REGULATIONS FOR FOREIGN INVESTORS WHEN ESTABLISHING ECONOMIC ORGANIZATIONS IN VIETNAM

Legal base

– Investment Law 2020

– Decree 31/2021/ND-CP

Do foreign investors have to carry out procedures for granting and adjusting Investment Registration Certificates before establishing economic organizations?

According to the provisions of the Investment Law 2020, before establishing an economic organization, foreign investors must have an investment project and carry out procedures for granting and adjusting the Investment Registration Certificate.

However, in the case of an investor establishing an innovative small and medium-sized startup enterprise and an innovative startup investment fund in accordance with the law on supporting small and medium-sized enterprises, there is no need to carry out these procedures.

Is the charter capital of an economic organization established by a foreign investor equal to the investment capital of the investment project?

According to the provisions of Decree 31/2021/ND-CP, the charter capital of an economic organization established by a foreign investor to implement an investment project is not necessarily equal to the investment capital of the investment project.

Economic organizations established by foreign investors contribute capital and mobilize other capital sources to implement investment projects according to the schedule specified in the Investment Registration Certificate.

What to do when a foreign-invested economic organization has been established in Vietnam and then has a new investment project?

According to regulations, in case there is a new investment project specified in Clause 3, Article 23 of the Investment Law 2020, if a foreign-invested economic organization has been established in Vietnam, if there is a new investment project, carry out procedures to implement that investment project without necessarily establishing a new economic organization.