What are business lines banned from outward investment in Vietnam?

What are business lines banned from outward investment in Vietnam?

Pursuant to Article 53 of the Investment Law 2020, the business lines banned from outward investment in Vietnam are stipulated as follows:

Article 53. Business lines banned from outward investment

1. Business lines prohibited from business investment as specified in Article 6 of this Law and relevant international treaties.

2. Business lines with technologies, products under the prohibition of export as prescribed by the law on foreign trade management.

3. Business lines prohibited from business investment under the laws of the country receiving the investment.

Thus, the business lines banned from outward investment in Vietnam include:

[1] Business lines prohibited from business investment are as follows:

- Business of narcotics

- Business of prohibited chemicals and minerals- Business of specimens of wildlife plants and animals sourced from nature as specified in Appendix I of the Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of forest plants, forest animals, aquatic species that are endangered, precious, rare in Group I sourced from nature

- Prostitution business

- Trading in people, tissues, corpses, human body parts, human fetuses

- Business activities related to human cloning

- Firework business

- Debt collection services

[2] Business lines with technologies, products under the prohibition of export as per the law on foreign trade management.

[3] Business lines prohibited from business investment as per the laws of the country receiving the investment.

What are business lines banned from outward investment in Vietnam? (Image from the Internet)

In which cases does the Prime Minister of the Government of Vietnam approve approve outward investment guidelines in Vietnam?

Pursuant to Article 56 of the Investment Law 2020, the authority to approve overseas investment policies is prescribed as follows:

Article 56. Authority to Approve Overseas Investment Policies

1. The National Assembly approves overseas investment policies for the following investment projects:

a) Investment projects with outward investment capital of 20,000 billion VND or more;

b) Investment projects that require the application of special mechanisms and policies subject to the decision of the National Assembly.

2. Except for investment projects prescribed in Clause 1 of this Article, the Prime Minister of the Government of Vietnam approves overseas investment policies for the following investment projects:

a) Investment projects in the fields of banking, insurance, securities, press, radio, television, telecommunications with outward investment capital of 400 billion VND or more;

b) Investment projects not categorized under point a of this Clause with outward investment capital of 800 billion VND or more.

3. Investment projects not categorized under Clauses 1 and 2 of this Article do not require approval of overseas investment policies.

Hence, the Prime Minister of the Government of Vietnam approves overseas investment policies for the following investment projects:

[1] Investment projects in the fields of banking, insurance, securities, press, radio, television, telecommunications with outward investment capital of 400 billion VND or more.

[2] Investment projects not under category [1] with outward investment capital of 800 billion VND or more.

Note: The following investment projects do not fall under the authority of the Prime Minister of the Government of Vietnam to approve overseas investment policies:

- Investment projects with outward investment capital of 20,000 billion VND or more

- Investment projects that require the application of special mechanisms and policies subject to the decision of the National Assembly

What are regulations on outward investment capital in Vietnam?

Based on the provisions of Article 55 of the Investment Law 2020, outward investment capital is regulated as follows:

Article 55. outward investment Capital

1. Investors are responsible for capital contribution and for mobilizing sources of capital to carry out investment activities abroad.

2. Borrowing in foreign currency, transferring investment capital in foreign currency must comply with conditions and procedures as regulated by the law on banking, credit institutions, foreign exchange management.

3. Based on the objectives of monetary policy, foreign exchange management policy in each period, the State Bank of Vietnam stipulates the mechanism for credit institutions, foreign bank branches in Vietnam to lend to investors in foreign currency as regulated in Clause 2 of this Article to implement overseas investment activities.

Hence, outward investment capital is regulated as follows:

- Investors are responsible for capital contribution and for mobilizing sources of capital to carry out investment activities abroad.

- Borrowing in foreign currency, transferring investment capital in foreign currency must comply with the conditions and procedures as stipulated by the law on banking, credit institutions, and foreign exchange management.

- Based on the monetary policy objectives, foreign exchange management policy in each period, the State Bank of Vietnam regulates the lending of credit institutions, and foreign bank branches in Vietnam to investors in foreign currency as prescribed to implement overseas investment activities.