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Law on Foreign Investment in Vietnam: Investment Law 2020
The Law on Foreign Investment in Vietnam promulgated in 1996 has expired and been replaced by the Investment Law. The latest version is the Investment Law 2020. Follow this article with Apluslaw to learn about the issue.
1. Content of Investment Law 2020
In this section, we will send readers the content of the Investment Law 2020. This law is applicable to both Vietnamese investors and foreign investors.
| THE NATIONAL ASSEMBLY ——– |
SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ————— |
| Law No. 61/2020/QH14 | Hanoi, June 17, 2020 |
LAW
ON INVESTMENT
Pursuant to Constitution of Socialist Republic of Vietnam;
The National Assembly promulgates the Law on Investment.
Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Law provides for business investment activities in Vietnam and outward business investment activities.
Article 2. Regulated entities
This Law applies to investors, and agencies, organizations and individuals (hereinafter referred to as “entities”) involved in business investment activities.
Article 3. Definitions
For the purposes of this Law, the terms below are construed as follows:
1. “approval for investment guidelines” means a competent authority approving the objectives, location, scale, schedule and duration of a project; investor or form of selection of investor and special mechanisms or special policies (if any) to execute an investment project.
2. “investment registration authority” means a regulatory agency that issues, adjusts and revokes investment registration certificates.
3. “national investment database” means a collection of data on investment projects nationwide that is connected to databases of relevant agencies.
4. “investment project” means a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time.
5. “expansion project” means an investment project on development of a running project by expanding the scale, improving the capacity, applying new technologies, reducing pollution or improving the environment.
6. “new investment project” means a project that is executed for the first time or a project independent from any other running project.
7. “start-up project” means an investment project that implements ideas on the basis of exploiting intellectual property, technologies and new business models and is able to grow quickly.
8. “business investment” means an investor investing capital to do business.
9. “business investment conditions” mean those which must be satisfied by an individual or organization upon making business investment in conditional business lines.
10. “market access conditions applied to foreign investors” mean those which must be satisfied by foreign investors to make investment in the List of business lines with prohibited and restricted market access (hereinafter referred to as “the Negative List for Market Access”) specified in Clause 2 Article 9 of this Law.
11. “investment registration certificate” means a physical or electronic document bearing information registered by an investor about an investment project.
12. “National Investment Information System” means a system of professional information meant for monitoring, assessment, and analysis of nationwide investment in order to serve state management tasks and assist investors in carrying out investment activities.
13. “outward investment activity” means an investor transferring investment capital from Vietnam to a foreign country and using profit obtained from such investment capital to carry out outward investment activities in the foreign country.
14. “business cooperation contract” means a contract between investors for business cooperation and distribution of profits or products without establishment of a business organization.
15. “export-processing zone” means an industrial park specialized in manufacturing of exported products or provision of services for manufacturing of exported products and export.
16. “industrial park” means an area with a defined geographical boundary specialized in production of industrial goods and provision of services for industrial production.
17. “economic zone” means an area with a defined geographical boundary which consists of multiple dedicated areas and is meant to achieve the objectives of investment attraction, socio-economic development and protection of national defense and security.
18. “investor” means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business organizations.
19. “foreign investor” means an individual holding a foreign nationality or an organization established under foreign laws and carrying our business investment activities in Vietnam.
20. “domestic investor” means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.
21. “business organization” means an organization established and operating in accordance with Vietnam’s laws. Business organizations include enterprises, cooperatives, cooperative unions and other organizations that carry out business investment activities.
22. “foreign-invested business organization” means an organization whose members or shareholders are foreign investors.
23. “investment capital” means money and other assets prescribed by the civil law and international treaties to which the Socialist Republic of Vietnam is a signatory for the purpose of carrying out business investment activities..
Article 4. Application of the Law on Investment and relevant laws
1. Business investment activities made within Vietnam’s territory must comply with this Law and relevant laws.
2. Where regulations on banned business lines or conditional business lines in this Law and other laws are inconsistent, regulations of this Law shall apply.
Regulations on names of banned business lines and conditional business lines in other laws must be consistent with those set out in Article 6 and Appendices to the Law on Investment.
3. Where regulations on procedures for making business investment or on investment assurance in this Law and other laws are inconsistent and have been promulgated before the effective date of this Law, regulations of this Law shall apply, except for the following cases:
a) Investment in, management and use of state capital invested in enterprises, which are prescribed in the Law on Management and Use of State Capital Invested in Manufacturing and Business Activities of Enterprises;
b) Power and procedures for making public investment and management and use of public investment capital, which are prescribed in the Law on Public Investment;
c) Power and procedures for making investment and executing projects; law governing project contracts; investment assurance, mechanisms for management of state capital applied to PPP projects, which are prescribed in the Law on Public Private Partnership Investment Form;
d) Execution of construction, housing and urban area projects in compliance with the Law on Construction, Law on Housing and Law on Real Estate Business after a competent authority grants approval for the investment guidelines or adjustment to the investment guidelines in accordance with regulations of the Law on Investment;
dd) Power, procedures and conditions for making business investment, which are prescribed in the Law on Credit Institutions, Law on Insurance Business and Law on Petroleum;
e) Power, procedures and conditions for making business investment, carrying out securities activities and operating in the securities market of Vietnam, which are prescribed in the Law on Securities.
4. Where a law promulgated after the effective date of this Law contains regulations on investment contradicting regulations of this Law, the former is required to specify the cases to which its regulations apply and the cases to which this Law applies.
5. With regard to any contract to which at least a party is a foreign investor or a business organization defined in Clause 1 Article 23 of this Law, the parties may reach an agreement on whether to apply foreign laws or international practice if such agreement does not contravene Vietnam’s laws.
2. Download free Investment Law 2020
You can view the entire content of the Investment Law 2020 or download it immediately below:
- Doc: Investment Law 2020
- Pdf: Investment Law 2020
Above is the content of the Investment Law 2020 and download link. If you still have any questions related to credit institutions, please contact lawyer A+ via email: contact@apluslaw.vn or via phone number: 0899511010 for support and advice.