{"id":8247,"date":"2023-11-03T09:27:29","date_gmt":"2023-11-03T02:27:29","guid":{"rendered":"https:\/\/cdlaf.vn\/?p=8247"},"modified":"2024-01-12T15:15:38","modified_gmt":"2024-01-12T08:15:38","slug":"conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam","status":"publish","type":"post","link":"https:\/\/cdlaf.vn\/en\/conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam\/","title":{"rendered":"Conditions that foreign investors must meet when making investments in Vietnam"},"content":{"rendered":"<p>Foreign investors play an important role in promoting the economic development of a country, bringing capital, advanced technology and job opportunities to people. However, investing in a country requires foreign investors to meet a series of important conditions. The compliance with the conditions will ensure legal safety and minimize risks for investors.<\/p>\n<p>Our article below will help you understand more about conditions that investors must comply with when investing in Vietnam.<\/p>\n<figure id=\"attachment_8066\" aria-describedby=\"caption-attachment-8066\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-8066\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-320x400.jpg\" alt=\"\" width=\"500\" height=\"625\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-320x400.jpg 320w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-640x800.jpg 640w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-768x960.jpg 768w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-1229x1536.jpg 1229w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-1638x2048.jpg 1638w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/07\/pexels-francisco-valerio-trujillo-1827882-scaled.jpg 2048w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><figcaption id=\"caption-attachment-8066\" class=\"wp-caption-text\">Source: pexels-francisco-valerio-trujillo<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of contents:<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #a32411;color:#a32411\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #a32411;color:#a32411\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/cdlaf.vn\/en\/conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam\/#1_Market_access_conditions\" >1. Market access conditions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/cdlaf.vn\/en\/conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam\/#2_Specific_conditions_for_conditional_business_sectors\" >2. Specific conditions for conditional business sectors<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/cdlaf.vn\/en\/conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam\/#3_Other_conditions\" >3. Other conditions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/cdlaf.vn\/en\/conditions-that-foreign-investors-must-meet-when-making-investments-in-vietnam\/#SEND_CONSULTATION_REQUEST\" >SEND CONSULTATION REQUEST<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"1_Market_access_conditions\"><\/span>1. Market access conditions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Market access conditions for foreign investors are conditions that foreign investors must meet to invest in business sectors in the List of business sectors with restricted market access for foreign investors prescribed in Clause 2, Article 9 of Law on Investment (Clause 10, Article 3 of Law on Investment 2020).<\/p>\n<p>Business sectors with restricted market access for foreign investors and these restrictions are stipulated in laws and resolutions of the National Assembly, ordinances and resolutions of the Standing Committee of the National Assembly, Government\u2019s decrees and international treaties on investment. (Clause 1, Article 15, Decree No. 31\/2021\/ND-CP).<\/p>\n<p><em>Market access conditions applicable to foreign investors will be recorded in the following documents:<\/em><\/p>\n<ul>\n<li>Bilateral investment treaty (BIT): Vietnam has signed more than 60 bilateral agreements on promotion and protection of investment with countries and territories around the world.<\/li>\n<li>Bilateral trade agreements including investment chapters such as Vietnam &#8211; Japan Comprehensive Economic Partnership Agreement, Vietnam &#8211; Korea Free Trade Agreement, Vietnam &#8211; EU Free Trade Agreement, etc.<\/li>\n<li>Multilateral agreements with investment regulations such as the ASEAN Comprehensive Investment Agreement, CPTPP Agreement, ASEAN &#8211; Japan Comprehensive Economic Partnership Agreement, etc.<\/li>\n<\/ul>\n<p><em>Market access conditions for foreign investors<\/em> include:<\/p>\n<ul>\n<li>The foreign investor\u2019s ownership ratio of Charter capital in economic organizations:<\/li>\n<\/ul>\n<p>Foreign investors are not allowed to own charter capital in enterprises operating in business sectors with prohibited market access for foreign investors.<\/p>\n<p>For business sectors with conditional market access for foreign investors, the ownership ratio of foreign investors is determined as follows:<\/p>\n<ul>\n<li>If laws, resolutions, ordinances, decrees and treaties stipulate the ownership ratio of foreign investors, the maximum ownership ratio of foreign investors in the enterprise shall comply with this ratio.<\/li>\n<li>If laws, resolutions, ordinances, decrees and treaties do not limit the ownership ratio of foreign investors, foreign investors may own up to 100% of the charter capital of the enterprise and must ensure other conditions specified in Points b, c, d and dd, Clause 3, Article 9 of Law on Investment (if any).<\/li>\n<li>For business sectors that are not on the List of business sectors with restricted market access for foreign investors, foreign investors are allowed to own up to 100% of the enterprise&#8217;s charter capital.<\/li>\n<li>The ownership ratio of foreign investors in enterprises operating on the stock market shall comply with the provisions of Law on Securities.<\/li>\n<li>Scope of investment activities: investors can do business not only in the business sectors in the National Enterprise Registration Database, but also in other business sectors which are not prohibited by law.<\/li>\n<\/ul>\n<p><em><u>Exception<\/u><\/em>: the scope of investment activities limited by specialized laws stipulates that the name of an economic organization must be associated with the enterprise\u2019s scope of activities, for example: finance, banking, law, consulting, medical examination and treatment facilities, etc.<\/p>\n<ul>\n<li>Investor capacity; Partners participating in investment activities: This is a condition on the investor&#8217;s financial capacity and experience in the business sectors expected to do business in Vietnam. Accordingly, in the investment registration dossier, the investor will explain the ability to do business in Vietnam so that the investment registration agency has a basis for approval.<\/li>\n<li>Other conditions prescribed in laws, resolutions of the National Assembly, ordinances, resolutions of the Standing Committee of the National Assembly, decrees of the Government and international treaties that the Socialist Republic of Vietnam is a member.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"2_Specific_conditions_for_conditional_business_sectors\"><\/span>2. Specific conditions for conditional business sectors<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Depending on each business sector in the List of conditional business sectors (Appendix IV of the Law on Investment 2020) that the investor plans to do business, the investors have to meet specific conditions to operate in those business sectors:<\/p>\n<ul>\n<li>Conditions on capital: Some business sectors require a minimum level of capital in accordance with the law to establish an enterprise. For example: Labor subleasing service is a conditional business sector according to Section 70, Appendix IV of Law on Investment 2020. Accordingly, Article 21 of Decree No. 145\/2020\/ND-CP guiding the Labor Code regarding labor conditions and labor relations, the labor subleasing enterprise must make a deposit of 2,000,000,000 VND (two billion VND).<\/li>\n<li>Conditions on the Sublicense<\/li>\n<li>Sublicense is a term commonly used in the field of enterprise law. To carry out conditional business sectors, the competent state agency issues a license certifying that the enterprise has met the conditions prescribed by law to do business in those business sectors, which is a Sublicense.<\/li>\n<li>Conditions on location, facilities, and equipment<\/li>\n<\/ul>\n<p>For example: Investors providing karaoke services must have a usable area of \u200b\u200b20m\u00b2 or more, excluding auxiliary works, ensuring conditions on soundproofing, fire and explosion prevention and fighting. The door of the karaoke room must be colorless glass allowing the entire room to be visible from the outside. Do not place internal door locks or latches or alarm devices to cope with the inspection of competent state agencies. Location for karaoke activities must be 200m or more far away from schools, hospitals, religious and belief establishments, historical-cultural relics, state administrative agencies, etc.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3_Other_conditions\"><\/span><strong>3. <\/strong>Other conditions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In addition to the above conditions, to make an investment in Vietnam, Investors have to meet the following conditions: Land and labor use; natural resources and minerals; Producing and supplying public goods and services or state monopoly goods and services; Owning and trading houses and real estate; Applying forms of State support and subsidies to a number of industries, fields or developing regions and territories; Other conditions prescribed in laws and resolutions of the National Assembly, ordinances and resolutions of Standing Committee of the National Assembly, Government\u2019s decrees and international treaties on investment that do not allow or restrict market access for foreign-invested economic organizations.<\/p>\n<p>Thus, to achieve long-term benefits and success in the investment in a country, foreign investors must meet a series of important conditions. These factors are not only basic but also play a\u00a0 decisive role in the success of investment projects and the economic development\u00a0 of the country receiving investment.<\/p>\n<p><strong><em>Time of writing:<\/em><\/strong> 26\/<em>07\/2023<\/em><\/p>\n<p><em>The article contains general information which is of reference value, in case you want to receive legal opinions on issues you need clarification on, please get in touch with our Lawyer at <a href=\"https:\/\/mail.google.com\/mail\" target=\"_blank\" rel=\"noopener\"><strong>info@cdlaf.vn<\/strong><\/a><\/em><\/p>\n<div class=\"content-post-nd\">\n<div style=\"text-align: center;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-5519 size-full aligncenter\" src=\"http:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png\" alt=\"\" width=\"1080\" height=\"600\" srcset=\"https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG.png 1080w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-720x400.png 720w, https:\/\/cdlaf.vn\/wp-content\/uploads\/2023\/05\/CHUONG-TRINH-THANG-768x427.png 768w\" sizes=\"auto, (max-width: 1080px) 100vw, 1080px\" \/><\/div>\n<\/div>\n<div class=\"content-post-nd\">\n<p><strong>Why choose CDLAF\u2019s service?<\/strong><\/p>\n<ul class=\"li-content\">\n<li>We provide effective and comprehensive legal solutions that help you save money and maintain compliance in your business;<\/li>\n<li>We continue to monitor your legal matters even after the service is completed and update you when there are any changes in the Vietnamese legal system;<\/li>\n<li>Our system of forms and processes related to labor and personnel is continuously built and updated and will be provided as soon as the customer requests it;<\/li>\n<li>As a Vietnamese law firm, we have a thorough understanding of Vietnam&#8217;s legal regulations, and grasp the psychology of employees, employers, and working methods at competent authorities;<\/li>\n<li>CDLAF&#8217;s team of lawyers has many years of experience in the field of labor and enterprises, as well as human resources and financial advisory.<\/li>\n<li>Strict information security procedures throughout the service performance and even after the service is completed.<\/li>\n<\/ul>\n<\/div>\n<p><strong style=\"color: #a32411;\">You can refer for more information:<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-1\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/key-terms-in-the-franchise-agreement-part-2\/\" target=\"_blank\" rel=\"noopener\">Key terms in the Franchise Agreement (Part 2)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/guidelines-for-holding-the-general-meeting-of-shareholders-in-accordance-with-the-law-part1\/\" target=\"_blank\" rel=\"noopener\">Guidelines for holding the General Meeting of Shareholders in accordance with the law (Part 1)<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/8-important-new-points-regarding-work-permit-which-take-effect-from-september-18-2023\/\">8 important new points regarding Work Permit which take effect from September 18, 2023<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/labor-contract-or-personal-consulting-service-contract\/\">Labor contract or personal consulting service contract<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/cham-dut-hoat-dong-cua-van-phong-dai-dien-thuong-nhan-nuoc-ngoai\/\">Termination of the operation of foreign traders\u2019 representative offices<\/a><\/li>\n<li><a href=\"https:\/\/cdlaf.vn\/en\/what-should-enterprises-keep-in-mind-when-dismissing-employees\/\">What should enterprises keep in mind when dismissing employees? <\/a><\/li>\n<\/ul>\n\n<div class=\"wpcf7 no-js\" id=\"wpcf7-f2681-o1\" lang=\"en-US\" dir=\"ltr\" data-wpcf7-id=\"2681\">\n<div class=\"screen-reader-response\"><p role=\"status\" aria-live=\"polite\" aria-atomic=\"true\"><\/p> <ul><\/ul><\/div>\n<form action=\"\/en\/wp-json\/wp\/v2\/posts\/8247#wpcf7-f2681-o1\" method=\"post\" class=\"wpcf7-form init\" aria-label=\"Contact form\" novalidate=\"novalidate\" data-status=\"init\">\n<fieldset class=\"hidden-fields-container\"><input type=\"hidden\" name=\"_wpcf7\" value=\"2681\" \/><input type=\"hidden\" name=\"_wpcf7_version\" value=\"6.1.5\" \/><input type=\"hidden\" name=\"_wpcf7_locale\" value=\"en_US\" \/><input type=\"hidden\" name=\"_wpcf7_unit_tag\" value=\"wpcf7-f2681-o1\" \/><input type=\"hidden\" name=\"_wpcf7_container_post\" value=\"0\" \/><input type=\"hidden\" name=\"_wpcf7_posted_data_hash\" value=\"\" \/>\n<\/fieldset>\n<h2 class=\"tt-form\"><span class=\"ez-toc-section\" id=\"SEND_CONSULTATION_REQUEST\"><\/span>SEND CONSULTATION REQUEST\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><label>Full name<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"full-name\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-text wpcf7-validates-as-required\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"text\" name=\"full-name\" \/><\/span><br \/>\n<label>Email<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"email\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-email wpcf7-validates-as-required wpcf7-text wpcf7-validates-as-email\" aria-required=\"true\" aria-invalid=\"false\" value=\"\" type=\"email\" name=\"email\" \/><\/span><br \/>\n<label>Phone Number<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"phone\"><input size=\"40\" maxlength=\"400\" class=\"wpcf7-form-control wpcf7-tel wpcf7-text wpcf7-validates-as-tel\" aria-invalid=\"false\" value=\"\" type=\"tel\" name=\"phone\" \/><\/span><br \/>\n<label>Message<\/label><br \/>\n<span class=\"wpcf7-form-control-wrap\" data-name=\"coment\"><textarea cols=\"40\" rows=\"10\" maxlength=\"2000\" class=\"wpcf7-form-control wpcf7-textarea\" aria-invalid=\"false\" name=\"coment\"><\/textarea><\/span><br \/>\n<input class=\"wpcf7-form-control wpcf7-submit has-spinner btn-yellow\" type=\"submit\" value=\"Send\" \/>\n<\/p><div class=\"wpcf7-response-output\" aria-hidden=\"true\"><\/div>\n<\/form>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Foreign investors play an important role in promoting the economic development of a country, bringing capital, advanced technology and job opportunities to people. However, investing in a country requires foreign investors to meet a series of important conditions. The compliance with the conditions will ensure legal safety and minimize risks for investors. Our article below&#8230;<\/p>\n","protected":false},"author":4,"featured_media":8066,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[64],"tags":[267,268,228,269],"class_list":["post-8247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-conditions","tag-foreign-investors","tag-in-vietnam","tag-investments"],"acf":[],"_links":{"self":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/comments?post=8247"}],"version-history":[{"count":0,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/posts\/8247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media\/8066"}],"wp:attachment":[{"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/media?parent=8247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/categories?post=8247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cdlaf.vn\/en\/wp-json\/wp\/v2\/tags?post=8247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}