If I don't have an overseas investment capital account in Vietnam, can I transfer investment capital overseas in order to conduct investment activities?
If I don't have an overseas investment capital account in Vietnam, can I transfer investment capital overseas in order to conduct investment activities? What are regulations on use of profit overseas in Vietnam?
My company has an approved overseas investment project, but the company does not have an overseas investment capital account, can it transfer money abroad to implement the investment project?
If I don't have an overseas investment capital account in Vietnam, can I transfer investment capital overseas in order to conduct investment activities?
Pursuant to Clause 1, Article 66 of the Law on Investment 2020, an investor is allowed to transfer investment capital overseas in order to conduct investment activities if the following conditions are met:
a) The outward investment registration certificate has been granted, except for the case prescribed in Clause 3 of this Article;
b) The investment activities have been approved or licensed by a competent authority of the host country. If the host country’s law does not cover investment licensing or approval, the investor must provide documents proving their right to carry out investment activities in that country;
c) There is a capital account as prescribed in Article 65 of this Law.
According to this Article, in order to transfer money abroad to implement an investment project, your company must fully meet the above conditions, having a capital account is one of the conditions. So your company must have this account in Vietnam.
What are regulations on use of profit overseas in Vietnam?
According to Article 67 of the Law on Investment 2020, use of profit overseas is regulated as follows:
1. The investor is entitled to retain profit derived from outward investment for reinvestment in the following cases:
a) Continuing to contribute outward investment capital if capital has not yet been fully contributed as registered;
b) Increasing outward investment capital;
c) Executing a new investment project overseas.
2. Investors shall follow the procedures for adjusting the outward investment registration certificate as prescribed in Article 63 of this Law in the cases specified in Points a and b Clause 1 of this Article; and follow the procedures for issuance of the outward investment registration certificate as prescribed in Article 61 of this Law in the case specified in Point c Clause 1 of this Article.
Best Regards!
