The economy must develop, leading to many people investing in big business projects. However, not everyone can distinguish the concept of an investor; Investors. So “if I put capital into business investment, will it be the investor?” What is an investor? Distinguish between investors and investors? What are the investment forms? How is the National Assembly’s authority to decide on investment policies with investment projects? LSX Lawfirm will give you an article about: “Learn about investment forms in Vietnam”, as follows:
Legal grounds
Law on Investment in 2020
Law on Bidding 2013
What is an investor?
Investor means an organization or individual conducting business investment activities, including domestic investors, foreign investors and foreign-invested economic organizations.
Foreign investors are individuals with foreign nationality or organizations established under foreign laws that carry out investment and business activities in Vietnam.
– Firstly Domestic investors are individuals with Vietnamese nationality, economic organizations that do not have foreign investors as members or shareholders.
– Secondly Economic organization is an organization established and operated under Vietnamese law, including enterprises, cooperatives, unions of cooperatives and other organizations. other organizations conducting business investment activities.
– Thirdly, Foreign-invested economic organization is an economic organization with foreign investors as members or shareholders.
Learn about investment forms in Vietnam
Establishment of an economic organization
According to regulations, investors are allowed to carry out procedures to establish economic organizations according to current laws. If before the establishment of economic organizations, the foreign investor must have an investment project, carry out the procedures for issuance of a Registration Certificate according to the provisions of Article 37 of the Investment Law 2014 and must: meet the standards.
Carry out investment activities of foreign-invested economic organizations
According to regulations, economic organizations need to meet the standards and conduct investment procedures in accordance with the law for foreign investors when investing to establish economic organizations; investment, capital contribution, purchase of shares and capital contributions of economic organizations; investment under a BCC contract in one of the following cases:
- If foreign investors according to regulations hold more than or equal to 51% of charter capital; or the majority of the general partners are foreign individuals, in the case of an economic organization which is a type of enterprise or a partnership;
- If the economic organization specified above follows the above regulations; holding more than or equal to 51% of charter capital
- If foreign investors and economic organizations specified above; holding more than or equal to 51% of charter capital.
Investment in the form of capital contribution, purchase of shares, capital contribution to economic organizations
According to regulations, investors are entitled to exercise rights such as the right to contribute capital; so the right to purchase shares or capital contributions to economic organizations. Foreign investors invest in the form of capital contribution; purchase shares or capital contributions to economic organizations; according to the provisions of Articles 25 and 26 of the Law on Investment 2020.
Investment in the form of PPP contract
Accordingly, current regulations: signing PPP contracts with competent state agencies; So, to implement new construction or renovation investment projects; upgrade; extend; manage; and then operate infrastructure works or provide public services. The Government shall detail the field; condition; then procedures for implementing investment projects in the form of PPP contracts.
Investment in the form of BCC contract
So, in accordance with the law; then BCC contracts are signed between domestic investors; so shall comply with the Civil Code 2015. According to the legal provisions; BCC contracts concluded between domestic and foreign investors; or between foreign investors carrying out procedures for issuance of Investment Registration Certificate.
Distinguish between investors and investors
Investor means that an organization or individual carrying out investment activities; business includes: so domestic investors; Foreign investors; economic organizations with foreign investment.
So, compare with the provisions of Clause 4, Article 4 of the Law on Bidding 2013; the investor is the capital-owning organization/the organization assigned to act on behalf of the capital owner; Borrowing organizations directly manage the project implementation process.
So, it can be seen that investors are organizations and individuals carrying out investment activities; so to do business. The investor is the organization that owns the capital/assigned on behalf of the capital owner, the borrowing organization directly manages the project implementation process.
You can also refer to the article related to regulations on issuance of business registration certificates in Vietnam: Tasks and powers of Business Registration Offices in Vietnam, or some basic information about enterprise registration; State management of enterprise registration in Vietnam.
Related questions
– The project is affected, has a great impact on the environment, or has the potential to have a serious impact on the environment.
Use of land that requires change of land use purpose for wet rice cultivation as prescribed for two or more crops with a scale greater than or equal to 500 hectares;
– Carry out the relocation of 20,000 people or more in mountainous areas, and 50,000 people or more in other areas;
– Projects that require the application of special mechanisms and policies when decided by the National Assembly.
– The project requires the State to allocate or lease land without formal consent through auction, bidding or transfer; projects requiring change of land use purpose;
– The project uses technologies on the List of technologies restricted from transfer in accordance with current law on technology transfer.
Investment projects specified above, if implemented in industrial parks, export processing zones, hi-tech zones or economic zones in accordance with the planning approved by competent authorities, do not have to submit them to the People’s Committee. The provincial level decides on investment policy.
– Information on the names, addresses and authorized representatives of the parties to the contract; transaction address or address where the project is implemented;
Specify the objectives and scope of business investment activities;
– Contributions of the parties to the contract and distribution of business investment results between the parties;
Time schedule and contract performance;
Regulations on the rights and obligations of the parties to the contract;
– Amending, transferring, terminating the contract;
Liability for breach of contract, method of dispute settlement.
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