Foreign investment in Vietnam need what conditions?  – 2B TALENT SERVICES TRADING COMPANY LIMITED

Foreign investment in Vietnam need what conditions? 

Foreign investment in Vietnam need what conditions? 

Each country has regulations on the issue of foreign investment into the country and the countries have different regulations on this issue. Therefore, when investors want to invest in a country, they must always find out what requirements that country has to invest, from which they can check Are you fit to invest here or do you need to change anything?

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foreign investor entering Vietnam should pay attention to the following: the percentage of charter capital ownership in an economic organization, the form of investment, the scope of investment activities, and Vietnamese partners participating in investment. and relevant regulations published in international treaties and Vietnamese laws.
Regarding the legal basis:Law on Investment 2014, amended in 2016
Following, we will analyze the conditions of each form of investment.
Investment in the establishment of economic organizations (according to Article 22 of the LĐT)
– Investors can establish economic organizations according to regulations of the Law. Before establishing an economic organization, a foreign investor must have an investment project, carry out the procedures for the grant of an investment registration certificate under Article 37 of this Law and must meet the following conditions. Here:
+ The charter capital ownership ratio specified in Clause 3 of this Article;
+ Investment form, scope of activities, Vietnamese partners participating in the implementation of investment activities and other conditions under the provisions of international treaties to which the Socialist Republic of Vietnam is a member.
– Foreign investors executing investment projects through economic organizations established under the provisions of Clause 1 of this Article, except for cases of investment in the form of capital contribution, share purchase, capital contribution or investment from contract.
– Foreign investors may own an unlimited charter capital in a business organization, except for the following cases:
+ Ownership rate of foreign investors in listed companies, public companies, organizing securities business and securities investment funds in accordance with the law on securities;
+ The ownership ratio of foreign investors in equitized or transformed state owned enterprises in other forms complies with the law on equitization and conversion of state enterprises;
+ The ownership ratio of foreign investors outside the provisions of Points a and b of this Clause complies with other relevant laws and treaties to which the Socialist Republic of Vietnam is based. member.
Therefore, for the form of investment to establish an economic organization, foreign investors need the following conditions:

  • Foreign investors must have an investment project and carry out the procedures for the grant of an investment registration certificate
  • Foreign investors may own an unlimited charter capital in an economic organization, except for the following cases:

Ownership ratio of foreign investors in listed companies, public companies, securities trading organizations and securities investment funds in accordance with the law on securities;
The ownership ratio of foreign investors in equitized or transformed state owned enterprises in other forms complies with the law on equitization and conversion of state enterprises;
Ownership ratio of foreign investors not specified in points a and b of this clause shall comply with other relevant laws and international treaties to which the Socialist Republic of Vietnam is a tablets.

  • Investment forms, scope of activities, Vietnamese partners participating in the implementation of investment activities and other conditions under the provisions of international treaties to which the Socialist Republic of Vietnam is a member.

Investment in the form of capital contribution, purchase of shares or stakes in an economic organization (Article 24 of the LĐT)
– Investors have the right to contribute capital, buy shares, or contribute capital to an economic organization.
– Foreign investors investing in the form of capital contribution, purchase of shares or capital contributions in business organizations shall comply with the provisions of Articles 25 and 26 of this Law.
          + Forms and conditions for capital contribution, share purchase and capital contribution to business organizations
(1). Foreign investors may contribute capital to economic organizations in the following forms:
a) Buying shares for the first time or additionally issuing shares of joint-stock companies
b) Contributing capital to limited liability companies term, partnerships;
c) Contributing capital to other economic organizations not falling into the cases prescribed at Points a and b of this Clause.
(2). Foreign investors may purchase shares or capital contributions of business organizations in the following forms:
a) Purchase of shares of joint-stock companies from the companies or shareholders;
b) Purchase of capital contributions by members of the limited liability company to become a member of the limited liability company;
c) Purchase of capital contributions of partners in a partnership to become a limited partner of the partnership;
d) Purchasing capital contributions of members of other economic organizations not falling into the cases prescribed at Points a, b and c of this Clause.
(3). Capital contribution, purchase of shares or stakes of foreign investors in the forms prescribed in Clauses 1 and 2 of this Article must meet the conditions specified at Points a and b, Clause 1, Article 22 of the Law. this.
Conditions for this form of investment:

  • Regarding capital contribution: foreign investors may contribute capital in the following forms:

a) Purchase of first-time shares or additionally issued shares of a joint-stock company;
b) Contributing capital to limited liability companies and partnerships.
c) Contributing capital to other economic organizations not falling into the cases prescribed at Points a and b of this Clause.

  • Regarding the purchase of shares and capital contributions: Foreign investors purchase shares or capital contributions of business organizations in the following forms:

a) Purchase of shares of joint-stock companies from the companies or shareholders;
b) Purchase of capital contributions by members of the limited liability company to become a member of the limited liability company;
c) Purchase of capital contributions of partners in a partnership to become a limited partner of the partnership;
d) Purchasing capital contributions of members of other economic organizations not falling into the cases prescribed at Points a, b and c of this Clause
Investing in the form of PPP contracts (under Article 27 of the LĐT)
– Investors, enterprises projects signing PPP contracts with competent state agencies to execute investment projects on new construction or renovation, upgrading, expansion, management and operation of infrastructure works or service provision public service.
– The Government shall specify the fields, conditions, and procedures for executing investment projects in the form of PPP contracts.
For PPP investment forms:

  • Scope: Foreign investors invest in executing new construction, renovation and upgrading projects. expansion, management and operation of infrastructure facilities or provision of public services
  • Sign contracts with state agencies

Investment in the form of a BCC contract (according to Article 28 of the LĐT)
– A BCC contract is signed between a domestic investor and a foreign investor or between foreign investors carrying out the procedures for issuing the Certificate of Publication. sign the investment in accordance with Article 37 of this Law.
– Parties to a BCC contract establish a coordinating board to implement the BCC contract. – – Functions, duties and powers of the coordination committee are agreed upon by the parties.
Conditions: The parties to a BCC must establish a coordinating board.

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