Are foreign investors allowed to establish economic organizations in Vietnam?

According toArticle 22 of Investment Law 2020 Regulations on investment in establishing economic organizations are as follows:

- Investors Establish economic organizations according to the following regulations:

+ Domestic investors establish economic organizations according to the provisions of law on enterprises and laws corresponding to each type of economic organization;

+ Foreign investors establishing economic organizations must meet the market access conditions for foreign investors specified in Article 9 of this Law;

+ Before establishing an economic organization, foreign investors must have an investment project and carry out procedures for granting and adjusting the Investment Registration Certificate, except in the case of establishing small and medium-sized start-up enterprises. innovation and creative start-up investment funds according to the provisions of law on supporting small and medium-sized enterprises.

- From the date of issuance of the Business Registration Certificate or other documents of equivalent legal value,economic organizations established by a foreign investor who is an investor implementing an investment project according to the provisions of the Investment Registration Certificate.

Thus, foreign investors establishing economic organizations must meet the market access conditions for foreign investors specified in Article 9 of this Law;

How is investment in the form of a BCC contract regulated?

According toArticle 27 of Investment Law 2020 Regulations on investment in the form of BCC contracts are as follows:

- BCC contracts signed between domestic investors comply with the provisions of civil law.

- BCC contracts are signed between domestic investors and foreign investors or between foreign investors carrying out procedures for issuance of Investment Registration Certificates according to the provisions of Article 38 of this Law.

- The parties participating in the BCC contract establish a coordination committee to implement the BCC contract. The functions, tasks, and powers of the coordination board are agreed upon by the parties.

Besides, atArticle 28 of Investment Law 2020 Regulations on the content of BCC contracts include the following main contents:

- Names, addresses, and authorized representatives of the parties to the contract; transaction address or location of investment project implementation;

- Objectives and scope of business investment activities;

- Contributions of the parties to the contract and division of business investment results between the parties;

- Progress and deadline for contract implementation;

- Rights and obligations of the parties to the contract;

- Modification, transfer, termination of contracts;

- Liability due to breach of contract, dispute resolution methods.

* Note: During the implementation of the BCC contract, the parties to the contract may agree to use assets formed from business cooperation to establish an enterprise according to the provisions of law on enterprises.

- The parties participating in the BCC contract have the right to agree on other contents that are not contrary to the provisions of law.