Tiếng Việt
中文 (中国)
日本語
Vietnam’s regulatory landscape concerning outward investment is essential for both investors and enterprises looking to expand their operations beyond national borders. With detailed provisions outlined in Decree No. 31/2021/NĐ-CP, investors are guided through conditions for regulated sectors and requirements for various forms of outward investment.
Conditions for Regulated Sectors
Decree No. 31/2021/NĐ-CP, referencing Article 72, lays out specific conditions for sectors deemed regulated in outward investment. These sectors include banking, insurance, securities, press, radio, television, and real estate business. Investors venturing into these sectors must meet strict requirements set by the law.
For instance, in sectors like banking, insurance, and securities, investors must meet the conditions as per the law governing these industries. Additionally, they need written approval from competent authorities to proceed. Similarly, for the press, radio, and television sectors, organizations must hold licenses to operate in Vietnam and obtain consent from the Ministry of Information and Communications.
The real estate business sector requires investors to be enterprises established under the 2020 Enterprise Law. These regulations ensure that investors entering these sectors possess the necessary qualifications and adhere to specific guidelines, safeguarding the interests of both investors and the Vietnamese market.
Understanding the various forms of outward investment is crucial for investors navigating Vietnam’s regulatory framework. According to Article 74 of Decree No. 31/2021/NĐ-CP, investors must adhere to specific requirements depending on the chosen investment form.
Investment forms include establishing economic organizations, investing through contracts abroad, contributing capital, purchasing shares or contributed capital of economic organizations, buying and selling securities, and other forms as prescribed by the laws of the host country.
For each investment form, investors must provide detailed documentation. For instance, for investments in the form of contracts abroad, investors must submit agreements or contracts with foreign partners, along with documents verifying the legal status of these partners. Similarly, for investments involving capital contributions or share purchases, investors must provide agreements or contracts specifying the investment terms, accompanied by documentation validating the legal status of the involved entities.
Compliance and Beyond
The regulatory framework outlined in Decree No. 31/2021/NĐ-CP underscores Vietnam’s commitment to ensuring transparency and accountability in outward investment activities. By outlining conditions for regulated sectors and requirements for different investment forms, the decree aims to foster responsible investment practices while protecting the integrity of the Vietnamese market.
Adherence to these regulations not only ensures compliance with Vietnamese law but also facilitates smoother operations for investors seeking to expand their presence internationally. Furthermore, understanding these regulations empowers investors to make informed decisions, mitigating potential risks and maximizing opportunities for success in the global market.
In conclusion, Vietnam’s regulations on outward investment provide a robust framework for investors venturing beyond national borders. By navigating the conditions for regulated sectors and understanding the requirements for different investment forms, investors can navigate the regulatory landscape with confidence, contributing to sustainable economic growth and development both domestically and internationally.
**ASL Law is a leading full-service and independent Vietnamese law firm made up of experienced and talented lawyers. ASL Law is ranked as the top tier Law Firm in Vietnam by Legal500, Asia Law, WTR, and Asia Business Law Journal. Based in both Hanoi and Ho Chi Minh City in Vietnam, the firm’s main purpose is to provide the most practical, efficient, and lawful advice to its domestic and international clients. If we can be of assistance, please email to [email protected].
ASL LAW is the top-tier Vietnam law firm for in-depth legal advice in Vietnam and internationally. If you need any advice, please contact us for further information or collaboration.
