What are the cases in which the investment registration certificate is required? What are the procedures for issuance of the investment registration certificate in Vietnam?
What are the cases in which the investment registration certificate is required?
According to the provisions of Clause 1, Article 37 of the 2020 Law on Investment in Vietnam, the following cases in which the investment registration certificate is required:
Cases in which the investment registration certificate is required
1. The investment registration certificate is required in the following cases:
a) Investment projects of foreign investors;
b) Investment projects of the business organizations mentioned in Clause 1 Article 23 of this law.
Thus, the cases in which the investment registration certificate is required include:
- Investment projects of foreign investors;
- Investment projects of the business organizations include:
+ Over 50% of its charter capital or more is held by a foreign investor(s) or the majority of the general partners are foreigners if the business organization is a partnership;
+ Over 50% of its charter capital or more is held by a business organization(s) mentioned in Point a Clause1 Article 23 of the 2020 Law on Investment in Vietnam;
+ Over 50% of its charter capital or more is held by a foreign investor(s) and a business organization(s) mentioned in Point a Clause 1 Article 23 of the 2020 Law on Investment in Vietnam.
What are the cases in which the investment registration certificate is required? What are the procedures for issuance of the investment registration certificate in Vietnam?
What are the procedures for issuance of investment registration certificate in Vietnam?
Pursuant to Article 38 of the 2020 Law on Investment in Vietnam, the procedures for issuance of investment registration certificate are as follows:
- If the investment project is subject to approval for its investment guidelines as prescribed in Article 30, Article 31 and Article 32 of the 2020 Law on Investment in Vietnam, the investment registration authority shall issue the investment registration certificate to the investor within:
+ 05 working days from the receipt of the written approval for investment guidelines and the written approval for investor with respect to the investment project that is subject to issuance of an investment registration certificate;
+ 15 days from the receipt of the investor’s investment registration certificate with respect to the investment project other than that specified in Point a of this Clause.
- If the investment project is not subject to approval for its investment guidelines as prescribed in Article 30, Article 31 and Article 32 of the 2020 Law on Investment in Vietnam, the investor shall be issued with the investment registration certificate if the following conditions are met:
+ The investment project does not involve any banned business line;
+ There is a location for execution of the investment project;
+ The investment project is conformable with the planning specified in Point a Clause 3 Article 33 of the 2020 Law on Investment in Vietnam;
+ The investment per m2 (or investment per employee) is not smaller than the minimum requirement.
+ Market access conditions applied to foreign investors are satisfied.
What is the duration of investment projects in Vietnam?
According to the provisions of Article 27 of Decree No. 31/2021/ND-CP as follows:
Duration of investment projects in Vietnam
1. The duration of an investment project inside an economic zone shall not exceed 70 years.
2. The duration of an investment project outside an economic zone shall not exceed 50 years. The duration of an investment project in a disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years.
3. If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.
4. Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum prescribed in Clauses 1 and 2 of this Article, except for the following investment projects:
a) Investment projects using obsolete, environment threatening or resource-intensive technologies;
b) Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.
5. The Government shall elaborate this Article.
Thus, the activities of investment projects are regulated as follows:
- The duration of an investment project inside an economic zone shall not exceed 70 years.
- The duration of an investment project outside an economic zone shall not exceed 50 years.
- The duration of an investment project in a disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years.
LawNet