The planning and investment ministry is finalising a draft decree for building an adequate, transparent and consistent legal framework for the implementation of the 2014 Investment Law.
The Investment Law comes into effect on July 1, 2015.
The draft decree covers guidelines that cover, among others, business investment sectors, investment procedures and transition regulations for investment registration dossiers that are to be submitted to the authority prior to July 1.
Unlike some early drafts, the latest draft decree no longer provides a list of business investment conditions applicable to foreign investors. According to the draft decree, all business investment conditions applicable to foreign and domestic investors shall be published on the National Business Registration portal. Furthermore, in case of projects invested by foreign investors or deemed foreign-invested economic organisations, they are required to further satisfy a number of investment conditions in terms of (i) the capital contribution ratio, (ii) investment form and scope of operation, (iii) Vietnamese partner and, (iv) other conditions provided in international treaties of which Vietnam is a member.
Other notable points of the draft decree are in relation to investment incentives and procedures. In particular, the draft details those entitled to investment incentives via two lists of preferential investment industries and geographical areas. In respect of investment projects obtained via an investment policy decision as required by the 2014 Investment Law, the licensing authority shall, within five working days, issue an investment registration certificate to the investor without requesting any further documents or re-considering any contents approved under the investment policy decision. It is noted that the investor shall only need to conduct procedures to amend investment policy in certain cases, including adjustment of key technology, investment purpose and location, and changes of more than 10 per cent of the total investment capital.
The draft decree also provides certain transition regulations in respect of investment application dossiers. In case of an investment application dossier submitted by the investor before the new Investment Law comes into effect on July 1, 2015, the licensing authority will apply the laws and regulations applicable at that time (i.e. the 2005 Investment Law) to complete procedures for granting an investment certificate or amending the investment project of the investor, unless otherwise requested by the investors.
Once issued, the decree is expected to create a more convenient business environment for investors in Vietnam.