Investment Law 2020: Forms of Overseas Investment

Law on Investment 2020: Forms of Overseas Investment - Illustrative photo.

To be specific: Article 52 of the Law on Investment 2020 stipulates that investors may carry out overseas investment activities in the following forms:

- Establishing economic organizations in accordance with the laws of the host country;

- Investing under contractual forms abroad;

- Contributing capital, purchasing shares, or buying capital contributions of economic organizations abroad to participate in managing such economic organizations;

- Buying and selling securities, other valuable papers, or investing through securities investment funds and other intermediary financial institutions abroad;

- Other forms of investment as prescribed by the laws of the host country.

Notably, Article 51 of the Law on Investment 2020 stipulates the principles that overseas investors must adhere to, specifically:

- The state encourages overseas investment to exploit, develop, and expand the market; enhance the export capability of goods and services, earn foreign currency; access modern technology, improve management capacity, and supplement resources for the socio-economic development of the country.

- Investors conducting overseas investment activities must comply with the provisions of this Law, other relevant legal provisions, the laws of the host country or territory, and relevant international treaties; they are to bear responsibility for the effectiveness of their overseas investment activities.

Detailed regulations are specified in the Law on Investment 2020, effective January 01, 2021.

Le Vy

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