Chapter I
GENERAL PROVISIONS
Article 1. Scope of regulation
This Decree provides for activities of private placement of shares and sanctioning of administrative violations in these activities of joint-stock companies established and operating in the territory of the Socialist Republic of Vietnam (below collectively referred to as placing institutions).
Joint-stock companies established and operating under foreign laws may not privately place shares in the territory of the Socialist Republic of Vietnam, unless otherwise provided by a treaty to which the Socialist Republic of Vietnam is a contracting party.
Article 2. Subjects of application
1. Joint-stock companies
2. Enterprises, excluding wholly state-owned enterprises transformed into joint-stock companies.
Article 3. Application of laws
Private placement of shares by enterprises engaged in conditional business lines must comply with this Decree and other relevant specialized laws.
Article 4. Interpretation of terms
In this Decree, the following terms are construed as follows:
1. Private placement of shares means a direct placement of shares or the right to purchase shares to any of the following entities not through the mass media:
a/ Professional securities investors;
b/ Fewer than 100 non-professional securities investors.
2. Public company means a joint-stock company satisfying the conditions specified in Articles 25 and 26 of the Law on Securities.
Article 5. Share par value
1. Shares to be privately placed in the territory of the Socialist Republic of Vietnam shall be denominated in Vietnam dong.
2. The par value of shares to be privately placed is 10.000 (ten thousand) Vietnam dong.