Owning a number of strong points in security, political stability; a favorable geographical location that brings Vietnam to become one of the destinations that attract FDI in Asian countries. Besides, the transparency of Vietnam has been gradually improved in association with integration, not only helping investors to feel secure in the long term but also make businesses to participate in the supply chain and global value chain conveniently. To help foreign investors understand more about the FDI changes in Vietnam and make the right decision, Navigos Search shows you how to invest your money in Vietnam in the right ways.
Overview of the investment in Vietnam for the first quarter in 2019
According to the Foreign Investment Information (FIA Vietnam), in the first 4 months of 2019, the foreign investors invested in Vietnam in 19 fields. Most of the investment focused on processing and manufacturing industries that estimating account nearly 72% of the total registered investment capital, while the real estate businesses accounting for 7.5% of total registered investment capital, the wholesale and retail field ranked the third with total registered investment capital of 742.7 million USD, accounting for 5% of the total.
In the coming time, Vietnam will continue to give priority to attracting investment projects in supporting industries, projects with advanced modern technologies, environmentally friendly and effective use of resources, minerals, land, facilitate and strengthen links with domestic enterprises. So, to help foreign investors understand how to invest your money in Vietnam with the highest benefits, please check out the information below.
How to invest your money in Vietnam?
For foreign investors, investing money in Vietnam is a very interesting thing to consider when they reach to Asian countries. As we can see in 2019, according to the data from the Ministry of Planning and Investment Portal, the amount of investment capital focused on these ranges below:
The Processing and Manufacturing industry - with a total capital of 24.56 billion USD, accounting for 64.6% of the total registered investment capital;
The Real Estate Business with total investment capital of 3.88 billion USD, accounting for 10.2% of total registered investment capital;
The field of wholesale and retail, professional activities of science and technology...
Current forms of foreign investment in Vietnam
When foreign investors plan to invest money in Vietnam in doing business, they must comply with the laws of the country. Vietnamese law provides for certain forms by which the economy can receive foreign investment. This means that foreign investors who want to do business in Vietnam, they must invest in these forms but not in any other forms. Below are the main forms of foreign investment in Vietnam.
Legal Basis Regulating which forms of foreign investment in Vietnam including the following legal documents: Investment Law 2014; Decree 118/2015/Government Decree; Decree No.15/2015 /Government Decree.
1. By establishing economic organizations
Investment laws allow investors to invest in Vietnam as an economic organization. Before establishing economic organizations, foreign investors need to have investment projects, carry out the procedures for granting investment registration certificates.
Foreign investors who investing money to Vietnam by this form may own an unlimited charter capital in an economic organization, except the following cases:
Listed companies, public companies, securities trading organizations, and securities investment funds
State-owned enterprises equitized or transformed
Other cases in accordance with other relevant laws and treaties to which the Socialist Republic of Vietnam is a signatory.
2. By contributing capital, buying shares or capital contributions to business organizations
Foreign investors can purchase:
Initial-issued shares or additionally issued shares of a joint-stock company.
Shares of a joint-stock company from a company or its shareholders.
Capital contributions of limited liability company members to become capital contributing members; capital contributions of partners in partnership companies to become level 4 members; capital contributions of members of other economic organizations who do not fall into the above cases.
Foreign investors may contribute capital to limited liability companies partnerships and other economic organizations not falling into the above cases.
3. By investing in corporate cooperation contracts (PPP)
When investing in the form of a partner company, the investor signs a contract with a competent state agency and a Vietnamese investor to carry out, manage, and operate the supplied infrastructure project for public service.
4. By joining the BCC contract
When making an investment by participating in BCC business cooperation contracts, investors contribute capital and share profits with Vietnamese partners without establishing economic organizations. During the implementation of a BCC, the parties to the contract may agree on the use of assets formed from the business cooperation to establish the enterprise in accordance with the law on enterprises.
There still are more forms for investing money in Vietnam, including ETFs form, buying and selling Real Estate,... For foreign investors who are attracted by Vietnam's economy, how to invest money in Vietnam with the best benefits is always a hard question. However, before choosing any kind of investment in the countries that you have not to invest in before, taking some consulting services would be a good choice. For one who is interested in investing in doing business in Vietnam, the support in human resources is a very important step for the business. In Navigos Search, we offer executive search and informal level recruitment. To meet the consultant teams, please contact Navigos Search by filling your requirement on the Contact Page or visit us directly on floor 20, e.town Central Tower, 11 Doan Van Bo, Ward 12, District 4, Ho Chi Minh.