Forms of investment in Vietnam: investment in establishing economic organizations, BCC investment, capital contribution investment, buying shares, buying capital contributions… Learn detailed regulations.
Investment forms under the Investment Law 2020
According to Article 21 of the Investment Law 2020, there are currently 5 forms of investment in Vietnam:
- Form of investment project implementation;
- Form of investment in establishing economic organizations;
- Investment under the form of BCC contract (public-private partnership contract);
- Forms of investment: capital contribution, share purchase, capital contribution purchase;
- Types of economic organizations and new forms of investment according to Government regulations.
Current legal regulations on investment forms
In this content, fdiinvietnam.com will share information on current legal regulations on the 3 most popular forms of investment today: investment in establishing economic organizations, investment in the form of BCC contracts and investment in contributing capital, buying shares, buying capital contributions.
1. Investment in establishing economic organizations
Investment in establishing an economic organization is a form of investment by carrying out procedures to establish a company with capital from a foreign organization directly investing or from an individual.
According to the provisions of the Investment Law, both domestic and foreign investors have the right to make investments in the form of establishing economic organizations when complying with the following provisions:
➧ For domestic investors
Comply with the provisions of the law on enterprises and domestic laws corresponding to each type of economic organization.
➧ For foreign investors
Comply with market access conditions for foreign investors. Specifically, investors can apply market access conditions similar to those for domestic investors. In particular, in the case of registering for an industry or profession in the List of industries or professions with restricted market access for foreign investors, you need to satisfy the market access conditions regarding:
- Investment form;
- Scope of investment activities;
- Ratio of charter capital ownership of foreign investors in economic organizations;
- Capacity of investors and partners participating in project implementation (if any);
- With other conditions according to current regulations.
Have an investment project and have completed procedures for granting or adjusting the investment registration certificate before establishing an economic organization, except in cases where foreign investors establish innovative start-up small and medium-sized enterprises with an innovative start-up investment fund in accordance with the provisions of law on supporting small and medium-sized enterprises.
Note:
The investor implementing the investment project is an economic organization established by a foreign investor, calculated from the time the business registration certificate or other documents of equivalent legal value are issued.
>> See more: Procedures for granting investment certificates.
2. Investment in the form of BCC contract
BCC contract (also known as public-private partnership contract) is a contract signed by investors for the purpose of business cooperation, product and profit sharing according to current regulations without the need to establish an economic organization.
In Vietnam, investment under the form of BCC contracts is regulated as follows:
➧ BCC contracts are signed between domestic investors
Make investments in accordance with the provisions of civil law.
➧ BCC contracts are signed between foreign investors or between domestic and foreign investors.
Carry out procedures for granting investment registration certificates according to the following regulations:
- For investment projects subject to investment policy approval under the authority of the National Assembly, the Prime Minister and the Provincial People’s Committee, the investment registration agency shall issue an investment registration certificate within the following time limit:
| Investment projects subject to investment registration certificate issuance | Investment projects not subject to issuance of investment registration certificates |
| 5 days from the date of receipt of the contractor’s investment policy approval document and investor approval. | 15 days from the date of receipt of the investor’s request for investment registration certificate. |
- For the remaining investment projects, investors are granted investment certificates when meeting the following conditions for investment projects in the form of BCC contracts:
- Have a place to do it;
- Not on the list of industries and professions prohibited from investment and business in Vietnam, and in accordance with national planning, urban planning, provincial planning, regional planning and planning of special economic administrative units (if any);
- Meet the market access conditions for foreign investors and the conditions on investment rate per area and number of employees.
➧ Establishment of BCC contract coordination board
The parties to a BCC contract need to establish a coordinating board to implement the BCC contract and agree on the authority, functions and duties of that coordinating board.
3. Investment in capital contribution, purchase of shares, purchase of capital contribution
According to the provisions of the Investment Law 2020:
- Investors have the right to contribute capital, buy shares, and buy capital contributions of economic organizations;
- For foreign investors, capital contribution, share purchase, and capital contribution purchase must comply with the following regulations and conditions:
- Ensure security and defense issues according to regulations;
- Meet market access conditions for foreign investors as prescribed (similar to the form of investment in establishing an economic organization);
- Comply with legal regulations on land-related issues such as: conditions for receiving land use rights, land use conditions in coastal communes, wards, and towns, islands, border communes, wards, and towns.
- Implement the form of capital contribution, share purchase, and capital contribution purchase in accordance with current regulations. Specifically:
| Forms of capital contribution, share purchase, capital contribution purchase | |
| Contribute capital to invest in economic organizations | Investing in buying shares and capital contributions of economic organizations |
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Investment certificate application service at fdiinvietnam.com
Currently, fdiinvietnam.com provides investment certificate application services for two forms of investment: investment in establishing economic organizations and investment in contributing capital, buying shares, buying capital contributions.
With a total cost of only 15,000,000 VND, fdiinvietnam.com will help you complete all necessary procedures for applying for an investment certificate accurately and quickly (from 25 days), bringing optimal efficiency in terms of time and cost.
>> See more: Investment certificate application service at fdiinvietnam.com.
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Some frequently asked questions about investment forms under the Investment Law 2020
1. How many forms of investment are there under the Investment Law 2022?
Currently, Vietnam has the following 5 forms of investment:
- Investment project implementation;
- Investment in establishing economic organizations;
- Investment under the form of BCC contract (public-private partnership contract);
- Investment in capital contribution, purchase of shares, purchase of capital contribution;
- Types of economic organizations and new forms of investment according to Government regulations.
2. In what forms can investors contribute capital to economic organizations?
According to Clause 1, Article 25 of the Investment Law 2020, investors can contribute capital to economic organizations in the forms listed below:
- Contribute capital to partnerships and limited liability companies;
- Purchase of additional shares/initial shares of a joint stock company;
- Contribute capital to other economic organizations not falling into the above two cases.
3. What are the market access conditions for foreign investors?
Investors can apply market access conditions similar to those applied to domestic investors. In the case of registering for an industry or profession in the list of industries or professions with restricted market access for foreign investors, you must meet the following market access conditions:
- Investment form;
- Scope of investment activities;
- Ratio of charter capital ownership of foreign investors in economic organizations;
- Capacity of investors and partners participating in project implementation (if any);
- With other conditions according to current regulations.
4. How much is the fee for an investment certificate?
Currently, fdiinvietnam.com provides investment certificate application services for 2 forms of investment: investment in establishing economic organizations and investment in contributing capital, buying shares, buying capital contributions with a total cost of only 15,000,000 VND, with a fast completion speed (after only about 25 working days).
Call us at 0978 578 866 (North) – 033 9962 333 (Central) – 033 9962 333 (South) for support.