Regulations on Investment Activities of Economic Organizations with Foreign Investment

Implementing investment activities of foreign-invested economic organizations - Illustrative image

Clause 1, Article 23 of the Investment Law 2020 stipulates that economic organizations must meet conditions and carry out investment procedures as prescribed for foreign investors when investing to establish other economic organizations; investing by contributing capital, purchasing shares, or acquiring capital contributions of other economic organizations; investing in the form of a BCC contract if such economic organizations fall into one of the following cases:

- Having a foreign investor holding more than 50% of the charter capital or having a majority of general partners being foreign individuals for economic organizations that are partnerships;

- Having economic organizations as stipulated in point a of this clause holding more than 50% of the charter capital;

- Having foreign investors and economic organizations as stipulated in point a of this clause holding more than 50% of the charter capital.

In addition, Clause 2 of this Article also stipulates that economic organizations not falling into the above cases shall carry out the conditions and procedures for investment as prescribed for domestic investors when investing to establish other economic organizations; investing in the form of contributing capital, purchasing shares, or acquiring capital contributions of other economic organizations; investing in the form of a BCC contract.

Note that foreign-invested economic organizations already established in Vietnam, if having new investment projects, shall carry out procedures to implement those investment projects without necessarily establishing new economic organizations.

See the detailed contents in the Investment Law 2020 effective from January 1, 2021.

Le Vy

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