Contributing capital, buying shares, buying capital portions of foreign investors

Thứ bảy, 28/08/2021, 15:13 GMT+7

The National Assembly on June 17 voted to approve the amended Law on Investment project (the "LOI 2020") with 7 chapters, 77 articles and 4 attached appendices.

 

Under Law on Investment 2020, Capital contribution, purchase of shares or capital portions by foreign investors must meet the following conditions:

(i) Conditions on market access for foreign investors;

(ii) Provisions on assurance of national defense and security;

(iii) Land laws on the conditions for receiving land use rights and conditions on land use on coastal, border islands, communes, wards and towns.

Regarding investment procedures in the form of capital contribution, purchasing share or capital portions, foreign investors contributing capital, buying shares, buying capital portions in economic organizations must meet the conditions and carry out procedures for changing members and shareholders according to the law corresponding to each type of economic organizations.

Conditions, ownership ratio of foreign investors and procedures for purchasing or selling shares, purchasing capital portions, and securities trading by securities business organizations, investment funds, securities investment companies, transaction listing and registering companies, public companies will comply with the law on securities.

Foreign investors must carry out the procedures for registering capital contribution, share purchase, purchase of capital portions in an economic organization before changing members or shareholders.

The LOI 2020 will take effect on January 1, 2021 and replace the Law on Investment No. 67/2014/QH14, the Law No. 03/2016/QH14 amending and supplementing Article 6 and Annex 4 on the list of business lines subject to conditional business investment./.

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