Foreign-invested Enterprises: Need To Understand Clearly And Consistently

Although newly issued and takes effect not long ago, the Investment Law still has some shortcomings and lack of practicality in the regulations on foreign-invested enterprises. Therefore, it is necessary to create a clear, consistent legal corridor, high stability and long-term effectiveness, further guarantee legitimate rights and interests of the business community ... from the legal document Fairy regulations on foreign investment are Decree No

. 115 / CP of April 18, 1977 of the Council of Ministers promulgating the Foreign Investment Charter in Vietnam, so far, over 40 years of completion and play Trade, many legal documents in the field of investment have been issued, amended and supplemented to suit the new situation, adapt to objective requirements and the constant movement of the economy Gender in the integration period. This remarkable achievement has been proven by practicality. However, in addition to those positive changes, there are still inadequacies that up to this point, when the latest investment law was issued and takes effect on January 1, 2021, there are still some problems Not yet overlooked and comprehensively
Many legal documents in the investment sector have been issued, amended and supplemented to suit the new situation. Photo Illustration. More count than some of the contents of the current Investment Law Lack of synchronization, inconsistency and multidimensional conflicts with other specialized legal documents. This, on the one hand, causing difficulties and obstacles to regular operations of enterprises, on the other hand, they also make competent state agencies embarrassing in controlling and coordinating and supporting businesses Industry in the project implementation process. Especially when enterprises deploy the forms of financial resources such as bond issuance, offering additional shares to increase their charter capital and other permitted rights in the process of operation. 36, Article 3 , Law on Investment No. 61/2020 / QH14 Regulations: "Foreign-invested economic organizations are economic organizations with foreign investors being members or shareholders." Understanding the most common sense of the regulations, only individuals or foreign organizations hold a number of shares, contributed capital without determining the level of level is that the enterprise has been identified as a head-owned economic organization private private. If the "Foreign Capital" element is correct, the contents of the law are only relatively suitable for the type of operation of unusual joint stock companies or joint stock companies Customs to list shares on the stock exchange. However, this determination will become machinery, difficult to apply if the type of business is a public company
Because, buying and selling stocks from foreign investors took place very popular and continuously on the market, even many stocks of domestic listed companies were purchased by foreign investors. The majority of volume in the trading sessions.do, with this determination, please affirm that the majority of public companies operating in the market are foreign-invested enterprises. Assuming that a foreign investor bought a small amount of shares of a domestic enterprise is a public company, right at the time of matching orders, the enterprise will naturally become "invested organizations Foreign "according to the spirit of the law. The paradox will arise immediately after for some reason investors decide to sell the number of shares that are only three days after the T 3 mechanism of the trading platform, at the time the sale order is matched, "the team Foreign-invested organizations "return to the original state are a domestic enterprise. The problem is present, some specialized legal documents have regulations on limiting the field of operations Foreign-invested enterprises, typically prescribed in Clauses 3, Article 11, Law on KDBDS 2014, foreign-invested enterprises may only trade in real estate under 4 forms compared to 9 forms Domestic investors are allowed to do business (according to the list listed in Clauses 1, Article 11, Law on KDBDD 2014). Foreign-invested enterprises operating in real estate business VI Business of this subject is much more limited than the group of domestic organizations and individuals on diversity in the form of business. Artwork.Do, can be found that, in case foreign-invested enterprises operate in real estate business, the scope of business of this subject is much more limited than The group of objects is domestic organizations and individuals on diversity in the form of business. This leads to the situation, to ensure the benefits, many businesses have been unknowingly due to legal awareness or flexible use of the contents of Clause 1, Article 23, Law on Investment 2020 to eliminate the limited field of activities In order to expand and enjoy privileges such as domestic investors in a forced shield approach, economic organizations are only limited

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