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What are the Conditions, Rights and Obligations of Foreign Investors?

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For foreign capital to invest in Vietnam to increase and develop, the investment environment must be stable in many aspects such as: security, order, and law. The law must create suitable conditions, a healthy business environment, etc. Questions that need to be answered that most foreign investors must find out before investing: What are the state tax obligations for foreign-invested enterprises? What are the business operating conditions like? How is the capital ownership ratio determined? Nam Viet Law Company will analyze and answer the legal aspects of the following content.

Legal basis

  • Investment Law 2020.
  • Decree 31/2021 guiding the implementation of a number of articles of the Investment Law 2020.
  • Bilateral and multilateral free trade agreements.
  • Consolidated Document No. 14 Law on Corporate Income Tax

WHAT ARE THE ACCESS CONDITIONS FOR THE LIST OF MARKET ACCESS INDUSTRIES APPLICABLE TO FOREIGN INVESTORS

Investment form

Foreign investors invest in Vietnam in accordance with Vietnamese law or international treaties on investment to which Vietnam is a member. .

  • Forms of establishing investment projects and establishing economic organizations.
  • Forms of buying shares, contributing capital, purchasing capital contributions
  • Form of signing business cooperation contract.
  • New forms of government.

Depending on the category of business activities, Vietnamese law or international treaties on investment stipulate the form of investment for each item. Project criteria for business lines(For example: The advertising industry must operate in the form of joint venture investment between foreign investors and Vietnamese enterprises with advertising industries)< /em>.

Capital ownership ratio

According to Vietnamese law and international treaties on investment, foreign investors are applied the same as domestic investors except Business activities in the list of restricted market access will regulate the maximum capital ownership ratio in economic organizations in Vietnam.(for example, container handling services under Vietnamese law and regulations International conventions stipulate that the maximum capital ownership ratio of foreign investors is 50%).

Partner capacity conditions

Depending on the business objectives, Vietnamese law and international treaties on investment stipulate the capacity for investors to ensure ensure professional capacity or the Vietnamese partner enterprise must meet strong conditions and licenses to make business investments in that field of business activities.(For example, auditing services must be have a practicing certificate, advertising services require partner businesses in Vietnam to have an advertising business)

Operating range

Foreign investors are treated like domestic investors and have the right to do business in industries that are not prohibited by law except Vietnamese laws. South and international investment treaties have a list of market access restrictions for foreign investors.

Tax obligations

With the most favored nation principle of treating all countries equally. The tax obligations of foreign-invested enterprises are applied like domestic enterprises, so the tax obligations of foreign-invested enterprises are completely equal in rights and obligations as domestic enterprises.< /span>

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Toàn
2024-03-04 09:03:11

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