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Easier licensing for foreign investment

Released at: 16:03, 31/03/2015

Easier licensing for foreign investment

The Ministry of Planning and Investment is working on a decree, expected to be submitted to the government in May.

by Son Ho

Major change is being implemented for firms seeking to invest abroad. Instead of requiring a certification of investment, firms will only need to do go through standard procedures to get registration for foreign investment. Furthermore, only projects with investment capital of over VND800 billion ($37.144 million) need to go through the verification process, up from the previous sum of VND15 billion ($696,450). Projects with an investment amount lower than $37.144 million only need to register their investment.

According to the Foreign Investment Agency (FIA) of Ministry of Planning and Investment, these new policies aim to create more favourable conditions for enterprises. Management agencies will be responsible for the registration of investments rather than intervening in legal matters or the efficiency of businesses. Enterprises will be able to make decisions about investment activities on their own. The processes and procedures for registration of overseas investment will be specified and made transparent in a forthcoming decree.

Investors are also asked to declare their tax obligations. This is to check if investors are really doing business and investing in Vietnam or not, and to check if they are meeting their financial obligations to the State. The procedures will be simpler and more transparent, thus making it easier for investors.

However, the decree will also exercise tighter control when transferring money overseas. Investments need to be agreed upon by the State Bank of Vietnam before receiving certification when transferring at least VND20 billion ($928,600). Such regulations are to prevent investors from abusing the law to transfer money abroad.

The contents of the decree will be applied to investments relating to production and business activities. Investors must take responsibility for informing diplomatic agencies, the Ministry of Planning and Investment as well as the governing body in the host country about any activities on a regular basis. Investors who fail to meet these obligations will be warned.

Overseas indirect investment will have guidelines in a decree created the by State Bank of Vietnam.

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