Capital Increase/Transfer In Foreign-invested Enterprises

For foreign-invested joint ventures operating in important economic fields, parties to the joint venture can agree on the increase of legal capital by the Vietnamese party in the joint venture contract. The agreement must state the time to increase capital, the ratio of the increased capital and the price of capital transfer.

For 100% foreign-owned enterprises in important economic fields, the State Committee for Cooperation and Investment (now the Ministry of Planning and Investment) will give guideline to investors in making the application to ask for permission to allow Vietnamese businesses to buy part of the capital of the enterprises to turn them into joint ventures. The application must state clearly the ratio of capital transfer, the time and the price of transfer.

The State Committee for Cooperation and Investment (now the Ministry of Planning and Investment) says in Circular 215UB/LXT dated February 8, 1995 giving guidelines for foreign investment in Vietnam, that the committee (now the ministry) will make the decision on the Vietnamese party�s purchase of the capital in foreign-invested joint ventures and 100% foreign-owned enterprises.