Procedures of buying stocks from Vietnamese companies

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Question:

Hi lawyer, I have a question. As a foreign investor, I want to buy stocks from a Vietnam Jsc. Thus, I want to ask you: Do I have to send application to DPI?

Answer:

SB Law appreciate your interest in our legal consultant services. Regarding your question, we would like to advise you as follows:

First of all, according to Article 32 of Vietnam Law on Enterprise 2014, the enterprise must notify the business registration authority when shareholders being foreign investors.

Secondly, you can separate into two cases:

(1) If you are going to hold more than 51 % of capital, or invest in company engaged in business lines subject to conditions applied to foreign investors, you must submit valid application  for registration of capital contribution or purchase of shares/capital contribution to Department of Planning and Investment, after getting written approval documents, you will accomplish the business registration procedures at the business registration authority.

(2) If you hold less than 51% of capital, you will then perform the procedures as domestic investors.