Forms of investment

FORMS OF INVESTMENT (Article 21 Law on Investment No.61/2020)

(1) Establishment of a new economic entity

The popular conducted economic entities applicable to the foreign investors include: Limited liability company of 01 member or more than 02 members, Joint stock company, partnership company (Law on Enterprises No.59/2020).

Applicable condition: Foreign investors must have certain investment project. The procedures is processed through 02 steps: 1/ Procedures for being granting the Investment Registration Certificate (IRC), 2/ Procedures for being granting the Enterprise Registration Certificate (ERC)

(2) Investment via Mergers & Acquisitions (M & A)                    

Depending on percentage of foreign capital ownership and kinds of businesses, the foreign investors shall process the investment procedures through 01 step or 02 steps

(3) Implemeting the investment projects   Thực hiện dự án đầu tư

A Viet Nam based foreign invested enterprise (FIE) is able to implement various investment projects, including establishment of a new enterprise..

Depending on percentage of foreign capital ownership, the FIE shall process the investment procedures as applied for domestic investors or as applied for foreign investors (Article 23).

(4) Investment via Business Cooporation Contract (BCC) – Đầu tư theo hình thức BCC

BCC is executed without the establishment of a new legal entity. Instead, parties to a BCC shall establish a co-ordination board to implement and oversee the BCC. The investors to a BCC mutually agree on allocation of responsibilities and sharing of profits / losses arising from a BCC (Article 27).

(5) Other new forms of investment and legal entity as prescribed by the  Government