Establish a foreign invested (FDI) company in Long An

Establish a foreign invested company (FDI) in Long An to take advantage of the province’s dynamic investment climate. Long An province has attracted more than USD 11.1 billion in foreign direct investment (FDI), leading the Mekong Delta region. With its advantageous location, Long An is one of the top choices for foreign investors looking to establish FDI enterprises here. In the article below, Viet An Law will outline the legal aspects related to how to establish a foreign invested (FDI) company in Long An.

Foreign investment attraction in Long An Province

Currently, the industrial zones in Long An province have attracted 80 new projects, including 50 foreign direct investment (FDI) projects and 30 domestic projects, with a total new investment capital of over USD 447 million and VND 20,221 billion.

In addition, there are 50 capital adjustment projects, including 41 FDI projects with a total increased capital of over USD 77 million and 9 domestic projects with a total increased capital of over VND 305 billion.

As of now, Long An province has 17,204 registered enterprises with a total registered capital of VND 375,869 billion; 2,210 domestic investment projects with a registered capital of VND 300,377.9 billion, and 1,276 FDI projects with a total registered capital of USD 11,113.2 million (of which 635 projects are in operation, with a total investment capital of USD 4,213 million).

Among the industrial zones in Long An province, the number of projects by Chinese investors is the highest with 255 projects, followed by South Korea with 147 projects, and Japan with 133 projects. In terms of total investment capital, Singaporean investors lead with nearly USD 1,100 million, followed by South Korea, China, and Japan.

Industrial zones in Long An

Currently, Long An has major and important industrial zones such as:

The investment fields attracting investments in these industrial zones include:

• Mechanics & manufacturing;
• Electronics, high-tech industry, telecommunications;
• Chemicals, pharmaceuticals, cosmetics;
• Footwear, textiles;
• Food & agriculture;
• Food processing industry; agricultural and seafood processing industry;
• Manufacturing, assembling electronics, telecommunications, and maintenance of electrical equipment;
• Mining and production of construction materials;
• Preliminary processing of leather, leather dyeing, various types of footwear, and garments;
• Garment, textile dyeing, plating;
• Animal feed processing;
• Production of construction materials; manufacturing wooden products; food production;
• Precision mechanical industry, machinery manufacturing, equipment repair;
• High-tech industries: electronics, information, telecommunications;
• Manufacturing high-end household products from plastics, electrical goods, and consumer goods for the domestic market and export;
• Production of medicinal herbs, veterinary medicines, fertilizers, pesticides, and chemicals;
• Assembly of electrical, electronic, and refrigeration equipment.

Definition of foreign invested enterprises according to Vietnamese law

According to Clause 22, Article 3 of the Investment Law 2020, a foreign invested economic organization is an economic organization that has foreign investors as members or shareholders. Thus, a foreign invested enterprise (FDI enterprise) is one type of foreign invested economic organization, where there is direct or indirect foreign investment and the foreign investors are members or shareholders of the enterprise.

Foreign invested enterprises include:

• Enterprises with 100% foreign capital;
• Enterprises with individuals of foreign nationality or organizations established under foreign law investing (contributing capital to establish, purchasing capital contributions);
• Foreign invested economic organizations.

Conditions for issuing Investment Registration Certificate in Long An

Before implementing a project, foreign investors establishing an FDI enterprise need to meet the conditions for obtaining an investment registration certificate as stipulated in Article 36 of Decree 31/2021/ND-CP as follows:

• The project must not be in sectors or trades prohibited from investment and business as per international investment treaties;
• The project must have a location identified based on a valid copy of the land use rights certificate or a valid copy of the location lease agreement or other documents determining the right to use the location for the investment project;
• The investment project must conform to national, regional, provincial, urban, and special administrative-economic unit planning (if any);
• The project must meet the conditions regarding investment capital per land area as specified by the provincial People’s Committee based on local conditions and approved by the Standing Committee of the provincial People’s Council (if any), and the number of laborers employed (if any);
• The project must meet market access conditions applicable to foreign investors.

Conditions for issuing an Enterprise Registration Certificate in Long An

Foreign investors also need to meet the conditions to obtain an enterprise registration certificate as follows:

• The business sectors and trades registered must not be prohibited from investment and business;
• The enterprise name must comply with the regulations of the Law on Enterprises 2020;
• A valid enterprise registration dossier must be submitted;
• The enterprise registration fee must be paid in full according to the regulations on state fees.

Procedures for establishing a foreign invested company (FDI) in Long An

• Step 1: Obtaining investment policy approval (if required)
• Step 2: Applying for an Investment Registration Certificate
• Step 3: Applying for an Enterprise Registration Certificate
• Step 4: Post-establishment procedures

Notes:

• If the investment project falls under the cases requiring investment policy approval as stipulated in the Investment Law 2020, the investor must obtain investment policy approval before establishing a foreign invested enterprise in Long An.
• For projects subject to investment policy approval, based on the Decision on Investment Policy Approval, the investment registration authority will issue the Investment Registration Certificate, and the investor does not need to submit an application for this certificate.
• The authority to issue the Investment Registration Certificate belongs to the Department of Planning and Investment of Long An province (for projects outside industrial zones, export processing zones, high-tech zones, economic zones) or the Long An Industrial Zones Authority for projects within industrial zones, export processing zones, high-tech zones, economic zones.
• After being granted the Enterprise Registration Certificate, the following procedures need to be carried out: engraving the company seal, opening a foreign direct investment capital account, tax registration, applying for sub-licenses, etc.

Dossier to establish a foreign invested company (FDI) in Long An

Dossier for obtaining investment policy approval/applying for the Investment Registration Certificate

• Written request for the implementation of the investment project;
• Documents related to the legal status of the investor;
• Documents proving the financial capacity of the investor;
• Investment project proposal;
• Other documents related to the investment project.

Dossier for applying for the Enterprise Registration Certificate

• Application for enterprise registration.
• Company charter.
• List of members/founding shareholders; list of shareholders who are foreign investors.
• Copies of legal documents of members/shareholders.
• Investment registration certificate for foreign investors.
• Power of attorney.

Relevant authorities for FDI company establishment procedures

Department of Planning and Investment of Long An Province

• Address: 61 Truong Dinh, Ward 1, Tan An, Long An
• Phone number: 02723886009
• Email: skhdt@longan.gov.vn

Long An Industrial Zones Authority

• Address: No. 25, National Highway 62, Ward 2, Tan An City, Long An Province.
• Phone number: 02723825445.
• Email: bqlkkt@longan.gov.vn.

Some FDI companies in Long An Province

Oil Korea Vietnam Co., Ltd.

Address: Lot K.02A, Road No. 2, Long Hau Industrial Zone, Hamlet 3, Long Hau Commune, Can Giuoc District, Long An Province.

The company is a member of the OILKOREA group – a leading lubricant brand in the Korean market. With a modern production plant invested with USD 5 million in Long Hau Industrial Zone, the company’s production field is high-quality lubricants from raw materials imported from Korea.

Ching Luh Vietnam Shoe Co., Ltd.

Address: Nguyen Trung Truc, Ben Luc Town, Ben Luc, Long An.

In the shoe manufacturing industry in Vietnam, Ching Luh Vietnam Shoe Co., Ltd. has emerged as a bright star, becoming one of the leading shoe manufacturers in Vietnam. Ching Luh Vietnam’s products are mainly high-quality sports shoes, meeting the demands of demanding markets such as the United States, Europe, and many other countries.

Công ty TNHH Lotte Eco Logis Long An

Project location: Phu An Thanh Industrial Zone, An Thanh Commune, Ben Luc District, Long An Province.

The project was granted an investment registration certificate by the Long An Economic Zone Authority in November 2021. One week after receiving the investment certificate, at Phu An Thanh Industrial Zone, Ben Luc District, the Long An Economic Zone Authority and Lotte Eco Logis Long An Co., Ltd. organized the construction of a warehouse service project, storage of goods, and warehouse rental with a total investment from Korea, phase 1 being VND 306 billion, equivalent to more than USD 13.4 million.

Establish a company in Vietnam services by Viet An Law

• Consulting on conditions and preparing dossiers for establishing an FDI company in Long An.
• Advising on conditions and procedures for obtaining investment policy approval.
• Adjusting the Investment Registration Certificate and the Enterprise Registration Certificate for enterprises.
• Representing clients in carrying out company establishment procedures at the competent authorities.
• Registering invoices, tax declarations, and intellectual property protection for enterprises.
• Providing services for obtaining sub-licenses related to the business sectors of the enterprise.
• Providing regular legal consultation for enterprises during their operation.

If you have any questions or legal needs related to how to establish a foreign invested company (FDI) in Long An, please contact Viet An Law Firm for the best consultation and support!