RIGHTS OF DUAL CITIZENSHIP INVESTORS - VIETNAMESE AND FOREIGN NATIONALITY (REPUTABLE LAW FIRM IN HO CHI MINH CITY)

RIGHTS OF DUAL CITIZENSHIP INVESTORS - VIETNAMESE AND FOREIGN NATIONALITY

(REPUTABLE LAW FIRM IN HO CHI MINH CITY)

Mr. Tran Van Hung (foreign name: Alexander Greek) has been residing in the USA for 20 years (since he was 15 years old). He is now 35 years old and wants to return to Vietnam to invest in a business project in District 2. However, he holds both American and Vietnamese citizenship.

In this case, he has the right to choose to apply market access conditions and investment procedures as either a domestic investor or a foreign investor. HT Legal VN lawyers will help you understand this situation.

 I - Legal Basis

- Investment Law 2020 No. 61/2020/QH14;

- Decree 31/2021/ND-CP issued on March 26, 2021, by the Government detailing and guiding the implementation of several articles of the Investment Law.

II - Content

1. What is an investor? 

An investor is a concept that is not unfamiliar to us, especially those working in the business and investment fields. According to Clause 18, Article 3 of the Investment Law 2020, an investor is defined as follows:

“An investor is an organization or individual that carries out business investment activities, including domestic investors, foreign investors, and foreign-invested economic organizations.”

Thus, investors are classified into three types:

- Domestic investors,

- Foreign investors, and

- Foreign-invested economic organizations.

2. Regulations on determining the nationality of investors 

For different types of investors, the determination of the investor’s nationality is also regulated differently:

- Domestic investor According to Clause 20, Article 3 of the Investment Law 2020: “A domestic investor is an individual with Vietnamese nationality, or an economic organization without foreign investors as members or shareholders.”

- Foreign investor According to Clause 19, Article 3 of the Investment Law 2020: “A foreign investor is an individual with foreign nationality, or an organization established under foreign law that carries out business investment activities in Vietnam.” This regulation does not include stateless persons, as a stateless person is someone who does not have Vietnamese nationality or foreign nationality (as stipulated in Clause 2, Article 3 of the Nationality Law 2008).

- Foreign-invested economic organization According to Clause 22, Article 3 of the Investment Law 2020: “A foreign-invested economic organization is an economic organization with foreign investors as members or shareholders.” Thus, based on the classification of investors, the nationality of an investor can be determined as an individual with Vietnamese nationality or an individual with foreign nationality.

3. Procedures for investors with dual nationality 

According to Clause 2, Article 16 of Decree 31/2021/ND-CP:

“For business investment activities carried out in Vietnam, an investor who is a Vietnamese citizen and also has foreign nationality has the right to choose to apply market access conditions and investment procedures as prescribed for either domestic investors or foreign investors.

In case of choosing to apply market access conditions and investment procedures as prescribed for domestic investors, the investor who is a Vietnamese citizen and also has foreign nationality is not allowed to exercise the rights and obligations prescribed for foreign investors.”

Therefore, when an investor has dual nationality, including Vietnamese and foreign nationality, for business investment activities carried out in Vietnam, this investor has the right to choose to apply market access conditions and investment procedures as either a domestic investor or a foreign investor. An investor who is a Vietnamese citizen and also has foreign nationality can choose one of the two forms of application as a domestic investor or a foreign investor. 

Note: Once the market access conditions and investment procedures as a domestic investor are chosen, the investor with dual nationality cannot exercise the rights and obligations as a foreign investor.

According to HT Legal VN Lawyers, in the case of Mr. Hung (Alexander Greek), who holds both Vietnamese and foreign (American) nationality and wants to invest in a business project in District 2, Ho Chi Minh City, he has the right to choose to apply market access conditions and procedures as a domestic investor or a foreign investor. However, if he chooses to apply market access conditions and investment procedures as a domestic investor, he will not be able to exercise the rights and obligations prescribed for foreign investors.

These are the insights shared by HT Legal VN Law Firm regarding the concept, classification of investors, and legal regulations on the application of investment forms for investors with dual nationality. If you have any other legal issues, please contact HT Legal VN Law Firm for the quickest and most effective support.

We are pleased to welcome customers at the following addresses:

Lawyer Nguyen Thanh Trung or HT Legal VN Law Firm

Office 1: 37/12 Alley 602 Dien Bien Phu, Ward 22, Binh Thanh District, Ho Chi Minh City (Next to Ward 22 People’s Committee)

Office 2: 207B Nguyen Phuc Chu, Ward 15, Tan Binh District, Ho Chi Minh City

Office 3: No. 5, Alley 252/115, Tay Son Street, Trung Liet Ward, Dong Da District, Hanoi

Email: info@htlegalvn.com           Hotline: 09 6161 4040 – 09 4517 4040