ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

ANT Lawyers

Vietnam Law Firm with English Speaking Lawyers

Hiển thị các bài đăng có nhãn foriegn investment. Hiển thị tất cả bài đăng
Hiển thị các bài đăng có nhãn foriegn investment. Hiển thị tất cả bài đăng

4.08.2020

What are common investment methods in Vietnam?



In Vietnam laws, there are a number of investment methods such as establishing economic organizations; investment in the form of capital contribution, purchase of shares or capital contributions in business organizations; Business Cooperation Contract or Public Private Partnership. Investment in establishing economic organizations, capital contribution, purchase of share or capital contributions are most common in our opinion.

Investment in establishing economic organizations

For investment in the establishment of economic organization, an investor invests capital to carry out the establishment of an enterprise, cooperative, cooperative union or other organization to carry out business investment activities. This is a way of direct investment in which investors directly invest capital and directly participate in management activities.

Forms of establishment of economic organizations include two types: Establishing company with 100% foreign capital; or establishing joint ventures between domestic investors or the Government of Vietnam with foreign investors.

Before establishing an economic organization, the foreign investor must have an investment project and carry out the procedures for the grant of an investment registration certificate. Besides, the conditions for the charter capital ownership and the conditions prescribed by international treaties to which Vietnam is a member need to be met. Regarding charter capital, foreign investors are allowed to hold unlimited ownership in economic organizations, except for cases where the investors operate in fields related to listed companies, public companies, securities trading organizations and securities investment funds in accordance with the law on securities; State owned enterprises equitized or transformed under other forms. In addition, investors must check international treaties to which Vietnam is a signatory.



It should be noted that depending on the amount of investment capital of a foreign investor, the legal status of an economic organization after its establishment will be determined differently. If the foreign investor holds 51% or more of charter capital, the economic organization after its establishment will have to carry out the procedures applicable to foreign investors. Conversely, if foreign investors hold less than 51% of the charter capital, the regulations applicable to economic organizations after their establishment are applied as domestic investors.

Investment in the form of capital contribution, purchase of shares or capital contributions in business organizations

Foreign investors who wish to access the Vietnamese market but do not want to establish an economic organization can contribute capital, buy shares or buy capital contributions to business organizations operating in Vietnam.

With this form, the investor will become a member or shareholder of that economic organization. It requires investors to meet a conditions similar to the form of establishment of economic organizations. Having said that, it must meet the conditions for the charter capital ownership and the conditions prescribed by international treaties to which Vietnam is a member. Depending on each specific case, the investor must follow the procedures for registration of capital contribution, purchase of shares or capital contribution in an economic organization and send to the competent agency for recognition of legal investment.

Understanding the regulations are important for investors to enter the Vietnam market and consulting with Vietnam lawyers would help investors make informed decision for their business plan in Vietnam.


1.09.2017

Foreign firms expand presence in retail market

HANOI – Foreign companies are establishing a stronger presence on the fast growing Vietnamese retail market, according to a report which the Ministry of Industry and Trade released last Friday.

Foreign direct investment enterprises now hold a 17% retail market share in the segment of shopping centers and supermarkets, 70% in convenience stores, 15% in minimarts, and around 50% in online, TV and phone shopping, said the report.



These percentages are not too high but the rising presence of foreign investors in the retail market can be seen in major cities. For instance, Thailand’s Central Group has taken over the entire stake of France’s Casino Group in Big C Vietnam, and another Thai conglomerate, TCC Holding, has acquired Metro Cash and Carry Vietnam.

Other foreign business groups such as South Korea’s Lotte and Japan’s Aeon have been steadily expanding, with plans to double or triple their stores in Vietnam in the coming years.

The swift expansion of foreign firms has piled pressure on local retailers. Domestic goods suppliers have also felt the pinch as foreign retailers are developing their own goods brands for sale at their stores.

According to the Ministry of Industry and Trade, total retail sales of goods and services last year rose 10.2% year-on-year to VND3,530 trillion (US$156.7 billion).

Business-to-customer (B2C) transactions were estimated to double from the US$2.2 billion recorded in 2013.
Source The Saigon Times