Vietnam overseas investment

Vietnam overseas investment

I. Rules for carrying out Vietnam overseas  investment activities.

1. The Vietnam State encourages overseas investment in order to exploit, develop and expand the market; improve the export of goods and services, earn foreign currencies; access modern technologies, raise the managerial capability and develop resources for socio-economic development.

2. Investors carrying out overseas investment activities shall comply with this Law, other relevant regulations of law, laws of the countries or territories that receive investment (hereinafter referred to as “host countries”), and the international agreements to which the Socialist Republic of Vietnam is a signatory, and take responsibility for outward investment activities they carry out.

II. Forms of Vietnam overseas investment

Investors shall carry out outward investment activities in the following forms:
a) Establishment of a business entity in accordance with the law of the host country;
b) Making investment on the basis of an overseas contract;
c) Contribution of capital to, purchase of shares or stakes of an overseas business entity to participate in management of such business entity;
d) Trading in securities, other financial instruments, or making investment via securities investment funds and other intermediary financial institutions in a foreign country;
dd) Other forms of investment prescribed by law of the host country.

III. Business lines banned from Vietnam overseas investment.

1. Business lines specified in Article 6 of  Law on investment 2020  and relevant international agreements.
2. Business lines with technologies and products banned from export in accordance with the law on foreign trade management.
3. Business lines banned from business investment in accordance with laws of the host countries.

V. Business lines subject to conditional Vietnam overseas investment.

1. Business lines subject to conditional outward investment include:
a) Banking;
b) Insurance;
c) Securities;
d) Press, radio and television;
dd) Real estate business.

2. The conditions for making business investment in the business lines mentioned in Clause 1 of this Article are specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international agreements on investment to which the Socialist Republic of Vietnam is a signatory.

V. Conditions for issuance of Vietnam overseas investment registration certificate.

1. Vietnam overseas investment activities shall adhere to the rules prescribed in Clause I above (Article 51 of Law on investment).

2. Outward investment activities do not involve any business line banned from overseas investment as prescribed in the Clause III above (Article 53 of Law on investment 2020) and conditions for overseas investment applicable to business lines subject to conditional outward investment as prescribed in Clause IV above (Article 54 of Law on investment) are satisfied.

3. The investor makes a commitment to prepare foreign currencies itself/herself/himself or obtains a commitment to prepare foreign currencies from an authorized credit institution for the purposes of conducting outward investment activities.

4. There is an overseas investment decision as prescribed in Article 59 of Law on investment 2020.

5. There is a tax authority’s certification of the fulfillment of tax obligation by the investor. Such certification must be issued by the tax authority within the last 03 months.

VI. Conditions for issuance of Vietnam overseas investment registration certificate

1. If the investment project is subject to approval for its outward investment guidelines, the Ministry of Planning and Investment shall issue the outward investment registration certificate to the investor within 05 working days from receipt of the written approval for investment guidelines and the outward investment decision prescribed in Article 59 of this Law.

2. Regarding the investment project not mentioned in Clause 1 of this article, the investor shall submit an application for issuance of an outward investment registration certificate to the Ministry of Planning and Investment. The application consists of:
a) An Vietnam overseas investment registration form;
b) A document concerning the legal status of the investor;
c) The overseas investment decision prescribed in Article 59 of Law on investment 2020;
d) A commitment to balance foreign currency sources or a commitment of an authorized credit institution to provide foreign currencies for the investor prescribed in Clause 3 Article 60 of Law on investment 2020;
dd) With regard to an overseas investment project in the business lines specified in Clause 1 Article 54 of Law on investment 2020, the investor shall submit a certification of the investor’s fulfillment of conditions for outward investment issued by a competent authority in accordance with the relevant regulations of law (if any).

3. In case the amount of foreign currency capital transferred abroad is VND 20 billion or more, the Ministry of Planning and Investment shall request the State Bank of Vietnam to provide opinions in writing.

4. Within 15 days from receipt of the application prescribed in Clause 2 of this Article, the Ministry of Planning and Investment shall issue an overseas investment registration certificate; in case of rejection of the application, a written explanation shall be provided to the investor.

Source: Vietnam Law on investment 2020

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