Investment Feature

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2.3 Based on mobilized funds

2.3.1 Collective investment fund (Public fund)

It is a fund raising fund that is widely distributed to the public. Investors can be individuals or corporate entities but most are individual investors. Public funds provide small investors with investment vehicles to diversify their investments, minimize risk and maximize return on investment as a result of the professionalism of the investment.

2.3.2 Private equity fund (Membership fund)

This fund mobilizes funds by private placement to a small group of investors, pre-selected, individuals or financial institutions or large corporations, thus liquidity Of this fund will be lower than public funds. Investors in individual funds often have large amounts of capital, and in exchange they may be involved in controlling the fund's investment.

3. Forms of foreign investment in Vietnam

3.1 Direct investment

- Investment in establishment of economic organizations: Foreign investors may set up economic organizations with 100% foreign investment capital or establish joint-venture economic organizations between foreign investors and investors. Vietnam

- Investment under contracts: Foreign investors, when conducting investment activities in this form, may sign contracts such as business cooperation contracts (BCCs), build-operate contracts - Transfer (BOT), Build-Transfer-Operate (BTO) or Build-Transfer (BT) contracts.

- Investment in business development: Foreign investors are allowed to invest in business development through various forms such as expanding the scale, raising productivity and business capacity; To renovate technology, improve product quality and reduce environmental pollution.

- Purchasing shares or contributing capital to participate in the management of investment activities: The percentage of capital contributed by, or purchased from, foreign investors in some industries and trades shall be prescribed by the Government.

- Investment shall carry out the merger and acquisition of enterprises and other forms of direct investment in accordance with the provisions of law.

3.2 Indirect investment

Indirect investment is the form of investment through the purchase of shares, bonds, other valuable papers, securities investment funds and through other intermediary financial institutions that investors do not directly engage in. Management of investment activities.