- 1. Who must comply with regulations on foreign investment activities in Vietnam?
- 2. Forms of inspection of foreign investment activities in Vietnam
- 3. How to check foreign investment activities in Vietnam
- 4. Contents of inspection for economic organizations and foreign-invested projects
- 5. Instructions on how to create an account and submit a report on the implementation of foreign investment projects online
Updated at 26/08/2022 - 05:32 pm
Foreign-invested economic organizations and foreign-invested projects operating in the Vietnamese territory must comply with regulations on investment activities in Vietnam. The following article provides detailed guidance on compliance issues for foreign investment activities in Vietnam:
1. Who must comply with regulations on foreign investment activities in Vietnam? #
Circular 02/2022/TT-BKHDT guiding the supervision and assessment of investment for foreign investment activities in Vietnam Regulations apply to:
“b) Foreign-invested economic organizations and foreign-invested projects operating in the Vietnamese territory.”
By definition at Investment Law 2020 (effective from January 01, 01)"Organizations Economic organizations with foreign investment capital is an economic organization with a foreign investor being a member or shareholder.
According to Article 2, Circular 02/2022/TT-BKHDT guiding the supervision and assessment of investment for foreign investment activities in Vietnam regulations:
"Projects with foreign investment is a project in one of the following cases:
a) The project is implemented by a foreign-invested economic organization or an economic organization specified in Clause 1, Article 23 of the Law on Investment and is granted an investment registration certificate in accordance with law;
b) The project is invested in the form of a business cooperation contract with the participation of a foreign investor or an economic organization specified in Clause 1, Article 23 of the Law on Investment.”
Summary: All cases of foreign-invested enterprises with any capital contribution ratio and foreign-invested projects with a foreign ratio of over 50% must comply with the provisions of Circular 02/2022/TT-BKHDT.
2. Forms of inspection of foreign investment activities in Vietnam #
There are 03 forms of inspection of foreign investment activities in Vietnam, specifically:
Periodic inspection: conducted on the basis of the annual inspection plan approved by the competent authority.
– Unscheduled inspection: carried out on a case-by-case basis, on the basis of management requirements and actual situation, or on the basis of requests and complaints from agencies, organizations and individuals on problems in the course of implementing investment activities or in the process of organizing the implementation of laws and policies on foreign investment or showing signs of violations in investment activities of foreign-invested economic organizations and foreign-invested projects.
- Specialized examination: conducted in accordance with specialized laws and at the request of specialized state management agencies in order to assess the implementation of the provisions of the law related to the field. authority management.
3. How to check foreign investment activities in Vietnam #
Depending on the content and actual situation, the competent authority shall carry out the inspection in the following ways:
- Through the National Investment Information System;
- Through the report;
- Organize inspection teams and working groups.
4. Contents of inspection for economic organizations and foreign-invested projects #
Economic organizations and foreign-invested projects may have the following items inspected:
1. Charter capital contribution progress, disbursement progress of registered investment capital; the situation of legal capital contribution (for sectors and fields where legal capital is regulated); the total realized investment capital and the ratio to the total registered investment capital.
2. Project deployment progress; the implementation of investment objectives of the project; the application of technology to projects subject to appraisal and opinions on technology (applied technology compared with technology already appraised or commented by a competent authority; installation of machinery; , equipment and technological lines of the investment project); technology transfer, for projects involving technology transfer (objects, contents, methods of technology transfer, results of technology transfer as agreed between the parties); the implementation of commitments and meeting investment conditions, market access conditions, conditions for enjoying investment incentives, investment support of investors when the project comes into operation.
3. The fulfillment of financial obligations for the state.
4. The implementation of legal provisions on labor, management of foreign exchange, environment, land, construction, fire prevention and fighting and other specialized legal regulations.
5. Financial situation of foreign-invested economic organizations
a) Value of assets contributed as capital by the parties (value of land use rights; value of machinery and equipment assets; intellectual property rights and other properties as prescribed by law);
b) Proper use of machinery and equipment imports to create fixed assets, raw materials, supplies and components imported for production are exempt from import tax;
c) Check the results determine business value, the stock value at the time before listing on the stock exchange in some special cases shows signs of over-inflating the enterprise value;
d) Transactions with overseas parent companies or related companies;
NS) Status of debt performance (bank loans, corporate bond issuance and other debt loans);
e) Setting up and using reserve funds, depreciating fixed assets, accounting for exchange rate differences;
g) Profit sharing for the State's capital contribution in foreign-invested economic organizations and projects;
h) Preservation of capital contribution of economic organizations and projects with state capital (including investment outside enterprises and accepting partners to contribute capital to joint ventures and associations in economic organizations).
6. Other contents related to the implementation of investment projects
a) The observance of regulations on investment supervision and evaluation conditions and report mode, statistics according to regulations;
b) The observance of measures to handle detected violations.
7. For projects subject to the issuance of an Investment Registration Certificate, in addition to the contents specified in Clauses 1 to 6 of this Article, the inspection contents also include the implementation of the contents specified in Clause XNUMX of this Article. Decision on approval of investment policy, Certificate of investment registration, Certificate of enterprise registration.
8. Depending on the purposes and requirements of the inspection and according to the nature and characteristics of the foreign-invested project, the inspection contents may include all or part of the contents specified in Article XNUMX of this Law. this.
Refer to the report form of foreign-invested enterprises upon inspection “Sample Report Prepared for Working with the Inspection Team”
Circular 02/2022/TT-BKHDT guiding the supervision and assessment of investment for foreign investment activities in Vietnam #
This Circular stipulates investment supervision and assessment for foreign investment activities in Vietnam.
5. Instructions on how to create an account and submit a report on the implementation of foreign investment projects online #
Step 1: Register to create an account at NATIONAL INFORMATION SYSTEM ON FOREIGN INVESTMENT
Load Registration form for creating an account of enterprises with foreign direct investment projects in Vietnam here, fill out all information and submit it at the place where the Investment Registration Certificate (IRC) is issued, usually the Department of Planning and Investment of the province or city directly under the central government.
Step 2: Log in to your account and submit the report
After being granted an account, enterprises log in and submit online reports through their accounts.
See instructions for handling and submitting reports here:
