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Forms Of Foreign Investment In Vietnam

  • 21/02/2020

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Forms of foreign investment in Vietnam

Business investment is that the investor invests capital to carry out business activities through the establishment of the economic organization; equity investment, stock purchase and capital contribution of economic organizations; investment in the form of contracts or implementation of investment projects. The form of the problem is the foreign investor interest. Law Vietnam An will present investment forms prescribed by the investment law in 2014 as follows

No separation of the investment city and an investment investment investment investment, 2014's investment protocol, including Investments, investing in an investment organization, investment regeneration, investment form, investment registers, shares in the capital, capital, investment property, investment property. The PPP contract, invested in the BCC contract.

Investment of an economic organization.

The form of an economic organization consists of two specific forms, which is: to establish a 100-100-year-investment banker, to establish a company between investors in the country or government and foreign investors.

Before we establish a financial institution, foreign investors have to have an investment project, perform a formal procedure on the investment certificate and have to respond to the conditions of its own in the laws of the stock certificates, shares in shares. In exchange for government businesses and conditions in terms of the international estimate that Vietnam was a member of.

It's capital, buying shares, capital in the economy, is a form of espionage investment property, the ideology of this investment ritual passes through the stock market, bonds, There's another piece of paper that the investors are not directly involved in the investment management. When this form of investment, the investor needs to comply with the formalities and the capital, buy the shares, the contribution.

Invest as a PPP contract

The PPP contract is a signed contract between the state authorities and the investors, the business of the investment project. This is a highly effective form of investment and providing a high-quality public service, which will give us the benefit of the country and the people.

Invest the BCC contract.

BCC is a form of investiture between investors for business cooperation, split profits, produce a product without new legislation. This form of investment will help the investors advance quickly without losing time. time, money to be founded and managing a new cause.

The BCC contract was signed between investors in the country operating by the law of civil rights. The BCC contract is at least one side of the water investor performs the executive order of investment certificate.

FOREIGN INVESTMENT, FOREIGN INVESTMENT INTO VIETNAM

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 in here or do you need to change anything?

A 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 the investment. and relevant regulations are published in international treaties and Vietnamese laws.

Regarding the legal basis: Law on Investment 2014, amended 2016

Following, we will analyze the conditions of each form of investment

Investment in the establishment of an economic organization

- Investors may establish economic organizations following 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, the 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 the contract.

- Foreign investors may own an unlimited charter capital in a business organization, except for the following cases:

+ Ownership percentage of foreign investors in listed companies, public companies, securities trading organizations and securities investment funds following 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 follow 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 following 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 tablet.

Investment forms, the 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 capital contributions in business organizations (Article 24 of LOI)

- Investors have the right to contribute capital, buy shares, or buy capital contributions of business organizations.

- Foreign investors investing in the form of capital contribution, purchase of shares or equity interests in an economic organization comply with Articles 25 and 26 of this Law.

          + Forms and conditions for capital contribution, share purchase and capital contribution to economic organizations

(first). Foreign investors may contribute capital to economic organizations in the following forms:

a) Purchase of first-time issued 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.

(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.

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