CAN FOREIGNERS CONTRIBUTE CAPITAL TO OPEN A COMPANY IN VIETNAM?

Vietnam is becoming an attractive destination for foreign investors with the potential growth and development of the economy. In fact, Vietnam has applied many supportive and favorable policies for foreign investors.

According to the provisions of the Law on Enterprises 2020 and the Law on Investment 2020, individuals/ legal entities with foreign nationality/ established in accordance with foreign laws are fully entitled to invest and contribute capital to open a company in Vietnam.

Vietnamese law allows foreigners to open a company in Vietnam, however, foreign investors must meet certain conditions:

1. According to the provisions of the Law on Investment 2020 in Vietnam, foreigners investing in Vietnam must comply with investment forms, scope of activities and Vietnamese partners involved in the implementation of investment activities. They must also comply with other conditions stipulated by international agreements to which Vietnam is a signatory. This ensures that foreigners' investment is carried out in accordance with the law and benefits both investors and Vietnam;
2. Foreign investors must also comply with regulations on the percentage of ownership of contributed capital (depending on each specific field);
3. Foreign investors need to comply with market access conditions (Article 9 of the Law on Investment 2020);
4. Do not violate legal provisions on national security, security, social order and moral culture;
5. Meet the provisions of land law on conditions for receiving land use rights, conditions for land use in islands, communes, wards, border towns, communes, wards and coastal towns.