Are there any limits on capital contributions for foreign investors in Vietnam?
Are there any limits on capital contributions for foreign investors in Vietnam? What are the forms of investment in Vietnam?
I was born in Vietnam, but I gave up my Vietnamese citizenship and took American citizenship. Currently, I am the owner of a multinational company in the US. In the coming time, I want to carry out a project in Vietnam, which I will invest in companies in Vietnam. However, I don't know if there is any limits on capital contributions when I invest in Vietnam? What are the forms of investment in Vietnam in Vietnam?
Thank you!
Are there any limits on capital contributions for foreign investors in Vietnam?
Pursuant to Article 9 of the Law on Investment in 2020 stipulating business lines in Vietnam with prohibited and restricted market access and market access conditions applied to foreign investors as follows:
1. Market access conditions applied to foreign investors are the same as those applied to domestic investors, except for the case specified in Clause 2 of this Article.
2. Pursuant to Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory, the Government shall promulgate a Negative List for Market Access, including:
a) Prohibited business lines;
b) Restricted business lines.
3. Market access conditions applied to foreign investors specified in the Negative List for Market Access include:
a) Holding of charter capital by the foreign investor in a business organization;
b) Investment method;
c) Scope of investment;
d) Capacity of the investor; partners participating in the investment activities;
dd) Other conditions specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory.
4. The Government shall elaborate this Article.
As regulations above, holding of charter capital is one of the conditions for foreign investors contributing capital in enterprises in Vietnam.
What are the forms of investment in Vietnam in Vietnam?
Pursuant to Article 21 of the Law on Investment in 2020 stipulating forms of investment in Vietnam as follows:
1. Investment in establishment of a business organization.
2. Investment in the form of capital contribution or purchase of shares or stakes.
3. Execution of an investment project.
4. Investment in the form of a business cooperation contract.
5. New forms of investment and types of business organizations prescribed by the Government's regulations.
Best regards!
