MUST-KNOWS REGARDING BUSINESS INVESTMENT CONDITIONS

MUST-KNOWS REGARDING BUSINESS INVESTMENT CONDITIONS

In order to increase investment in economic development, the State introduced policies to encourage and enable investors to carry out production and business investment activities. The State permits investors to freely conduct business investment activities in non-prohibited industries, and to control their own business investment activities. However, the state sets out several business lines on which investment and business activities can only be carried out after specific conditions have been satisfied. Please follow the article for further information on business investment conditions.

1. Definitions:

“Business investment” means an investor investing capital to do business.

“Business investment conditions” mean those which must be satisfied by an individual or organization upon making business investment in conditional business lines.

2. The contents specified on business investment conditions:

A List of conditional business lines is provided in Appendix IV of the Law on Investment 2020.

Conditions for making business investment are specified in the Laws and Resolutions of the National Assembly, Ordinances and Resolutions of the Standing Committee of the National Assembly, Decrees of the Government and international treaties to which the Socialist Republic of Vietnam is a signatory. Ministries, ministerial agencies, People’s Councils, People’s Committees at all levels, and other entities must not issue regulations on conditions for making business investment.

Conditions for making business investment must be appropriate for the reasons in Clause 1 of this Article and be public, transparent, objective and economic in terms of time and costs of compliance by investors.

According to the Law on Investment 2020 provides for business investment conditions shall contain the following:

- Subjects and scope of the business investment conditions;

- Forms of fulfillment of the business investment conditions;

- Contents of the business investment conditions;

- Documentation and administrative procedures for compliance with the business investment conditions (if any);

- Regulatory agencies and agencies that have the power to handle administrative procedures regarding business investment conditions;

- Effective dates of licenses or certificates or other written confirmation or approval (if any).

Enterprises are prescribed in the law to conduct business activities with conditions on charter capital, legal capital, infrastructure, etc and shall ensure to maintain such requirements throughout the operation process. Enterprises must satisfy certain conditions to be permitted to conduct conditional business lines:

- Licenses issued by a competent authority allows enterprises to conduct business activities when binding conditions have been met.;

- Certificates of eligibility for business.;

- Credentials can be a practicing certificate. This depends on each business line, which requires different types of credentials to prove that an individual has qualifications and expertise in that business line;

- Written confirmation or written approval;

- Other requirements that must be satisfied by individuals and business organizations to conduct business investment activities without obtaining written confirmation from a competent authority.

The conditional business lines and the corresponding conditions shall be posted on the National Business Registration Portal.

3. Meaning of provisions for business investment conditions

The provisions of conditional business lines in order to satisfy certain conditions for reasons of national defense and security, social order and security, social ethics, or public health.

Legal consultation on legal matters related to business investment conditions as follows:

HTC Vietnam Law Firm provides advice on matters related to internal legal consultancy for medium-sized enterprises thusly:

- Consulting on documentation and administrative procedures for compliance with the business investment conditions;

- Consulting on regulatory agencies and agencies that have the power to handle administrative procedures regarding business investment conditions;

- Consulting, supporting completing documents: business license, practice certificate, ..;

- Inspecting the conditions of customers and assessing the ability to meet the needs of conditional business lines in accordance with the provisions of law.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Đinh Thi Tuyet Mai/189; Date: 11/03/2022)

Translator: Pham Nguyen Nhat Linh