CONSULTING GUIDELINES ON FOREIGN INVESMENT IN VIETNAM
Currently, Vietnam has created a favorable environment, and attractive incentives for foreign investors, especially the legal environment. The current legal provisions on foreign investment in Vietnam not only create a solid legal framework but also facilitate and protect the interests of foreign investors. In the following, Doanh Tri Law will advise and guide you on regulations on foreign investment in Vietnam.
- Law on Investment 2020.
1. Definition of foreign investment
Foreign investment is when an investor in one country brings capital into another country to carry out production and business activities managed to profit.
2. Legal provisions on foreign investment in Vietnam
Investment Law 2020 and related legal documents were introduced to control the investment activities of foreign investors. The law also clearly stipulates each clause such as the rights and obligations of investors, investment incentives, investment forms, etc. Among them, the prominent regulations that investors must concern as follows:
2.1 Prohibited investment business lines
This is interesting content for foreign investors. Because if they violate one of these industries, foreign investors will not be allowed to invest in Vietnam. According to the Investment Law 2020, the prohibited investment industries are as follows:
- Trading in regulated narcotics;
- Trading in regulated chemicals and minerals;
- Trading in specimens of wild plants and animals that are exploited from the wild in accordance with the Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of endangered, precious, and rare species of forest plants, animals, and aquatic animals originating from prescribed natural exploitation;
- Prostitution business;
- Buying and selling people, tissues, corpses, human body parts, and human fetuses;
- Business activities related to human cloning;
- Trading in firecrackers;
- Business debt collection services.
2.2 Lines and lines of conditional business investment
- Line of business in which investment is conditional means an industry in which the performance of business investment activities in such industry or trade must satisfy necessary conditions for reasons of national defense, security or order. , social safety, social ethics, community health.
- Conditions for business investment in the prescribed industries and trades are prescribed in-laws and resolutions of the National Assembly, ordinances and resolutions of the National Assembly Standing Committee, Government decrees, and international treaties to which they are authorized. The Socialist Republic of Vietnam is a member. Ministries, ministerial-level agencies, People's Councils, People's Committees at all levels, other agencies, organizations, and individuals may not issue regulations on business investment conditions.
- Conditions for business investment must be regulated in accordance with the prescribed reasons and must ensure publicity, transparency, and objectivity, saving investors' time and compliance costs.
2.3 Forms of foreign investment in Vietnam
- Investing in the establishment of economic organizations.
- Investment to contribute capital, buy shares, buy contributed capital.
- Implementation of investment projects.
- Investment in the form of a BCC contract.
- New investment forms and economic organizations according to the Government's regulations.
Above is information about "Consulting and guiding regulations on foreign investment in Vietnam". For more information and advice on this matter, please contact directly with Doanh Tri Law by one of the following methods:
Hotline: 0911.233.955 – (024) 6293 8326
Enterprise Law is very pleased to accompany you!
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