Investing in Vietnamese companies

According to the Law on Investment 2014, foreign investors can contribute capital and buy shares in Vietnamese companies (including 100% local owned companies and foreign owned companies). There are some important information you should notice:

Formalities of capital contribution to Vietnamese companies:

  • Purchase shares of joint-stock companies from the companies or shareholders through IPOs or additional issuance;
  • Purchase capital contribution in limited liability companies from their members in order to become a member;
  • Purchase capital contribution in partnerships from their partners in order to become a partner;
  • Contribute capital to Vietnamese companies under
  • other formalities.

Foreign investors are understood as foreign individuals, foreign companies, foreign organization who contribute capital or purchase shares of Vietnamese companies.

Conditions of foreign investors contributing capital to Vietnamese companies:

  • Foreign investors contribute capital to Vietnamese companies must comply with investment methods, operating scope, Vietnamese partners and other aspects regulated by international agreements to which the Socialist Republic of Vietnam is a member;
  • Capital ratio of foreign investors in Vietnamese companies is unlimited, except for the following cases:
  • Capital ratio of foreign investors in listed companies, public companies, securities-trading organizations and securities investment funds shall be complied with regulations of the law on securities;
  • Capital ratio of foreign investors in state-owned companies which have been equitized or converted shall be complied with regulations of the law on equitation and conversion of state-owned companies.
  • Capital ratio of foreign investors in companies which are not listed companies, public companies, securities-trading organizations, securities investment funds and state-owned companies shall be complied with other regulations of relevant law and international agreements to which the Socialist Republic of Vietnam is a member.

In the following cases, foreign investors shall perform the procedures for capital contribution, shares purchase and capital contribution purchase to Vietnamese companies:

  • Foreign investors contribute capital, purchase shares, purchase capital contribution to Vietnamese companies which are conducting conditional business sectors applied to foreign investors;
  • Capital contribution, shares purchase, capital contribution purchase lead to more than 51% of the charter capital are owned by foreign investors.

If you have any question, please contact Ms Nhung (tel: 0912918296)!

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