Consulting services on forms of foreign investment in Vietnam

Forms of foreign investment in Vietnam are currently diverse, creating many options for investors, from establishing economic organizations, contributing capital, buying shares to business cooperation contracts (BCC). Each of these investment forms has its own characteristics, suitable for each investor’s development needs and capabilities. The article below will specifically analyze popular forms of foreign investment in Vietnam and related legal conditions.

Forms of foreign investment in Vietnam

Form of investment to establish economic organizations

This type includes:

• Limited liability company (one or two members or more).
• Joint stock company.
• Partnership company.

This is a form of direct investment that allows foreign investors to directly participate in business management and be responsible for their capital contributions. Due to the complexity and strict legal procedure requirements, investors often consider the ability to mobilize capital, autonomy in decisions, as well as tax incentives. The type of limited liability company and joint stock company is currently chosen by many investors when entering the Vietnamese market.

Forms of investment: capital contribution, share purchase, capital contribution purchase

Investors can choose to contribute capital to an existing company or purchase shares or capital contributions to become a member or shareholder. This form includes:

• Buy shares of a joint stock company.
• Contribute capital to a limited liability company or partnership.

Investors must carry out specific legal procedures when contributing capital or purchasing shares or capital contributions leading to the ownership ratio of foreign investors exceeding 50% of charter capital in cases where the foreign investor’s ownership ratio exceeds 50% of charter capital prescribed by law.

Form of investment project implementation

An investment project is the process of investing medium-term or long-term capital to carry out business activities at a certain location and time. Depending on the scale and nature, the procedures that need to be carried out include:

• Decide on investment policy and issue Investment Registration Certificate.
• Establish an economic organization to implement the project.

Investors carry out investment projects through bidding or auction of land use rights, along with land and construction procedures according to current law. This form is usually for large projects that require land use and infrastructure construction.

Form of business cooperation contract (BCC)

BCC is a contract signed between investors to cooperate in business, share profits and products without establishing a new economic organization. This form is a reasonable choice for investors who want to optimize costs and have flexibility in cooperation. According to the Law on Investment 2020, domestic and foreign investors can cooperate under BCC contracts without having to comply with procedures for establishing economic organizations.

New forms of investment and types of economic organizations according to Government regulations

Clause 5, Article 21 of the Law on Investment 2020 further stipulates new types of economic organizations that can be approved in some specific cases or in the future. This creates conditions for more flexible investment types, meeting new market developments and needs while still complying with legal regulations.

Consulting services on forms of foreign investment in Vietnam at Long Phan

Scope of services we provide

Long Phan provides foreign investment consulting services in Vietnam, including:

• Consulting on investment forms: Supporting investors in choosing appropriate investment forms, including establishing foreign-invested companies, business cooperation (BCC), investment cooperation contracts or establishing a branch or representative office.
• Consulting on legal regulations and investment conditions in different industries, especially conditional industries according to Vietnamese law.
• Support in implementing investment registration procedures at competent state agencies, including applying for an Investment Registration Certificate, Business Registration Certificate and other specialized licenses if necessary.
• Consulting on tax and financial issues: Helps investors understand tax regulations, tax incentives and financial policies in Vietnam to optimize investment costs.
• Consulting on business management and operations: Providing information on management requirements, personnel and business operating procedures to ensure effective operations and legal compliance.
• Consulting on the rights and obligations of investors in Vietnam.
• Legal support related to change procedures: During operations, if a business needs to change investment registration information, increase capital, or expand industries, Long Phan will support completing procedures related to legal.
• Consulting on legal issues arising during operations, including contract disputes, labor, tax and other legal issues.

Benefits when using Long Phan’s services

Long Phan’s services ensure:

• Provide detailed and clear legal solutions.
• Quick support, save time and minimize legal risks for foreign investors.
• Full package service, providing comprehensive services, including from initial consultation, investment registration, business establishment, to support during operations and handling arising problems.
• Help investors optimize financial benefits, profits and operating costs through detailed consultation on investment incentives, tax exemptions and other financial policies.
• Analyze risks and have timely solutions to ensure investors’ rights.

Using our services not only helps investors avoid initial obstacles but also brings stability and convenience in the process of business development in Vietnam.

For detailed advice on forms of foreign investment in Vietnam and related legal procedures, please contact us via the hotline 0906735386. Long Phan’s consulting services are committed to providing dedicated support and accurate information to ensure your investment process is safe and effective.