Procedures for reporting the implementation of overseas investment projects

Report on the implementation of overseas investment projects is a reporting procedure for investment management agencies in Vietnam on foreign investment activities. Investing abroad brings opportunities to expand markets and investors need to clearly understand the requirements on content, deadlines and reporting agencies to comply with regulations. The following article by Long Phan will analyze in detail the issues related to this procedure.

Is there a penalty for not reporting on the implementation of overseas investment projects?

Pursuant to Point a, Clause 1, Point a, Clause 2, Article 20 of Decree 122/2021/ND-CP on violations of the reporting regime on overseas investment activities stipulates that:

• If an enterprise does not comply with the reporting regime on its overseas investment activities, it may be subject to administrative sanctions with a fine ranging from 20,000,000 VND to 30,000,000 VND.
• At the same time, violating enterprises are also forced to implement a reporting regime or add content and documents to the report on overseas investment activities for violations.

Therefore, investors need to seriously fulfill their reporting obligations according to regulations. Investors should pay attention to complying with the deadline and report content to ensure investment activities go smoothly.

The competent authority receives the report’s content

Pursuant to Clause 3, Article 73 of the Law on Investment 2020 on the reporting regime of overseas investment activities. Quarterly and annually, investors implementing investment projects abroad send reports on the performance of investment projects to the following agencies:

• Ministry of Planning and Investment,
• State Bank of Vietnam,
• Vietnamese representative agency in the investment receiving country.

Form of submission: made in writing and through the National Investment Information System.

Procedures for reporting on the implementation of overseas investment projects by investors

Profile components

Documents reporting on the implementation of overseas investment projects need to comply with the prescribed form. Currently, the applicable form is B.III.3 in Appendix B of Circular 25/2023/TT-BKHDT, effective from February 15, 2024.

This report form requires investors to provide detailed information about the project’s performance in the most recent financial year. Information that needs to be reported includes: revenue, profit after tax, shared profits of Vietnamese investors…

Execution order

The process of reporting on the implementation of overseas investment projects is specifically prescribed in Article 73 of the Law on Investment 2020 and guided in Article 83 of Decree 31/2021/ND-CP. Investors need to take the following steps:

Step 1: Grant an account to access the National Investment Information System

After being granted an Outward Investment Registration Certificate, investors are granted an account to access the National Investment Information System to carry out periodic reporting according to regulations.

Step 2: Send written notice of implementation of investment activities abroad

• Within 60 days from the date the investment project is approved or licensed according to the law of the host country, the investor must send a written notice of the implementation of investment activities in the host country. enclosed with a copy of the investment project approval document or documents proving the right to invest in the investment recipient country for the Ministry of Planning and Investment, the State Bank of Vietnam, and Vietnamese representative agencies. in the investment receiving country;
• Quarterly and annually, investors send reports on the performance of investment projects to the Ministry of Planning and Investment, the State Bank of Vietnam, and Vietnamese representative agencies in the investment-receiving country. ;

Step 3: Financial statements, tax finalization

• Within 06 months from the date of the tax finalization report or document with equivalent legal value according to the law of the investment receiving country, the investor reports on the operational status of the investment project. Enclosed with financial statements, tax finalization reports or documents of equivalent legal value according to the law of the receiving country, send them to the Ministry of Planning and Investment, the State Bank of Vietnam, and the Ministry of Finance. government, Vietnamese representative agencies in the investment-receiving country and competent state management agencies according to the provisions of this Law and other relevant laws;

Note: For overseas investment projects using state capital, in addition to implementing the reporting regime prescribed above, investors must also implement the investment reporting regime according to the provisions of law on Management and use of state capital invested in production and business at enterprises.

Consulting services and support for reporting on the implementation of overseas investment projects

Procedures for reporting the implementation of overseas investment projects need to ensure requirements regarding content, deadline and form of report. Therefore, customers can choose to use reputable consulting services for comprehensive support in the reporting process. With his experience, Long Phan can support customers quickly and effectively in the process of reporting on the implementation of overseas investment projects. Long Phan’s services include:

• Consulting on issues related to reporting on the implementation of overseas investment projects.
• Consulting and supporting customers in preparing reports.
• Assist in drafting reports according to the prescribed format, ensuring complete information and accuracy.
• Consulting on arising issues related to reporting on the implementation of investment projects abroad.

Procedures for reporting the implementation of overseas investment projects require compliance with legal regulations from the investor. Mastering the process, preparing complete documents and implementing them on time is the key to ensuring smooth investment activities. If you need detailed support or advice on this procedure, please contact Long Phan via hotline 0906735386. Long Phan is ready to support customers in every step of the reporting process.