Investment
Creating favorable conditions for foreign investors via Investment Law
Information from the Government Office, the Government has promulgated Decree 118/2015 / ND-CP to detail and guide the implementation of some articles of the Investment Law, which stipulates that creating more favorable conditions for foreign investors like the investment procedures in the form of capital contribution and share purchase, the equity by foreign investors.
In particular, foreign investors invested in the form of capital contribution and share purchase and capital contribution in economic organizations will not have to implement the procedure for issuance of investment certificate of registration.
The Decree stipulates subjects and principles on preferential investment treatment. Accordingly, projects deployed in disadvantaged socioeconomic conditions, projects with the minimum investment capital of VND 6 trillion, or projects using at least 500 workers (excluding those with part-time contracts) are among those eligible for preferential investment treatment.
Investment registration agencies, planning management bodies, natural resources and environment authorities shall be responsible for full announcement of planning schemes and lists of investment projects.
The aforesaid agencies shall be responsible for disclosing information on such planning schemes and lists of investment projects as well as other relevant information within five working days since the receipt of written requests by investors.
The Ministry of Planning and Investment is assigned to review and summarize and make public investment conditions applicable to foreign investors via the national portal on foreign investment.
Before applying for the issuance of or adjustment to business registration certificates, foreign investors shall have to declare information on their investment projects on the national information system on foreign investment.
Within 15 working days, since the date they complete online information declaration, foreign investors submit documents asking for the issuance of or adjustment to the business registration certificates to the investment registration authorities.
Once the investment registration authorities receive the documents, investors shall be provided accounts to access to the national information system on foreign investment to track the document processing. Investors shall have to comply with legal regulations on investment, construction, land, environmental protection, and labor and relevant stipulation during the process of implementing projects.
To ensure the implementation of projects, investors shall have to pay security deposits in case they are allocated land by the State. For project with investment capital of up to VND 300 billion, the security deposit rate is 3% of the project value. The security deposit rate shall be decreased to 2% for project worth between VND 300 billion to VND 1 trillion, and to 1% for project worth above VND 1 trillion.
Economic organizations with foreign investors to invest in the form of capital contributions and purchase shares, share capital implement registration procedures change members or shareholders in the business registration agency as prescribed by law corporate law and other legislation relevant to each type of economic organization, except for the following cases:
1. Foreign investors contribute capital and purchase shares, the capital contributed to the economic organization of business lines of investment conditions for foreign investors.
2. The capital contribution and share purchase and capital contribution resulted in foreign investors, economic organizations defined at Points a, b and c, Clause 1, Article 23 of the Law on Investment holds 51% of the charter capital or more of the economic organizations in the following cases: Increase the percentage of ownership of the charter capital of foreign investors from 51% to 51% below or above and increase charter capital owned by foreign investors While foreign investors owning 51% or more of the charter capital in economic organizations.
Foreign investors invested in the form of capital contribution and share purchase and capital contribution of economic entities in the cases 1 and 2 above shall comply with the following procedures: Investors pay one registration dossier capital contribution and share purchase and capital contribution as stipulated in Clause 2, Article 26 of the Law on Investment Planning and Investment Department where economic entities are headquartered.
Within 15 days of receipt of a valid application, the Department of Planning and Investment to consider meet investment conditions for foreign investors and inform investors.
After receiving notification under the provisions, economic organizations with foreign investors contribute capital and purchase shares, share capital implement procedures to change members, shareholders in the business registration office under the provisions of corporate law and other legislation relevant to each type of economic organization.
Economic organizations with foreign investors contribute capital and purchase shares, the shares will not have to implement procedures for issuing, amending the certificate of investment registration or investment policy decisions for projects investments made prior to the foreign investors contribute capital and purchase shares, share capital.
Investment conditions for foreign investors to be published according to the provisions included content: Lines of investment conditions for foreign investors; bases applicable investment conditions for foreign investors; content investment conditions applicable to foreign investors; industries and service sectors.
The Decree stipulates subjects and principles on preferential investment treatment. Accordingly, projects deployed in disadvantaged socioeconomic conditions, projects with the minimum investment capital of VND 6 trillion, or projects using at least 500 workers (excluding those with part-time contracts) are among those eligible for preferential investment treatment.
Investment registration agencies, planning management bodies, natural resources and environment authorities shall be responsible for full announcement of planning schemes and lists of investment projects.
The aforesaid agencies shall be responsible for disclosing information on such planning schemes and lists of investment projects as well as other relevant information within five working days since the receipt of written requests by investors.
The Ministry of Planning and Investment is assigned to review and summarize and make public investment conditions applicable to foreign investors via the national portal on foreign investment.
Before applying for the issuance of or adjustment to business registration certificates, foreign investors shall have to declare information on their investment projects on the national information system on foreign investment.
Within 15 working days, since the date they complete online information declaration, foreign investors submit documents asking for the issuance of or adjustment to the business registration certificates to the investment registration authorities.
Once the investment registration authorities receive the documents, investors shall be provided accounts to access to the national information system on foreign investment to track the document processing. Investors shall have to comply with legal regulations on investment, construction, land, environmental protection, and labor and relevant stipulation during the process of implementing projects.
To ensure the implementation of projects, investors shall have to pay security deposits in case they are allocated land by the State. For project with investment capital of up to VND 300 billion, the security deposit rate is 3% of the project value. The security deposit rate shall be decreased to 2% for project worth between VND 300 billion to VND 1 trillion, and to 1% for project worth above VND 1 trillion.
Economic organizations with foreign investors to invest in the form of capital contributions and purchase shares, share capital implement registration procedures change members or shareholders in the business registration agency as prescribed by law corporate law and other legislation relevant to each type of economic organization, except for the following cases:
1. Foreign investors contribute capital and purchase shares, the capital contributed to the economic organization of business lines of investment conditions for foreign investors.
2. The capital contribution and share purchase and capital contribution resulted in foreign investors, economic organizations defined at Points a, b and c, Clause 1, Article 23 of the Law on Investment holds 51% of the charter capital or more of the economic organizations in the following cases: Increase the percentage of ownership of the charter capital of foreign investors from 51% to 51% below or above and increase charter capital owned by foreign investors While foreign investors owning 51% or more of the charter capital in economic organizations.
Foreign investors invested in the form of capital contribution and share purchase and capital contribution of economic entities in the cases 1 and 2 above shall comply with the following procedures: Investors pay one registration dossier capital contribution and share purchase and capital contribution as stipulated in Clause 2, Article 26 of the Law on Investment Planning and Investment Department where economic entities are headquartered.
Within 15 days of receipt of a valid application, the Department of Planning and Investment to consider meet investment conditions for foreign investors and inform investors.
After receiving notification under the provisions, economic organizations with foreign investors contribute capital and purchase shares, share capital implement procedures to change members, shareholders in the business registration office under the provisions of corporate law and other legislation relevant to each type of economic organization.
Economic organizations with foreign investors contribute capital and purchase shares, the shares will not have to implement procedures for issuing, amending the certificate of investment registration or investment policy decisions for projects investments made prior to the foreign investors contribute capital and purchase shares, share capital.
Investment conditions for foreign investors to be published according to the provisions included content: Lines of investment conditions for foreign investors; bases applicable investment conditions for foreign investors; content investment conditions applicable to foreign investors; industries and service sectors.
