Forms of investment in VN
VGP - Việt Nam allows foreign investors to join in both direct and indirect investment projects. Foreign investors are given significant flexibility in choosing appropriate forms of investment in line with their investment strategy and local investment regulations.
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The common Investment Law distinguishes between direct and indirect investment.
I. Direct investment
Direct investment projects can belong to one of the following investment types:
* Establishment of economic organizations of wholly domestic or foreign ownership; or joint-ventures between domestic and foreign investors;
* Investment under BCC, BOT or BT contracts;* Investment for business development (expansion of production capacity, technology renovation, improving product quality, and reducing environment pollution);
* Purchasing shares or contributing capital in order to participate in management of investment activities; carrying out a merger and acquisition of enterprises;
* Other direct investments.
Economic organizations can be limited liability companies (with multiple members or single member), joint-stock companies, private companies, cooperative companies or joint economic cooperation.
II. Indirect investment
A foreign investor shall be permitted to involve in the following forms of indirect investment in Việt Nam:
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Purchase of shares, holdings, bonds and other valuable papers;
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Through securities investment funds;
Through other intermediary financial institutions.
The purchase or sale of shares, holdings, bonds and other valuable papers of individuals and organizations and procedures for indirect investment activities shall be implemented in accordance with the Law on Securities and other relevant laws./.
