Foreign Investment In Vietnam By Country

Foreign investment in Vietnam by country is believed to be more and more developed, which makes national economy increasing strongly.

Currently, there are 97 countries and territories with FDI in Vietnam, with a total of 403.04 billion USD of 29,748 projects, an average of 13.7 million USD each. The benefits that foreign investment in Vietnam by country projects bring have made the economy's face change significantly.

Since the promulgation of the Law on Foreign Investment in Vietnam since 1987, over 30 years, Vietnam has achieved remarkable results in FDI attraction. According to the Foreign Investment Agency (Ministry of Planning and Investment), by the end of 2017, there were 24,803 valid FDI projects, with a total registered capital of 319.6 billion USD. Until the end of 2017, FDI has spread throughout the country.

>>If you plan to have foreign investment in Vietnam by country, you first need advice from a reputable law firm. LHD Law Firm is considered a well-known law firm with a team of lawyers who have many years of experience in the field of economic and business law in Vietnam. Only when you understand the rules of indigenous law are you able to make a profit from foreign investment in Vietnam by country.

Below is 4 main forms of foreign investment in Vietnam by country:

# 1 Investment established economic organizations

The form of establishment of an economic organization includes two specific foundations: the establishment of a company with 100% capital from foreign investors, the establishment of a joint venture between domestic investors or the Government in country and foreign investors.

Before establishing an economic organization, a foreign investor must have an investment project, carry out procedures for issuance of an Investment Registration Certificate and must meet the conditions on the ratio of ownership of charter capital according to regulations. the law on securities, on equitization and transformation of state-owned enterprises and conditions prescribed by international treaties to which Vietnam is a member.

# 2 Contribution of capital, purchase of shares, capital contribution to economic organizations

Contribution of capital, purchase of shares, capital contribution to economic organizations are forms of indirect investment of foreign investors. This form of investment is through buying stocks, bonds, and other valuable papers that investors do not directly participate in managing investment activities. When implementing this form of investment, investors should comply with the forms and procedures for capital contribution, share purchase, and capital contribution.

# 3 Invest in the form of PPP contract

PPP contract is a contract signed between a competent state agency and an investor and a project enterprise to implement an investment project. This is a form of cooperation to optimize investment efficiency and provide high quality public services, which will benefit both the state and the people.

# 4 Investment under BCC contract

BCC is a form of investment signed between investors to cooperate in business, profit sharing, product division without establishing a new legal entity. This form of investment helps investors conduct investment activities quickly without losing time and money to set up and manage a new legal entity.

BCC contracts signed between domestic investors comply with civil law. BCC contract has at least one party who is a foreign investor who carries out procedures for granting Investment Registration Certificate.

31 billion US  investment in Vietnam by country promoting national potential from foreign

According to the latest figures from the Foreign Investment Agency, Ministry of Planning and Investment, 11 months of 2018, total FDI registered for new, increased and capital contribution and share purchase by foreign investors is 30, 8 billion USD, equaling 93.2% compared to the same period in 2017.

In particular, as of November 20, 2018, there were 2,714 new projects nationwide with investment registration certificates with total new registered capital of 15.78 billion USD, equaling 79.7% over the same period. 2017. There are 954 projects registered to adjust investment capital with total registered capital increased by 7.4 billion USD, equaling 92.6% compared to the same period in 2017.

Also in the first 11 months of 2018, there were 5,882 capital contributions, buying shares of foreign investors with a total value of 7.6 billion USD, up 44.4% over the same period in 2017.

As of November 20, 2018, it is estimated that foreign direct investment projects have disbursed 16.5 billion USD, up 3.1% compared to the same period in 2017.

Exports of foreign investment sector including crude oil reached 160.3 billion USD, up 13.4% over the same period in 2017 and accounted for nearly 71.7% of export turnover. Export excluding crude oil reached USD 158.3 billion, up 14% over the same period of 2017 and accounting for 70.7% of export turnover.

Imports reached 130.1 billion USD, up 12.3% over the same period in 2017 and accounted for 60% of import turnover.

Overall, the foreign invested sector saw an export surplus of 30.1 billion USD, including crude oil and trade surplus of 28.1 billion USD, excluding crude oil.

According to the investment sector, foreign investors have invested in 18 sectors, of which the processing and manufacturing industry has attracted the most attention with a total capital of 14.2 billion USD. , accounting for 46.2% of the total registered foreign investment in Vietnam by country.

Real estate business is ranked second with total investment of 6.5 billion USD, accounting for 21.3% of the total registered investment capital. The third is the wholesale and retail sector with the total registered investment capital of 3.1 billion USD, accounting for 10% of the total registered investment capital.

There are 108 countries and territories with investment projects in Vietnam. Japan ranked first with total investment of nearly 8 billion USD, accounting for 25.9% of total investment capital. Korea ranked second with total registered investment capital of 6.8 billion USD, accounting for 22.3% of total investment capital. Singapore ranks third with a total registered investment of 4.1 billion USD, accounting for 13.4% of total foreign investment in Vietnam by country.

If you would like more information about business laws and regulations of foreign investment in Vietnam by country, please visit at lhdfirm.com.