The new Foreign Investment Law of Vietnam (2006) has expanded investment forms, offering foreign investors more choices. They are now allowed to establish limited liability companies, partnerships, joint-stock or private companies
The previous Vietnam's Foreign Investment Law allowed foreign investors to make investment in only three forms, i.e., 100% foreign invested enterprises, joint venture and business cooperation contract (BCC).
Requirements on minimum capital for a project and proportion between legal capital and investment capital are removed so that investors have more autonomy in mobilizing capital.
Besides improvements on business establishment, the Law allows foreign investors to make capital contribution, buy shares of businesses and conduct merger or acquisition in Vietnam, with the economic hubs in Hochiminh City (Saigon) and Hanoi.
Capital contribution, share purchase, merger and acquisition of enterprises in Vietnam are only restricted in a couple of areas according to Vietnam’s commitments within WTO and other international treaties. Apart from restrictions stipulated by these commitments, foreign investors can buy any shares from Vietnamese investors without any cap on the amount and areas of shares.
Arrow Consulting’s goal is help clients develop new businesses in Vietnam in the safest manner to sustain their profit in the long run, whether through identifying targets for merger, acquisition, or the creation of strategic partnerships, or through the opening of new offices: company establishment or representative office.