11:25 | 05/09/2024

Is Investment in the Form of Capital Contribution, Purchase of Shares, or Purchase of Contributed Capital Allowed?

May I ask if foreign investors are allowed to purchase shares of an economic organization? If so, what conditions must be met?

Article 24 of the Investment Law 2020 (effective from January 1, 2021) stipulates the form of investment by capital contribution, share purchase, and purchasing capital contributions, specifically:

  1. Investors have the right to contribute capital, purchase shares, and purchase capital contributions of economic organizations.

  2. Foreign investors' capital contributions, share purchases, and purchase of capital contributions in economic organizations must meet the following regulations and conditions:

    a) Market access conditions for foreign investors as stipulated in Article 9 of this Law;

    b) Ensuring national defense and security as per the provisions of this Law;

    c) Provisions of the law on land regarding conditions for receiving land use rights, and conditions for land use in islands, communes, wards, commune-level towns along borders, and commune-level towns along the coast.

    Thus, foreign investors have the right to purchase shares of economic organizations but must comply with the above conditions.

Respectfully!

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