𝐓𝐡𝐢𝐧𝐠𝐬 𝐭𝐨 𝐤𝐧𝐨𝐰 𝐚𝐛𝐨𝐮𝐭 𝐆𝐫𝐞𝐞𝐧𝐟𝐢𝐞𝐥𝐝

Investment forms in the market are increasingly diversified to open up many opportunities for individual and corporate investors. In particular, Greenfield investment is attracting significant attention from investors who want to expand their business model.

Greenfield investment (abbreviated as GI) means new investment or green investment. This is a foreign direct investment, where the parent company sets up a subsidiary in another country and builds its operations from scratch.

Greenfield investment projects are foreign direct investments. The highest degree of control belongs to the sponsoring company. This form is intended to expand existing equipment or purchase new equipment. This is also the primary purpose of the investment recipient countries because it will create more jobs for workers, create new production plants, transfer know-how and technology. These categories have a direct impact on trade in world markets.

Investment project implementation time 

The current regulations do not limit the time of operation of the company. That said, Foreign Invested Enterprise is an investment project of a foreign investor with a term of implementation following the provisions of the Law on Investment of Vietnam. In particular, the investment project is technically allowed to operate for the license stated in the project’s IRC, usually a maximum of fifty years. If the investment project is located in economic zones, what may extend challenging areas, large scale, slow to recover, the operative term for a maximum of seventy years. However, in practice, the licensing agency, based on the consideration of the project implementation situation and the current law regulations when the project expires, may agree to extend/extend the time limit project term.

Risks and benefits of GI investing.

Developing countries tend to attract operating companies by offering tax, or they may receive assistance or other benefits to set up a GI head account. While personnel may result in lower corporate tax revenue outside the country in the short term, the economic benefits and strengthening of local human resources can positively benefit the positive activities in this country in the long run.