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LAW - INVESTMENT

FORMS OF INVESTMENT FOR FOREIGN INVESTORS IN VIETNAM

  • Foreign Direct Investment (FDI):

Foreign Direct Investment refers to when foreign investors establish a company or acquire shares in a company in Vietnam. This allows them to directly participate in the management and operation of the business. FDI is typically carried out through greenfield investments (building new facilities) or mergers and acquisitions. FDI brings significant benefits such as technology transfer, job creation, expanded production capacity, and boosting exports.

 

  • Stocks and Bonds Investment:

Foreign investors can invest in stocks and bonds of companies listed on the Vietnam Stock Exchange. This allows them to own a portion of the equity and have a say in the decision-making of the company. Investing in stocks and bonds provides opportunities to leverage the growth potential of Vietnamese companies and benefit from the development of the stock market.

 

  • Joint Venture:

Joint venture involves foreign investors and Vietnamese partners establishing a joint company to undertake projects or conduct business in a specific sector. This form allows foreign investors to share risks and benefits with their local partners, leveraging each other's access to the local market, knowledge, and experience.

 

  • Investment Funds:

Foreign investors can invest in Vietnam through purchasing shares in investment funds or venture capital funds. These funds manage and invest in companies and projects in Vietnam. This form allows foreign investors to participate in the Vietnamese market without directly managing business operations.

 

  • Manufacturing Joint Venture:

Manufacturing joint venture involves foreign investors and Vietnamese partners establishing a joint company for manufacturing and exporting products from Vietnam. This form allows foreign investors to leverage Vietnam's advantages in terms of labor force, resources, and production scale for manufacturing goods to be exported.

 

Vietnam is continuously improving its investment environment and implementing favorable policies to attract foreign capital. Utilizing the appropriate forms of investment allows foreign investors to leverage Vietnam's business development potential and generate economic benefits for both parties.

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