“Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws and carrying out business investment activities in Vietnam”.
(Article 3 Law on Investment 2020)
Thus, foreign investors can be foreign individuals or legal entities investing and doing business in the Vietnamese market. Foreign-invested economic organization means an economic organization whose foreign investors are members or shareholders. What is a foreign-invested company?
In the context of integration and development, the establishment of foreign-invested companies and enterprises is the best choice to meet investment needs in Vietnam. This is a business model established in Vietnam, in accordance with the provisions of Vietnamese law, newly established or equitized by investors who are foreign individuals or organizations to carry out business activities in Vietnam.
As shown by operational practices, foreign-invested companies investing in Vietnam will mostly be administered by:
- Management board of industrial parks and export processing zones: for businesses located in industrial parks.
- Department of Planning and Investment: for businesses located outside industrial parks.