The laws of Vietnam encourages investors to develop business activities and expand markets from Vietnam to abroad. The conduct of outward investment activities is in line with the speed of economic integration and development, in order to improve the quality of trade activities, access to technology, improve capacity and increase profits for foreign investors, and at the same time contribute to the development of the country’s economy.
Investors should pay special attention to grasping and complying with the law on outward investment activities, including the issue of investment capital. Violations can be fined up to VND 200 million.
1. Sources of outward investment capital
Sources of outward investment capital consist of money and other legal assets, including:
– Foreign currencies on the accounts opened at licensed credit institutions or purchased from licensed credit institutions as regulated by law;
– Vietnamese dong conforming to Vietnam’s law on foreign exchange management;
– Machinery, equipment, supplies, raw materials, fuels, finished and semi-finished goods;
– Value of intellectual property rights, technologies, brands and rights to assets;
– Investors’ shares, stakes and projects permitted for or swap the purchase of shares, stakes or investment projects of foreign business organizations.
In this case, Vietnamese investors shall follow the procedures for issuance of the outward investment registration certificate and then foreign investors shall follow the investment procedures in Vietnam as prescribed by law.
– Other legal assets prescribed by regulations of civil law.
2. Origin of outward investment capital
Outward investment capital must consist of money and other assets with lawful origin:
– Equity;
– Loans in Vietnam transferred overseas;
– Profits obtained from outward investment projects and retained to carry out investment activities in foreign countries.
3. Purpose of using outward investment capital
– To contribute capital;
– To grant loans to foreign business organizations;
– To pay for purchase of shares or stakes; or
– To fulfill guarantee obligations that arise (if any) in order to make outward investment.
It should be noted that for different sources of outward investment capital, the corresponding investment procedures to be followed can be different accordingly. Investors who commit violations can be fined up to VND 200 million.
The implementation of outward investment activities complying with laws, in addition to eliminating legal risks, also helps to limit the economic risks of investors in the process of transferring capital and receiving profits from business activities.
𝐋𝐈𝐍𝐂𝐎𝐍 𝐋𝐀𝐖 𝐅𝐈𝐑𝐌 – 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐥𝐞 𝐜𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧
- In Hanoi: 4F Sudico Tower, Me Tri street, My Dinh 1 ward, Nam Tu Liem district, Hanoi city.
- In HCMC: 272 Do Phap Thuan, An Phu ward, Thu Duc city, Ho Chi Minh city.
- Website: http://linconlaw.vn/
- Email: Lawyer@linconlaw.vn
- Facebook: https://www.facebook.com/Linconlawfirmm
- Linkedln: linkedin.com/in/lincon-law-firm-100b96201
- Hotline: +84.987.733.358