Forms of direct investment in Vietnam

Nội dung bài viết

1. To establish economic organizations with 100% capital of domestic or foreign investors.

2. To establish economic organizations being joint ventures between domestic and foreign investors.

3. To make investment in the form of BCC, BOT, BTO or BT contracts.

4. To invest in business development.

5. To buy shares or contribute capital for participation in management of investment activities.

6. To make investment in the merger or acquisition of enterprises.

7. Other forms of direct investment.

Investment in Vietnam in establishment of economic organizations

1. Based on the forms of investment specified in Article 21 of this Law, investors may make investment in establishment of the following economic organizations:

a) Enterprises organized and operating under the Enterprise Law;

b) Credit Institutions, insurance business enterprises, investment funds and other financial institutions as provided for by law;

c) Medical, educational, scientific, cultural, sports or physical training establishments and other service establishments, which carry out investment activities for profit-making purposes;

d) Other economic organizations as prescribed by law.

2. Apart from the economic organizations defined in Clause 1 of this Article, domestic investors may invest in the establishment of cooperatives or unions of cooperatives, which are organized and operate under the Cooperatives Law; or business households under the provisions of law.

Investment in Vietnam under contracts
1. Investors may enter into BCCs to cooperate in production with profit-sharing or production-sharing and other forms of business cooperation.
Subjects and contents of cooperation, business duration, interests, obligations and responsibilities of each party, the cooperative relationship between parties and the management organization shall be agreed upon by the parties and stated in contracts.

A BCC in the domain of prospecting, exploration or exploitation of oil and gas and some other natural resources in the form of a production-sharing contract shall be effected in accordance with the provisions of this Law and relevant provisions of law.

2. Investors shall sign BOT, BTO and BT contracts with competent state agencies for execution of projects on construction, expansion, modernization and operation of infrastructure facilities in the domains of transport, electricity production and business, water supply and drainage, waste treatment and other domains as stipulated by the Prime Minister.

The Government shall specify the investment domains, conditions, order, procedures and mode of execution of investment projects; rights and obligations of parties to investment projects in the forms of BOT, BTO and BT contracts.

Investment in Vietnam in business development
Investors may invest in business development in the following forms:
1. Expanding scale, raising capacity or business capability;
2. Renewing technologies, raising product quality, reducing environmental pollution.\
Capital contribution, share purchase, merger and acquisition

1. Investors may contribute capital to, or purchase shares from, companies and their branches in Vietnam.

The ratio of capital contributed or of shares purchased by foreign investors in some domains, branches and trades shall be specified by the Government.

2. Investors shall have the right to merge or acquire companies and branches.

The conditions for merger and acquisition of companies and branches shall comply with the provisions of this Law, the competition law and relevant provisions of law.

Indirect investment in Vietnam

1. Investors shall make indirect investment in Vietnam in the following forms:

a) Purchase of shares, share certificates, bonds and other valuable papers;

b) Through securities investment funds;

c) Through other intermediary financial institutions.

2. Any investment by way of purchase or sale of shares, share certificates, bonds and other valuable papers by organizations or individuals and procedures for carrying out indirect investment activities shall comply with the provisions of securities law and relevant provisions law.

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