Attracting foreign investment is one of the priority objectives in Vietnam’s economic development plan. To maximize the effectiveness of the set goal, not only the Ministry of Planning and Investment but also the entire Vietnamese population has been making continuous efforts. For this reason, in recent years, foreign entrepreneurs have been continuously investing, significantly increasing the amount of FDI. In this article, let us learn about investment licenses and the required procedures.
However, to start a business investment plan, foreign entrepreneurs must apply for an investment license. So, what is an investment license? How is the procedure for applying for an investment license according to regulations regulated? Let’s find out through the following information.
What is an Investment License?
An investment license (or investment registration certificate) is a document, an electronic record that notes the registration information of an investor regarding a project with the competent authority. Businesses implementing illegal investment projects or industries prohibited from investment in Vietnam will not be granted an investment license.
Is the Investment License the Same as the Business Registration Certificate?
According to paragraph 3 of Article 41 of Decree 108/2006 detailing and guiding the implementation of the Investment Law as follows: “Foreign investors with an investment project associated with the establishment of an economic organization, then the Investment Certificate includes the content specified in paragraph 2 and the content of the Business Registration Certificate according to the provisions of the Enterprise Law. The Investment Certificate is simultaneously the Business Registration Certificate.”
Therefore, it can be understood that when foreign entrepreneurs implement foreign investment projects in Vietnam and establish a foreign-owned enterprise, the investment license is considered as the business registration certificate. In other cases, the investment license and business license are two documents with separate functions and tasks.
Investment License also serves as a Business Registration Certificate
Application for an Investment License
For domestic investment projects
Cases requiring an investment license
- Projects with an investment scale from VND 15 billion to VND 300 billion
- Projects not in the conditional investment sectors.
The application for an investment license includes
- Investment application.
- Investment project including: objectives, scale, project implementation location; investment capital, project implementation schedule
- Legal status documents of the investor
- Investor’s financial capacity report
- Land use needs and environmental protection commitment
- Request for investment incentives (if any)
Preparation of documents for domestic investment projects
For projects with foreign investment capital
For projects with an investment capital scale from VND 300 billion or more and not in the conditional investment sectors
- Application for investment certificate (in a specified form)
- Legal status documents of the investor: a copy of the establishment decision or business registration certificate or other equivalent documents for organizational investors; a copy of passport or ID card for individual investors
- Business cooperation contract for investment in the form of business cooperation contracts
- Investor’s financial capacity report
- Technical-economic explanation including: objectives, scale, investment location; investment capital, project implementation schedule; land use needs and environmental protection commitment
- Explanation of the ability to meet the conditions that the investment project must satisfy according to the legal regulations
For projects in conditional investment sectors
The investment project dossier in conditional investment sectors, as well as projects with an investment capital scale of VND 300 billion or more and not in the conditional investment sectors. However, investors shall prepare additional documents explaining the conditions that the investor must satisfy.
With policies prioritizing the attraction of foreign investment, it has contributed to the positive development of Vietnam’s economy. The information provided above helps clients better understand the investment license, as well as the regulations for its issuance. This is essential for investors to operate legally in Vietnam, hence it is crucial to take note.
