Reports on investment activities in Vietnam

During the implementation of an investment project, a foreign invested company granted an Investment Registration Certificate must comply with the reporting regime as prescribed to the competent authority as prescribed. Viet An Law has some legal opinions related to the implementation of the investment reporting regime as follows:

Legal basis

• Investment Law 2020.
• Decree 31/2021/ND-CP dated March 26, 2021.
• Circular 03/2021/TT-BKHĐT dated April 9, 2021.

Subjects of investment activity reporting

According to Clause 1, Article 72 of the Investment Law 2020, the following entities must comply with the investment activity reporting regime:

• Investor
• Economic organizations implement investment projects according to the provisions of the Investment Law.

Content and period of investment activity reporting

Investors and economic organizations must comply with the reporting regime according to the following regulations:

• Quarterly reports are made before the 10th of the first month of the quarter following the reporting quarter, including the following contents: realized investment capital, net revenue, export, import, labor, taxes and budget payments, land and water surface use.
• The annual report is made before March 31 of the following year of the reporting year, including quarterly report indicators and indicators on profits, employee income, expenditures and investments in scientific research and technology development, environmental treatment and protection, and origin of technology used.

Investment activity reporting form

Economic organizations implementing investment projects submit reports online through the National Investment Information System.

After being granted the Investment Registration Certificate, the investor contacts the agency that issued the Investment Registration Certificate to be granted an account and password to log in to https://fdi.gov.vn to make the report.

Periodic report: Monthly, quarterly, annually. Besides that, when competent agencies require, investors shall make unscheduled report.

Contents of investment activities report

• Monthly report:

Investment capital for project execution: In case the capital is used in the month, investors shall report within 12 days from the end of that month.

• Quarterly report:

Before the 12^th day of the first month after the reported quarter, investors shall report on: executed investment capital, net revenue, import, export, labor, tax and amounts paid to state budget, use of land and water surface.

• Annually report:

Before March 31^st of the next year after the reported year, investors shall report on quarterly report contents and profit, workers’ incomes, expenditures for research and development, environment protection and origin of technology used.

Standard forms used for report procedure is provided in Circular No. 16/2015/TT-BKHĐT providing regulations on application forms for investment procedures and reporting forms on investment in Vietnam.

In accordance with Decree No. 50/2016/NĐ-CP regulating on penalties for administrative violation against regulations on planning and investment, any violation such as “failure to submit reports on investment activities, investment project supervision and/or assessment” or “submitting an untruthful report on investment activities” shall be fined from 5.000.000 VND to 10.000.000 VND

Foreign invested company establishment service of Viet An Law Firm

• Consulting on conditions for establishing a foreign-invested company: capital contribution ratio of foreign investors in Vietnam; business conditions of each industry; project implementation location; note the procedures before and after establishing a foreign-invested company;
• Consulting on choosing the right type of company for investors: LLC or Joint Stock Company;
• Consulting on opening capital transfer accounts and capital contribution deadlines;
• Consulting and guiding investors to prepare necessary documents to establish a foreign-invested company;
• Consulting and drafting company establishment documents for investors;
• Representing investors in working with competent state agencies of Vietnam in the process of carrying out procedures for establishing a company for investors (Applying for Investment Registration Certificate, Enterprise Registration Certificate, Business License, License according to specialized requirements, making a legal seal, announcing seal samples, procedures after establishing a company, etc.;
• Comprehensive, regular consulting, accounting services, tax law package for activities arising in the process of doing business in Vietnam for investors.

If you are looking for legal advice about legal issues related to enterprises and investment in Vietnam, please feel free to contact Viet An Law firm for more information!