Legal Issues Related to the Investment of Capital for Startup Company in Vietnam

Pham Thanh Nga¹, Doan Hong Nhung²
(1. Hanoi Department of Justice, Vietnam; 2. School of Law, Vietnam National University, Vietnam)

Abstract: For start-up enterprises, the issue of raising capital from investors in the early stages is very important and necessary. However, after the Startup has been put into operation and business, the issue of sharing interests between investors and founders of startups faces many obstacles and legal issues can lead to disputes and conflicts such as: legal status of parties, ownership and management, disbursement progress, anti-dilution of investment, divestment priority order, valuation from time to time, commitment to founding members, gender Investors’ rights, access to information, intellectual property, information security, etc. In this paper, the authors will not only analyze legal issues related to startups and investors but also analyze some practical case-study. After analyzing the current legal limitations and shortcomings, the authors will propose solutions to further improve the legal framework for this issue.

Key words: legal issues; investment; capital; startup enterprise; Vietnam

JEL code: K