What is overseas investment?
1. Concepts
Pursuant to Clause 13 of Article 3 of the Investment Law 2020, overseas investment activities are specifically defined as follows:
Overseas investment activities are when investors transfer investment capital from Vietnam to foreign countries, using profits earned from this investment capital to carry out business investment activities abroad. This is a form of global business investment, expanding the operations of a company or investor beyond borders to exploit and develop new business opportunities.
2. Principles for implementing overseas investment activities
Principles for implementing overseas investment activities are prescribed in Article 51 of the Investment Law 2020:
- The State encourages investment abroad to exploit, develop and expand markets; increase the ability to export goods and services and earn foreign currency; Access modern technology, improve management capacity and supplement the country's socio-economic development resources.
- Investors carrying out investment activities abroad must comply with the provisions of this Law, other relevant laws, and the laws of the country or territory receiving investment (hereinafter referred to as investment receiving country) and relevant international treaties; Take responsibility for the effectiveness of investment activities abroad.
3. Investors carry out investment activities abroad
According to Article 68 of Decree 31/2021/ND-CP, investors carrying out investment activities abroad include:
- Enterprises are established and operate according to the provisions of the Enterprise Law and Investment Law.
- Cooperatives and unions of cooperatives are established and operate according to the provisions of the Law on Cooperatives.
- Credit institutions established and operating according to the provisions of the Law on Credit Institutions.
- Business household registered in accordance with Vietnamese law.
- Individuals with Vietnamese nationality, except for the cases specified in Clause 2, Article 17 of the Law on Enterprises 2020:
+ State agencies and people's armed forces units use state assets to establish business enterprises to make their own profits for their agencies and units;
+ Cadres, civil servants and public employees according to the provisions of the Law on Cadres, Civil Servants and the Law on Public Employees;
+ Officers, non-commissioned officers, professional soldiers, workers, and defense officials in agencies and units of the Vietnam People's Army; officers, professional non-commissioned officers, and police workers in agencies and units under the People's Public Security of Vietnam, except those appointed as authorized representatives to manage the State's capital contribution in the enterprise or management at state-owned enterprises
+ Leaders and professional managers in state-owned enterprises as prescribed in Point a, Clause 1, Article 88 of the Law on Enterprises 2020, except those appointed as authorized representatives to manage the State's capital contribution in other businesses;
+ Minors; people with limited civil act capacity; people who have lost their civil act capacity; people with difficulty in cognition and behavior control; organizations without legal status;
+ People who are being prosecuted for criminal liability, detained, are serving prison sentences, are serving administrative measures at compulsory drug treatment facilities, compulsory educational establishments or are being prosecuted by the Court. Prohibited from holding certain positions, practicing certain occupations or doing certain jobs; Other cases according to the provisions of the Bankruptcy Law and the Law on Prevention and Combat of Corruption.
If requested by the Business Registration Authority, the person registering to establish a business must submit a criminal record card to the Business Registration Authority;
+ Organizations are commercial legal entities banned from doing business or operating in certain fields according to the provisions of the Penal Code.
- Other organizations carrying out business investment in accordance with Vietnamese law.