How Foreign Investors Comply with Reports Submissions in Vietnam

Foreign investors setting up business in Vietnam have to comply with statistics report submissions according to Vietnam laws. To ensure compliance, corporate lawyers should be consulted to ensure compliance with reports applicable to foreign owned enterprises in Vietnam.

As the current regulation, foreign owned enterprises are obliged to submit monthly, quarterly, six month and annual reports to the Vietnam Department of Statistics or State agency for foreign direct investment of respective province or city.

Monthly reports are applicable to businesses and projects operating in the industry: mining, processing industry, electricity, gas, water supply, waste disposal, water treatment, information and communications, real estate, transport, warehousing, trade and services.

Quarterly reports are applicable to businesses and projects operating in agriculture, forestry and fisheries, construction;

All foreign owned enterprises have to report every 6 months on employment and income of the employee;

On annual basis, all foreign owned enterprises have to submit reports on the identification information of the business; financial indicators reflecting business results including revenue by business lines, taxes, fees, expenses, and profit; and capital investments made during the year by investment sources and investment category.

Read More

How Foreigners Could Obtain Residence in Vietnam Through Investment Scheme?

Foreigners could reside in Viet Nam under permanent residence or temporary residence status. In particular, foreign investors establishing or contributing capital to companies operating in Vietnam are subject to have temporary residence cards.

A Temporary Residence Card is the required document for the foreigners to legally stay temporarily in Viet Nam and the maximum term of a card is 05 years. The following will explain how Temporary Residence Cards can be obtained in Vietnam through investment.

What are the conditions for foreign investors to be granted temporary residence cards?

Foreigners who are granted a visa with a DT sign will be considered for a temporary residence card. The foreigners will need to apply for work permit exemption from authorities in Vietnam. The passport of foreigners has a minimum term of 13 months. Documents proving that foreigners contribute capital to, or invest in, enterprises in Vietnam for instance business registration certificates, investment registration certificates will be required. The foreigners will also need to provide a clean criminal record card.

What required documents to be prepared for application for temporary residence card?

1. 01 Document requesting temporary residence card of guarantor ( form NA6 for agencies, organizations; form NA7 for individuals)

2. 01 Information form for a temporary resident card (form NA8)

3. 02 photos (image size 2×3 cm);

4. 01 Copy of passport and a valid visa (bring an original for comparison);

5. 01 Notice of use of the seal of the enterprise.

6. 01 Document introducing seal, signature of the authorized person of the organization (form NA16)

7. 01 Copy of legal ducuments of organizations to prove purpose to be granted temporary residence card, such as: investment registration certificate, business registration certificate.

How long does it take to apply for a temporary residence card?

After 5 working days since receiving sufficient documents, state agencies will consider and issue temporary residence cards.

What are the procedures to apply for a temporary residence card?

Step 1: Prepare documents as prescribed by law.

Step 2: Submit application file

The officer receiving the application will check the legality and the content of the file. If the application is complete and valid, the officer receives the application and prints a receipt for the submitter.

Step 3: Return results

What state authorities can apply for a temporary residence card?

Immigration Management Department of provinces or cities where the investment is registered.

Some difficulties when carrying out the procedure

Everyone can apply for a temporary residence card by themselves, but not all cases are eligible for a temporary residence card. When applying for a temporary residence card, have some difficulties like: the visa is not for right purposes; foreigners don’t understand the required documents, procedures for applying for temporary residence card so that you don’t know how to write the declaration of temporary residence card; have confusion about the declaration form used for individuals and agencies, organizations…. As a result, the application file is invalid and will be returned. You will have to go to implementing agencies many times to complete an application file, which is costly, laborious, time-consuming but not yet available. Therefore, foreigners need the assistance of a reputable law firm to carry out the procedure effectively to be granted a temporary residence card.

Read More

The Cases of Transferring Money from Vietnam Abroad

In the context of international economic integration, more and more foreign investors are coming and investing in Vietnam. Besides, many Vietnamese individuals and organizations have also implemented many investment activities, living, traveling… abroad. Therefore, there are needs to transfer money from Vietnam abroad. According to the provisions of Vietnamese laws on foreign exchange management, domestic individuals and organizations are allowed to transfer money abroad in the following cases:

For individuals being Vietnamese citizens, they are entitled to buy, transfer or bring foreign currencies overseas according to the State Bank’s regulations for the following purposes: to study and receive medical treatment abroad; traveling; business trip; visiting abroad; to pay charges and fees to foreign countries; allowances for relatives members living abroad; transfer of inheritance money to overseas heirs; transfer money in case of permanent residence abroad; One-way money transfer for other legitimate needs.

For enterprises, they are allowed to transfer money abroad when performing the following cases: Carrying out payment and transferring money related to the import or export of goods and/or services; payment of payments and remittances related to commercial credits and short-term bank loans; make payments and transfers related to direct and indirect investment income; transfer money when being allowed to reduce direct investment capital; payment of debts and interest of foreign loans; make one-way money transfers; payment and other remittance according to regulations of the State Bank of Vietnam.

Read More

Which Areas Are Incentivized For Investment in Vietnam Under Decree No. 37/2020

Investors are always interested in areas which the government incentivize for investment in Vietnam, to enjoy benefits i.e. tax reduction, tax exemption, land usage…which give them some help to grow the business in areas which are not economically potential without the help from the government when setting up a company in Vietnam.

According to the regulations on business investment in Vietnam in Decree No.118/2015/ND-CP, investment projects eligible for investment incentives are entitled to tax and land policies in their performance. Accordingly, for businesses that invest in industries or areas enjoying investment incentives, there will be many advantages related to tax and using land when performing business.

According to the provisions of Appendix I, Decree No.118/2015/ND-CP, the fields are preferentially invested in many fields such as science and technology, electronics, mechanics, material production, and information technology, agriculture, environmental protection, infrastructure construction, education, culture, sports, health activities of People’s Credit Funds and microfinance institutions are specified in Appendix I Decree no. 118/2015/ND-CP.

However, with the continuous development of the economy, along with the development projects of many small and medium-sized enterprises, besides start-up projects, it is more suitable to the market economy and start-up situation of many investors, on March 30th 2020, the Government has issued Decree No.37/2020/ND-CP supplementing the list of preferential investment industries which will take effect from May 15th, 2020.

According to the provisions of Decree No. 37/2020/ND-CP, for business investment activities in accordance with the Law on Support for Small and Medium Enterprises with the following business lines which will be added to the list of industries to enjoy incentives for investment in Vietnam, including business investment in the product distribution chain of small and medium-sized enterprises, business investment in incubation facilities for small and medium-sized enterprises, business investment in technical facilities supporting small and medium-sized businesses, investing in a common working area for small and medium-sized start-ups.

The investors who invest in Vietnam in the business lines above in supporting industries for small and medium-sized enterprises from May 15, 2020, will be entitled to specific tax and land incentives specifically as required by law. Domestic and foreign investors could utilize the opportunity to make investment to enjoy the incentives in Vietnam when conducting businesses.

.

Read More

Questionnaire on Quantity and Value to Foreign Manufacturers and Exporters

On July 14th, 2020, the Trade Remedies Authority of Vietnam (TRAV), Ministry of Industry and Trade issued an investigation questionnaire on quantity and value to foreign producers and exporters in the AD11 case.

Accordingly, TRAV recommends that the related parties who participate in responding to the questionnaire, carefully study the guidelines in the questionnaire before responding and submitting.

In order to ensure the best rights and interests, TRAV recommends that all related producers/exporters participate in full cooperation during the investigation process. The content of the response is one of the important grounds for TRAV to consider and select samples that limits the scope of the investigation. TRAV is entitled to consult with experts or to inspect, verify the authenticity of information and documents provided by related parties or collect additional information and necessary documents to resolve trade remedies cases, including foreign onsite investigations.

In the event that TRAV does not receive the timely response or the information provided is inadequate or insufficient as required, TRAV will apply the relevant law provisions regarding the non-cooperation of the related party in trade remedies cases.

The response to the questionnaire must be sent in full, including 01 confidential copy and 01 public copy (hardcopy of the response) and 01 USB containing the full soft copy of the response and attached annexes. The response is considered to be submitted on time when the TRAV receives all hard and soft copies before 5p.m on July 31st, 2020 (Hanoi time).

AD11 refers to the the anti-dumping investigation case under Decision No. 1715/QD-BCT regarding the Investigation of imposing Anti-dumping measure to some High Fructose Corn Sweetener Products with the HS Code of 1702.60.10 and 1702.60.20 from People’s Republic of China and Republic of Korea (Case AD11). Related parties may by themselves or authorize experienced law firms in Vietnam on international trade to work with Trade Remedies Authority of Vietnam to cooperate.

Read More

What Rights Shareholder Holds in Joint Stock Company?

Shareholders are individual or organization that owns at least one share of the joint-stock company and also are owner of the joint-stock company. Along with these roles, their interests are tied to business operations although they may not directly manage the day-to-day company affairs. In order to implement governance, the powers and responsibilities of each interest group such as shareholders, the board of directors, managerial personnel, etc. should be assigned based on the statutory principles and procedures.

According to the regulations on shareholders in the Law on Enterprise 2020, the rights of shareholders can be categorized into the following groups: economic rights, governance rights, information rights, and litigation rights.

Economic rights

Economic right is the right to gain all pecuniary interest with respect to the shares. The purpose of starting a business or investing in securities comes mainly from earning income or gaining profits. Economic rights accordingly include:

-Right to entitlement to dividends

-Right to transfer ownership

-Priority right to acquire the newly issued shares

-Right to entitlement to a portion of the assets after dissolution or bankrupt

-Appraisal Right

Among these above rights, right to entitlement to dividends and right to transfer ownership are the fundamental economic rights of a shareholder.

Dividend of common shares is determined according to the realized net profit and the dividend payment from the company’s retained earnings. Despite right to entitlement to dividends, shareholders are still subject to a number of limitations in law and in fact. Dividend entitlement is determined by the General Meeting of Shareholders based on the recommendation of the Board of Directors, after the company has fulfilled tax obligations and other financial obligations, contributed to reserve fund, paid for previous losses and met the solvency for all due debts and other property obligations. Dividend is not required to be distributed annually. Depending on the business situation, the General Meeting of Shareholders may decide to retain profits for reinvestment.

Besides dividend entitlement from the company’s operating results, shareholders can also gain profits by share transfer. This kind of investment is popular with respect of shares or securities of public companies, investors do not aim for corporate governance rights as well as dividend, they intend to earn benefits by the difference of the market values of stocks, especially when the stock value increases.

Governance rights

Modern corporate governance has two principles, one is to separate ownership and governance and to separate governance and management. It means that the major shareholders should not hold senior managerial positions in the company and Chairperson of the Board of Directors should not be assigned to other senior managerial positions such as General Director and/or Director.

Shareholders may be an individual or organization which they have their own different interests, goals and abilities. The separation between ownership and management makes the situation of whom the owner is and how the share get transferred not to affect the business operation. In the meantime, the separation helps gather professional managers to implement target intended by the company. According to the laws, members of the Board of Directors of a public company concurrently holding several executive titles must be reduced to the minimum to ensure the independence of the Board of Directors, specially the Chairperson of the Board of Directors shall not be the Director/General Director in a public company as of August 1st, 2020. There are no similar rules applicable to joint stock companies which are not public company.

Attendance, speaking and voting at General Meeting of Shareholders are fundamental in governance right of common shareholders, applicable to all shareholders holding at least one share. ty. In principle, being a shareholder who holds shares of the company regardless of the number has equal rights to attend and vote at the General Meeting of Shareholders. By the General Meeting of Shareholders, the shareholders holding a certain number of shares can impact decisions on some matters such as election, dismissal, and removal of members of the Board of Directors and Controllers, amendment and supplementation of internal documents, major transactions, and others as stipulated in law on enterprise or charter. In addition to the above rights, the majority shareholders also have a number of other rights related to governance as follows:

The shareholder or group of shareholders holding at least 5% of the total number of common shares (charter may require a smaller percentage) is entitled to:

-Call a General Meeting of Shareholders

-Request Board of Controllers to inspect each specific matter relating to management, governance of company affairs if necessary

-Recommend matters to be included in agenda of General Meeting of Shareholders

-The shareholder or group of shareholders holding at least 10% of the total number of common shares (charter may require a smaller percentage) is entitled to nominate candidates for the Board of Directors, Board of Controllers

Information rights

Shareholders have the right to access documents and information of the company. In addition to the basic documents such as the charter, list of shareholders, meeting minutes and resolutions of the General Meeting of Shareholders, shareholders have the right to access to reports related to the business affairs.

However, some information is only reviewed by shareholders who own required percentage of share:

-Access and extract information on full name and contact address as specified in list of shareholders having voting right and list of shareholders having right to attend General Meeting of Shareholder; request to adjust his/her inaccurate information

-Access, extract and scan charter of company, meeting minutes of General Meeting of Shareholder and its resolution

-Access, extract and copy partial or whole list of involved persons and their contracts, transaction of which the company is other party, interests of Board of Directors, Controllers, Directors or General Directors and other managerial positions of company

-Access and extract minutes and resolutions of Board of Directors, annual or mid-year financial reports, reports of Board of Controllers, contracts and transaction approved by Board of Directors and other documents, excepting for documents related to company’s know-how and trade secrets (applicable to shareholder and group of shareholders who own at least 5% of total number of common shares, the charter may require a smaller percentage)

-Access profit and loss statements, finacial reports, governace and management assement reports; inspection reports of Board of Controllers (applicable to shareholder who own shares at least 1 consecutive year, the charter may require a smaller percentage)

Different to common joint stock company, a public company must annouce fully, accurately and promptly the periodic and extraordinary information on business, finance and governace. Other information must be annouced if it influences share price and investment decisions of shareholders and investors.

Litigation rights

The Law on Enterprises has provided a mechanism to request the Court or Arbitration to rescind the resolution of the General Meeting of Shareholders or sue the managerial personnels when they fail to fully and properly implement their tasks, including:

The shareholder or group of shareholders holding at least 5% of the total number of common shares (charter may require a smaller percentage) is entitled to:

-Request to rescind resolutions of the General Meeting of Shareholders when the orders and procedures of calling the meeting and making resolution of the General Meeting of Shareholders seriously violate the regulations of the Law on Enterprises and company’s charter

-However, the resolution of the General Meeting of Shareholders adopted by 100% of the total number of voting shares is legal and effective even when the orders and procedures of calling the meeting and adopting such resolution violates regulations of the Law on Enterprises and company’s charter.

-Request to rescind resolutions of the General Meeting of Shareholders when its provisions violates the laws or company’s charter

-The shareholder, group of shareholders holding at least 1% of the total number of common shares is entitled to:

-Sue members of Board of Directors, Directors, General Directors separately or jointly under certain circumstances

The Chairperson of Board of Directors or the Director or General Director usually acts as the legal representative of the company, representing the company to perform rights and obligations arising from the company’s transactions, representing the company to take proceedings before the court or arbitrator. However, when their interests conflict with those of the shareholders, shareholders have the right to initiate a lawsuit claiming benefits or compensation. The Law on Enterprise also permits shareholders to sue on behalf of the company when the above managerital personnels commit violations, causing damage directly to the company and indirectly to shareholders.

Not all shareholders have the right to sue for the above managerial personnels, only those who own at least 1% of the total number of common shares. This restriction makes sense with respect of public companies, in order to eliminate unfair competition actions conducted by minority shareholders who is controlled by the rival companies because amount of 1% in public company is not a small number.

Similar to a lawsuit against a manager, shareholder or group of shareholders is also required to own at least 5% of the total number of common shares to request rescission of the resolution of the General Meeting of Shareholders if there is violation on substantive law and procedural law. Accordingly, all resolutions of the General Meeting of Shareholders violating the substantive laws or the company’s charter are rescinded at the request of shareholders, but only serious procedural violations may be rescinded. There is no specific instructions for serious procedural violations at this time, the assessment will depend on personal perspective of the court and arbitrator.

Read More

Vietnam gets ready to lift foreign ownership caps

A new draft law is set to attract more foreign investment into multiple sectors by removing foreign ownership caps.

At a Wednesday forum in Hanoi, the Ministry of Finance presented a draft securities law that would remove the current 49 percent foreign ownership cap in many sectors, allowing majority or even 100 percent ownership of a company.

"The new law would remove the limit on companies operating in many of more than 200 of the conditional sectors," a Reuters report quoted Nguyen Quang Viet, an official in the State Securities Commission’s legal department, as saying.

In Vietnam, conditional sectors refer to industries subject to additional regulations that would override limits set out by the securities law.

"We expect the new law to encourage development of the market in a faster, stronger and more sustainable manner," Deputy Finance Minister Huynh Quang Hai said at the forum.

Former head of the Central Institute for Economic Management (CIEM) under the Ministry of Planning and Investment Le Dang Doanh said that the bill would "push" more foreign investment into Vietnam.

"Foreign investors have been reluctant to invest in Vietnamese businesses because they can only own a minority stake so far," he told VnExpress International.

Should the 49 percent restriction be removed, foreign companies will be able to gain further management rights, which will be a big incentive to enter Vietnam and expand their business, he added. "With the new law, they can hold decisive positions in Vietnamese companies."

Industry insiders also expect that the new regulation will allow foreign investors to expand their operations in Vietnam.

Citibank's Tsuyoshi Yamashita, who deals with Japanese businesses expanding into Vietnam, told the Nikkei Asian Review that real estate and infrastructure-related business, such as thermal power generation, will likely see a higher demand from foreign companies to do business together.

Roy Zuin Forney, an analyst in international business advisory at consultancy Dezan Shira & Associates, said that Asian investors will be interested in seeking merger and acquisition (M&A) deals with Vietnamese companies to reach into this market.

Vietnamese people’s rising income has allowed more of them to afford health care, which would be a potential market for the pharmaceutical sector, he said.

One source familiar with M&A deals in Vietnam told the Nikkei that Indian drugmaker Renova Global, which already has an office in Vietnam, is looking for opportunities to expand further in the country.

Informational technology and logistics are other industries that will also likely see more foreign investment flow in, industry insiders said.

However, Vietnam remains firm in keeping "sensitive and important" sectors out of the list.

Companies in security, defence, telecommunications and insurance, will continue to have 49 percent foreign ownership caps, Reuters quoted State Securities Commission official Viet as saying. The limit for banks will remain at 30 percent, he added.

Can Van Luc, a government economic advisor, said the government would consider raising limits on foreign ownership of banks on a case-by-case basis.

The draft law is expected to be submitted to the parliament for approval next year and take effect in January 2020.

Source: evnexpress

How ANT Lawyers Could Help Your Business?

To set up business in Vietnam, please contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at +84 28 730 86 529

Read More

Government courts Swiss enterprises to invest in Vietnam

HCMC – The Government has expressed its desire to attract further investment from Swiss enterprises, praising their great strengths in advanced technology as well as their experience with the fourth industrial revolution and the global supply chain, news website Vietnam Plus reported, citing Deputy Prime Minister Vuong Dinh Hue.

Deputy Prime Minister Hue on Monday, November 5, held a meeting with a Swiss enterprise delegation led by Andreas Gerber, head of Swiss SME business at Credit Suisse bank, in a visit to Vietnam to gain more insights into investment opportunities in the country.

The Government will create as many favorable business conditions as possible to ease the investment flow from foreign firms, stated Hue. He stressed that the country had considered foreign-invested enterprises an integral part of its economy and lauded the activities of the Swiss delegation in some localities across the country over the years.

Hue noted that there was significant room for foreign investment opportunities in Vietnam. In particular, Vietnam is in need of further overseas investment in areas in which Swiss firms excel.

Apart from that, the Government also prioritizes developing the finance-banking sector and encourages mergers and acquisitions in this sector to establish fintech and digital banking models in the years to come.

Moreover, foreign companies are encouraged to participate in the process of equitizing State-owned enterprises, become their strategic partners or get involved in local ventures and startup development.

Addressing the reception, Andreas Gerber remarked that the delegation had come to Vietnam for the fifth time to seek business opportunities. This time, it will visit the northern localities of Hanoi, Haiphong City and Ninh Binh Province.

The delegation aims to transfer advanced technologies from Switzerland to Vietnam in the coming period, according to its leader. During the visit, one of the enterprises decided to invest directly in the country.

This is reportedly the largest Swiss delegation seen to date, with enterprises boasting strong business performance and operating in various sectors, such as glass manufacturing, nanotechnology, medical technology combined with artificial intelligence, application software and communications.

As for Vietnam, the Government has prioritized foreign investment in nine sectors such as transportation and socioeconomic infrastructure under the public-private partnership format, manufacturing and supporting industries deploying advanced technology, hi-tech agriculture and logistics, said Hue.

Source: TheSaigonTimes

Read More

New foreign investment approvals in Jan-Apr drop sharply

A view of downtown HCMC. The real estate sector recorded the second largest foreign investment in January-April. 

HCMC – Total foreign investments pledged in the year’s first four months fell by a sharp 23.9% to US$8.06 billion, according to the Foreign Investment Agency.

Of the fresh foreign investment approvals in the period, pledges by existing and new projects declined significantly.

In particular, 883 new projects that had been approved in the year to April 20 had total registered capital of US$3.55 billion, a fall of nearly 24% against last year’s same period. Besides, 303 operational projects registered to adjust their investment capital up by US$2.24 billion, a year-on-year drop of 48.5%.

Regarding foreign indirect investment, the four-month period recorded 1,863 cases of foreign investors contributing funds or acquiring local shares with a combined value of US$2.26 billion, up 67% against the same period a year earlier. Of these, there were 1,087 cases of foreign investors increasing their paid-in capital of enterprises (US$1.56 billion) and 776 cases of stake acquisitions (US$703.5 million) which did not change chartered capital of enterprises.

It can be seen that investment capital of foreign investors tends to rise in M&A deals rather than direct investments.

Foreign direct investment (FDI) projects disbursed US$5.1 billion in January-April, rising by 6.3% year-on-year.

Regarding outbound shipments in the period, the FDI sector exported US$53.48 billion worth of products, including crude oil, up 18.9% year-on-year and equivalent to 72.5% of the country’s export turnover. Without crude oil, exports of the sector were US$52.81 billion.

Meanwhile, the FDI sector’s imports were US$42.31 billion, picking up 9.3% and accounting for 60.1% of total imports. This resulted in a trade surplus of US$11.17 billion with crude oil included and US$10.5 billion with crude oil excluded.

Of the 17 sectors foreign investors invested in, the processing-manufacturing sector attracted the highest amount of capital with US$4.52 billion (56.1% of total registered capital). It was followed by real estate with US$807.5 million (10%) and wholesale-retail with US$779 million (9.7%).

South Korea made up the biggest foreign investment amount among 82 countries and territories investing in Vietnam with US$2.32 billion (28.7%). Japan came second when investing some US$1.29 billion (16%) and Singapore third with US$808 million (10%).

Source: The Saigon Times

Read More

Brief on foreign direct investment of January 2018

Accumulated to January 20th, 2018, the country has 24,941 valid projects with a total registered capital of 320.3 billion USD. The accumulated realized capital of foreign direct investment projects was estimated at 173.9 billion USD, equivalent to 54.2% of total valid registered capital.

In January 2018 separately, total value of newly and additionally registered capital, capital contributed and shares purchased by foreign investors was 1.255 billion USD, equaling 75.9% of the same period in 2017. Realized capital of foreign direct investment projects was estimated at 1.05 billion USD, up 10.5% over the same period in 2017

I. Foreign investment in Vietnam 

1. FDI accumulation until January 2018 

Up to January 20th, 2018, the foreign investors have invested in 19 out of 21 branches in the national economic classification system, in which, processing, manufacturing industrial field accounted for the highest proportion with 187.1 billion USD, making up 58.4% of total investment, followed by real estate business with 53.2 billion USD (accounting for 16.6% of total investment capital), production and distribution of electricity, water and gas with 20.8 billion USD (making up 6.5% of total registered investment capital).

There were 125 countries and territories having valid investment projects in Vietnam. Korea ranked first with a total registered capital of 58.1 billion USD (accounting for 18.1% of total investment capital). Japan ranked second with 49.46 billion USD (capturing 15.4% of total investment), followed by Singapore and Taiwan, British Virgin Islands, Hong Kong.

FDI has been present in 63 provinces and cities in the whole country, in which Ho Chi Minh City continued to rank first in FDI attraction with 44 billion USD (making up 13.7% of the total investment capital), followed by Binh Duong with 30.4 billion USD (accounting for 9.5% of total investment), Hanoi with 27.67 billion USD (capturing 8.6% of total investment), Hanoi with 27.37 billion USD (accounting for 8.5% of total investment).

2. FDI attraction in January 2018

2.1 Performance

Realized capital

As of January 20th, 2018, foreign direct investment projects were estimated to disburse 1.05 billion USD, up 10.5% as compared to the same period in 2017.

Export and import

Export: Export of foreign investment sector (including crude oil) was 13.59 billion USD, up 33.7% as compared to the same period in 2017 and accounting for 71.5% of total export turnover. Export excluding crude oil was 13.4 billion USD, up 34.7% as compared to the same period in 2017 and accounting for 70.5% of total export turnover.

Import: Import of FDI sector was 7.8 billion USD, up 2% as compared to the same period in 2017 and capturing nearly 58.4% of total import turnover. Generally, the trade surplus of FDI sector was 5.79 billion USD including crude oil and 5.6 billion USD excluding crude oil.

2.2 Granting of investment certificate

As of January 20th, 2018, the whole country had 166 new projects granted investment certificate with total registered capital of 442.59 million USD, equaling 35.6% compared to the same period last year and 61 times of projects adjusted capital with total additionally registered capital of 456.78 million USD, up 155% over the same period in 2017. Newly registered investment capital in January 2018 decreased significantly as compared to same period in 2017 because in January 2017, there are many licensed projects with capital from 100 USD to nearly 300 million USD (accounting for over 71% of the total newly registered capital in January 2017), meanwhile in January 2018 no new projects over 100 million was licenced.

Also in January 2018, the whole country had 415 times of capital contribution and share purchase by foreign investors with a total value of the capital contribution of 356.04 million USD, up 54.7% as compared to same period of 2017. This includes 212 times of capital contribution and share purchase that increased enterprise chartered capital with the value of the capital contribution of 199.15 million USD and 203 times of capital contribution and share purchase in which foreign investors bought secondhand shares from domestic holders without increasing charter capital with the total value of capital contribution of 156.89 million USD.

Generally in January 2018, total newly and additionally registered capital and capital contributed and shares purchase by foreign investors was 1.255 billion USD, equaling 75.9% of the same period of 2017.

By investment field

In January 2018, 19 fields were invested by foreign investors, in which, processing and manufacturing industry attracted much attention from foreign investors with the total capital approximately 909 million USD, accounting for 72.4% of the total registered capital in January 2018. Wholesale and retail field ranked second with total investment capital of 90 million USD, accounting for 7.2% of total registered investment capital. Real estate business ranked third with total registered investment capital of 77.6 million UDS, capturing 6.2% of total registered investment capital.

By investors

In January 2018, there were 45 countries and territories having investment projects in Vietnam. South Korea ranks first with total investment capital of 355.6 million USD, making up 28.3% of total investment capital; Singapore ranked second with total registered capital of 199 million USD, accounting for 15.8% of total investment capital into Vietnam; Hong Kong ranked third with a total registered capital of 147.4 million USD, capturing 11.7% of total investment capital.

By investment area

In January 2018, 59 provinces and cities were invested by foreign investors, in which Ho Chi Minh City attracted the most of FDI with a total registered capital of 306.2 million USD, capturing 24.4 % of total investment capital. Hai Duong ranked second with a total registered capital of 181.3 million USD, accounting for 14.4% of total investment capital. Binh Duong ranked third with a total registered capital of 168.1 million USD, accounting for 13.4% of total investment capital.

Some large projects granted invest certificate in January 2018 are:

- Kefico Vietnam Co., Ltd., licensed in 2009 with the aim of producing spare and auxiliary parts for motor vehicles in Hai Duong, adjusted to increase investment capital by 120 million USD.

- Vina Cell Technology Co., Ltd projects, licensed in 2016 with the goal of producing the solar battery in Bac Giang province increased investment capital by 100 million USD.

- Nam Dinh Ramatex Textile and Garment Factory project with total investment capital of 80 million USD invested by Singaporean investors in Nam Dinh.

- Jotun Paint Vietnam Co., Ltd. project, licensed on January 19, 2018, with total investment capital of 70 million USD invested by Norway investors in Ho Chi Minh city.

II. Vietnam's investment abroad

In January 2018, the whole country had 6 projects granted certificates of investment registration abroad with a total investment of 6.46 million USD from Vietnam. In which, there are 3 projects in the wholesale and retail field with a total investment capital of 5.17 million USD, accounting for 80% of total investment capital. The other three projects are in the processing, manufacturing, accommodation industry and professional science and technology activities. The countries received investments from Vietnam in January 2018 are Canada, Cambodia, New Zealand, Germany, Belize, Myanmar./.

- Ministry of Planning and Investment -

Read More

Foreign investors register to invest 1.25 billion USD in January

Foreign investors registered to invest nearly 1.25 billion USD in Vietnam in January, which will include funding for new projects, in addition to existing projects and buying stakes in projects, which will equal 75.9 percent, compared to the same period last year.

In January, the disbursement of foreign direct investment (FDI) saw a positive increase of 10.5 percent to 1.05 billion USD year on year, according to statistics from the Ministry of Planning and Investment’s Foreign Investment Agency.

A number of large projects were granted licences during the month, including Kefico Vietnam Company Ltd, which was allowed to add 120 million USD in investment capital; Vina Cell Technology Company Ltd, which added 100 million USD; the Nam Dinh Ramatex Textile and Garment Factory project with total capital of 80 million USD in Nam Dinh province, funded by a Singapore investor; and Jotun Paint Company Ltd in HCM City, invested by a Norwegian investor with funds of 70 million USD.

Out of 125 countries and territories with FDI projects in Vietnam, the Republic of Korea was the most significant investor with 58.1 billion USD, accounting for 18.1 percent of total capital. Japan was in second place with 49.46 billion USD at 15.4 percent, followed by Singapore, Taiwan, Britishvirgin Island and Hong Kong.

In terms of investment in foreign countries, Vietnam granted licences for investments in foreign countries for six projects in January, with a total investment capital of 6.46 million USD.

Three of these projects were in retail and wholesale areas, while the remainders were in the fields of processing and manufacturing, residential services and science and technology.

The projects are being conducted in Canada, Campuchia, New Zealand, Germany, Belize and Myanmar.

- dtinews -

Read More

04 important things that enterprises must take into consideration in 2018

The policies and guidelines in effect from 2018 which may have significant influence on enterprises, including:

1. Simplification of documentation required for application for enterprise registration:

This is a guideline set out in the Resolution No. 136/NQ-CP dated December 27, 2017 on the plan to simplify administrative procedures and citizen's papers related to management of residents under the jurisdiction of the Ministry of Planning and Investment.

Accordingly, documentation requirements and contents of application and declaration forms necessary to apply for registration of establishment of enterprises will be subject to changes in the coming time, specifically including:

- Repealing the documentation requirement such as “Citizen Identification card, ID card, passport or other legally-required documents" for application of registration of enterprises.

- Replacing certain personal identification information by “personal identity numbers" existing in sample forms and declarations required by enterprise registration formalities.

Additionally, the Resolution provides a guideline to cancellation of the requirement for submission of personal identification documents in several formalities for outward and inward investment in Vietnam.

2. Support policies for Small and Medium-sized Enterprises

From January 1, 2018 the 2017 Law on Support for Small and Medium-sized Enterprises enters into force and provides a number of support policies for these enterprises, specifically including:

- Credit access support: Establishing the Credit Guarantee Fund to grant guarantee for corporate credit;

- Tax and accounting support: Allowing enterprises to apply the CIT rate in the definite term which is less than the one normally applied to other enterprises.

- Production premise support: Allocating unoccupied land for development and construction of industrial clusters, agricultural, forestry and aquacultural product processing zones; granting subsidies for the price of land lease for industrial parks, hi-tech parks and industrial clusters operating in local jurisdictions.

- Technological support; support for incubation centers, technical centers and shared working places: Supporting technological innovation and development; granting exemption from and reduction in land rental, non-agricultural land use and corporate income tax.

- Market expansion support: Establishing product distribution chains.

- Information, consultancy and legal support: Permitting enterprises to have access to information through the national portal for corporate support; granting exemption from and reduction in consultancy costs charged for use of consultants’ services.

- Personnel development support: Granting relief from costs of participation in business and business management training courses.

Especially, the Law prescribes particular policies intended for enterprises transformed from business households and small or medium-sized startups.

3. Elimination of a great number of business requirements

The Decree No. 08/2018/ND-CP provides for removal and reduction of a lot of business requirements in such sectors as oil and gasoline, cigarettes, electricity, commercial franchising, electronic commerce, chemical, industrial explosive and food. Below are typical examples:

- Elimination of certain requirements concerning oil and gasoline manufacturing and business;

- Elimination of requirements concerning the franchisee party involved in commercial franchising activities;

- Repeal of the requirement saying, "it is mandatory that websites must have legitimate domain names and conform to regulations on management of information available on the Internet”, which is one of the requirements for establishment of e-commerce websites for sale of commodities and provision of services.

The Decree No. 08/2018/ND-CP will enter into force from January 15, 2018.

4. Requirements for granting business licenses to foreign investors

The Decree No. 09/2018/ND-CP entering into force from January 15, 2018 has laid down provisions on innovation of requirements for granting the license to purchase and sell goods to foreign investors, specifically including:

- Covering more persons eligible for being granted the business license, including foreign investors who do not belong to member countries or territories of international treaties of which Vietnam is a member (in contrast to the previous regulation under which only foreign investors belonging to member countries of international treaties of which Vietnam is a member are eligible for such business license).    

- Covering more goods and services which are eligible for the business license, including those which are not endorsed in international treaties of which Vietnam is a member (in contrast to the previous regulation under which only goods or services in which Vietnam is committed to open the market are eligible for such business license).

In each of the aforesaid cases, foreign investors are bound to meet certain requirements and criteria.

Source: Thuvienphapluat .vn

--------------------------------------

How ANT Lawyers Could Help Your Business?

Please click here to learn more about ANT Lawyers Foreign Investment Practice or contact our lawyers in Vietnam for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

Read More

From January 1, 2018, the license for import business is legally required for automobiles vehicle import

This is one of the provisions laid down in the Decree No. 116/2017/ND-CP prescribing statutory conditions for manufacture, assembly, import of automobiles vehicles and trade in automobiles vehicle maintenance and repair services.

Pursuant to this Decree, from January 1, 2018, enterprises will be allowed to import automobiles vehicles only if they satisfy statutory conditions and have already obtained the license for automobiles vehicle import business in accordance with applicable regulations.

Setting up business in Vietnam

In order to obtain this license, enterprises are required to:

- Legally own, contractually lease or authorize automobiles vehicle servicing premises that conform to prescribed requirements.

- Have a confirmation or document evidencing that they are entrusted to act on behalf of foreign automotive manufacturing and assembling enterprises to recall automobiles vehicles imported in Vietnam.

Application documentation for the license is discussed in detail in the Decree No. 116/2017/ND-CP set to commence on October 1, 2017.

Source: Thuvienphapluat .vn

See more: Process Setting-up Foreign Owned Import Export Business in Vietnam

-------------------------------------------------

How ANT Lawyers Could Help Your Business?

Please click here to learn more about Investment law firm in Vietnam or contact our lawyers for advice via email ant@antlawyers.vn or call our office at (+84) 24 32 23 27 71

Read More

Danang calls for investment in hi-tech agriculture

The central coast city of Danang called for investors to get involved in hi-tech agriculture projects worth VND1.5 trillion (around US$66 million) at a seminar last Friday, Lao Dong newspaper reports.

Experts said at the “Luring Investment into Hi-tech Agriculture in Danang City”seminar that given adverse weather conditions and falling agricultural land, the use of advanced technology in agriculture is a right thing to do to ensure higher productivity and economic efficiency.

The city is grappling with a slew of difficulties as agricultural land is sparsely located and small-scale farming is still popular.

Besides, the application of information technology, automation, bio-technology, and advanced farming practices is not common there.

The study for hi-tech agriculture solutions has the same fate and application models lack sustainability and expertise. Therefore, their agricultural products fail to meet consumer requirements.

There has been loose connectivity among scientists, the State, companies, and farmers. Notably, scant attention is paid to branding and product promotion.

The demand for farmed products which meet quality and safety requirements is increasing in the city. Thus, hi-tech agriculture has much room for growth there.

The municipal government proposed investors develop five hi-tech agriculture projects worth an estimated VND1.5 trillion (about US$66 million) at the seminar.

The city pledged to offer investors a host of policy incentives such as covering half of site clearance cost but no more than VND3 billion a project, half of infrastructure costs for manufacturing facilities but less than VND2 billion each, and all of interest for maximum loans of VND10 billion each within a period of three years.

Source: The Saigon Time

Read More

Foreign investment exceeds US$33 billion in 11 months

HCMC – Vietnam has attracted US$4.85 billion of foreign investment this month, taking the total pledged capital in the year to date to more than US$33 billion, up nearly 83% year-on-year.

According to the Foreign Investment Agency under the Ministry of Planning and Investment, in the year to November 20, over 2,290 new projects had obtained investment certificates with total registered capital of US$19.8 billion, up 52% year-on-year.

Besides, 1,100 foreign-invested projects got approval to inject an additional US$8 billion, up nearly 58% year-on-year. There were more than 4,500 mergers and acquisitions (M&A) deals involving foreign investors with total capital contributions of about US$5.3 billion, up nearly 58%.

As such, the total amount of foreign investment this year to date has amounted to more than US$33 billion. It is estimated that foreign investment into the country would reach US$35 billion by the end of this year, far exceeding the Ministry of Planning and Investment’s expectation of US$28 billion.

The processing and manufacturing sector took the lead in attracting foreign funds in the 11 months, though its proportion tumbled. With nearly US$15 billion of foreign investment in January-October, this sector made up less than 50% of the country’s total, a sharp fall compared to its proportion of about 70% in the past few years.

Meanwhile, the power generation and distribution sector came second with total foreign investment of nearly US$8.4 billion, accounting for a quarter of the country’s total. Attracting US$2.5 billion, the real estate sector came third, making up nearly 8%.

As of November 20, foreign direct investment (FDI) projects had disbursed US$16 billion, up 11.9% over the same period last year.

In January-November, exports of FDI enterprises, including crude oil, reached nearly US$141 billion, up nearly 23% from the year-ago period and accounting for more than 72% of the country’s total export revenue.

Their imports have also risen by more than 23% year-on-year to nearly US$115 billion, making up 60% of the country’s total. This led to the FDI sector’s trade surplus of more than US$26 billion.

According to the Foreign Investment Agency, there have been 112 countries and territories investing in Vietnam this year to date.

Japan has surpassed South Korea to become the biggest investor with nearly US$9 billion, or 27% of the country’s total. South Korea came second with total registered capital of nearly US$8.2 billion and Singapore took the third position with US$4.7 billion.

Source: The Saigon Times

Read More