FDI Investment Monitoring Report Services in Vietnam

In the context of Vietnam increasingly attracting foreign direct investment (FDI), monitoring and transparentizing investment activities have become particularly crucial. To ensure efficient capital utilization, legal compliance, and risk mitigation, FDI enterprises must periodically submit investment monitoring reports in accordance with state regulations. However, preparing these reports requires a deep understanding of legal procedures and statistical forms, as well as skills in data synthesis and analysis. Therefore, the investment monitoring report preparation service for FDI companies emerges as an optimal support solution, helping businesses save time, ensure compliance, and enhance investment management efficiency. In the article below, Viet An Law will provide clients with FDI investment monitoring report services in Vietnam.

What is an investment monitoring report? To whom is the investment monitoring report submitted?

An investment monitoring report is a consolidated report document detailing planned or ad-hoc monitoring, inspection, and evaluation activities of an investment project.

FDI enterprises submit investment monitoring reports to the following competent state management authorities:

• Department of Finance: For investment projects located outside industrial parks, export processing zones, and high-tech parks.
• Management Boards of Industrial Parks and Economic Zones: For investment projects falling under the management scope of these zones.

The receiving competent authority is responsible for checking, monitoring, and evaluating the project implementation progress and may request the investor to supplement information if necessary.

Some types of investment monitoring reports that FDI enterprises must submit

According to Clause 6, Article 100 of Decree 29/2021/ND-CP, FDI enterprises are required to prepare and submit several types of reports to the managing agency, the authority competent to decide on the investment, and the focal unit performing investment monitoring and evaluation, including the following:

Periodic reports

Some types of periodic reports that businesses need to be aware of include:

• Quarterly investment report: To be submitted before the 10th of the reporting quarter. This report should include: actual investment capital, net revenue, exports, imports, labor, taxes, and budget contributions,…
• Annual investment report: To be submitted before March 31st of the year following the reporting year. The content will include the indicators of the quarterly report, as well as profit indicators, employee income, scientific research expenses, technology development, environmental treatment,…
• Periodic supervision and assessment report in 6 months: To be submitted before July 10th of the reporting year. The main contents should include project implementation progress, investment progress, and business investment operational results
• Periodic supervision and assessment of annual reports: To be submitted before February 10th of the following year.

Monitoring report before project program adjustment

This is a document synthesizing information, data, and analysis related to the project’s implementation status, serving as a basis for considering and proposing adjustments. This report plays a crucial role in providing grounds for relevant parties – including the investor, state management competent authorities, and competent units – to assess the necessity, feasibility, and impact of project adjustments before making a final decision.

Program/project end-of-term monitoring report

This report aims to evaluate the achievement of objectives, the mobilization of resources, the implementation progress, and the benefits of the project.

Other monitoring and evaluation reports

Some monitoring reports include:

• Report on the evaluation of investment programs and projects organized and implemented by the entity
• Annual consolidated report on monitoring and evaluation of investment programs and projects under the entity’s management.

Notes on preparing investment monitoring reports

To ensure accuracy and compliance with legal regulations, investors need to understand the requirements for preparing investment monitoring reports. Below are important notes to help enterprises avoid errors and optimize the reporting process:

Identify the correct report type

Before preparing a report, enterprises need to clearly understand what an investment monitoring report is and determine the appropriate type, including periodic reports (quarterly, annual) and reports for project adjustments.

Comply with mandatory report content

A valid investment monitoring report must provide complete information on implementation progress, capital utilization, socio-economic impact, and difficulties encountered during deployment.

Adhere to submission deadlines

As mentioned above, submission times vary depending on the report type. Proactively submitting reports on time helps enterprises maintain credibility and facilitates related administrative procedures.

Choose the appropriate submission method

Investors can submit investment monitoring reports directly to the Department of Finance (formerly the Department of Planning and Investment), the Management Board of Industrial Parks, or online via the National Investment Monitoring Portal for convenience and speed.

Why should FDI enterprises use investment monitoring report preparation services?

Ensure legal compliance and avoid penalties

According to regulations in Circular 25/2023/TT-BKHĐT and related legal documents, FDI enterprises must submit periodic annual investment monitoring reports, as well as before making project adjustments. Failure to prepare or submit reports according to regulations may result in administrative penalties, affecting the company’s reputation and legal operations in Vietnam.

Specifically, according to Article 15 of Decree 122/2021/NĐ-CP, a fine ranging from VND 20,000,000 to VND 30,000,000 (applied to organizations) shall be imposed for any of the following violations:

• Making a report on investment supervision/assessment behind schedule or in an insufficient manner as prescribed;
• Failure to comply with regulations on reporting investment supervision/assessment periodically as prescribed.

Professional services help businesses fulfill requirements fully and on time, minimizing the risk of violations.

Save time and personnel costs

Collecting data, synthesizing, analyzing, and presenting information according to prescribed forms can be very time-consuming for enterprises, especially when lacking an internal legal department or expert legal knowledge. Using services helps:

• Reduce workload for management and accounting teams;
• Focus resources on core business activities.

Limit risks of errors and increase approval chances for dossiers

Investment monitoring reports are important components when enterprises make investment project adjustments. If a report contains errors, lacks information, or is not in the correct format, the adjustment dossier may be returned or the appraisal time prolonged.

Therefore, using a service can help ensure the report uses the correct standard forms, analyzes and presents data logically and understandably, and minimizes the risk of dossier rejection due to technical errors.

Effective communication and working with state competent authorities

For FDI enterprises, language barriers and differences in administrative culture can be significant challenges when working with state management competent authorities. A professional team with practical experience can:

• Represent the business in preparing, submitting reports, and monitoring processing progress;
• Support responding and supplementing documents when requested by competent authorities;
• Advise on appropriate, effective, and procedural working methods.

Viet An Law’s FDI investment monitoring report services in Vietnam

• Detailed and optimized consultation on investment monitoring report preparation for each province and city nationwide
• Assistance to enterprises in drafting, submitting, and other stages, and working with state agencies regarding investment monitoring reports
• Using prescribed report templates, submitting reports on time and accurately, and avoiding errors and administrative penalties for businesses violating legal regulations.
• Legal support for investment projects in general and other specific procedures
• Maximum support for issues arising throughout the period before, during, and after report preparation
• Viet An Law is always committed to being responsible for the services provided.

Above is the advice of Viet An Law on the issue of FDI Investment Monitoring Report Services in Vietnam. Clients who have related questions or need legal support, please contact Viet An Law Firm for the best support!