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FAQS

Procedures for registration of investment in respect of domestic investment projects ?

Article 45 of Investment Law of year 2005 provides Procedures for registration of investment in respect of domestic investment projects

With respect to domestic investment projects which have an invested capital of below fifteen (15) billion Vietnamese dong and which are not included in the list of sectors of investment subject to conditions, the investors shall not be required to perform the procedures for investment registration.

With respect to domestic investment projects which have an invested capital of between fifteen (15) billion Vietnamese dong and below three hundreds (300) billion Vietnamese dong and which are not included in the list of sectors of investment subject to conditions, the investors shall perform the procedures for investment registration in the sample form at a provincial State administrative body for investment.

Items of investment registration shall comprise the following:

(a)Legal status of the investor;

(b)Objectives, sale and location for implementation of the investment project;

(c)Invested capital, project implementation schedule;

(d)Land use requirements and undertakings on environmental protection;

(dd) Proposal for investment incentives (if any);

Procedures for registration of investment in respect of foreign invested projects ?

Article 46 of Investment Law of year 2005 provides Procedures for registration of investment in respect of domestic investment projects

With respect of foreign invested projects which have an invested capital of below three hundred (300) billion Vietnamese dong and which are not included in the list of sectors of investment subject to conditions, the investors shall perform the procedures for investment registration at a provincial State administrative body for investment for issuance of an investment certificate.

2.The file for investment registration shall comprise:

(a)Document on the items stipulated in article 45.3 of this Law;

(b)Report on financial ability of the investor;

(c)Joint venture contract or business co-operation contract and charter of the

enterprise (if any).

3.The provincial State administrative body for investment shall issue an investment certificate within a time-limit of fifteen (15) days from the date of receipt of the complete and valid file for investment registration.

Operational duration of foreign invested projects?

The operational duration of a foreign invested project shall be commensurate with the requirements for operation of the project and shall not exceed fifty (50) years. Where necessary, the Government shall decide on a longer duration for each project, but the maximum duration shall not exceed seventy (70) years.

Guarantees relating to capital and assets

1. Lawful assets and invested capital of investors shall not be nationalized or confiscated by administrative measures.

2. In a case of real necessity for the purpose of national defence and security and in the national interest, if the State acquires compulsorily or requisitions an asset of an investor, such investor shall be compensated or paid damages at the market prices at the time of announcement of such compulsory acquisition or requisition.

Payment of compensation or damages must ensure the lawful interests of investors and be made on the basis of non-discrimination between investors.

3. Any compensation or damages payable to foreign investors as stipulated in clause 2 of this article shall be made in a freely convertible currency and shall be permitted to be remitted abroad.

4. Procedures and conditions for compulsory acquisition and requisition [shall beimplemented] in accordance with law.

Remittance of capital and assets abroad?

1. After a foreign investor has discharged fully its financial obligations to the State of

Vietnam, it shall be permitted to remit abroad the following:

(a)Its profits derived from business activities;

(b)Payments received from the provision of technology and services and from

intellectual property;

(d) Invested capital and proceeds from the liquidation of investments;

(dd) Other sums of money and assets lawfully owned by the investor.

2. A foreigner working in Vietnam for an investment project shall be permitted to remit abroad his or her lawful income after having discharged fully his or her financial obligations to the State of Vietnam.

3.The remittance of the above sums of money shall be made in a freely convertible currency in accordance with the trading exchange rate published by a commercial bank selected by the investor.

4. Procedures for remitting abroad the sums of money relating to an investment activity shall be subject to the laws on foreign exchange control.

Investment guarantees in the event of changes in law or policies?

1. If a newly promulgated law or policy contains higher benefits and incentives than those to which the investor was previously entitled, then the investor shall be entitled to the benefits and incentives pursuant to the new law as from the date the new law or policy akes effect.

2. If a newly promulgated law or policy adversely affects the lawful benefits enjoyed by an investor prior to the date of effectiveness of such law or policy, the investor shall be guaranteed to enjoy incentives the same as the investment certificate or there shall be resolution by one, a number or all of the following methods:

(a) Continuation of enjoyment of benefits and incentives;

(b) There shall be a deduction of the loss from taxable income;

(d) Consideration shall be given to paying compensation in necessary circumstances.

3. Based on the provisions of the laws and commitments in international treaties of which the Socialist Republic of Vietnam is a member, the Government shall make specific provisions on guarantee for interests of investors in the case where a change in laws or policies affects adversely the interests of the investors.

Sectors in which investment is conditional?

1. Sectors in which investment is subject to conditions shall comprise:

(a) Sectors impacting on national defence and security, social order and safety;

(b) Banking and finance sector;

(d) Culture, information, the press and publishing;

(dd)Entertainment services;

(e)Real estate business;

(g)Survey, prospecting, exploration and mining of natural resources; the ecological

environment;

(h)Development of education and training;

(dd) A number of other sectors in accordance with law.

2. Applicable to foreign investors, in addition to the sectors stipulated in clause 1 of this article, the sectors in which investment is subject to conditions shall comprise investment sectors in accordance with the schedule for implementation of international undertakings in international treaties of which the Socialist Republic of Vietnam is a member.

3. Where an enterprise with foreign owned capital invested in a sector in which investment was unconditional but during the course of the investment activity the list of sectors in which investment is conditional was amended with the result that the relevant sector was included, the investor shall be permitted to continue its investment activity in that sector.

4. The same investment conditions which are applicable to domestic investors shall be applied to foreign investors where Vietnamese investors hold more than fifty one (51) per cent of the charter capital of an enterprise.

5. Based on the requirements for socio-economic development in each period and consistent with the undertakings in international treaties of which the Socialist Republic of Vietnam is a member, the Government shall regulate the list of investments subject to conditions, the conditions applicable to the establishment of economic organizations, the forms of investment, and opening the marke in a number of sectors as applicable to foreign investors.

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