Offshore direct investment

Legal basic

• International convention to which Vietnam is a member

• Vietnam Investment Law 2005

• Law of the country receiving the investment

• Decree No. 78/2006/ND-CP of August 9, 2006, providing for offshore direct investment

Conditions for offshore direct investment

In order to make offshore direct investment, investors defined in Article 2 of this Decree shall meet the following conditions:

• Having offshore direct investment projects (hereinafter called investment projects);

• Fulfilling all financial obligations towards the State of Vietnam;

• Observing the provisions of law on management and use of state capital, for cases of using state capital for offshore direct investment;

• Having been granted investment certificates by the Ministry of Planning and Investment.

Agency acceptance

Investors make investment procedures at the Ministry of Planning and Investment, particularly in the Foreign Investment Department, Ministry of Planning and Investment.

Investment certificate-granting process

1.  Prior to investment projects capitalized at less than VND 15 billion

a. An investment project dossier shall comprise:

• The written registration of the investment project;

• The notarized copies of the investment certificate; the business registration certificate or the establishment decision or the paper of equal validity; the people’s identity card or passport; the investment license;

• The contract or written agreement with the partner on capital contribution or equity purchase or investment cooperation, for investment projects involving different investors;
  

• The written consent of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress on the offshore direct investment.

b. Procedure registration and the time for granting investment certificates

• Dossier: three investment project dossier sets, including an original;

• The Ministry of Planning and Investment shall, within five working days after receiving the dossier, send a written request to the investor for the latter’s clarification of the unclear content (if any);

• Within 15 working days after receiving a valid dossier, the Ministry of Planning and Investment shall grant an investment certificate and, at the same time, send copies thereof to the related Ministry;

• Where the investment project dossier is rejected, the Ministry of Planning and Investment shall send a written notice to the investor, clearly stating the reasons for the rejection.

2. Prior to investment projects capitalized at VND 15 billion or more

a. An investment project dossier shall comprise:

• The written request for examination of the investment project;

• The notarized copies of the investment certificate; the business registration certificate or the establishment decision or the paper of equal validity; the people’s identity card or passport; or the investment license;

• The written explanation on the investment project, covering the following contents: the investment objectives; the investment location; the investment capital amount; the investment capital sources; the use of Vietnamese laborers (if any); the use of raw materials from Vietnam (if any); the schedule for execution of the investment project;

• The contract or written agreement with the partner on capital contribution, equity purchase or investment cooperation, for investment projects involving different investors;
  

• The written consent of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress on the offshore direct investment.

b. The process of examining and granting an investment certificate:

• For investment projects approved by the Prime Minister

• For investment projects not required approved by the Prime Minister

 - Within 25 working days after receiving valid dossiers, the Ministry of Planning and Investment shall grant investment
   certificates.

 (Intercode Team)