Can foreign investors who invest directly in Vietnam and establish economic organizations be allowed to transfer profits abroad?

Pursuant to Article 1 Circular 186/2010/TT-BTC Regulations on applicable subjects are as follows:

Applicable subjects

Foreign organizations and individuals investing directly in Vietnam according to the provisions of Article 21, Article 22, Article 23, Article 24, Article 25 of the Investment Law (hereinafter collectively referred to as foreign investors), transferring profits from investments in Vietnam abroad according to the provisions of Article 2 of this Circular.

Foreign organizations and individuals making indirect investments in Vietnam according to the provisions of Article 26 of the Investment Law, the transfer of profits abroad shall comply with the provisions of relevant laws.

According to the provisions of Article 21 Investment Law 2005 Investors who invest directly in Vietnam to establish economic organizations will be able to transfer profits abroad.

Currently, the old regulation has been replaced by Article 21 Investment Law 2020, As follows:

Form of investment

1. Invest in establishing economic organizations.

2. Invest in capital contribution, buy shares, buy capital contribution.

3. Implement investment projects.

4. Investment in the form of a BCC contract.

5. New forms of investment and types of economic organizations according to Government regulations.

Thus, if foreign investors invest in Vietnam to establish economic organizations, they will be allowed to transfer profits from investing abroad.