How is the amount of money foreign investors transfer to Vietnam to carry out investment preparation activities used?

According to the provisions of Clause 1 and Clause 2, Article 8 of Circular 06/2019/TT-NHNN on money transfer for investment preparation activities as follows:

Transfer money to carry out investment preparation activities

1. Before being granted an Investment Registration Certificate by a competent authority, Notice of meeting the conditions for capital contribution, share purchase, and repurchase of capital contributions from foreign investors, and Establishment License and operating according to specialized laws, signing a PPP contract, foreign investors are allowed to transfer money from abroad or from the foreign investor's foreign currency or Vietnamese dong payment account opened at a bank. authorized customers in Vietnam to pay legal expenses during the period of implementing investment preparation activities in Vietnam.

2. After being granted an Investment Registration Certificate by a competent authority, Notice of meeting the conditions for capital contribution, share purchase, and repurchase of capital contributions from foreign investors, and Establishment License and operating under specialized laws, signing PPP contracts, the amount of money foreign investors have transferred into Vietnam to carry out investment preparation activities is used to:

a) Convert part or all into contributed capital;

b) Convert part or all into foreign loans of enterprises with foreign direct investment. In case of conversion into a foreign loan, an enterprise with foreign direct investment must comply with the provisions of law on borrowing and repaying foreign debt of enterprises. The term of a foreign loan is calculated from the date the project is granted an Investment Registration Certificate, Establishment and Operation License according to specialized laws, a PPP contract is signed by a competent authority, or the date that the parties Sign the foreign loan agreement (depending on which date is later) until the final repayment date;

c) Return to foreign investors in foreign currency and Vietnamese Dong the amount of money transferred into Vietnam to carry out investment preparation activities after deducting legal costs related to preparation activities. investment in Vietnam.

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According to the above regulations, before being granted an Investment Registration Certificate by a competent authority, foreign investors are allowed to transfer money from abroad or from the investor's payment account in foreign currency or Vietnamese Dong. That foreign investment is opened at a licensed bank in Vietnam to pay legal expenses during the period of implementing investment preparation activities in Vietnam.

The amount of money foreign investors have transferred into Vietnam to carry out investment preparation activities is used to carry out the activities specified in Clause 2, Article 8 above.

Can foreign investors who are not granted investment registration certificates transfer their remaining investment capital abroad?

According to Clause 3, Article 8, Circular 06/2019/TT-NHNN regulations on money transfer for investment preparation activities as follows:

Transfer money to carry out investment preparation activities

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3. In case the competent authority does not issue an Investment Registration Certificate, Notice of meeting the conditions for capital contribution, share purchase, repurchase of capital contributions from foreign investors, Establishment License establish and operate in accordance with specialized laws, sign PPP contracts or discontinue implementing direct investment projects in Vietnam,Foreign investors can transfer the remaining amount abroad in foreign currency or to buy foreign currency to transfer abroad for the amount transferred into Vietnam and the interest incurred (if any) after deducting legal costs related to investment preparation activities in Vietnam. Vietnam.

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According to the above regulations, in case an investment project of a foreign enterprise is not granted an Investment Registration Certificate by a competent authority, the foreign investor will be able to transfer the remaining amount abroad in foreign currency. or be allowed to buy foreign currency to transfer abroad for the amount transferred into Vietnam and the arising interest (if any) after deducting legal costs related to investment preparation activities in Vietnam.

On what basis is the transfer of remaining investment capital abroad for foreign investors not granted investment registration certificates carried out?

According to Clause 4, Article 8, Circular 06/2019/TT-NHNN regulations on money transfer for investment preparation activities as follows:

Transfer money to carry out investment preparation activities

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4. Transactions specified in Clause 1, Clause 2 and Clause 3 of this Article are carried out on the basis of agreement between the parties involved, presenting valid documents and vouchers proving the amount of money transferred to Vietnam. and legal costs related to investment preparation activities in Vietnam, ensuring compliance with regulations on foreign exchange management, investment laws, accounting laws and other legal regulations. relevant law.

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Thus, the transfer of remaining investment capital abroad for foreign investors who are not granted investment registration certificates is carried out on the basis of agreement between relevant parties, presentation of documents, Valid documents proving the amount of money transferred to Vietnam and legal expenses related to investment preparation activities in Vietnam.

At the same time, this investment capital transfer must ensure compliance with regulations on foreign exchange management, investment laws, accounting laws and relevant legal regulations.