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Regulations on Foreign Investment
(From abroad to Vietnam)
I. FORMS OF INVESTMENT (Article 21 of the Law on Investment No. 61/2020)
(1) Establish a new economic organization
The common economic organizations that apply to foreign investors are 1TV Limited Company or more than 2 TVs, Joint Stock Companies, Partnerships (Enterprise Law No. 59/2020).
Conditions: Foreign investors must have an investment project. The procedure is performed in 2 steps:
1 / Procedures for granting Investment Registration Certificate (IRC),
2 / business registration certificate issuance procedures (Diagram 1).
(2) Mergers & Acquisitions (M&A) Mergers & Acquisitions
Depending on the proportion of foreign investors’ capital ownership and business lines, the investor can go through the one-step or two-step procedure (Diagram 2).
(3) Implementation of an investment project
A foreign-invested enterprise that is already established in Vietnam can undertake a variety of investment projects, including establishing another economic organization.
To apply investment procedures for domestic investors or investment procedures for foreign investors depends on the foreign capital ownership ratio (Article 23).
(4) Invest in the form of BCC
BCC is a contract signed between investors for business cooperation, profit distribution and product distribution without establishing an economic organization. The parties to a BCC contract establish a coordination board to perform the BCC contract (Article 27).
(5) New forms of investment, new types of economic organizations according to the Government’s regulations.
II. INVESTMENT PROCESS
(1) Investment registration and enterprise establishment (Article 39 of the Law on Investment No. 61/2020)
Licensing authorities
|
License |
IRC |
ERC |
| Project IN IZ, EPZ, EZ, High-tech park | The Management Board of IZ, EZ,.. | DPI |
| Project OUT OF IZ, EPZ, EZ, High-tech park | DPI | |
| Investment projects implemented from 2 provinces or more; Investment projects implemented inside and outside IZ, EPZ, EZ, Hi-tech park; An investment project in the “Industrial Park” for which the province has not established a “Industrial Park” Management Board or is not under the management of the “Industrial Park” Management Board. | Investment registration agency (The Management Board of IZ, DPI or orthers)
|
For large-scale projects, a number of specific fields must be approved by the Provincial People’s Committee, the Prime Minister or the National Assembly (Articles 30 – 32).
(2) Business registration procedures: Applicable to conditional investment and business sectors. The investor shall carry out the business registration certificate at a specialized agency.
For all procedures, please contact Investment Promotion Center – South Vietnam (IPCS)
289 Dien Bien Phu st., Ward 7, District 3, HCMC, Vietnam
Tel: 028.3930.6671 / 028.3930.3287 Fax: 028.3930.5413