1. Forms of outward investment from Vietnam to a investment recipient country

According to Article 52, Law on investment, forms of outward investment include:

• Establishing a business organization in accordance with the law of the investment recipient country;
• Executing a business cooperation contract overseas;
• Purchasing part or all of charter capital of an overseas business organization to participate in the management and business investment overseas;
• Trading in securities, valuable papers, or making investments via securities investment funds and other intermediate financial institutions overseas;
• Other forms of investments prescribed by law of the recipient

Each form of outward investment can be subject to Policy decision on outward investment depending on the scale and type of project of the outward investment. The investor must apply for grant of Certificate of registration of outward investment. In this Article, Bizlawyer only provides information on procedures for grant of Certificate of registration of outward investment not subject to policy decision on outward investment

2. Requirements for issuance of Certificate of registration of outward investment

According to Article 58, Law on investment, the outward investment must meet the following conditions

(1) Rules for making outward investments:

• Investors are encouraged by the State to make outward investment in order to expand the market, improve the export of goods/services, and receipt of foreign currencies; improve access to modern technologies, raise the managerial capability and develop resources for socio-economic development.
• Investors making overseas investments shall comply with Investment Law and other laws of Vietnam as well as laws of the recipient country, and international agreements to which the Socialist Republic of Vietnam is a signatory. The Investor shall also take responsibility for overseas investments they make.

(2) The outward investment is not made in the banned business lines include:

• Trade in the narcotic substances ;
• Trade in the chemicals and minerals ;
• Trade in specimens of wild flora and fauna specified in Appendix 1 of Convention on International Trade in Endangered Species of Wild Fauna and Flora; specimens of rare and/or endangered species of wild fauna and flora;
• Prostitution;
• Human trafficking; trade in human tissues and body parts; and
• Business pertaining to human cloning.

(3) The investor or a permitted credit institution has made a commitment to prepare foreign currencies for outward investment. If capital in foreign currency of at least VND 20 billion is transferred overseas and does not belong to the project as prescribed in Article 54 of Law on investment, the Ministry of Planning and Investment shall request the State bank of Vietnam to provide opinions in writing

(4) There is a decision on outward investment as prescribed in Clause 1 and Clause 2 Article 57 of Law on investment

(5) There is a certification of the investor’s fulfillment of tax obligation up to the date of submission of the project dossier

3. Procedures for issuance of Certificate of registration of outward investment

a) Licensing authority: Ministry of Planning and Investment.

b) Applications:

• An outward investment registration form;
• A copy of the ID card or passport (if the investor is an individual); a copy of the Certificate of establishment or an equivalent paper that certifies the legal status of the investor (if the investor is an organization);
• The decision on outward investment as prescribed in Clause 1 and Clause 2 Article 57 of Law on investment;
• A commitment to balance foreign currency sources, or a commitment of a permitted credit institution to provide foreign currencies for the investor as prescribed in Clause 3 Article 58 of Law on investment; and
• With regard to a project of outward investment in banking, securities, science and technology, the investor shall submit a written certification of the investor’s fulfillment of conditions outward investment issued by a competent authority in accordance with the Law on credit institutions, the Law on Securities, the Law on science and technology, and the Law on Insurance Business

c) Time of processing: 15 working days since the date of submitting all documents