What Has Changed in Vietnam Investment Law 2014? | ANT Lawyers

The new Investment Law 2014 announced by Vietnam Government on December 26th, 2014 has come into effect on July 1st, 2015. The new law introduces changes which include more opening policies for foreign investors to establish and set-up businesses in Vietnam.

What makes foreign investors hesitate to invest and set-up business in Vietnam? The administrative problems and lack of transparency; the inconsistencies in implementing the principle of freedom to do business.

Theoretically, the new Investment Law 2014 will resolve the above mentioned issues by offering a faster amendment mechanism on registering changes or issuing the new Business Registration Certificate or Investment Certificate. Generally, the process and procedures are expected to become more straightforward and convenient for foreign owned companies compared with 2005 Investment Law and the 2005 Enterprise Law by reducing the volume of paper and the administrative works.

In conclusion, the 2014 Investment Law will help clear up some of the confusions that accompanied the 2005 Investment Law and the 2005 Enterprise Law and their application, as well as ease and simplify the foreign investment process which, it is hoped, will promote business activities and investment into Vietnam. The investment of foreign investor into a Vietnamese company in certain situations would be treated in the same manner as a domestic investor that provides an opportunity to offer clients creative structuring solutions to facilitate investment in Vietnam.

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What Important Step-by-Step Guide to Establish Company in Vietnam?

When foreign investors invest in Vietnam, they could establish company in Vietnam. Foreign investors have the right to choose the appropriate forms of enterprise such as a limited liability company, joint stock company, etc. with specific steps are as follows:

Step 1: Register the investment project

Investors submit an investment project registration file to the Business Registration office of the province or city or the management board of an industrial zone, an export processing zone or a high-tech zone for the approval of an investment project during the period within 15 days (without time for clarification).

Step 2: Apply for Certificate of investment registration

After approval of the investment project, investors submit a valid record to the Department of Planning and Investment within 10 days to apply for a business registration certificate.

Step 3: Apply for the certificate of business registration

After obtaining the business registration certificate, the investor shall submit the application for enterprise registration certificate to the enterprise registration office within 3 days.

Step 4: Publish the content of the business registration

After being granted the certificate of enterprise registration, the investor shall disclose information about the enterprise on the national enterprise registration portal within 30 days, including the following information:

i, Business lines;

ii, List of founding shareholders and shareholders being foreign investors for joint-stock companies.

Step 5: Registered business stamp

The enterprise has the right to decide on the form, quantity and contents of the stamp of the enterprise. The content of the stamp must show the following information:

– Company’s name;

– Business code.

After receiving the legal entity stamp and before using the business stamp, the enterprise must send a notice on the stamp of the enterprise to the business registration office for publication in the National Information Portal on the business registration.

Step 6: Notice of use of stamp:

After having stamp made, investors submit notices on use of stamp forms to the Investment registration agency.After receiving the record, the Investment registration agency issues a receipt for the enterprise, publishes the notice of the enterprise on the National Business Information Portal and issues a notice of the posting, stamp samples of enterprises, branches and representative offices for enterprises.

Step 7: Open bank account:

Investors need to open two types of bank accounts, namely the investment capital account to receive the investment amount and the transaction account for conducting daily transaction in Vietnam.

Step 8: The post licensing procedures:

For the conditional business lines:

Investors investing in conditional businesses lines as regulated in Appendix 4 of the Investment Law 2014 must apply certificate of business qualification, practicing certificates, professional liability insurance, legal capital requirements, etc. before conducting business in Vietnam.

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Japan Investors Expand Investment in Dong Nai

set up business in Vietnam

Japan is one of the two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year and the main investment sector is supporting industry.

According to the Dong Nai Department of Planning and Investment, in the first three months of 2017, the province has granted investment registration certificates to 31 projects with foreign direct investment (FDI), with total investment capital of more than 314 million USD, including 15 newly licensed projects with total capital of nearly 137 million USD and 16 projects register to increase capital with total capital increase of more than 177 million USD.

Japan is one of two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year. The field that Japanese businesses invest in Dong Nai is mainly supporting industry. Dong Nai is also the province that is currently calling for investment to increase the rate of supplying input materials for enterprises and also reducing imports.

In the recent 3 years, there are large numbers of Japanese enterprise come to Dong Nai to invest. In addition to Long Duc Industrial Park, which is primarily attracting Japanese businesses, other provinces have formed subdivisions to invite Japan’s SMEs to invest. Japanese enterprises investing in Dong Nai mainly in supporting industries, electricity, electronics, mechanics, machinery…

From the beginning of 2017, there are continuously Japan’s enterprises and local governments come to Dong Nai to explore investment opportunities. Notably, 22 enterprises coming from Sakai city, Osaka operating in the fields of mechanical engineering, steel, electricity, electronics… came to Dong Nai to visit Amata Industrial Park, Long Duc Industrial Park… to learn policies and investment opportunities.

Recently, Kobelco Environmental Solutions Joint Stock Company under Kobe Steel Group has proposed to the Dong Nai authorities to invest in the clean water treatment sector of the province. Kobelco entered Vietnam at the end of 2010 with the main activities which is water treatment, wastewater, recycling, waste treatment, operation and maintenance. In Dong Nai, the company has invested in waste water treatment system in Loteco Industrial Park and Long Duc Industrial Park.

According to experts, Vietnam’s participation in new FTAs offers many opportunities for businesses operating in Vietnam, including Japanese companies. Hence, more and more Japanese companies are choosing to set up company in Vietnam. 

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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