Forms of investment in Vietnam

Forms of investment in Vietnam When operating an investment in Viet Nam, foreign investors have a significant number of selections on forms of investment in Viet Nam. According to Law on Investment 2014, there are some forms for Customer to choose. HNLaw & Partners will give Customer instructions about forms of investment in Viet Nam as follows:

I. Legal base:

  • Law on Investment 2014
    • Decree 63/2018/NĐ-CP
    • Decree 118/2018/NĐ-CP

II. Forms of investment in Viet Nam

1. Investment by establishing an economic organization

  • Economic organization is organizations established and operated in accordance with the law of Viet Nam, including enterprises, cooperatives, unions of cooperatives and other organizations carrying out investment and bussiness activities.
  • Investors could establish economic organizations in accordance with the law. Before establishing an economic organization, foreign investors must have an investment project, execute the procedures for the grant of Investment Registration Certificate and must meet the following conditions:

a) The ownership proportion of the charter capital is as follows:

  • The ownership proportion of foreign investors in listed companies, public companies, securities business organizations and securities investment funds in accordance with the law on securities;
  • The ownership propotion of foreign investors in equitized state-owned enterprises or converted state-owned enterprises in other forms complies with the law on equitization and conversion of state-owned enterprises;
  • The ownership propotion of foreign investors that are not specified in point a and point b of this clause but complies with other relevant laws and international treaties which the Socialist Republic of Vietnam is a member.

b) Forms of investment, scope of operation, Vietnamese partners participating in the execution of investment activities and other conditions under the provisions of international treaties which the Socialist Republic of Vietnam is a member.

2. Investment contributing capital, share and purchasing contributed capital in economic organizations.

Foreign investors can contribute capital following these forms:

  • Purchasing first-published share or additional share of joint stock companies;
  • Contributing capital to limited liability companies, partnership companies;
  • Contributing capital to other economic organizations which are not included in said cases.

3. Investment by following the form of public private partner investment contract (PPP Contract)

  • Investment in the form of public private partner (hereafter referred as PPP) is an investment form which is performed based on an project contract between competent government agency and investors or project enterprises.
  • PPP Contract is contracts which are concluded between competent government agency and investors to execute projects on building, reclaiming, operating, trading, managing infrastructure projects and provide public services.

4. Investment by following the form of Business Cooperation Contract (BCC Contract)

  • BCC Contract is contracts which are concluded between investors to cooperate business and divide margin and products without establishing any economic organization.   

5. Projects in these following fields would be reviewed investment policy and granted investment registration certificate by National Assembly: (Excluding projects which are under the jurisdition in investment policy decision of National Assembly in accordance with law on public investment)

  • Projects which have a heavy impact to environment or potentially have a possibility to impact seriously to environment, including:

+ Nuclear power plants;

+ Converting the land use objectives of national parks, natural protection zones, landscape protection zones, researching forests, scientific experiment forests which have 50 hectares or higher; protective forests protecting from wind, sand, wage, encroached-sea and protecting environment which have 500 hectares or higher; production forests which have 1,000 hectares or higher.

  • Using land which is requested to be converted the use objectives of two seasons or higher with the scale of 500 hectares or higher.
  • Emigration and resettlement which has 20,000 or higher people in mountainous areas, 50,000 or higher people in other areas.
  • Projects which are requested to be applied special mechanism and policy and need National Assembly’s decision.

6. Projects in these following fields would be reviewred investment policy and granted investment registration certificate by Prime Minister (Excluding projects which are under the jurisdition in investment policy decision of Prime Minister and projects which are under the jurisdition in investment policy decision of National Assembly)

  • Projects are not separated the capital sources if fall into the following cases:

+ Emigration and resettlement which has 10,000 or higher people in mountainous areas and 20,000 or higher people in other areas;

+ Building and trading airport; air transportation;

+ Building and trading national seaport;

+ Exploring, developing and processing petroleum;

+ Operating business lines on betting, placing a bet and casino;

+ Producting cigarettes;

+ Inovating infrastructure of industry zones, manufacturing areas, functional areas in economic zones;

+ Building and trading golf;

  • Projects that do not fall into such cases have an investment capital scale of 5,000 billions and higher;  
  • Projects of foreign investors in business fields of sea transportation, facilities-based telecommunication services, forest granting, publication, journalism, science and technology organizations establishment, science and technology enterprises establishment which have 100% foreign capital;
  • Other projects which are under the jurisdition in investment policy decision of Prime Minister.

7. Projects in these following fields would be reviewed investment policy and granted investment registration certificate by People’s Committee of province (Excluding projects which are under the jurisdition in investment policy decision of People’s Committee of province and projects which are under the jurisdition in investment policy decision of Prime Minister and National Assembly):

  • Projects which are assigned and leased land by Government without via auction, bid or transfer acceptance; projects which are requested to change land use objectives;
  • Projects using technologies on the List of technologies restricted from transfer under the lawe of technology transfer.

Hereinabove are contents about “Forms of investment in Viet Nam”. If Customer have any question or demand to use legal services please directly contact Firm for detailed consultant and best support.

The detailed contact:

HNLAW & PARTNERS LAW FIRM

Address: DBS Building, N028, Lot 31, Commercial Services and Housing Area in Ha Tri, Ha Tri Ward, Ha Dong, Hanoi.

Email: tuvan.hnlaw@gmail.com

Hotline: 0912.918.296

http://www.hnlaw.vn/en/investment-consultancy

https://en.wikipedia.org/wiki/Ministry_of_Planning_and_Investment_(Vietnam)

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