Forms of outward investment activities in Vietnam

Forms of outward investment activities in Vietnam (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

1. Forms of outward investment activities in Vietnam

Specifically, Clause 1, Article 52 of the Investment Law 2020 stipulates that investors shall carry out outward investment activities in the following forms:

- Establishment of a business organization in accordance with the law of the host country;

- Making investment on the basis of an overseas contract;

- Contribution of capital to, purchase of shares or stakes of an overseas business organization to participate in management of such business organization;

- Trading in securities, other financial instruments, or making investment via securities investment funds and other intermediary financial institutions in a foreign country;

- Other forms of investment prescribed by law of the host country.

2. Business lines banned from outward investment in Vietnam

Pursuant to Article 53 of the Investment Law 2020, business lines banned from outward investment include:

- Business lines specified in Article 6 of this Law and relevant international treaties.

- Business lines with technologies and products banned from export in accordance with the law on foreign trade management.

- Business lines banned from business investment in accordance with regulations of laws of the host countries.

3. Business lines subject to conditional outward investment in Vietnam

According to Article 54 of the Investment Law 2020, business lines subject to conditional outward investment include:

- Banking;

- Insurance;

- Securities;

- Press, radio and television;

- Real estate business.

4. Conditions for issuance of outward investment registration certificate in Vietnam

Conditions for issuance of outward investment registration certificate are stipulated in Article 60 of the Investment Law 2020 as follows:

- Outward investment activities shall adhere to the rules prescribed in Article 51 of the Investment Law 2020.

- Outward investment activities do not involve any business line banned from outward investment as prescribed in Article 53 of the Investment Law 2020 and conditions for outward investment applicable to business lines subject to conditional outward investment as prescribed in Article 54 of the Investment Law 2020 are satisfied.

- The investor makes a commitment to prepare foreign currencies themself or obtains a commitment to prepare foreign currencies from an authorized credit institution for the purposes of conducting outward investment activities.

- There is an outward investment decision as prescribed in Article 59 of the Investment Law 2020.

- There is a tax authority’s certification of the fulfillment of tax obligation by the investor. Such certification must be issued by the tax authority within the last 03 months.

5. Procedures for issuance of outward investment registration certificate in Vietnam

Pursuant to Article 61 of the Investment Law 2020, the procedures for issuance of outward investment registration certificate are prescribed as follows:

- If the investment project is subject to approval for its outward investment guidelines, the Ministry of Planning and Investment shall issue the outward investment registration certificate to the investor within 05 working days from receipt of the written approval for investment guidelines and the outward investment decision prescribed in Article 59 of the Investment Law 2020.

- Regarding the investment project not mentioned in Clause 1 of Article 61 of the Investment Law 2020, the investor shall submit an application for issuance of an outward investment registration certificate to the Ministry of Planning and Investment. The application consists of:

+ An outward investment registration form;

+ A document about the investor’s legal status;

+ The outward investment decision prescribed in Article 59 of the Investment Law 2020;

+ A commitment to balance foreign currency sources or a commitment of an authorized credit institution to provide foreign currencies for the investor prescribed in Clause 3 Article 60 of the Investment Law 2020;

+ With regard to an outward investment project in the business lines specified in Clause 1 Article 54 of the Investment Law 2020, the investor shall submit a certification of the investor’s fulfillment of conditions for outward investment issued by a competent authority in accordance with the relevant regulations of law (if any).

- In case the amount of foreign currency capital transferred abroad is VND 20 billion or more, the Ministry of Planning and Investment shall request the State Bank of Vietnam to provide opinions in writing.

- Within 15 days from receipt of the application prescribed in Clause 2 of Article 61 of the Investment Law 2020, the Ministry of Planning and Investment shall issue an outward investment registration certificate; in case of rejection of the application, a written explanation shall be provided to the investor.

- The Government shall elaborate procedures for appraising outward investment projects; issue, adjust and invalidate outward investment registration certificates.

Ho Quoc Tuan

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