The Finance Ministry of Vietnam submitted a plan to relax restrictions on foreign investors to Prime Minister Nguyen Tan Dung. The plan intended to raise the cap on overseas ownership at some firms.

The proposal would let foreigners to increase their voting shares holdings in non-conditional industries. A 60% increase was proposed from the current cap of 49% according to an e-mailed statement sent yesterday by Nguyen Son. The latter is the head of market development of the country's State Securities Commission. Overseas investors would be allowed to buy an additional of 10% non-voting shares holdings for restricted industries. This was on top of the 49% voting stock limit, Son said, without disclosing details of restricted companies.

Regulators see foreign investment as the key to Vietnam's growth in its USD45 billion stock market.  With the newly submitted proposal, a closer move towards a relaxed foreign investment policy is deemed to transpire.