Execution of investment projects of foreign-invested business organizations

by BichNgoc

Foreign investors choose Vietnam to invest in implementing projects. How to execute of investment projects of foreign-invested business organizations, LSX Lawfirm will answer according to this following article: “Execution of investment projects of foreign-invested business organizations”, as follows:

Law on investment 2020

Decree No. 31/2021/ND-CP

Some definitions about investment projects

Accordingly, Investment project means a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time.

Then, Expansion project means an investment project on development of a running project by expanding the scale, improving the capacity, applying new technologies, reducing pollution or improving the environment.

New investment project means a project that is executed for the first time or a project independent from any other running project.

Execution of investment projects of foreign-invested business organizations

Firstly, if there is a new investment project other than the investment project issued with the investment registration certificate, the foreign-invested business organization shall follow the procedures below:

Accordingly, the business organizations shall follow procedures for issuance of the investment registration certificate as set out in Decree No. 31/2021/ND-CP, including foreign investors over 50% of its charter capital or more is held by:

  • Firstly, a foreign investor(s) or the majority of the general partners are foreigners if the business organization is a partnership.
  • Secondly, a business organization(s) mentioned as above.
  • Thirdly, a foreign investor(s) and a business organization(s) mentioned as above.

Secondly, Business organizations other than those specified as above shall implement the reporting regulation, in which:

If a project is exempt from the investment registration certificate; the investor shall submit a report to the investment registration authority before commencement of the project execution. The report shall specify: The project’s name; investment objectives; scale; capital; location; schedule; labor demand; and investment incentives (if any).

Thirdly, a foreign-invested business organization is entitled to adjust the contents of enterprise registration at the business registration authority without necessarily having an investment project. The addition of business lines by the foreign-invested business organization must satisfy market access conditions; (if any) applied to a foreign investor.

Investment projects of foreign-invested business organizations

In addition, a foreign-invested business organization is entitled to establish branches; representative offices and business locations outside its headquarters without necessarily having an investment project. Then applications and procedures for establishment of a branch; then representative office or business location of the business organization shall comply with regulations of law on enterprises or other law corresponding to each type of business organization.

Finally, when making investment or trading securities on the securities market; every foreign-invested business organization shall comply with regulations of law on securities regarding investment procedures and holding of charter capital; unless otherwise prescribed by international investment-related treaties regarding holding of charter capital.

Related article about execution of investment projects of foreign-invested business organizations

Establishment of business organizations by foreign investors

Forms of foreign investment under Vietnamese Law

Duration of investment projects for investors in Vietnam

What should foreign investors pay attention to about taxes in Vietnam?

Procedures for adjusting investment certificates

Procedure for adjusting investment projects in Vietnam

Investment in establishment of a business organization in Vietnam

Conduct of investment activities by foreign-invested business organizations

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