Conditions for the capital contribution of foreign investors to Vietnamese companies

1. Conditions for foreign investors to contribute capital to Vietnamese companies

When contributing capital to a Vietnamese company, foreign investors need to meet the following conditions:

• Foreign investors contributing capital to Vietnamese companies must comply with the form of investment, scope of activities, Vietnamese partners participating in the implementation of investment activities and other conditions as prescribed in International Treaties to which Vietnam is a signatory.

• The rate of ownership of charter capital of foreign investors in Vietnamese companies is not limited, except for the following cases:

  • The percentage of foreign investors' ownership in listed companies, public companies, securities trading organizations and securities investment funds in accordance with the law on securities.

  • The percentage of foreign investors' ownership in state-owned enterprises equitized or converted into other forms of ownership shall comply with the law on equitization and transformation of state-owned enterprises.

  • The percentage of foreign investors who are not public companies, securities trading organizations, investment funds, state-owned enterprises shall comply with other provisions of relevant laws and International treaties to which  Vietnam is a signatory.

• Ensuring national defense and security in accordance with law.

• Foreign investors contribute capital, purchase shares or purchase capital contributions from economic organizations with land use right certificates in islands and border communes; coastal communes; and other areas affecting national defense and security.

2. Legal basis

Law on Investment 2020.