Procedures for granting approval for outward investment guidelines and making outward investment decisions in Viet Nam 2022
Outward investment activities are those that the government encourages and facilitates for the sake of development. In some cases, foreign investment projects must be approved by a competent state agency. Let’s ask Lawyer X about this issue using the following scenario: “Good day, lawyer!” My company intends to carry out a large-capital investment project in Laos. We’d like to learn more about Viet Nam law on procedures for granting approval for outward investment guidelines. I’m looking forward to your advice! Thank you!”
Legal grounds
Viet Nam Law on Investment 2020
What is outward investment?
Business investment means the use of investment capital by investors to carry out business activities. Investor means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business entities.
Outward investment can be considered as an investor transferring investment capital from Vietnam to a foreign country and using profit obtained from such investment capital to carry out outward investment activities in the foreign country. Approval for outward investment guidelines can be considered as a competent authority approving the objectives, location, scale, schedule and duration of an outward project; investor or form of selection of investor and special mechanisms or special policies (if any) to execute an outward investment project.
The competence to approve outward investment guidelines
– The National Assembly shall grant approval for outward investment guidelines of the following investment projects:
+ Investment projects with outward investment capital of VND 20,000 billion or more;
+ Investment projects that require application of a special mechanism or policy that needs to be decided by the National Assembly.
– Except for the investment projects mentioned in Article 1 of Viet Nam Law on Investment 2020, the Prime Minister shall grant approval for outward investment guidelines of the following investment projects:
+ Investment projects in the banking, insurance, securities, press, radio, television and telecommunications fields with outward investment capital of VND 400 billion or more;
+ Investment projects not mentioned in Clause a of Article 56 of Viet Nam Law on Investment 2020 with outward investment capital of VND 800 billion or more.
– Investment projects not mentioned in Clauses 1 and 2 of Article 56 of Viet Nam Law on Investment 2020 are not subject outward investment guideline approval.
Dossiers and procedures for outward investment guideline approval by the National Assembly
– The investor shall submit an outward investment project dossier to the Ministry of Planning and Investment. The dossier consists of:
+ An outward investment registration form;
+ A document concerning the legal status of the investor;
+ A proposal for the investment project containing at least: form, objectives, scale, and investment location; preliminary determination of investment capital, capital raising plan and structure of capital sources; project execution schedule, investment phases (if any); preliminary analysis of the efficiency of the project;
+ Document(s) proving the financial capacity of the investor including at least one of the following documents: the investor’s financial statements for the last two years of the investor; a parent company’s commitment to provide financial support; a financial institution’s commitment to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;
+ A commitment to itself/himself/herself balance sources of foreign currency or a commitment of an authorized credit institution to provide foreign currency for the investor;
+ A document issued by the agency representing the owner which approves the investor to carry out outward investment activities, and report on internal appraisal of the outward investment proposal of the state-owned enterprise as prescribed in Clause 1 Article 59 of Viet Nam Law on Investment 2020 or decision on outward investment as prescribed in Clause 2 Article 59 of Viet Nam Law on Investment 2020
+ With regard to an outward investment project in the business lines specified in Clause 1 Article 54 of Viet Nam Law on Investment 2020, the investor shall submit a written 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).
– Within 05 days from the date on which the sufficient dossier is received, the Ministry of Planning and Investment shall submit it to the Prime Minister for establishment of a State Appraisal Council.
– Within 90 days from the date of its establishment, the State Appraisal Council shall organize appraisal and prepare an appraisal report for submission to the Government. An appraisal report shall contain:
+ Conditions for issuance of an outward investment registration certificate prescribed in Article 60 of Viet Nam Law on Investment 2020
+ Legal status of the investor;
+ Necessity of conducting outward investment activities;
+ Conformity of the investment project with Clause 1 Article 51 of Viet Nam Law on Investment 2020
+ Form, scale, location and execution schedule of the investment project, outward investment capital and sources of capital;
+ Assessment of level of risks in the host country.
– At least 60 days before the opening of the meeting of the National Assembly, the Government shall prepare an application for outward investment guideline approval and submit it to the National Assembly’s agency presiding over validation.
– An application for outward investment guideline approval includes:
+ The Government’s application form;
+ The application mentioned in Clause 1 of Viet Nam Law on Investment 2020
+ The State appraisal council’s appraisal report;
+ Other relevant documents.
– Contents of validation of the request for outward investment guideline approval include:
+ Fulfillment of the criteria for determining that the investment project is subject to approval for its investment guidelines by the National Assembly;
+ Necessity of conducting outward investment activities;
+ Conformity of the investment project with Clause 1 Article 51 of Viet Nam Law on Investment 2020
+ Form, scale, location and execution schedule of the investment project, outward investment capital and sources of capital;
+ Assessment of level of risks in the host country;
+ Special policies and mechanisms; investment incentives, investment assistance and conditions for application thereof (if any).
– The Government and relevant organizations or individuals shall provide sufficient information and documents serving validation; provide explanation for the project contents at the request of the National Assembly’s agency in charge of validation.
– The National Assembly shall consider passing a resolution on the outward investment guideline approval containing the following contents:
+ The investor executing the project;
+ Investment objectives and location;
+ Outward investment capital, and sources of such capital;
+ Special policies and mechanisms; investment incentives, investment assistance and conditions for application thereof (if any).
– The Government shall elaborate on the conditions and procedures for appraisal of outward investment project dossiers by the State Appraisal Council.
Dossiers and procedures for outward investment guideline approval by the Prime Minister
– Investment project dossiers shall be prepared as prescribed in Clause 1 Article 57 of Viet Nam Law on Investment 2020.
– The investor shall submit an outward investment project dossier to the Ministry of Planning and Investment. Within 03 working days from the date on which the sufficient dossier is received, the Ministry of Planning and Investment shall request relevant regulatory agencies in writing to give their opinions.
– Within 15 days from receipt of the written request for opinions, the requested agencies shall give their written opinions about the contents under their management.
– Within 30 days from the date on which the application is received, the Ministry of Planning and Investment shall organize appraisal and prepare an appraisal report for submission to the Government. The appraisal report includes the contents specified in Clause 3 Article 57 of of Viet Nam Law on Investment 2020.
– The Prime Minister shall consider granting outward investment guideline approval comprising the contents set out in Clause 8 Article 57 of Viet Nam Law on Investment 2020
Outward investment decision
– A decision on outward investment by a state-owned enterprise shall be made in accordance with the law on management and use of state capital invested in manufacturing and business activities of enterprises and other relevant regulations of law.
– Outward investment activities not mentioned in Clause 1 of Article 59 of Viet Nam Law on Investment 2020 shall be decided by investors in accordance with the Law on Enterprises.
– Investors and authorities making decisions on the outward investment as prescribed in Clauses 1 and 2 of Article 59 of Viet Nam Law on Investment 2020 shall take responsibility for their decisions on outward investment.
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Frequently asked questions
A decision on outward investment by a state-owned enterprise shall be made in accordance with the law on management and use of state capital invested in manufacturing and business activities of enterprises and other relevant regulations of law.
The National Assembly shall consider passing a resolution on the outward investment guideline approval containing the following contents: The investor executing the project; Investment objectives and location; Outward investment capital, and sources of such capital; Special policies and mechanisms; investment incentives, investment assistance and conditions for application thereof (if any).
Investment projects not mentioned in Clauses 1 and 2 of Article 56 of Viet Nam Law on Investment 2020 are not subject to outward investment guideline approval.
Conclusion: So the above is Procedures for granting approval for outward investment guidelines and making outward investment decisions in Viet Nam 2022. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
