Transfer of Shares Owned by Foreign Founding Shareholders

According to Government Decree 38/2003/ND-CP dated April 15, 2003 on conversion of foreign-invested enterprises into joint-stock companies, foreign founding shareholders can transfer their shares to foreign individuals and entities. Article 15 of the decree states that the transfer of foreign founding shareholders� shares to Vietnamese individuals and entities must be approved by the Ministry of Planning and Investment and must abide by stipulations in Item 1 of Article 10 and Item 3 of Article 12 in this decree. The proceeds from share transfer must be used to re-invest in Vietnam. If they are remitted out of Vietnam, the remittance must be approved by competent Vietnamese authorities.