Providing Favourable Conditions for Foreign Investors

Accordingly, foreign investors making investment in the form of capital contribution, share purchase and capital contribution in economic organisations will not need to apply for investment registration procedures.

 

Economic organisations with foreign investors making investment in the form of capital contribution and share purchase shall carry out procedures for changes in members and shareholders at competent business registration agencies, except for the following cases. One, foreign investors contribute capital and purchase shares to economic entities with conditional businesses, applicable to foreign investors. Two, capital contribution and share purchase will bring the ownership ratio of foreign investors to 51 percent or more of stake in economic entities as specified in Points a, b and c in Clause 1, Article 23 of the Law on Investment: The move raises the foreign ownership ratio from below 51 percent to 51 percent or higher and adds to the current ownership ratio of investors which is already 51 percent or higher.

 

Foreign investors making investment in the form of capital contribution and share purchase in economic entities as in the above two cases shall apply capital contribution or share purchase registration documents to the Department of Planning and Investment in provinces/cities where economic entities are headquartered as provided in Clause 2, Article 26 of the Law on Investment.

 

In addition, Decree 118/2015/ND-CP has separate provisions for foreign investors.