
Investment General Corporation (SHN) will not file for voluntary bankruptcy despite being short of cash and burdened with a high bad debt ratio, said CEO Dinh Hong Long at the company’s shareholders meeting this week.
SHN has been on the verge of bankruptcy since the beginning of this year, when information leaked that the company would unlikely recover debt due from Beta BQP Joint Stock Co worth a total of VND238 billion (US$11.3 million).
Another rate cut in the pipeline would help ease corporate difficulties in accessing bank loans, after Vietnam’s economic growth slowed to an annual pace of 4 percent in the first quarter of 2014, the slowest since 2009.
The downward adjustment would be the last in 2012, the central bank was quoted by the ruling Communist Party-run Nhan Dan (People) daily as telling bankers at a meeting on Thursday.
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VietinBank , Vietnam’s top partly private lender by assets, aims to conclude talks to sell a 15 percent stake to Canada’s Bank of Nova Scotia in the second quarter of 2011, a state-run newspaper said on Friday.
VietinBank has been accelerating talks with the Canadian bank so that “in Q2 2011 the bank will officially become a shareholder of VietinBank”, Chairman Pham Huy Hung told the central bank-run Banking Times newspaper in an interview.