DO INVESTORS MUST EXECUTE OUTWARD INVESTMENT REPORT?

Implementing outward investment, investors need to satisfy the requirements of laws on conditions and execution procedures; business lines and outward investment capital; Certificate of outward investment registration issuance… In the next stage when the project is put into operation, investors also need to pay attention to the procedure for outward investment reporting periodically and irregularly for the operation of the  project as specified.

Violations may be subject to a minimum fine of VND 20 million.

So, how is the outward investment report regime executed?

1.         Outward investment report regime

–         Within 60 days from the day on which the project is approved or licensed as prescribed by law of the host country, the investor shall send a written notification of outward investment enclosed with a copy of the written approval for the investment project or a document proving the right to make investment in the host country to the Ministry of Planning and Investment, the State Bank of Vietnam, and a representative mission of Vietnam in the host country;

–         Investors shall submit quarterly and annual reports on operation of their investment projects to the Ministry of Planning and Investment, the State Bank of Vietnam, and a representative mission of Vietnam in the host country;

–         Within 06 months from the day on which the tax declaration or an equivalent document is available as prescribed by the host country’s law, the investor shall submit a report on the operation of the investment project enclosed with the financial statement, tax declaration, or an equivalent document prescribed by the host country’s law to the Ministry of Planning and Investment, the State Bank of Vietnam, the Ministry of Finance, a representative mission of Vietnam in the host country, and a competent authority prescribed in this Law and relevant regulations of law;

–         If the outward investment project is funded by the state capital, apart from complying with the regulations above, the investor shall make reports in accordance with regulations of law on management and use of state capital invested in manufacturing and business activities of enterprises.

–         Furthermore, the shall make ad hoc reports at the request of competent authorities to meet state management requirements or settle issues arising in relation to investment projects.

2.         Forms of outward investment report

In writing or in other forms as prescribed.

3.         Implementation method

Via the National Investment Information System

4.         Handle measures on outward investment report violations

Actions against the investor’s failure to implement the reporting regulations as prescribed:

–         The Ministry of Planning and Investment shall issue a written warning for the first violation;

–         Impose penalties for administrative violations in accordance with regulations of law on penalties for administrative violations against regulations on planning and investment;

–         Publish violations on the National Investment Information System, web portal of the Ministry of Planning and Investment and other mass media.