Direct investment (FDI) is a very important source of capital and has a direct impact on developing economies, small economies, no really effective management mechanisms as well as outdated technical technology. Our article below will give you some information you need to know about FDI!
What is FDI?
FDI stands for Foreign Direct Investment, which means foreign direct investment. This is a long-term investment of individuals or companies in another country by establishing production and business establishments. That foreign individual or company will take control of this production and business establishment.
Features
Form of investment to become an FDI enterprise
Establishing a business with 100% foreign investors' capital.
Invest in capital contribution, buy shares, buy capital contributions of other enterprises.
Establishing a foreign company branch in Vietnam.
Invest in the form of a BBC contract.
Business form
1 member limited company.
2 or more members limited liability company.
Joint stock company.
Partnership company.
Rights and obligations
Have rights and obligations under Vietnamese law, enjoying separate preferential policies for FDI enterprises.
Operational purpose
Cooperate with Vietnamese economic organizations, expand the multinational business market.
Conditions for establishment of FDI enterprises
Establishment or capital contributed by foreign investors
According to the Law on Investment 2020, foreign investors are individuals with foreign nationality, organizations established under foreign laws to conduct business investment activities in Vietnam.
FDI enterprises must have at least one of the foreign investors as above to set up or contribute capital.
Business and business are not prohibited.
In order to become an FDI enterprise, enterprises may not do business in prohibited industries as prescribed in the Investment Law 2020, including:
– Drug trafficking.
– Trading in chemicals and minerals.
– Trading specimens of plants and wildlife derived from nature.
– Prostitution business.
– Buying, selling people, tissues, bodies, human body parts, human fetuses.
– Business activities related to asymity reproduction on humans.
– Firecrackers business.
– Debt collection service business.
Apply for an investment registration certificate
According to the Law on Investment 2020, before establishing an economic organization, foreign investors must have investment projects, carry out procedures for granting and adjusting investment registration certificates, except for the establishment of innovative small and medium-sized enterprises and innovative start-up investment funds in accordance with the law on supporting small and medium-sized enterprises.
Business establishment
After being granted the Investment Registration Certificate, individuals and organizations shall prepare dossiers for enterprise establishment registration to submit to the Business Registration Department of the Department of Planning and Investment where the enterprise is headquartered.
Thanhlap.wacontre.com consulting services
- Advising on state policies and policies related to foreign investment in Vietnam
- Advising on the conditions for establishment of a foreign-owned company.
- Advising on the steps to establish a foreign-owned company including procedures for applying for investment registration certificates, business registration certificates, business licenses.
If you have any questions, please contact hotline (028) 3620-8140 for advice and support quickly. Thanhlap.wacontre.com service is always ready to serve customers in the most enthusiastic and effective way. (For Japanese customers can contact via Hotline: (050) 5534 5505)
