Is Investment License and Investment Certificate different in Vietnam?

ASLAW

Is Investment License and Investment Certificate different in Vietnam?

Investment license, investment certificate, investment registration certificate make many people confused, wondering if they are different in Vietnam?

From 1987, the Law on Foreign Investment in Vietnam came into being with regulations on investment licenses, until the Investment Law 2005 again stipulates investment certificates, and later when the Law on Investment 2014 came into effect, there are specific regulations on investment registration certificates.

Accordingly, only with the Investment Law 2014 can the investment registration certificate be clearly defined, basically the investment registration certificate is a paper or electronic document recording the investor’s registration information. Investment in investment projects and currently the Law on Investment 2020 is also inheriting this regulation.

Clause 1, Article 77 of the Investment Law No. 61/2020/QH14 states that the investor has been granted an investment license/investment incentive certificate/investment certificate/investment registration certificate before the date This Law takes effect (January 1, 2021) and investors are allowed to carry out investment projects under the Investment License or Certificate of Investment Incentives or the Investment Certificate or the Certificate of Investment Registration.

In addition, previously, Clause 1, Article 74 of the Law on Investment 2014 also stated that investors who have been granted an investment license/investment certificate before the effective date of this Law (July 1, 2015) are entitled to implementation of investment projects according to the issued Investment License or Investment Certificate. If the investor requests, the investment registration agency will issue and change to the Investment Registration Certificate.

Thus, from the above examples, it can be seen that the Investment License, Investment Certificate, and Investment Registration Certificate are one in Vietnam.

Currently, the Investment Registration Certificate records the following information of the investment project: Project name; Investors; Project code; Project implementation location, land use area; Objectives and scale of the project; Project investment capital includes both contributed capital of investors as well as mobilized capital; The project’s operation term. (according to Article 40 of the Investment Law No. 61/2020).

Which projects must be granted an Investment Certificate in Vietnam?

Pursuant to Clause 1, Article 37 of the Law on Investment 2020, cases in which the procedures for issuance of an Investment Registration Certificate must be carried out include:

Projects of foreign investors;

Projects of economic organizations fall into the following cases:

  • There is a foreign investor holding more than 50% of the charter capital/the majority of general partners are foreign individuals, in the case of a partnership;
  • There are economic organizations with foreign investors holding more than 50% of charter capital or the majority of general partners are foreign individuals, for partnerships holding more than 50% of charter capital;
  • There are foreign investors and economic organizations in which foreign investors hold more than 50% of the charter capital or the majority of general partners are foreign individuals, for economic organizations that are partnerships holding more than 50% of charter capital.
Register now Contact us for a consultation
CONTACT ASLAW FOR ADVICE

Contact

  • ASLAW
  • 0914195266
  • 0914195266

    View more posts
    ASL LAW – Legal Partner in Business Consultation and Dispute Resolution

    ASL LAW – Legal Partner in Business Consultation and Dispute Resolution

    In the journey of business development, facing disputes is unavoidable. The crucial aspect is how we effectively and professionally resolve these disputes. ASL LAW has emerged as a reliable guide in the field of business consultation and dispute resolution. Understanding […]

    Tax and Financial Policies for Businesses in Vietnam

    Tax and Financial Policies for Businesses in Vietnam

    Vietnam employs a diverse tax system with various regulations and separate policies for Vietnamese businesses. This creates a complex legal framework, demanding a deep understanding from businesses to comply with tax obligations when operating in Vietnam. The following article will […]

    Compliance with Financial Standards for Vietnamese Businesses

    Compliance with Financial Standards for Vietnamese Businesses

    Compliance with financial standards is crucial for Vietnamese businesses to protect their reputation and avoid administrative penalties while operating. I. Financial Reporting According to Industry Specifics In Vietnam, businesses operating in various sectors often have unique characteristics, leading to diversity […]

    CONTACT ASLAW