Summary of reports of FDI enterprises in Vietnam in 2024

Summary of reports of FDI enterprises in Vietnam in 2024

Pursuant to Clause 22 Article 3 of the Law on Investment in 2020 stipulating as follows:

Definitions

For the purposes of this Law, the terms below are construed as follows:

...

22. “foreign-invested business organization” means an organization whose members or shareholders are foreign investors.

...

As regulations above, FDI is the abbreviation of Foreign Direct Investment. FDI enterprises are economic organizations with foreign investment capital.

The list of reports that FDI enterprises need to submit to the foreign investment management agency in 2024 includes the following types of reports:

- Investment activity report

- Investment monitoring and evaluation report

- Report on the situation of merchandise trading activities and activities directly related to merchandise trading

- Financial report

- Labor utilization report

Summary of reports of FDI enterprises in Vietnam in 2024 - Source: Internet

What is the time for submission of reports of FDI enterprises in Vietnam?

The reporting deadlines for FDI enterprises are specified as follows:

[1] Investment activity report

The periodic reporting regime for FDI enterprise investment activities is regulated by Article 72 of the Law on Investment in 2020 as follows:

- Every quarter and every year, FDI enterprises implementing investment projects report on the implementation status of the investment project to the investment registration authority and the statistical agency in the area.

- The report includes the following contents:

+ Actual investment capital;

+ Results of investment and business activities;

+ Information on labor, payment to the State budget;

+ Investment in research and development;

+ Treatment and environmental protection;

+ Specialized indicators by field of operation;

- FDI enterprises shall report in writing and through the National Investment Information System.

The reporting time for FDI enterprise investment activities is regulated by Article 102 of the Decree 31/2021/NĐ-CP as follows:

- Quarterly reports are submitted before the 10th of the first month of the quarter following the reporting quarter, including the following contents:

+ Actual investment capital;

+ Net revenue;

+ Export, import;

+ Labor;

+ Taxes and budget contributions;

+ Land and water use situation.

- Annual reports are submitted before March 31 of the year following the reporting year, including the following contents:

+ Indicators of the quarterly report and indicators on profit;

+ Income of employees;

+ Expenses and investments for scientific research and technology development, environmental treatment and protection, and the origin of the technology used.

[2] Investment monitoring and evaluation report

The types of investment monitoring and evaluation reports are regulated by Clause 4 Article 100 of the Decree 29/2021/NĐ-CP as follows:

- FDI enterprises shall prepare and submit the following types of reports to the competent authority for investment decision-making, the competent authority and the unit responsible for implementing investment monitoring and evaluation:

+ Regular monitoring and evaluation reports: semi-annually and annually;

+ Monitoring and evaluation report before adjusting the program or project;

+ Monitoring and evaluation report at the end of the program or project;

+ Evaluation report on the investment program or project organized by itself;

+ Summary report on the annual monitoring and evaluation work of the investment programs and projects managed by itself.

Reporting deadlines for investment monitoring and evaluation are regulated by Clause 11.a Article 100 of the Decree 29/2021/NĐ-CP as follows:

- Send the report 6 months before July 10 of the reporting year;

- Send the annual report before February 10 of the following year;

- Send the report before submitting the program project adjustment.

Note: Only national priority projects as defined by the Law on Public Investment  in 2019, the Law on Construction in 2014; projects decided on the investment policy by the National Assembly according to the Law on Investment in 2020 under the public-private partnership mode; projects approved by the National Assembly on the investment policy according to the Law on Investment in 2020 must make investment monitoring and evaluation reports.

If the FDI enterprise does not belong to the national priority projects, it only needs to report on investment activities.

[3] Report on the situation of merchandise trading activities and activities directly related to merchandise trading

Pursuant to Clause 1 Article 40 of the Decree 09/2018/NĐ-CP, the following is stipulated:

Every year, before January 31, foreign-invested economic organizations are responsible for reporting on the situation of merchandise trading activities and activities directly related to merchandise trading.

FDI enterprises are obliged to report, provide documents or explain issues related to merchandise trading activities and activities directly related to merchandise trading, the operation of retail establishments at the request of the competent state management agency.

[4] Financial report

The deadline for submission of financial reports of FDI enterprises is stipulated in Point a, Clause 2, Article 109 of Circular 200/2014/TT-BTC on the deadline for submission of annual financial statements, which is at least 90 days.

FDI enterprises must submit financial statements to the Department of Finance of the provinces, centrall-affiliated cities where the enterprise is registered with its main business headquarters. (As stipulated in Clause 5, Article 110 of Circular 200/2014/TT-BTC)

[5] Report on the situation of labor utilization

Pursuant to Clause 2, Article 4 of the Decree 145/2020/NĐ-CP, the following is the deadline for reporting on the situation of labor utilization of FDI enterprises:

- Every 6 months, the report must be submitted before June 5.

- Every year, the deadline for submission is before December 5.

What are procedures for establishment of FDI enterprises in Vietnam?

Pursuant to Article 63 of the Decree 31/2021/NĐ-CP stipulating establishment of business organizations by foreign investors as follows:

Establishment of business organizations by foreign investors

1. Except for the case in Article 67 hereof, the foreign investor shall establish a business organization and execute an investment project as follows:

a) In the case of execution of a new investment project, the foreign investor shall follow procedures for approval of investment guidelines and issuance of the investment registration certificate to the new investment project, and procedures for establishing a business organization in accordance with regulations of law corresponding to each type of business organization;

b) In the case of receipt of an investment project and establishment of a business organization, the foreign investor shall follow procedures for issuance of the investment registration certificate (if such project is not issued with the investment registration certificate) or adjustment of the investment registration certificate (if such project has been issued with the investment registration certificate) and procedures for business organization establishment in accordance with regulations of law corresponding to each type of business organization.

...

As regulations above, to establish a foreign-invested enterprise, the following steps must be taken:

For the case of implementing a new investment project:

Step 1: Complete the procedures for approval of the investment policy

Step 2: Complete the procedures for issuing the Investment Registration Certificate

Step 3: Complete the procedures for establishing a business entity corresponding to each type of business entity

For the case of transferring an investment project and establishing an economic organization:

Step 1: The foreign investor completes the procedures for issuing the Investment Registration Certificate or adjusting the Investment Registration Certificate (depending on the applicable case)

Step 2: Complete the procedures for establishing a business entity corresponding to each type of business entity

Best regards!