Investing abroadis an increasingly popular trend in the context of globalization, bringing many new investment opportunities for Vietnamese investors. However, investing abroad also requires investors to fully comply with legal regulations and follow the necessary procedures. Please follow Long Phan’s article to update useful information when you invest abroad in the safest and most effective way.
Guidance on investing abroad in accordance with regulations
Conditions for applying for a foreign investment registration license
Pursuant to Article 60 of the Law on Investment 2020, to be granted an Outward Investment Certificate, the following specific requirements must be met:
Compliance with investment principles: Investment activities abroad must ensure compliance with general principles specified in Article 51 of the Law on Investment 2020.
Legal industries: Investors are not allowed to invest in prohibited industries and occupations according to Article 53 of the Law on Investment 2020 and must meet the requirements for industries and occupations with conditions for investing abroad according to Article 54 of this Law.
Foreign currency commitment: Investors must have a commitment to arrange foreign currency on their own or through an authorized credit institution to carry out investment activities abroad.
Investment decision: Investors must have a valid decision to invest abroad according to the provisions of Article 59 of the Law on Investment 2020.
Confirmation of tax obligations: Investors need written confirmation from the tax authority on the fulfillment of tax obligations. Confirmation time is no more than 03 months from the date of investment application submission.
Current forms of investing abroad
According to Clause 1, Article 52 of the Law on Investment 2020, investors can carry out investment activities abroad in the following forms:
Establish an economic organization according to the laws of the investment receiving country;
Investing in the form of contracts abroad;
Contribute capital, buy shares, purchase capital contributions from economic organizations abroad to participate in the management of that economic organization;
Buy and sell securities and other valuable papers or invest through securities investment funds and other intermediary financial institutions abroad;
Other forms of investment according to the laws of the receiving country.
Procedures for obtaining a license for investing abroad
Profile components
For projects not subject to investment policy approval
According to Clause 1, Article 78 of Decree 31/2021/ND-CP, investment registration documents include the following documents:
Document for registration of investment abroad.
Documents on the investor’s legal status.
Decide to invest abroad.
Commit to self-balancing foreign currency sources or commit to arranging foreign currency. In case the investor commits to arrange foreign currency, it is necessary to submit confirmation of the foreign currency account balance from the credit institution where the investor opened the account.
Document certifying from the tax authority that tax obligations have been fully completed in Vietnam within the last 3 months before submitting the application for investment registration abroad.
Written approval from a competent state agency (if the project belongs to a conditional industry).
Documents confirming the location of the investment project abroad for the cases specified in Article 73 of this Decree.
Documents determining the form of investment abroad according to the provisions of Article 74 of this Decree.
For projects subject to investment policy approval
According to Article 75 of Decree 31/2021/ND-CP, the dossier includes the following specific documents:
Documents proving financial capacity, including: financial statements of the last 2 years or commitment to financial support from the parent company or credit institution.
Commitment to source foreign currency or commitment to arrange foreign currency.
Document certifying from the tax authority that tax obligations have been fully completed in Vietnam within the last 3 months before submitting the application for investment registration abroad.
Documents confirming the location of the investment project abroad for the cases in Article 73 of this Decree.
Documents determining the form of investment abroad according to the provisions of Article 74 of this Decree.
Written approval of the owner’s representative agency: Approval to carry out investment activities abroad and internal appraisal report.
Document from a competent authority: For projects in special industries, a document confirming the conditions for investing abroad is required.
Report lending to economic organizations abroad includes information on the borrower’s name, total loan amount, loan purpose and conditions, debt disbursement and recovery plan, and asset security measures. along with processing methods, plans to balance foreign currency sources, assess the borrower’s financial capacity, risk level and risk prevention measures.
In addition, documents defining the guarantee obligation are needed if the investor guarantees the loan to the organization.
Documents needed to prepare when applying for investment registration abroad
Implementation process
The process of issuing an Investment Registration Certificate for investing abroad for projects that do not require investment approval.
According to Clause 2, Article 78 of Decree 31/2021/ND-CP, the implementation sequence includes the following steps:
Step 1: Submit application
Investors declare and submit electronic documents via the National Investment Information System. After completion, the investor sends 03 sets of paper documents (including 01 original set) to the Ministry of Planning and Investment within 15 days.
The dossier includes documents such as investment registration documents, legal documents, investment decisions, commitment to foreign currency resources and confirmation of tax obligations.
Step 2: Check your profile
The Ministry of Planning and Investment checks documents within 05 working days.
If the dossier is not valid, this agency will send a request for supplementation or adjustment.
If the dossier is complete and valid, processing will continue.
Step 3: Get opinions from the State Bank of Vietnam (if necessary)
For projects with foreign currency capital of 20 billion VND or more, the Ministry of Planning and Investment will consult with the State Bank on factors related to capital and foreign exchange.
The State Bank has 07 working days to respond.
Step 4: Issuing an Investment Certificate for investing abroad
Within 15 working days of receiving valid documents, the Ministry of Planning and Investment issues a Certificate, including project code, project information and implementation conditions.
The certificate will be sent to relevant agencies for coordinated management.
Step 5: Refuse to issue Certificate (if any)
If the application does not meet the requirements, the Ministry of Planning and Investment will issue a refusal notice, clearly stating the reason and measures to be taken to fix it.
The process of issuing an Investment Registration Certificate for investing abroad for projects that require investment approval.
According to Article 61 of the Law on Investment 2020 and Article 76 of Decree 31/2021/ND-CP, this process includes:
Step 1: Prepare and submit application
Investors submit applications through the National Investment Information System and submit paper copies including 03 sets (01 original set).
Documents are only submitted after the investor receives written approval of the investment policy from the National Assembly, the Government or the Prime Minister.
Step 2: Check your profile
The Ministry of Planning and Investment checks the validity of the application within 05 working days.
If the file has any shortcomings, the investor will be asked to make additions or corrections.
Step 3: Coordinate with relevant agencies
For projects with large foreign currency capital (20 billion VND or more), the Ministry will seek opinions from the State Bank on factors related to capital and foreign exchange.
For some specific industries such as journalism, radio and television, the Ministry of Planning and Investment will consult with the Ministry of Information and Communications.
Step 4: Issue Overseas Investment Certificate
After completing the consultation from relevant agencies, the Ministry of Planning and Investment issues the Certificate within 05 working days of receiving all approval documents and investment decisions.
If the application does not meet the requirements, the Ministry of Planning and Investment will issue a refusal notice, clearly stating the reasons and requirements that need to be supplemented or amended.
Long Phan’s in-depth and comprehensive consulting and support services
Safe and effective overseas investment consulting and support services at Long Phan
At Long Phan, we provide comprehensive support and consulting services for investors who want to invest abroad, including:
Consulting on selecting potential investment markets for investment.
Develop long-term and short-term investment strategies based on the business’s goals and resources.
Consulting on investment models (such as direct, joint venture, cooperation, mergers and acquisitions).
Support investors in preparing and drafting procedural documents.
Investor representatives submit and process documents at competent agencies.
Consulting on methods to resolve disputes and protect customers’ rights.
Providing risk management solutions and ensuring safety for investment activities.
Investing abroad requires careful preparation and requires investors to fully comply with regulations. Please contact Long Phan via the hotline 0906735386for detailed advice on overseas investment solutions suitable to your needs and financial situation. Long Phan believes that, with our professional support, you will succeed in new investment strategies in foreign markets.
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Luật sư Nguyễn Thu Hương
Lawyer Nguyen Thu Huong is a leading expert in the field of investment and licensing for foreigners. With extensive knowledge of investment laws and the complex regulations related to licensing procedures, she has successfully assisted numerous businesses and foreign investors in establishing their operations in Vietnam.