Rights and obligations when directly making investment in Vietnam

What are the rights and obligations of foreign investors when investing in Vietnam? What are investors allowed to do? What are they required to comply with? Let’s learn about this topic through this article from PL & Partners Law Firm!

At the present time, Vietnam is a country with great investment attraction thanks to its potential market, low labor costs and political and social stability. More and more investors from all over the world have been investing in our country in many different fields.

One of the issues that foreign investors need to pay attention to is their rights and obligations when investing in Vietnam. Understanding these things will help investors feel secure in implementing the project and ensure the legality of investment activities.

In this article, PL & Partners Law Firm will inform you about: “Rights and obligations of foreign investors when investing in Vietnam”.

A. FOREIGN INVESTOR’S RIGHTS:

1. Right to choose business lines:

The investors are entitled to conduct investment and business activities in one or more business lines not prohibited by the Law on Investment.

Particularly for conditional business lines, it is necessary to meet the conditions for business investment as prescribed by law.

2. Right to self-determination in business investment activities:

To decide and take self-responsibility for business investment activities in accordance with the Law on Investment and other relevant laws.
To access and make use of loan capital, assistance funds, land, and other resources as prescribed by law.
To contribute capital, purchase shares, buy capital contributions of economic organizations.
To transfer all or part of an investment project to other investors when all conditions are met.
During the implementation of an investment project, the investors are entitled to adjust the target, transfer part of the whole investment project, merge projects or divide or separate a project into many projects, make use of land use rights and assets on land belonging to investment projects to contribute capital to establish an enterprise, business cooperation or other contents that comply with the provisions of law.
To terminate investment activities and investment projects.
To establish/terminate the operating office in Vietnam to perform BCC contract.

*Foreign investors have many rights to self-determination in business when investing in Vietnam.*

3. The ownership of assets, capital, income, and other lawful rights and interests of investors are recognized and protected by the State:

As prescribed, investors’ legal assets shall not be nationalized or confiscated by administrative measures.
Where an asset is bought or requisitioned by the State for reasons of national defense and security, national interests, state of emergency or natural disaster management, the investor shall be reimbursed or compensated in accordance with regulations of law.
To be entitled to transfer assets abroad after fulfilling all financial obligations to the State of Vietnam.

4. Right to equitable treatment:

The State of Vietnam treats investors equitably, introduces policies to encourage and enable investors to carry out business investment activities and ensure sustainable development of economic sectors.

5. Right to enjoy incentives:

Enjoy investment incentives when investing in sectors encouraged by the Government.

6. The right to be granted a temporary residence card:

To be granted a temporary residence card with a term of three years to ten years depending on the amount of money invested in Vietnam. With this temporary residence card, investors can live, work and travel in Vietnam without having to apply for a visa.

*Vietnamese law has regulated quite completely and specifically the rights and obligations of foreign investors when investing in Vietnam.*

B. INVESTOR’S OBLIGATIONS:

Foreign investors when investing in Vietnam shall perform these obligations:

To comply with Vietnamese laws during business investment process.
To fully satisfy the conditions for conditional business lines during the investment process.
To ensure financial capacity and contribute investment capital according to the registered project schedule.
To carry out investment activities in accordance with investment information registered and investment registration certificate.
To pay a deposit or have a bank guarantee from a credit institution or foreign bank branch established under Vietnamese law for assurance of investment project execution if the project uses land allocated or leased out or transferred by the State.
To open a direct investment capital account at an authorized bank to conduct lawful revenue and expenditure transactions related to direct investment activities in Vietnam.
To fully declare and pay taxes and other financial obligations.
To report on investment projects in accordance with the law.
To perform other obligations as prescribed by relevant laws.

As mentioned above, we have introduced to you the rights and obligations of foreign investors when investing in Vietnam. In addition, depending on the form of investment, the specific business lines, the investor shall be required to have additional rights and obligations as prescribed by law.

*Besides the rights, foreign investors when investing in Vietnam also need to fully comply with the obligations prescribed by law.*

PL AND PARTNERS LAW FIRM

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The above-mentioned consulting opinions are based on the provisions of the law and information provided by the client. Any legal opinions expressed (unless cited) are our own and for reference only.
At the time you read this article, the laws we refer to may have expired, or have been amended or supplemented. Therefore, we do not guarantee that the above information can be applied to all cases, to all subjects, at all times.
For accurate and specific consultancy, please contact PL&Partners lawyer via call center 093.1111.060 or email: info@pl-partners.vn