Forms of foreign investment in Vietnam
Business investment is spending their capital to carry out business activities through the following forms:
• Establishment of economic organizations;
• Investing in capital contribution, buying shares and capital contributions of economic organizations;
• Investment in the form of PPP contracts, one of two parties is the state agencies in which;
• Investment in the form of BCC contract.
Investment form should be taken into consideration. Luat Su Rieng Lawfirm will present the forms of investment in accordance with the 2014 Law on Investment as follows:
1. Investment in establishing economic organizations:
Investment in the establishment of economic organizations includes two specific forms, that is: establishment of a company with 100% capital from foreign investors or establishment of a joint venture company between domestic investors or the Government country and foreign investor.
Before establishing an economic organization, the foreign investor must have an investment project, carry out the procedures for issuance of an investment registration certificate and must satisfy the conditions for charter capital ownership ratio as prescribed regulations of laws relating to investment, complying with the provisions of Vietnamese law and international treaties which Vietnam is a member.
2. Capital contribution, share purchase, capital contribution to economic organizations
Capital contribution, share purchase or capital contribution to a business organization is the form of indirect investment by foreign investors. This form of investment is carry out through the purchase of stocks, bonds, capital contributions, and other valuable papers. When implementing this form of investment, investors need to comply with the forms and procedures for capital contribution, share purchase, capital contribution.
3. Investment in the form of PPP contracts
PPP contract is a contract signed between a competent state agency and an investor or project enterprise to execute an investment project. This is a form of cooperation that optimizes investment efficiency and provides high-quality public services, which will bring benefits to investors, the state as well as citizen.
4. Investment under BCC contract
BCC is a form of investment signed between investors in order to cooperate in business, distribute profits, or distribute products without establishing a new legal entity. This form of investment helps investors to quickly conduct investment activities without spending time or money to establish and manage a new legal entity.
BCC contracts signed between domestic investors comply with civil law. BCC contract with at least one party being a foreign investor will carry out procedures for issuance of an Investment Registration Certificate.
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