In order to do business in Vietnam under the form of foreign investment, foreign investors are required to obtain an Investment License issued by the Vietnamese Government. In order to get an Investment License, foreign investor may request either an investment project registration procedure or investment project evaluation procedure. The time required for each procedure varies according to the Group that the project belongs to.
Registration for the issue of an Investment license is required within 15 working days for projects concurrently satisfying the following conditions:
· Not belonging to Group A Projects, conform to the approved planning for development of the industry, or planning for products not belonging to the list of projects in respect of which environmental impact assessment reports must be prepared.
· In addition to the conditions outlined above, the projects subject to registration for issuance of investment licneses must satisfy one of the following conditions: (i) have an export ratio of eighty (80) percent of their product; (ii) be an investment project in an industrial zone and not a Group A project, but included in the list of sectors in which investment is encouraged (iii) belong to the production sector with an investment capital of up to USDfive (5) million.
Evaluation for the issue of an investment license within 45 days applies to Group A projects and within 30 days for Group B projects.
Depending on the nature and scale of the project, one of the following agencies will consider and decide on the issue the investment license:
- The Prime Minister makes decisions in relation to Group A project.
- The
Ministry of Planning and Investment makes decisions on Group A project (all projects not stipulated as within the authority of the Prime Minister), except for projects referred by the authority of provincial people's committees. - Provincial People's Committees make decisions on projects being consistent with the Government's approved planning for socio-economic development but not including those listed as Group A projects with the amount of invested capital as stipulated by the Prime Minister (Hanoi and Ho Chi Minh City: USD10 million and other provinces: USD5 million ), and except for projects of national significance. These include road/railway construction; cement production, metallurgy, electricity generation and supply, production of sugar, alcohol, beer and cigarettes; travel tours; cultural matters; education and training; manufacture and/or assembly of automobiles and motocycles; supermarket construction and operation (irrespective of the amount of invested capital)
The following chart provides a clear and simple illustration of the levels of authority where decisions are made on issuing Investement License.
GROUP A AND GROUP B PROJECTS
Group A projects include:
a) Projects in the following sectors, irrespective of invested capital:
- Infrastructure construction of Industrial Parks, Export Processing Parks, High-Tech Parks, urban areas, BOT, BTO and BT projects
- Construction and operation of sea pors and airports; operation of sea and air transportation; oil and gas;
- Post and telecommunication services;
- Publishing, printing services (except projects for printing of technical materials, printing of packaging, printing of labels of goods, and printing of normal patterns on textiles and garments, leather and footwear), press; radio and television broadcasting; advertising services together with publication of advertisements; cinematographic activities, artistic performances; conducting of games with prizes; medical examination and treatment establishments; pre-tertiary education, colleges, undergraduate and postgraduate training of equivalent levels; scientific research and production of medicine for humans;
b) Projects with invested capital of at least forty (40) million USD in electricity generation and distribution, mining, metallurgy, cement manufacture, mechanical engineering manufacturing, chemicals, hotels, apartments for lease, tourism-
c) Projects using at least five (5) hectares of urban land or at least fifty (50) hectares of land of other categories
Group B Projects include:
Projects not mentioned in Group A and are not regulated under the authority of the Prime Minister and are projects under the authority of the provincial people’s committees.
