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Vietnam Seen Moving Closer to Emerging Upgrade With Bank Opening

  • PM Phuc says offshore ownership caps on lenders to be raised
  • Move will aid country’s bid for MSCI promotion: VinaCapital
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Photographer: Linh Luong Thai/Bloomberg
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The opening up of Vietnam’s banks to more foreign investment is expected to speed the country’s ascent to emerging-market status and boost a stock index that’s already near a nine-year high.

The country’s lenders surged on Tuesday after Prime Minister Nguyen Xuan Phuc said offshore ownership caps would be raised from the current level of 30 percent as early as this year. The government may exit completely from some troubled banks, Phuc said in an interview with Bloomberg Television in Hanoi on Friday, without saying what the new limit would be.