Vietnam: 03 conditions for foreign investors to contribute capital and buy shares of business organization

Vietnam: 03 conditions for foreign investors to contribute capital and buy shares of business organization
Lê Hải

On June 17, 2020, at the 9th session, the XIV National Assembly of Vietnam approved Law on Investment 2020 Law on Investment 2014.

According to Vietnam's Law on Investment 2020, investors are entitled to contribute capital, purchase shares or purchase stakes of business organizations. However, foreign investors making investment by contributing capital, purchasing shares and purchasing stakes of business organizations must:

  • Satisfy market access conditions applied to foreign investors as prescribed in Article 9 of Vietnam's Law on Investment 2020;
  • Ensure national defense and security in accordance with Vietnam's Law on Investment 2020;

  • Comply with regulations of the law on land and conditions for receipt of land use rights and conditions for use of land on islands or border or coastal communes.

In addition, this new law also stipulates many new provisions in Vietnam, such as officially banning debt collection service businesses; The number of conditional business investment lines decreased to 227; More forms of investment incentives...

More details can be found in Vietnam's Law on Investment 2020 which takes effect from January 1, 2021.

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