What procedures should a domestic enterprise want to carry out for investment abroad? Our company specializes in providing consulting services and carrying out procedures for outward investment guideline approval by the National Assembly. This procedure is specified as follows:

Legal basis

• Investment Law 2020
• Decree 31/2021/ND-CP guiding the Law on Investment
• Circular 03/2021/TT-BKHDT stipulating the form of documents and reports related to investment activities in Vietnam, investment from Vietnam to abroad and investment promotion issued by the Ministry of Planning and Investment onion
• Decree 29/2021/ND-CP stipulating the order and procedures for appraising national important projects and investment monitoring and evaluation

Regulation

The National Assembly shall grant approval for outward investment guidelines of the following investment projects:

1. a) Investment projects with outward investment capital of VND 20,000 billion or more;
2. b) Investment projects that require application of a special mechanism or policy that needs to be decided by the National Assembly.

Dossiers for outward investment guideline approval by the National Assembly

The investor shall submit an outward investment project dossier to the Ministry of Planning and Investment. The dossier consists of:

1. a) An outward investment registration form;
2. b) A document about the investor’s legal status;
3. c) A proposal for the investment project containing at least: form, objectives, scale, and investment location; preliminary determination of investment capital, capital raising plan and structure of capital sources; project execution schedule, investment phases (if any); preliminary analysis of the efficiency of the project;
4. d) Document(s) proving the financial capacity of the investor including at least one of the following documents: the investor’s financial statements for the last two years of the investor; a parent company’s commitment to provide financial support; a financial institution’s commitment to provide financial support; guarantee for the investor’s financial capacity; other document proving the investor’s financial capacity;
5. dd) A commitment to themself balance sources of foreign currency or a commitment of an authorized credit institution to provide foreign currency for the investor;
6. e) A document issued by the ownership representative agency which approves the investor to carry out outward investment activities, and report on internal appraisal of the outward investment proposal of the state-owned enterprise as prescribed in Clause 1 Article 59 of this Law or decision on outward investment as prescribed in Clause 2 Article 59 of this Law;
7. g) With regard to an outward investment project in the business lines specified in Clause 1 Article 54 of this Law, the investor shall submit a written certification of the investor’s fulfillment of conditions for outward investment issued by a competent authority in accordance with the relevant regulations of law (if any).

Procedures for outward investment guideline approval by the National Assembly

Within 05 working days from the date on which the sufficient dossier is received, the Ministry of Planning and Investment shall submit it to the Prime Minister for establishment of a State Appraisal Council.

Within 90 days from the date of its establishment, the State Appraisal Council shall organize appraisal and prepare an appraisal report for submission to the Government. An appraisal report shall contain:

• Conditions for issuance of an outward investment registration certificate prescribed in Article 60 of this Law;
• Legal status of the investor;
• Necessity of conducting outward investment activities;
• Conformity of the investment project with Clause 1 Article 51 of this Law;
• Form, scale, location and execution schedule of the investment project, outward investment capital and sources of capital;
• Assessment of level of risks in the host country.

At least 60 days before the opening of the meeting of the National Assembly, the Government shall prepare an application for outward investment guideline approval and submit it to the National Assembly’s agency presiding over validation. An application for outward investment guideline approval includes:

• The Government’s application form;
• The dossier mentioned in Clause 1 of this Article;
• The State appraisal council’s appraisal report;
• Other relevant documents.

The Government and relevant organizations or individuals shall provide sufficient information and documents serving validation; provide explanation for the project contents at the request of the National Assembly’s agency in charge of validation.

The National Assembly shall consider passing a resolution on the outward investment guideline approval containing the following contents:

• The investor executing the project;
• Investment objectives and location;
• Outward investment capital, and sources of such capital;
• Special policies and mechanisms; investment incentives, investment assistance and conditions for application thereof (if any).

Above is our consultancy about this issue. If you need more detailed advice and answers as well as how to access this service, please contact directly the Deputy Director of Sales: Lawyer Nhat Nam via hotline: 0912.35.65.75, 0912.35.53.53 or call the free legal consultation hotline 1900.6575 or send a service request via email: lienheluathongbang@gmail.com

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