-- The question of how to invest money in Vietnam is still an attractive discussion topic for foreign investors who are in Vietnam at this time. This short article will show you the ways how to invest money in Vietnam in the next 2021.
How to invest money in Vietnam for foreign investors?
To help you guys more easily understand, let's check some foreign investment case study as follows.
Case 1: I'm a Vietnamese and I have a Korean friend who lives and works in Vietnam. And he wants to invest money in Vietnam. So, under Vietnamese laws, what forms can he invest?
Under the provisions of Chapter IV of the Investment Law, which replaces the latest Law on Foreign Investment in Vietnam, foreign investors may invest in Vietnam in the following forms:
1. Direct investment
a) Establishment of economic organizations with 100% capital of domestic investors or 100% capital of foreign investors.
b) Establishment of joint-venture economic organizations between domestic investors and foreign investors.
c) Investment in the form of BCC contract, BOT contract, BTO contract, BT contract.
d) Investment in business development: Expanding scale, raising productivity, business capacity, renewing technologies, raising product quality and reducing environmental pollution.
e) Contributing capital, buying shares, merging and acquiring companies and branches in Vietnam.
2. Indirect investment
a) Buying shares, stocks, bonds and other valuable papers.
b) Through securities investment funds.
c) Through other intermediary financial institutions.
Case 2:
Question: Currently, I want to open a business specializing in manufacturing plastic packaging in Vietnam. According to the latest Law on Foreign Investment in Vietnam, what is the procedure for investment registration for foreign-invested projects?
Answer:
Article 45 of the 2005 Investment Law stipulates the procedures for investment registration of foreign investment projects as follows:
1. For foreign-invested projects with investment capital of less than three hundred billion Vietnam dong and not on the list of conditional investment domains, investors shall carry out investment registration procedures at their provincial state management of investment in order to be granted an investment certificate.
2. Investment registration documents include:
a) A document on the contents specified in Clause 3, Article 45 of this Law, including:
Objectives, scale and location of implementing investment projects;
Investment capital, project implementation schedule;
Demand of land use and commitment to environmental protection;
Proposal for investment incentives (if any).
Investors register investment before executing investment projects.
b) Report on financial capacity of the investor;
c) Joint venture contract or BCC contract, Charter of the enterprise (if any).
3. The provincial-level State agency in charge of investment shall issue an investment certificate within fifteen days from the date of receipt of a complete and valid investment registration file.
Case 3:
Question: My business is a Japanese business that produces precision mechanical products and wants to invest in Vietnam. According to the latest Law on Foreign Investment in Vietnam, which sectors are given incentives to invest in Vietnam and will my business enjoy incentives?
Answer:
The 2005 Investment Law has replaced the latest Foreign Investment Law in Vietnam. Accordingly, Article 27 of the Law on Investment stipulates the fields eligible for investment incentives include:
1) Producing new materials, new energy; production of high-tech products, biotechnology, information technology; mechanical engineering.
2) Farming and processing agricultural, forestry and aquatic products; salt making; Producing artificial varieties, new plant varieties and livestock breeds.
3) Using high technology and modern techniques; protect the ecological environment; high technology research, development and incubation.
4) Using a lot of labor.
5) Construction and development of infrastructure, important and large-scale projects.
6) Development of education, training, health care, physical training, sports and ethnic culture.
7) Development of traditional branches and occupations
8) Other production and service sectors which need encouragement.
Thus, your business wants to invest in Vietnam in manufacturing mechanical products when it is exactly in the high-tech field, so it is in the field of preferential investment.
Final words
The potential of investment of each country to investors could be different. Therefore, international investors should consider carefully. Although the rapid growth of Vietnam's economy may attract investors, businesses need to carefully consider risk factors, such as industry, support sector, etc. For specific advice about how to invest money in Vietnam Navigos Search, please contact the recruiting talent company Navigos Search.
At Navigos Search, we help business customers find and replace mid-to-high-level positions with a variety of services, such as RPO, retained search, contingency search Navigos, etc. For specific advice, please contact the talent recruitment company Navigos Search or find out more at the website https://enworld.com.vn/
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