Nowadays, Viet Nam is a market that a significant number of investors demand to invest in. But can all fields and business lines of foreign investors be able to invest and do busniness? And do all foreign investors have to apply investment conditions or not. According to Viet Nam laws, some business lines and fields have specific conditions for foreign investors. And international treaties such as WTO, AFAS, FTAs, ……… having Vietnam taking part also stipulate on these conditions.
Firstly, Clause 6 Article 2 Decree 118/2015/NĐ-CP defined Investment conditions applied to foreign investors is: conditions that foreign investors must satisfy before making investment in the business lines subject to conditions applied to foreign investors specified in relevant Laws, Ordinances, Decrees, and international agreements on investment.
Investment conditions applied to foreign investors are applied in investments of foreign investors as follows:
- Investment in establishment of a business organization;
- Investment in the form of capital contribution, purchase of shares/stakes in a business organization;
- Investment in the form of a business cooperation contract;
- Receipt of an investment project;
- Change or addition of business lines of a foreign-invested business organization.
Thus, only investors implementing investment activities in conditional business lines stipulated in Laws, Ordinances, Decree, and international treaties on investment and such investors have one of metioned investment activities must meet investment conditions.
According to Article 10, Decree 118/2015/ND-CP, investment conditions applied to foreign investors incudes:
- Conditions on ratio of the foreign investor’s charter capital in a business organization;
- Conditions on investment method;
- Conditions on scope of investment;
- Conditions on Vietnamese partners participating in the investment;
- Conditions on other conditions specified in Laws, Ordinances, Decree, and international treaties on investment.
So before implementing investment activities, foreign investors need to check and search for provisions of laws, ordinances, decrees, and international agreements on conditional business lines as well as conditional investment activities in Viet Nam.
Hnlaw & Partners Law Firm