1. What is a Foreign-Invested Economic Organization?
Pursuant to Clause 22, Article 3 of the Law on Investment 2020, a foreign-invested economic organization means an economic organization having a foreign investor as a member or shareholder.
Furthermore, the definition of a foreign-invested economic organization remains unchanged under Clause 22, Article 3 of the Law on Investment 2025.
In addition, pursuant to Clause 21, Article 3 of the Law on Investment 2025, an economic organization means an organization established and operating in accordance with the laws of Vietnam, including enterprises, cooperatives, unions of cooperatives, and other organizations conducting investment and business activities.
2. How Are Investment Activities of a Foreign-Invested Economic Organization Carried Out?
Pursuant to Article 20 of the Law on Investment 2025, investment activities of a foreign-invested economic organization shall be carried out as follows:
(1) An economic organization must satisfy the conditions and carry out investment procedures applicable to foreign investors when making capital contributions to, purchasing shares in, or acquiring capital contributions of another economic organization; or when implementing another investment project, if such economic organization falls into one of the following cases:
1.1. A foreign investor holds more than 50% of the charter capital, or, in the case of a partnership, the majority of general partners are foreign individuals;
1.2. An economic organization as prescribed in point 1.1 of this clause holds more than 50% of the charter capital;
1.3. A foreign investor and an economic organization as prescribed in point 1.1 of this clause jointly hold more than 50% of the charter capital.
(2) An economic organization not falling under the cases specified in Sections 1.1, 1.2, and 1.3 shall satisfy the investment conditions and carry out investment procedures applicable to domestic investors when establishing another economic organization; making capital contributions to, purchasing shares in, or acquiring capital contributions of another economic organization; or investing under a Business Cooperation Contract (BCC).
(3) A foreign-invested economic organization established in Vietnam that undertakes a new investment project shall carry out procedures for implementation of such investment project without being required to establish a new economic organization.
(4) The Government shall prescribe in detail the order and procedures for investment in the establishment of economic organizations and for the implementation of investment activities by foreign investors and foreign-invested economic organizations.
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