What is a foreign-invested enterprise?

Clause 6, Article 3 of the Investment Law 2005 defines a foreign-invested enterprise as an enterprise established by a foreign investor to carry out investment activities in Vietnam or a Vietnamese enterprise in which foreign investors purchase shares, merge, buy back.

However, according to current law in the Investment Law 2005 There is no concept of foreign-invested enterprises. Instead, there is the concept of foreign-invested economic organizations in Article 3, which stipulates as follows:

“18. Investors are organizations and individuals carrying out business investment activities, including domestic investors, foreign investors and economic organizations with foreign investment capital.

19. Foreign investor is an individual with foreign nationality or an organization established under foreign law conducting business investment activities in Vietnam.

..21. Economic organization is an organization established and operating under the provisions of Vietnamese law, including enterprises, cooperatives, cooperative unions and other organizations carrying out business investment activities.

22. Economic organization with foreign investment capital is an economic organization with foreign investors as members or shareholders.

Thus, current law no longer has the concept of foreign-invested enterprises but has specifically separated this concept into foreign investors and foreign-invested economic organizations.

Thus, foreign-invested enterprises are one of the types of foreign-invested economic organizations.

A foreign-invested enterprise is an enterprise that has foreign investors as members or shareholders