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Vietnam is on the rise and is favorable for investors to do business and develop. So when foreign investors want to set up foreign-invested enterprises in Vietnam to do business, what conditions need to be met? The article below will help you with that question!

1.Conditions on subject and nationality of foreign investors

Must be an individual over the age of 18, an organization or enterprise of nationality who is a member of the WTO or has signed a bilateral treaty related to investment with Vietnam. However, in Vietnam, some industries only allow foreign investors who are legal entities to invest in Vietnam).

2. . Conditions on the financial capacity of foreign investors

Having the financial capacity to invest and prove the financial capacity to invest in Vietnam.

3. . Conditions for the company’s headquarters for registration and location of the project

There are locations for the implementation of investment projects in Vietnam through the lease of locations, lease contracts, land leases and legal housing papers of the lessee to be the company headquarters and the location of the project implementation.

For investment projects in the field of production, investors must prove eligibility for factory leasing and have factory lease contracts in clusters and industrial parks.

4. Conditions on charter capital ownership rate of foreign investors in economic organizations

Foreign investors may own unlimited charter capital in economic organizations. Except in the following cases:

The ownership ratio of foreign investors in listed companies, public companies, securities trading organizations and securities investment funds in accordance with the law on securities.

The ownership rate of foreign investors in equitized or converted state-owned enterprises in other forms shall comply with the provisions of the law on equitization and conversion of state-owned enterprises.

The ownership rate of foreign investors not falling under the above two cases shall comply with other relevant laws and treaties to which the Socialist Republic of Vietnam is a member.

5. Conditions for investment form

When investing in Vietnam, it is possible to make direct or indirect investments. Each form will have its own requirements. Other forms of foreign investment in Vietnam include:

Investment in establishing a foreign-invested company includes: a 100% foreign-owned company or a company with a part of foreign investor’s capital (also known as a joint venture company).

Foreign investors invest in Vietnam in the form of capital contribution, share purchase, capital contribution of established companies in Vietnam.

Invest in the form of PPP contracts.

Invest in the form of ACC contract.

6. . Conditions on scope of investment activities

For sectors and sub-sectors that Vietnam has committed to that foreign investors meet the investment conditions of that sector, the investment registration agency shall consider, decide to issue and adjust the Investment Registration Certificate or register capital contribution, purchase of shares and capital contributions of foreign investors in accordance with the Law on Investment.

For sectors and service sectors that have not committed or are not specified in Vietnam’s Commitment Schedule in international treaties on investment but Vietnamese law has provisions on investment conditions for foreign investors, it applies in accordance with Vietnamese law.

7. Conditions of experience capacity and specific conditions according to the investment field

Meet the specific conditions for conditional business lines for foreign investors.

For some sectors such as trade, wholesale retail goods investors need to prove competent experience in the field of investment.

Here are some of the necessary conditions when you want to set up a foreign-invested enterprise. To set up a foreign-invested business, you must not only know about the conditions but also know about the business establishment dossier, the procedures for establishing a business,… You can read more articles on our website. If you have any questions, please contact us via Hotline: (033) 534 4640 for advice and assistance quickly.

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