I. Legal Basis

The Law on Investment 2020, effective from January 1, 2021, introduces significant amendments and supplements aimed at attracting both domestic and foreign investments. This law outlines various investment forms, such as direct investment, indirect investment, and public-private partnerships (PPP), while specifying the conditions required for the issuance of an Investment Registration Certificate. Additionally, it protects investors’ legitimate rights and defines obligations related to taxes, environmental protection, labor, and safety. The Law on Investment 2020 also provides support mechanisms and incentives for prioritized development sectors.

Decree 31/2021/ND-CP, issued on March 26, 2021, offers detailed guidance on implementing specific provisions of the Law on Investment 2020. It stipulates the processes and procedures for granting Investment Registration Certificates, forms and conditions for outbound investments, and regulations on the management and supervision of investment projects. Furthermore, the decree outlines investment incentive policies for specific industries and locations.

Overall, the Law on Investment 2020 and Decree 31/2021/ND-CP aim to create a transparent, competitive, and attractive investment environment, driving Vietnam’s economic growth.

II. Are Foreign Investors Required to Obtain or Adjust Investment Registration Certificates Before Establishing Economic Organizations?

According to the Law on Investment 2020, before establishing an economic organization, foreign investors must have an investment project and complete the process of obtaining or adjusting an Investment Registration Certificate.

However, if the investor is establishing a small- and medium-sized enterprise (SME) focused on innovative startups or a venture capital fund under the provisions of the Law on Supporting SMEs, this requirement is waived.

III. Must the Charter Capital of an Economic Organization Established by a Foreign Investor Match the Investment Capital of the Project?

As per Decree 31/2021/ND-CP, the charter capital of an economic organization established by a foreign investor to implement an investment project does not necessarily have to match the project’s total investment capital.

The economic organization established by the foreign investor can contribute capital and mobilize additional funding sources to implement the investment project, in accordance with the schedule specified in the Investment Registration Certificate.

IV. What Happens if an Existing Foreign-Invested Economic Organization Undertakes a New Investment Project in Vietnam?

Under Clause 3, Article 23 of the Law on Investment 2020, if an already established foreign-invested economic organization in Vietnam undertakes a new investment project, it must carry out the necessary procedures for that project. However, it is not mandatory to establish a new economic organization for the new investment project.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm

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