Law on Investment 2020: Conditions for transfer of investment capital abroad

Conditions for transferring investment capital abroad - Illustrative image.

Clause 1, Article 66 of the Investment Law 2020 stipulates that investors are allowed to transfer investment capital abroad to carry out investment activities when the following conditions are met:

- The investor has been granted an Offshore Investment Registration Certificate, except in cases where the investor is allowed to transfer foreign currency or goods, machinery, and equipment abroad to serve activities of market survey, research, exploration, and other investment preparation activities as prescribed by the Government of Vietnam;

- The investment activity has been approved or licensed by the competent authority of the host country. In cases where the law of the host country does not provide for investment licensing or investment approval, the investor must have documents proving the right to conduct investment activities in the host country;

- There is an investment capital account when opening an offshore investment capital account according to regulations, specifically:

- The investor opens an offshore investment capital account at a permitted credit institution in Vietnam according to the provisions of the law on foreign exchange management.- All currency transactions from Vietnam to abroad and from abroad to Vietnam related to investment activities abroad must be carried out through the already opened investment capital account as mentioned above in accordance with the provisions of the law on foreign exchange management.

Furthermore, Clauses 2 and 3 of Article 66 of the Investment Law 2020 also stipulate that the transfer of investment capital abroad must comply with the provisions of the law on foreign exchange management, export, technology transfer, and other relevant laws. Investors are allowed to transfer foreign currency or goods, machinery, and equipment abroad to serve activities of market survey, research, exploration, and other investment preparation activities as prescribed by the Government of Vietnam.

For more details, see Investment Law 2020, effective January 01, 2021.

Le Vy

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