How are investment activities of foreign-invested economic organizations regulated?
Pursuant to Article 23 of the Investment Law 2020, regulations on the implementation of investment activities of foreign-invested economic organizations are as follows:
"Article 23. Implementation of investment activities of economic organizations with foreign investment capital
1. Economic organizations must meet the conditions and carry out investment procedures as prescribed for foreign investors when investing in establishing other economic organizations; Investing in capital contribution, purchasing shares, purchasing capital contributions from other economic organizations; Invest in the form of BCC contract if that economic organization falls into one of the following cases:
a) There are foreign investors holding more than 50% of charter capital or the majority of partners are foreign individuals for economic organizations that are partnerships;
b) There is an economic organization specified in Point a of this Clause that holds more than 50% of the charter capital;
c) There are foreign investors and economic organizations specified in Point a of this Clause holding more than 50% of the charter capital.
2. Economic organizations that do not fall into the cases specified in Points a, b and c, Clause 1 of this Article shall comply with investment conditions and procedures as prescribed for domestic investors when investing in establishing organizations. other economic; investment in the form of capital contribution, share purchase, purchase of capital contribution from other economic organizations; Investment in the form of BCC contract.
3. If a foreign-invested economic organization has been established in Vietnam, if it has a new investment project, it can carry out procedures to implement that investment project without necessarily establishing a new economic organization.
4. The Government regulates in detail the order and procedures for investment in establishing economic organizations and for implementing investment activities of foreign investors and economic organizations with foreign investment."
In addition, Article 64 of Decree 31/2021/ND-CP provides guidance on the implementation of investment projects and business investment activities of foreign-invested economic organizations specifically as follows:
- In case of implementing a new investment project other than an investment project that has been granted an Investment Registration Certificate, a foreign-invested economic orgaization must carry out the following procedures:
+ Economic organizations specified in Points a, b and c, Clause 1, Article 23 of the Investment Law carry out procedures for approving investment policies and issuing Investment Registration Certificates according to the provisions of this Decree;
+ Economic organizations not falling into the cases specified in Point a of this Clause shall implement the reporting regime as prescribed in Clause 5, Article 72 of the Investment Law. Report content includes: Investment project name, investment objective, investment scale, investment capital, location, duration of operation, implementation progress, labor needs, investment incentives ( if any).
- Economic organizations with foreign investment capital are entitled to adjust the content of business registration at the business registration agency without necessarily having an investment project. The addition of business investment sectors and trades of foreign-invested economic organizations must be consistent with the market access conditions of foreign investors (if any).
- Economic organizations with foreign investment capital are allowed to establish branches, representative offices, and business locations outside the head office without necessarily having an investment project. Documents, order and procedures for establishing branches, representative offices, and business locations of economic organizations comply with the provisions of law on enterprises and laws corresponding to each type of economic organization.
- When investing and trading securities on the stock market, foreign investors and economic organizations with foreign investment capital must comply with the provisions of securities law on investment procedures and ownership ratio. ownership of charter capital, unless international treaties on investment have different provisions on the percentage of charter capital ownership.