Essential Documents for Investment Policy Approval in Vietnam
Vietnam’s investment policy framework provides a robust and well-defined process for foreign investors to establish their presence in the country. According to current legal regulations, when preparing to implement large, important projects that affect the economy, politics, culture, society, or national security, investment policy approval is required by competent state agencies. This process can become an obstacle for many clients when preparing documents. In this article guidance, Viet An Law Firm will delve into the essential documents you need to navigate the investment policy approval process in Vietnam.
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What is investment policy approval?
According to Clause 1, Article 3 of the Investment Law 2020, investment policy approval is understood as approval by a competent state agency of the following contents:
Special mechanisms and policies to implement investment projects.
Depending on the field and scale of the investment project, each type of project has a different investment policy approval agency. According to Articles 30, 31, 32 of the Investment Law 2020, competent agencies approving investment policies include:
Congress
Goverment
Provincial People’s Committee
Industrial park management board
What are the essential documents for Investment Policy Approval in Vietnam?
Documents submitted by investors
Types of papers and documents drafted by Viet An Law Firm:
The written request for investment project implementation is made according to Form AI1 Appendix issued with Circular 25/2023/TT-BKHDT.
Investment project proposal. In case the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal. (Form AI3 Appendix issued with Circular 03/2021/TT-BKHDT)
Power of Attorney for Viet An Law to carry out the procedure.
Types of papers and documents provided by clients
Documents on the investor’s legal status;
Documents proving the investor’s financial capacity include at least one of the following documents: the investor’s most recent 2-year financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor’s financial capacity; Other documents proving the investor’s financial capacity;
Copy of land use rights documents or other documents determining the right to use the location to carry out the investment project (In case the investment project does not require the State to allocate land, lease land, or permit change the purpose of land use);
Content explaining the technology used in the investment project (For projects subject to appraisal, collecting opinions on technology according to the provisions of the law on technology transfer);
BCC contract (For investment projects in the form of BCC contract);
Other documents related to the investment project, conditions, and capacity requirements of the investor according to the provisions of law (if any).
Records are prepared by competent state agencies
A dossier requesting approval of investment policy prepared by a competent state agency includes the following documents and papers:
Proposal for approval of investment policy;
Investment project proposal (In case the law on construction stipulates the preparation of a pre-feasibility study report, the competent state agency may use the pre-feasibility study report instead of the investment project proposal). The investment project proposal form was prepared by a competent state agency (Form AI2, appendix issued with Circular 25/2023/TT-BKHDT).
Content of the written request for investment policy approval
According to Point a, Clause 1, Article 33 of the Investment Law 2020 and the Appendix issued with Circular 25/2023/TT-BKHDT, the written request for investment policy approval includes several basic contents such as:
Investor information;
Information about the economic organization expected to be established: name, type, charter capital;
Information about investment projects: name, implementation location, objectives, scale, capital, duration of operation, project implementation progress;
Investor’s commitment: the investor commits to be responsible before the law for the accuracy, legality, and truthfulness of the information stated in the written request for approval of the investment policy; comply with legal regulations and commit to bear all costs risks if the project is not approved.
Procedures for applying for investment policy approval
Number of dossier sets
Under the jurisdiction of the Provincial People’s Committee: 4 sets of dossiers;
Under the authority of the Prime Minister: 8 sets of dossiers;
Under the authority of the National Assembly: 20 sets of dossiers.
Submit method
Submit directly to the competent authority that approves the investment policy.
Executive time
Under the approval authority of the Prime Minister: 47 days;
Under the approval authority of the Provincial People’s Committee: 32 days;
Under the authority of the National Assembly’s approval: No later than 60 days before the opening date of the National Assembly session, the Government shall prepare and send a dossier requesting approval of the investment policy to the inspection agency of the National Assembly.
Administrative results
Approve the investment policy, in case of refusal, the reason must be clearly stated.
Notes on application for investment policy approval
Clients need to prepare a complete application of papers and documents according to the above regulations to apply for approval of the investment policy;
The types of papers and documents provided need to ensure both form and content according to the provisions of law;
Foreign investors should pay attention to fully meeting the conditions on business lines and market access conditions before applying for approval of investment policies according to Vietnam’s Commitments and the 2020 Investment Law;
For investment projects that require the State to allocate land, lease land, or change land use purposes, it is necessary to ensure that the documents include a Proposal for land use. In case the project does not request the State to allocate land, lease land, or allow a change of land use purpose, the investor must submit a copy of the location lease agreement or other documents confirming the investor has the right to use the location for implementing investment projects;
The written request to implement an investment project must include a commitment to bear all costs and risks if the project is not approved;
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