Investment conditions for foreign investors

Investment conditions for foreign investors are conditions that foreign investors must meet the demand. According to the provisions of the laws, ordinances, decrees, and international treaties on investment.

Legal basis

• Law No.61/2020/QH14 dated June 17, 2020, on Investment
• Decree No.31/2021/ND-CP dated March 26, 2021, on the elaboration of some articles of the Law on Investment

According to Clause 1 Article 7 of Law on investment 2020

“Conditional business lines are the business lines in which the business investment must satisfy certain conditions for reasons of national defense and security, social order and security, social ethics, or public health.”

Conditions for making business investment in the business lines mentioned in A List of conditional business lines is provided in Appendix IV of Article 7 of Law on investment 2020 are specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory. Ministries, ministerial agencies, People’s Councils, People’s Committees at all levels, and other entities must not issue regulations on conditions for making a business investment.

Conditions for making business investments must be appropriate for the reasons in Clause 1 of Article 7 of Law on investment 2020 and be public, transparent, objective, and economic in terms of time and costs of compliance by investors.

Regulations on business investment conditions shall contain the following:

- Subjects and scope of the business investment conditions;

- Forms of the fulfillment of the business investment conditions;

- Contents of the business investment conditions;

- Documentation and administrative procedures for compliance with the business investment conditions (if any);

- Regulatory agencies and agencies that have the power to handle administrative procedures regarding business investment conditions;

- Effective dates of licenses or certificates or other written confirmation or approval (if any).

Business investment conditions to be fulfilled are those specified in:

- Licenses;

- Certificates;

- Credentials;

- Written confirmation or written approval;

- Other requirements must be satisfied by individuals and business organizations to conduct business investment activities without obtaining written confirmation from a competent authority.

Note: The conditional business lines and the corresponding conditions shall be posted on the National Business Registration Portal.

Review, gathering, and publishing of business investment conditions (Article 12 of Decree No.31/2021/ND-CP)

The Ministry of Planning and Investment shall preside over and cooperate with other Ministries and ministerial agencies in reviewing and gathering business investment conditions for publishing thereof on the National Business Registration Portal.

Business investment conditions published include:

- Conditional business lines specified in Appendix IV of the Law on Investment 2020;

- Bases for application of the business investment conditions to the business lines specified in Point a of Clause 2, Article 12 of Decree No.31/2021/ND-CP;

- Conditions that must be satisfied by individuals and business organizations to carry out business investment activities as prescribed in Clause 2 Article 11 Decree No.31/2021/ND-CP.

Note: If business investment conditions are changed according to a Law, Resolution of the National Assembly, Ordinance, Resolution of the Standing Committee of National Assembly, Government's Decree or international investment-related treaty, they shall be updated as follows:

- Within 05 working days from the day on which the Law, Ordinance or Decree is promulgated or international investment-related treaty is signed, the relevant Ministry or ministerial agency shall send a written request for updating of business investment conditions on the National Enterprise Registration Portal to the Ministry of Planning and Investment;

- Within 03 working days from the day on which the aforementioned request is received, the Ministry of Planning and Investment shall update the business investment conditions or changes to business investment conditions on the National Enterprise Registration Portal.

Investment conditions of foreign investors are applied to the investment activities of foreign investors. In one of the following cases:

• Invest in the establishment of an economic organization
• Investment in the form of capital contribution, purchase of shares, or capital contribution in economic organizations
• Investment in the form of business cooperation contract
• Receiving transfer of investment projects or other cases of receiving investment projects
• Amending and supplementing investment and business lines of foreign-invested economic organizations.

Business investment conditions for foreign investors include:

• Conditions on the rate of ownership of charter capital of foreign investors in economic organizations
• Conditions on investment form
• Conditions on the scope of investment activities
• Conditions for Vietnamese partners to participate in investment activities
• Other conditions as prescribed in laws, ordinances, decrees, and international treaties on investment.

The above is the business investment conditions in Hnlaw & Partners Law Firm. If the business still has problems, unknowns, or needs other legal assistance, please contact the online legal consulting department through the hotline: 0912.918.296 for answers. We hope to receive the cooperation of customers!

For more details, please contact Hnlaw & Partners Law Firm

Address: DBS Tower, No.N028, lot 31 Hà Trì residential and commercial service area, Hà Trì ward, Hà Đông district, Ha Noi.

Hotline: 0912.918.296

Email: tuvan.hnlaw@gmail.com