Mandatory statistical reports on the investment project execution and business activities is the required procedure for foreign investment companies and foreign investors who are executing the registered investment projects in Vietnam according to investment registration certificate. The companies and investors shall submit quarterly and annual reports to investment registration authorities and local statistical agencies on the investment project execution regards investment capital, investment results, employees, payment to government budget…
Law on Investment No. 61/2020/QH14 dated June 17, 2020, provides for business investment activities in Vietnam and outward business investment activities.
MANDATORY ANNUAL REPORTS TO INVESTMENT REGISTRATION AUTHORITIES
Investors and business organizations executing investment projects shall submit quarterly and annual reports to investment registration authorities and local statistical agencies on the investment project execution, which specify:
- Investment capital,
- Investment results,
- Employees,
- Payment to the government budget,
- Investment in R&D,
- Environmental protection,
- And other professional indicators.
Agencies, investors and business organizations shall make reports in writing via the National Investment Information System.
Agencies, investors and economic organizations under this regulation shall make ad hoc reports at the request of competent state agencies. If a project is exempt from the investment registration certificate, the investor shall submit a report to the investment registration authority before the commencement of the project execution.
Penalties violations against regulations on reporting and providing information about investment activities in Vietnam
- A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for any of the following violations: Failure to comply with regulations on reporting investment activities or reporting investment activities behind prescribed schedule; Submitting an untruthful or inaccurate report on investment activities.
- Remedial measures: complete the investment supervision/assessment report if the violation is specified.3. Postponed any procedures of amending of Investment
- Registration Certificate or Enterprise Registration Certificate (IRC, ERC).
DEFINITION OF BUSINESS ORGANIZATION ESTABLISHED BY A FOREIGN INVESTOR
Every investor shall establish a business organization in accordance with the following regulations:
- A domestic investor shall establish a business organization in accordance with regulations of law on enterprises and law corresponding to each type of business organization;
- A foreign investor that establishes a business organization shall satisfy market access conditions applied to foreign investors specified in this Law;
- Before establishing a business organization, the foreign investor must have an investment project and follow the procedures for issuance or adjustment of an investment registration certificate, except for the establishment of a small and medium-sized start-up enterprise and a startup investment fund in accordance with regulations of the Law on Small and Medium-sized Enterprises.
- From the date on which the enterprise registration certificate or an equivalent document is issued, the business organization established by a foreign investor shall be the investor that executes the investment project set out in the investment registration certificate.
MORE IMPORTANT DEFINITION ON BUSINESS INVESTMENT ACTIVITIES IN VIETNAM:
- “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.
- “Investment registration certificate” means a physical or electronic document bearing information registered by an investor about an investment project.
- “Export-processing zone” means an industrial park specialized in manufacturing of exported products or provision of services for manufacturing of exported products and export.
- “Industrial park” means an area with a defined geographical boundary specialized in the production of industrial goods and provision of services for industrial production.
- “Economic zone” means an area with a defined geographical boundary that 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.
- “Investor” means an organization or individual that carries out business investment activities. Investors include domestic investors, foreign investors and foreign-invested business organizations.
- “Foreign investor” means an individual holding a foreign nationality or an organization established under foreign laws and carrying out business investment activities in Vietnam.
- “Domestic investor” means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.
- “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.
- “Foreign-invested business organization” means an organization whose members or shareholders are foreign investors.
- “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..
Regulations may change at the date of application. How to manage the mandatory annual reports to investment registration authorities, keep your good standing in Vietnam, please contact with our expertise, we can help to avoid most of the lessons that many other FDI companies in Vietnam have been paying for.
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