Regulations on implementing investment activities abroad under Vietnamese law

Do investors going abroad have to open an investment capital account abroad? How is transferring investment capital abroad done? This article shares the legal regulations surrounding the implementation of investment activities abroad according to current legal regulations

CSPL: Articles 65, 66, 67, 68 Law on Investment 2020

1. Open an investment capital account abroad

– Investors open an investment capital account abroad at a licensed credit institution in Vietnam in accordance with the law on foreign exchange management.

– All money transfer transactions from Vietnam abroad and from abroad to Vietnam related to investment activities abroad must be done through an investment capital account prescribed by law on foreign exchange management hoi.

2. Transferring investment capital abroad

– Investors are allowed to transfer investment capital abroad to carry out investment activities when meeting the following conditions:

+ Has been granted a Certificate of investment registration abroad, except in cases where the investor is allowed to transfer foreign currency or goods, machinery, and equipment abroad to serve survey, research, market exploration and implementation activities. prepare other investments according to the Government’s regulations.

+ Investment activities have been approved or licensed by the competent authority of the receiving country. In case the law of the receiving country does not stipulate investment licensing or investment approval, the investor must have documents proving the right to invest in the receiving country;

+ Have an investment capital account abroad.

– The transfer of investment capital abroad must comply with the provisions of law on foreign exchange management, export, technology transfer and other regulations of relevant laws.

3. Using profits abroad

– Investors are allowed to retain profits from overseas investments for reinvestment in the following cases:

+ Continue to contribute investment capital abroad in case the registered capital has not been fully contributed;

+ Increase investment capital abroad;

+ Implement new investment projects abroad.

– The investor carries out procedures to adjust the Certificate of investment registration abroad according to the provisions of Article 63 of this Law for the cases specified in Points a and b, Clause 1 of this Article; Carry out procedures for granting the Certificate of outward investment registration according to the provisions of Article 61 of this Law for the cases specified in Point c, Clause 1 of this Article.

4. Transferring profits back to the country

-Except for retaining profits, within 06 months from the date of the tax finalization report or document with equivalent legal value under Vietnamese law of the investment receiving country, the investor must transfer all profits earned and other income from investment abroad to Vietnam.

– Within 06 months from On the date there is a tax finalization report or document with equivalent legal value according to the provisions of the law of the investment receiving country, without transferring profits and other income to Vietnam, the investor must notify in writing in advance to the Ministry of Planning and Investment and the State Bank of Vietnam. The time limit for transferring profits back to the country is extended for no more than 12 months from the date of expiration of the prescribed time limit.

– In case past this 6-month time limit, profits have not been repatriated to the country and no notification has been made, or in cases where the extended time limit has passed and the investor has not yet repatriated profits, they will be handled according to the provisions of law.