Recently, the Government issued the Decree 31/2021/ND-CP detailing and guiding a number of articles of the Investment Law 2020 (hereinafter referred to as "Decree 31" effectively from 26 March, 2021) and the Circular No.03/2021/TT-BKHDT on the forms of documents and reports related to investment activities in Vietnam, investment from Vietnam to abroad and investment promotion (hereinafter referred to as "Circular 03" effectively from 09 April, 2021). Decree 31 took effect from the date of signing the document, which means March 26, 2021. Therefore, we would like to list a number of notable highlights to Clients as follows:
The Decree stipulated detailed conditions for new subjects entitled to investment incentives, including: Investment projects on construction of social houses; Investment projects having at least 30% of employees being disabled persons; Projects involving technology transfer on the List of technologies encouraged to be transferred; technology incubators and science and technology business incubators; enterprises producing and supplying technologies, equipment, products and services to satisfy environmental protection requirements; Center for Innovation; Innovative start-up investment projects; Project to establish research and development center; Product distribution chain of small and medium enterprises.
With the respect to investor's project performance guarantee, the requirements shall be as follows: The margin for the implementation of an investment project is calculated by the percentage of an investment capital according to the progressive principle, specifically: for the capital portion up to VND 300 billion, the guaranteed level is 3%; for the capital portion of over 300 billion VND to 1,000 billion VND, the guaranteed level is 2%; for the capital portion over 1,000 billion VND, the guarantee is 1%.
Investor should make a deposit or have a guarantee from a credit institution or a foreign bank branch established under the law of Vietnam on deposit obligations to ensure the execution of an investment project with land allocated, land lease, or permitted to change land use purposes by the State. In case of guaranteeing the escrow obligation, the credit institution shall pay the deposit amount that payable by the investor.
Investor shall enjoy a reduction of the project performance guarantee as follows: 25% reduction for investment projects in sectors or trades subject to investment incentives and investment projects in areas with difficult socio-economic conditions; 50% reduction for investment projects in industries with special investment incentives; investment projects in areas with extremely difficult socio-economic conditions; investment projects in sectors or trades subject to investment incentives, implemented in areas with difficult socio-economic conditions.
Regarding market access conditions for industries in which Vietnam has not yet committed to market access for foreign investors, where Vietnamese law has no restriction of market access to that industry, foreign investors are entitled to access the market as prescribed by domestic investors; where Vietnamese law has already regulated, such provisions shall be applied.
Supplementing the form of issuance or modification of an online investment registration certificate: Before carrying out the procedures for granting or modifying an investment registration certificate, the investor shall make an online declaration of information regarding investment projects on National Investment Information System. Within 15 days from the date of online declaration, the investor shall submit a hard copy of the application for obtainment or modification of an Investment Registration Certificate to the investment registration authority. In case the investment registration authority does not receive the dossier after 15 days, the online dossier is no longer valid.
Regarding new regulations in Circular 03, the Ministry of Planning and Investment has issued more than 100 new forms related to investment activities, including forms of documents and reports related to investment activities in Vietnam, investment activities from Vietnam to abroad and investment promotion activities.
We would like to send herewith a copy of Decree No.31/2021/ND-CP and Circular No. 03/2021/TT- BKHĐT for your reference: https://thuvienphapluat.vn/van-ban/Dau-tu/Nghi-dinh-31-2021-ND-CP-huong-dan-Luat-Dau-tu-462291.aspx
