Investment Through Signing Contracts in Vietnam

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Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

Build-operate-transfer contract (BOT) means the investment form signed by a competent State body and an investor in order to construct and operate commercially an infrastructure facility for a fixed duration; and, upon expiry of the duration, the investor shall, without compensation, transfer such facility to the State of Vietnam.

Build-transfer-operate contract (BTO) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall grant the investor the right to operate commercially such facility for a fixed duration in order to recover the invested capital and gain profits.

Build-transfer contract (BT) means the investment form signed by a competent State body and an investor in order to construct an infrastructure facility; and, upon completion of construction, the investor shall transfer the facility to the State of Vietnam and the Government shall create conditions for the investor to implement another project in order to recover the invested capital and gain profits or to make a payment to the investor in accordance with an agreement in the BT contract.

Foreign investors may sign BOT, BT and BTO contracts with a competent State body to implement infrastructure construction projects in Vietnam. Typically, the contracts are for projects in the fields of transportation, electricity production, water supply, drainage and waste treatment.

The rights and obligations of the foreign investor will be regulated by the signed BOT, BT and BTO contract. The Government encourages both public- and private-sector investors to participate in BOT, BTO and BT in the following sectors:

(i)    Construction, operation and management of brand-new infrastructure facilities; and

(ii)    Renovation, expansion, modernization, operation and management of the existing infrastructure facilities such as:

•     Roads, bridges, tunnels, and ferry landings;

•     Railway bridges and railway tunnels;

•     Airports, seaports and river ports;

•     Clean water supply systems; sewage systems;

•     Wastewater, waste collecting and handling systems;

•     Power plants and power transmission lines;

•    Infrastructure works of health service, education, training, career training, culture, sport and offices of State agencies; and

•     Other projects as may be determined by the Prime Minister

Finding the right business partner in Vietnam is also important. We recommend doing research on the reputation of the company and individual shareholders, corporate or individual, gathering publicly available company information, and performing background checks on key personnel to find potential risks in cooperation. Working with a reliable partner can help achieve economic benefits, saving time and money in business.

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[/vc_column_text][/vc_column_inner][/vc_row_inner][vc_row_inner 0=””][vc_column_inner 0=””][vc_single_image image=”12364″ style=”vc_box_rounded”][vc_column_text 0=””]Korean Investors Poured Capital into Vietnam Banks

[/vc_column_text][vc_single_image image=”12334″ style=”vc_box_rounded”][vc_column_text 0=””][/vc_column_text][/vc_column_inner][/vc_row_inner][vc_column_text 0=””]The Middle Class of Vietnam Increased Sharply

[/vc_column_text][vc_single_image image=”12344″][vc_column_text]FDI in Real Estate Reached 1 Billion USD in 2016

[/vc_column_text][/vc_column][/vc_row][vc_row 0=””][vc_column 0=””][vc_cta h2=”How ANT Consulting Could Help Your Business?”] Please click here to learn more about ANT Consulting or contact our lawyers and consultants in Vietnam for advice via email ant@antconsult.vn or call our office at +84 28 730 86 529[/vc_cta][/vc_column][/vc_row]

Summary
Investment Through Signing Contracts in Vietnam
Article Name
Investment Through Signing Contracts in Vietnam
Description
Business co-operation contract (BCC) means the investment form signed between investors in order to co-operate in business and to share profits or products without creating a legal entity.

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