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Types of Investment in Vietnam

23/06/2023 - 177

Thblaw.com.vn

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  After many stages of development, more and more new forms of investment appeared on the market; Each type of investment will have its own characteristics and advantages In fact, before entering the market, each investor always considers and carefully calculates the form of investment – one of the extremely important factors. Understanding and grasping […]

 

After many stages of development, more and more new forms of investment appeared on the market; Each type of investment will have its own characteristics and advantages

In fact, before entering the market, each investor always considers and carefully calculates the form of investment – one of the extremely important factors. Understanding and grasping the legal regulations, as well as the conditions and advantages of the investment form, will help investors choose the appropriate investment plan to bring efficiency and high economic value.

Pursuant to 21 of Investment Law 2020, the form of investment is prescribed as follows:

Article 21. Forms of investment

  1. Investment in the establishment of a business entity.
  2. Investment in the form of capital contribution or purchase of shares or stakes.
  3. Execution of an investment project.
  4. Investment in the form of a business cooperation contract.
  5. New forms of investment and types of business entities prescribed by the Government’s regulations.

Note: If a (domestic) economic organization makes an investment in the forms (1), (2), and (4) and falls into one of the following cases, it must satisfy the conditions and carry out investment procedures according to the following conditions: regulations for foreign investors.

(i) There are foreign investors holding more than 50% of the charter capital or the majority of general partners are foreign individuals, for economic organizations that are partnerships;

(ii) Having an economic organization specified in case (i) holding more than 50% of charter capital;

(iii) There are foreign investors and economic organizations specified in case (i) holding more than 50% of charter capital.

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