How to invest in Vietnam – Procedures For Establishing A Foreign Investment Enterprise in Vietnam
1. Investment certificate
For the first time, foreign investors must have an investment project before being granted an investment certificate. Investment certificates also serve as business registration certificates. The investment certificate will be issued as part of the investment registration and/or evaluation process based on (i) the type of project, (ii) the size of the investment, and (iii) whether the project is under conditional investment or not.
The investment certificate for a foreign-invested project will have a fixed term of not more than 50 years, which can be extended for up to 70 years with the approval of the Government.
The investment certificate will set out the specific scope of business activities that a foreign investor is permitted to conduct in Vietnam, the amount of investment capital, the location, and land area to be used, and therefore the relevant incentives. (if). The investment certificate must also indicate the project implementation schedule for the investment.
The licensing agency will issue an investment certificate within 15 working days (for foreign projects subject to the registration process) or 30 working days (for foreign projects that must follow the evaluation process) from the date of receipt of an entire and valid application.
The registration process applies to foreign-invested projects with investment capital of but VND 300 billion and not on the list of conditional business lines. The evaluation process applies to the following two cases:
· Foreign projects with a capital of at least VND 300 billion: the evaluation process will focus on projects that comply with the master plan of infrastructure, land use planning, and the master plan of raw materials and other natural resources. Other factors considered include land use requirements, project implementation schedule, and environmental impact.
·Foreign projects are on the list of conditional businesses no matter the dimensions of investment capital: The evaluation process will specialize in compliance with applicable industry conditions. If the project has a capital of over VND 300 billion, other factors as discussed above will also be considered.
3. Licensing authority
Licensing agencies continue to be decentralized to provincial people Management Committees and management boards of industrial parks, export processing zones, and high-tech parks (Management Boards). For some important or sensitive business areas, the investment certificate issued by the provincial People’s Committee or the Board of Directors must be based on the investment policy or economic plan approved by the Prime Minister. approved.
a. Prime Minister approved
The following projects are required to obtain investment policy approval from the Prime Minister:
(i) Airport construction and operation; air transport;
(ii) Construction and commercial operation of national seaports;
(iii) Exploration, production and processing of oil and gas; exploration and exploitation of minerals;
(iv) Radio and television broadcasting;
(v) Commercial activities of casinos;
(vi) Tobacco production;
(vii) Establishment of higher education institutions;
(viii) Establishment of industrial parks, export processing zones, hi-tech parks, and economic zones.
If any of the above projects have been included in the economic plan approved by the Prime Minister and in accordance with the conditions of an international treaty to which Vietnam is a signatory, mandate Provincial People’s Committees or Management Boards may proceed to issue investment certificates without the Prime Minister’s own approval. If any of these projects are not in the economic plan approved by the Prime Minister or does not meet the conditions of an international treaty to which Vietnam is a signatory, the provincial People’s Committee or the Management Board The approval must be approved by the Prime Minister before issuing the investment certificate and coordinated with MPI and other ministries at the same time to propose to the Prime Minister to decide any additions or adjustments to the plan. economic planning.
b. Provincial People’s Committees
The Provincial People’s Committee has the right to review and issue an investment certificate for any investment project in its territory regardless of the intended investment capital or investment activity. In particular, an authorized Provincial People’s Committee:
- Investment projects located outside industrial parks, export processing zones, and hi-tech parks; and
- Infrastructure development investment project for the industrial zone, export processing zone, and the hi-tech zone where the Board of Directors in that province has not been established.
The Department of Planning and Investment of the province is responsible for receiving applications for investment certificates for and on behalf of relevant committees.
c. Administrative Council
The Board of Directors will consider and issue investment certificates for investment projects carried out in industrial parks, export processing zones, and hi-tech parks.
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