Many types of foreign investment are regulated in Vietnam by current laws, with business cooperation contract (BCC) being the favored type of foreign investors. This detailed analysis of this type of investment is the most comprehensive review of foreign investment in Vietnam under the BCC.

1. What is BCC?

BCC (Business Cooperation Contract) is a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization

The essence of a BCC, as defined above, is a contract between two or more entities who desire to collaborate to complete a commercial project. They put up a BCC to indicate the investment linkage between the two parties because the procedure for establishing an economic organization is complicated and time-consuming.

2. Subjects of BCC

BCCs are classified into two types based on the subject of contract performance cooperation:

Business cooperation contracts signed between a domestic investor and a foreign investor.

-Or-

Between foreign investors.

As a result, any organization or individual who is a domestic or foreign investor, state-owned or private, may be the subject of a BCC. This differs from the former investment law’s regulations on the form of investment under this contract.

3. Establishment of an operating office of the foreign investor to business cooperation contract

Due to the lack of an economic organization, while implementing an investment project under a BCC, the legislation permits foreign investors to establish operating offices in Vietnam for the convenience of foreign investors who want to directly operate the project and supervise the contract’s performance.

3.1. Features of the operating office of foreign investor to business cooperation contract

The location of the operating office must be decided by the foreign investor depending on the requirements for contract execution.

The operating office of a foreign investor to a business cooperation contract has its own seal; the foreign investor may open an account, hire employees, sign contracts, and conduct business activities under the business cooperation contract and Certificate of registration of the operating office.

3.2. Procedure for establishment of the operating office of the foreign investor to business cooperation contract

Authority receiving and handling procedures: investment registration authority of the area in which the operating office is intended to be located.

Procedure:

4. Advantages and Disadvantages of BCC

 

The aforementioned content is relative to foreign investors investing in the form of a business cooperation contract (BCC) for your reference. Please contact us for thorough assistance regarding any associated issues via the following hotline: +84-916-545-618 or send an mail to hung.le@cnccounsel.com and thanh.tran@cnccounsel.com.

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