Can foreign investor contribute capital in cash to Vietnam?

Can foreign investor contribute capital in cash to Vietnam? According to the clause 1, Article 3 of Circular 06/2019/TT-NHNN stipulates that foreign investor include: individuals with foreign nationality and organizations established under foreign laws conducting foreign direct investment activities. outside Vietnam.

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Accordingly, foreign individuals/organizations are allowed to contribute capital to enterprises through the issuance of investment licenses in accordance with the provisions of the investment law.

The contribution of investment capital in money of foreign investors, Vietnamese investors must be made through the form of transfer to the direct investment capital account.

Thus, when foreign investors contribute capital to a company in Vietnam to conduct investment and business activities, they must contribute in the form of bank transfer, not in cash. In case foreign investors fail to comply with regulations on the form of capital contribution, namely capital contribution in cash, they will be administratively sanctioned with a fine of between VND 30 and 40 million according to Point b, Clause 5, Article 13. Decree 50/2016/ND-CP.

In addition, individuals and organizations must contribute capital in full within 90 days from the date of being granted the Certificate of Business Registration. If the enterprise fails to contribute enough capital, the enterprise must carry out procedures to reduce its charter capital.

In case the company fails to register the change with the business registration agency when it fails to contribute enough charter capital as registered, it may be subject to a fine of between VND 10 and 20 million (Clause 3, Article 28 of Decree No. -CP).

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