Chapter 2:
1. FDI Overview
1.1 Concept
There are many different definitions of the concept. According to the World Business Organization MaiThe (WTO) are: Foreign Direct Investment (FDI- plies) occurs when an investor from a country (investor countries) has been an asset in another country ( countries to attract investment), along with the management of these assets. Phuongdien management is something that distinguishes FDI with other financial instruments. In most cases, both investors and asset managers that person is cacco overseas businesses. Meanwhile, investors are often called "parent company" and the property known as the "subsidiary" or "affiliates". According to the International Monetary Fund IMF (International Monetary Fund) have a different definition of FDI: Foreign Direct Investment FDI (Foreign Direct Investment) is one of the investors out of the national borders, in which the head direct investment (direct investor) to achieve some or all long-term ownership of a direct investment enterprise (direct investment enterprise) in another country. This ownership must be at least 10% of the total number of new shares to be recognized as FDI. There are many different definitions of FDI but boil down can understand: "This is a form of investment that foreign investors invest all or part of the investment is large enough projects to take control of or participating business operator manufacturing or service business, commerce. "
1.2. Features
- For the purposes of profit-seeking investors.
- This is a form of investment by private capital investment by the owners themselves investment decisions, self-production and business decisions and take responsibility responsibility for profit and loss. This form is feasible and high economic efficiency, without the political constraints, did not leave the debt burden for the economy.
- Foreign investor must contribute 1 minimum capital ratio in the charter capital or legal capital to gain operating or participating enterprises operating investment (under the Law on foreign investment of Vietnam is at least 30% of legal capital of the project).
- rights and responsibilities of each party to the case, as well as profit and risk are divided according to the percentage of contributions of the parties in the charter capital or legal capital.
- income earned by investors depend on business results the businesses they invested their capital, its nature of business income rather than profit.
- through foreign direct investment, the host can receive the technology, advanced engineering, learning management ... is the target that other forms of investment are not solved.
- the investment capital will not only include the initial investment capital of the owner in the form of legal capital that during operation, it also includes debt of enterprises to deploy or expand projects as well as investment from profits.
đang được dịch, vui lòng đợi..
