In the context of increasing globalization and deepening economic integration, expanding investment activities abroad has become a crucial strategy for businesses and investors. Investing abroad not only helps companies diversify their risks but also opens up opportunities to access new markets, resources, and advanced technology. This article will discuss the various forms of foreign investment, the benefits and challenges associated with them, and important factors to consider when engaging in international investments.

I. Forms of Foreign Investment

Foreign investment involves the transfer of investment capital from Vietnam to other countries, using profits generated from this capital to conduct business activities abroad. Investors may engage in foreign investment in the following forms:

• Establishing an economic organization in accordance with the laws of the host country;
• Investing under a contract abroad;
• Contributing capital, purchasing shares, or buying equity in an economic organization abroad to participate in managing that organization;
• Buying and selling securities, other valuable papers, or investing through foreign investment funds or other intermediary financial institutions abroad;
• Other forms of investment as stipulated by the laws of the host country.

Common types of foreign investment include:

1. Direct Investment

• Share Purchase: Investing in foreign companies or enterprises by purchasing shares or contributing capital.
• Establishing a Subsidiary or Branch: Setting up a subsidiary or branch in another country.
• Business Cooperation: Signing a cooperation contract to carry out joint projects with a foreign partner.

2. Indirect Investment

• Buying Securities: Investing in stocks, bonds, or funds of foreign companies.
• Investment Funds: Investing in international funds, such as mutual funds and international securities funds.

3. Cooperative Investment Forms

• Joint Venture Agreement: Establishing a joint venture with a foreign company to implement projects together.
• Research and Development Cooperation: Signing a contract to conduct research and develop new products or technology.

4. Investment in Special Economic Zones

• Export Processing Zones: Investing in export processing zones in another country to take advantage of tax incentives and other support.
• Special Economic Zones: Investing in special economic zones with preferential investment policies.

5. Franchise Investment Model

• Franchising: Purchasing franchise rights from international brands to open stores or provide services in another country.

6. Real Estate Investment

• Real Estate Purchase: Investing in real estate, including land, buildings, or apartments in another country.

II. Industries and Sectors Prohibited from Foreign Investment

Industries and sectors prohibited from foreign investment include:

• Trading in narcotics;
• Trading in certain chemicals and minerals;
• Trading in specimens of wild plants and animals derived from natural sources; and specimens of endangered, rare forest plants and animals, and aquatic species in Group I derived from natural sources;
• Prostitution business;
• Trading in humans, human organs, corpses, body parts, and human embryos;
• Business activities related to human cloning;
• Explosives trading;
• Debt collection services.

Other restrictions apply to industries, sectors, or technologies prohibited from export and industries banned in the host country or under international treaties.

III. Conditional Foreign Investment Industries and Sectors

Certain industries and sectors are subject to conditions for foreign investment, including:

• Banking;
• Insurance;
• Securities;
• Press, radio, and television;
• Real estate business.

IV. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

Website: http://hankuklawfirm.com/en/  FB: https://www.facebook.com/hankuk.lawfirm  Tiktok: https://www.tiktok.com/@hankuklawfirm Youtube: https://www.youtube.com/@hankuklawfirm6375 Email:  info@hankuklawfirm.com   SĐT: 0369.77.11.46