Circular guiding regulations on capital contribution to and purchase of shares of Vietnamese enterprises

16/09/2010
The Ministry of Finance issued Circular No.131/2010/TT-BTC on 06 September 2010 providing guidance on foreign investors contributing capital to or acquiring shares of Vietnamese enterprises. Circular 131 shall come into force on 15th October 2010.

Pursuant to Circular 131, foreign investors can conduct the transactions themselves or through their agents being organizations or individuals (Vietnamese or foreigner) in Vietnam. The foreign investors are allowed to invest in any enterprises in accordance with Vietnamese law on enterprises. They must open investment capital accounts with licensed banks in Vietnam to carry out the transactions. The capital contribution or share purchase can be via auction, bidding or private placement. If the transaction results in changing the corporate form of the target, then the parties must conduct the relevant procedures in compliance with law.

by Lawyers of Bizconsult Law Firm