It is crucial for both local and foreign entities to be aware of these issues and strategize accordingly to ensure successful and sustainable business ventures in this dynamic market.

1. Uncertain requirement to amend Investment Registration Certificate (IRC)

As per Article 3.3 of Decree 09/2018/ND-CP and the Ministry of Industry and Trade’s interpretation (MOIT), FIEs are currently not permitted to engage in on-spot import activities. Furthermore, the regulation governing on-spot export and import, outlined in Circular 04/2007/TT-BTM, has expired without any subsequent guidance issued. Consequently, FIEs are presently unable to conduct on-spot imports. We strongly recommend that the Government issue clear guidance that would enable FIEs engaged in trading activities to have the right to conduct on-spot importation.

2. Granting investment incentives

In light of these issues, we recommend the following:
(i) Laws and regulations need to clearly outline the conditions that must be met for investors to be eligible for incentives.
(ii) Investors should be allowed to continue enjoying the incentives granted to them throughout their operational term or the period specified by law, even if there are changes in laws, regulations, or policies after the incentives have been granted.

3. Advice for foreign investors 

One key issue is the lack of clear guidance regarding the establishment of business locations or branches for foreign invested enterprises (FIEs). Inconsistencies in implementation among provinces, particularly regarding whether each branch or business location requires a separate Investment Registration Certificate (IRC), have resulted from this.
Another issue is the requirement for FIEs to file quarterly and annual reports on the National Portal on Business Registration. However, in practice, some local Department of Planning and Investment (DPI) offices may request additional reports for all types of investment projects, regardless of scale.
Lastly, I suggest building strong relationships with local partners or consultants who have a deep understanding of the business landscape in Vietnam.

4. Conclusion

Despite the challenges, Vietnam continues to be an attractive investment destination with its dynamic economy and growing market opportunities. With the right approach and proactive measures, foreign investors can make the most of the potential Vietnam has to offer and thrive in their business ventures.

For the full detail of this post, please reference on this link: http://hmlf.vn/current-issue-when-invest-and-doing-business-in-vietnam-regarding-foreign-investment/

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn
Email: [email protected]