Rights and obligations of foreign investors in Vietnam

Currently, foreign investment in Vietnam is as our economy is growing rapidly. Besides that, investment encouraging policies, especially, foreign investment policies are supported by the State. 2014 is considered as a millstone in Vietnam’s jurisdiction when the Law on Investment 2014 and the Law on Enterprises 2014 are approved and other guiding documents are issued. After two years since becoming enforceable, those regulations helps simplify and shorten procedures for foreign investors.

One matter foreign investors pay much attention to is their rights and obligations when investing in Vietnam, in other words, what they can choose to do and must do under the local laws. Understanding this clearly shall help investors feel easy to execute their projects and ensure legitimacy of their investment. In order to help our Clients, Viet An Law Firm collects and provides our Clients some related information as follows:

Rights of investors:

• Invest in business sectors which are not banned by the laws;
• Decide their business in accordance with the laws; access and make use of loans, funds, land and other resources as prescribed by the laws;
• Choose investment methods in accordance with the laws: establish business organizations, contribute capital, purchase shares, purchase capital contributions, sign Business Cooperation Contract, sign Public Private Partnership contracts;
• Transfer investment projects, adjust information of investment projects (objectives, scale, location, capital, investors…;
• Terminate investment projects;
• Request for investment incentives and get investment incentives as stipulated by the laws.

Obligations of investors:

• Register an account for the National Portal of Foreign Investment;
• Declare and pay taxes as stipulated by the laws;
• Comply with regulations during operating investment project in Vietnam such as: labor law, environment law, tax law, construction law, land law, social insurance, intellectual property…;
• Escrow for project execution (if any);
• Comply with report procedures;
• Satisfy required conditions of conditional business sectors and maintain them throughout operation of investment project.

Legal consulting services on enterprises and investment in Vietnam:

• Consult about regulations and procedures for enterprises and investment in Vietnam;
• Consult about conditional business sectors and detailed conditions of apply to each sectors;
• Consult about limitations on foreign investors under the laws of Vietnam, international treaties to which Vietnam is a members…;
• Consult about issues related to investment projects in Vietnam such as: investment incentives, investment tax incentives, contracts, Vietnamese labor, foreign labor working in Vietnam, social insurance, commerce, commercial franchise…;
• Draft, submit the application and act on behalf of Clients to work with state-authorized agencies when Clients grant authorization.

If you are looking for regulations and procedures related to enterprises and foreign investment in Vietnam, please feel free to contact Viet An Law Firm for more information!