One of the procedures foreign investors need to follow during the investment process in Vietnam is the investment reporting regime. Reporting investment activities in Vietnam helps state management agencies track and monitor project implementation as well as collect necessary statistical data to serve management and adjust the law to suit reality. In the following article, Viet An Law would like to summarize and send clients some consulting on investment reports in Vietnam.
Legal basis
Law on Investment 2020;
Decree 31/2021/ND-CP guiding the Investment Law;
Decree 122/2021/ND-CP regulates sanctions for administrative violations in the field of planning and investment;
Circular 03/2021/TT-BKHDT stipulates sample documents and reports related to investment activities in Vietnam, investment from Vietnam to foreign countries, and investment promotion.
Regulations on investment reports in Vietnam
As stipulated in the Investment Law 2020, on a monthly, quarterly, and annual basis, investors and economic organizations implementing investment projects shall comply with investment activity reporting regimes (online form) or use for application to adjust the investment registration certificate. In addition, when requested by a competent state agency, investors make extraordinary reports.
Subject conducting the investment reports
According to Clause 1, Article 73 of the Investment Law 2020, agencies, organizations, and individuals implementing the investment reporting regime include:
Investors and economic organizations carry out investment projects according to regulations.
In this article, Viet An Law aims to guide groups of investors and economic organizations implementing investment projects in Vietnam to fulfill this obligation according to current regulations.
Subject receiving the report
Entities authorized to receive investment reports are:
Investment registration agency: Department of Planning and Investment or Management Board of industrial parks, export processing zones, high-tech zones, and economic zones.
Statistical agency in the area of the implementation of investment projects: Provincial People’s Committee.
Content of investment reports
According to the provisions of Article 102 of Decree 31/2020/ND-CP, for quarterly reports:
Performing investment;
Net revenue;
Export and import situation;
Employer;
Information on tax obligations and budget payments;
Situation of land and water surface use.
For annual reports:
Indicators of quarterly reports;
Targets on profits and employee income;
Expenditures and investments for scientific research and technological development;
Expenses for environmental treatment and protection;
Origin of technology used.
Report form
Economic organizations implementing investment projects submit investment project reports online through the National Investment Information System at https://fdi.gov.vn/ Pages/PageChu.aspx
How to get an investment reporting account: After being granted the Certificate of overseas investment registration, the investor is given an account to access the National Investment Information System to register an account and make payments. Periodic reporting regime according to regulations.
Investors are responsible for managing their accounts and updating information fully, on time, and accurately into the National Investment Information System.
In case there is a difference between the information reported on the Information System and the information in the paper report, the information on the National Investment Information System shall be based on the information.
The report form is specified in Circular 31/2021/TT-BKHCN as follows:
Quarterly report on investment project implementation: Form A.III.1 Appendix III
Annual report on investment project implementation: Form A.III.2 Appendix III
Particularly for foreign investment in the oil and gas sector of Vietnam Oil and Gas Group, the report form is prescribed as follows:
Quarterly report: Form A.III.3 Appendix III
Annual report: Form A.III.4 Appendix III
Reporting deadline
Quarterly report: before the 10th day of the first month of the quarter following the reporting quarter.
Annual report: before March 31 of the following year the reporting year.
In addition, when making adjustments to investment projects, the investment report according to the provisions of Decree 31/2021/ND-CP will be sent with the adjustment dossier.
Penalties for violations
In case the investor does not comply with the reporting regime as prescribed:
The Ministry of Planning and Investment shall issue a written reminder for the first violation;
Penalties for administrative violations according to the provisions of Decree 122/2021/ND-CP;
Publicize violations on the National Investment Information System, the Electronic Information Portal of the Ministry of Planning and Investment, and other mass media.
Regulations on investment assessment and supervision reports
Unlike investment reports specified in Decree 31/2021/ND-CP, investment assessment, and supervision reports are submitted directly in paper form and periodically to serve the work of monitoring the foreign investment in Vietnam. Regulations on investment supervision and assessment reports are shown in Decree 29/2021/ND-CP.
Administrative sanctions in the field of investment
According to Clause 4, Article 83 of Decree 31/2021/ND-CP, handling measures for investors not implementing the reporting regime include:
The Ministry of Planning and Investment will issue a written warning for the first violation;
Penalties for administrative violations according to the provisions of the law on administrative sanctions in the field of planning and investment.
Regarding violations of the information and reporting regime on investment activities in Vietnam, Article 15 of Decree 122/2021/ND-CP stipulates:
Fine from 20,000,000 VND to 30,000,000 VND for one of the following acts: (i) Preparing investment monitoring and evaluation reports on time or with incomplete content as prescribed; or (ii) Failure to implement periodic investment monitoring and evaluation reports as prescribed.
Fine from 30,000,000 VND to 50,000,000 VND for one of the following acts: (i) Failure to report investment activities or not reporting on time as prescribed; or (ii) Untruthful or inaccurate reporting on investment activities;
In investment activities, Article 10 of Decree 122/2021/ND-CP, violations of the investment monitoring and evaluation reporting regime may be subject to a fine of from 20,000,000 VND to 30,000,000 VND consent for one of the following acts:
Prepare investment monitoring and evaluation reports that are not on time or have incomplete content as prescribed;
Failure to update the Investment Supervision and Evaluation Report to the National Information Portal on Investment Supervision and Evaluation.
Fine from 30,000,000 VND to 50,000,000 VND for one of the following acts:
Failure to implement periodic investment monitoring and evaluation reports as prescribed;
Making investment monitoring and evaluation reports that are not honest or accurate.
Consulting on investment reports in Vietnam by Viet An Law
Consulting on legal regulations and procedures related to the field of business and investment in Vietnam;
Consulting on legal regulations and procedures related to Investment Registration Certificate, Enterprise Registration Certificate, and sublicenses;
Consulting on regulations on conditional investment and business industries and specific conditions for each industry;
Consulting on preparing investment reports in Vietnam;
Authorized representative of the client prepares investment reports and submits them to competent authorities;
Consulting on post-establishment issues such as contracts, Vietnamese workers, foreign workers working in Vietnam, trade, franchising, and intellectual property.
Clients who want to learn and need advice on legal issues related to business and foreign investment in Vietnam, please contact Viet An Law Firm for more details!
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