Investment Procedures

1. Forms of investment

1.1. Investment in establishment of a business organization.

- Must meet market access conditions.

- Must have an investment project, follow procedures for issuance of an Investment Registration Certificate before establishing a business organization.

1.2. Investment by contributing capital, purchasing shares or purchasing stakes.

- Forms of capital contribution to business organizations:

+ Purchase of shares of joint-stock companies through the initial public or additional issuance.

+ Contributing capital to limited liability companies and partnerships.

+ Contributing capital to other business organizations not categorized into two aforementioned cases.

- Forms of purchasing shares, purchasing stakes of business organizations

+ Purchasing shares of a joint stock company from the company or shareholder.

+ Purchasing stakes of capital contributors in a limited liability company to become a member of the limited liability company.

+ Purchasing stakes of capital-contributing members in a partnership to become a capital-contributing member of the partnership.

1.3. Implementing an investment project

- For projects subject to the issuance of an Investment Registration Certificate, the investor shall follow procedures for the issuance of an Investment Registration Certificate before implementing the investment project.

- For projects subject to approval of investment policies, the approval of investment policies must be granted before the implementation of the investment project.

1.4. Investment in the form of business cooperation contract (BCC).

- Parties to a business cooperation contract shall establish a coordinating board to execute the BBC.

- The BCC contract is signed between a domestic investor and a foreign investor or between foreign investors who follow procedures for issuance of an Investment Registration Certificate according to regulations.

1.5. New forms of investment and types of business organizations prescribed by the Government's regulations.

2. Types of investor selection

- Auction of land use rights in accordance with the law on land;

- Bidding to select investors in accordance with the law on bidding;

- Investor approval.

In case the project is subject to approval of investment policies, the procedures for approval of investment policies shall be carried out before the investor selection procedure is carried out.

In case an auction of land use rights is held but only one person registers to participate, or the auction fails twice in accordance with the law on land, or in case the bidding to select an investor whereas only one investor has registered to participate in accordance with the law on bidding, the competent authority shall carry out the investor-approval procedure when the investor meets the conditions prescribed by the relevant law.

3. Competent authority to admit dossiers and issue investment registration certificates

For foreign-invested projects implemented outside industrial parks and high-tech park: Danang Department of Planning and Investment.

For foreign-invested projects implemented in Industrial Parks or Hi-Tech Park: Danang Management Board of Hi-Tech Park and Industrial Zones.

4. Term of operation of the investment project

- The operation duration of an investment project in an economic zone shall not exceed 70 years.

- The duration of investment projects outside economic zones must not exceed 50 years. An investment project implemented in an area with difficult socio-economic conditions, an area with extremely difficult socio-economic conditions or an investment project with large investment capital but slow capital recovery, the duration of the investment project may be longer but must not exceed 70 years.

- If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.

- Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum time specified above, except for the following investment projects:

+ Investment projects using obsolete, environment threatening or resource-intensive technologies;

+ Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.

5. Language used in the application for implementation of investment procedures

- Dossiers of implementation of investment procedures, documents and reports sent to competent state agencies shall be made in Vietnamese.

- In case the application for implementation of investment procedures contains documents in a foreign language, the investor must have a Vietnamese translation attached to the document in the foreign language.

- In case papers and documents in the application for implementation of investment procedures are made in Vietnamese and a foreign language, the Vietnamese version shall be used to carry out investment procedures.

- The investor is responsible in case there is a difference between the translated content or the copy and the original and in case there is a difference between the Vietnamese version and the foreign language version.

6. Execute investment procedures on the National Information System

- Before carrying out the procedures for issuance and adjustment of the Investment Registration Certificate, the investor shall make an online declaration of information about the investment project on the National Investment Information System.

- For investment projects that are not subject to approval of investment policies, investors may choose to submit an application for issuance and adjustment of the Investment Registration Certificate in paper or online to the National Investment Information System in one of two forms: using digital signatures or not using digital signatures.

7. Implementing the investment project

- Principles of implementation:

+ For projects subject to approval of investment policies, the approval of policies must be done before the investor implements the project.

+ For an investment project subject to an Investment Registration Certificate, the investor is responsible for carrying out the procedures for issuance of the Investment Registration Certificate before implementing the investment project.

- Ensure the implementation of the investment project

+ Investors who request the State to allocate land, lease land or permit the change of land use purpose must deposit or have a guarantee from a credit institution or foreign bank branch established under Vietnamese law regarding the deposit payment, except for the following cases:

• The investor is the successful bidder for the right to use a land area that is allocated by the State for land levy or leased out by the State for a lump-sum rent.
• The investor who wins the tender for the implementation of an investment project using land.
• The State allocates or leases out land to the investor on the basis of receipt of an investment project for which a deposit has already been paid or for which the capital has been fully contributed or raised following the schedule specified in the written approval for investment guidelines or the investment registration certificate.
• The State allocates or leases out land to the investor for execution of an investment project on the basis of receipt of the land use right and assets on land from another land user.

+ The obligation to guarantee investment project execution shall be fulfilled on the basis of a written agreement between the investment registration authority and the investor.

+ The guarantee rate is expressed as a percentage of the investment capital of the investment project on the progressive principle, specifically:

For a capital portion of up to VND 300 billion, the guarantee rate is 03%;

For a capital portion of over VND 300 billion to VND 1,000 billion, the guarantee rate is 02%;

For a capital portion of over VND 1,000 billion, the guarantee rate is 01%.

The project’s investment capital determined as the basis for calculation of the guarantee rate does not include land levy or land rent payable to the State and costs of construction of the investment project’s works (if any) which the investor is obliged to transfer to the State for management after completion.

8. Reports

- Reporting period: quarterly, annually.

- Report form: in writing and through the National Investment Information System.

- Content of the report: on the investment project execution, which specify: investment capital, investment results, employees, payment to government budget, investment in R&D, environmental protection, and other professional indicators.

- Forms:

+ Quarterly report on the implementation of investment projects (form A.III.1 Circular No. 03/2021/TT-BKHDT).

+ Annual report on the implementation of investment projects (form A.III.2 Circular No. 03/2021/TT-BKHDT).

Refer to the sample documents and reports related to investment activities in Vietnam in accordance with Circular No. 03/2021/TT-BKHDT here.

9. List of conditional business lines, banned business lines, investment incentives...

- List of banned business lines (Details).

- List of business lines with prohibited market access for foreign investors (Details).

- List of business lines with conditional market access for foreign investors (Details).

- List of business lines eligible for investment incentives (Details).

- List of conditional business lines (Details).