Invest in Vietnam

The difficulty for Chinese customers with the new passport when investing into Thai Nguyen?

We have one-stop service to support the tenants to do IRC/ERC procedures and within 30 working days the tenant will get the IRC/ERC

The administration procedures are complicated, different culture and infrastructure is well developed

Article 21 of Law investment: Form of investment

• Investment in establishment of a business organization
• Investment in the form of capital contribution or purchase of shares or stakes
• Execution of an investment project.
• Investment in the form of a business cooperation contract.
• New forms of investment and types of business organizations prescribed by the Government’s regulations

Yes and in order to import and distribute goods, the company needs to get import license & distribution right as prescribed in Article 7 of Decree 09/2018/ND-CP

Yes and need to get the license issued by the competent authorities

50 years (2021-2071)

Estimated registration fee for ERC is 50,000VND/time, there is not yet regulation for fee on IRC

Department of Planning & Investment

According to the provision of Article 12 of the Law on Enterprise: The enterprise’s legal representative is the person that, on behalf of the enterprise, exercises and performs the rights and obligations derived from the enterprise’s transactions, acts as the plaintiff, defendant or person with relevant interests and duties before in court, arbitration, and performs other rights and obligations prescribed by law;

The investor will submit a decision to terminate the investment project to the investment registration office within 15 days from the date of decision.

According to Article 46 Law on Investment, an investor is entitled to transfer part or whole of the investment project to another investor when the following conditions are satisfied:

• The investment project or the part of the investment project which is transferred has not been terminated in accordance with Clause 1 and 1 Article 48 of Law on Investment
• The foreign investor receiving the investment project or part of the investment project must satisfy the conditions set out in Clause 2 Article 24 Law on Investment;
• The conditions set forth the law on land are complied with if the transfer of an investment project is associated with transfer of the land use rights/assets on land;
• The conditions set forth in the laws on residential housing and on real estate business are complied with in the case of transfer of a residential housing construction project or real estate project are complied with;
• The conditions set forth in the written approval for investment guidelines or the investment registration certificate or in accordance with other relevant regulations of law (if any) are complied with;

The procedure is as below:

• In the case of an investment project in which the investor has been approved in accordance with Article 29 Law on Investment and the investment project has been issued with an IRC, the investor shall follow procedures for adjusting the investment project as prescribed in Article 41 of Law on Investment;
• For an investment project other than that prescribed in Point of this Clause, the transfer of the investment project or transfer of asset ownership to the investor receiving the investment project shall be carried out in accordance with the civil law, the law on enterprises, the law on real estate business and other regulation of law.

The rate of capital contribution of foreign investors based on international treaties on investment industry

Contributed assets include VND, convertible foreign currencies, gold, land use right (LUR), intellectual property rights, technologies, technical secrets, other assets that can be converted into VND

Contribution schedule: The owner shall contribute adequate and correct assets as promised when applying for enterprise registration within 90 days from the issuance date of the Certificate of Enterprise Registration. The time needed to transport or import the contributed assets and for completing ownership transfer procedures will be added to this 90-day period. During this period, the owner shall have rights and obligations that are proportional to the promised capital

According to the provisions of the Law on Investment 2020, after fully fulfilling financial obligations to the state of Vietnam in accordance with the law, investors are allowed to remit the following assets:

• Investment capital, investment liquidations
• Income from business investment activities
• Money and other assets legally owned by the investor

Condition to remit:

The annual profit remitted abroad is the profit that foreign investors are divided or earned in the fiscal year from direct investment activities based on audited financial statements, CIT finalization declaration, that the foreign investors invest plus with (+) other profit such as profits that have not yet been carried over from previous years; minus (-) amounts used or committed by foreign investors to re-invest in Vietnam, profits used by foreign investors to cover expenses of investors for business activities or personal needs of foreign investors in Vietnam.

Pursuant to Article 4 of Circular 32/2013/TT-NHNN, there are a number of cases where foreign exchange can be used in Vietnam:

• Residents being organization with legal status may transfer internal capital in foreign currency between the account of that organization and the account of independent company without legal entity,
• Residents are allowed to contribute capital in foreign currency by transfer to implement foreign investment project in Vietnam;

Timeline for capital contribution is 90 days since the date of issuance of ERC. Timely capital contribution is considered very important because it is overdue as scheduled on IRC, the Bank will not allow investors to receive investment capital and the investor will not have capital to implement the project. However, to expire the date of capital contribution, investor can extend the time for investment capital contribution:

• A request for adjustment of the investment certificate
• Report on project implementation
• Decision of BOM/Owner on adjustment of IRC
• Explain the reason for the adjustment
• Documents related to the adjustment: confirmation of contributed capital, financial capacity,….

Office in charge of certifying land use right – the Department of Natural Resources and Environment of Bac Ninh (DONRE) and within 30 working days from the date of submitting the full valid dossier.

Yes. According to the provision of Article 99 Law on Land 2013 : Land user in industrial park, industrial cluster, EPE, Economic zones shall be granted Land Use Right Certificate and assets on land.within 50 years

Land users may exercise the right to transfer land. When performing the transfer of land use rights, in addition to the obligations in the agreement, the Parties have to pay following 4 types of fees:

• Registration fee
• Fees for appraisal of dossier for issuance of land use right certificate
• Fee for issuance of land use right certificate
• Fee for notarization of land use right transfer contract

Minimum 7000 m² and construction density of leased land is not over 70%

According to the regulation of construction (not yet building Planning and Development Guideline for Le Mont Xuan Phuong Industrial Cluster)

• Management fees – TBC
• Sewerage Treatment – TBC
• Water supply – TBC
• Power supply – as per EVN rate

The customer’s drainage system will be connected to Industrial Cluster’s drainage system at the designated connection location. The number of rainwater connection points will depend on the size of each plot.

The customer’s fire protection system complies with the regulations on the prevention and fighting of the State management office

The challenge is because Samsung & others investors paid high. However, to support investors in recruiting workers, we connect with job centers, recruitment consultancy to organize job events, working with job trading centers, as well as coordinating with surrounding provinces to transmit recruitment information of investors, recruitment through media channels, networks, festivals,…

Pursuant to the provision of Law on Labor 2019, since 1/1/2021, there will be two kind of labor contact:

• Labor contract with indefinite term
• Labor contract with definite term

According to Article 105 of Law on Labor 2019: normal working time does not exceed 08 hours/day and not more than 48 hours/week. The employer has the right to determine the working time by day or week but must notify the employee; In case of a week, the normal working time is not more than 10 hours/day and not more than 48 hours/week.

For social insurance for foreigners working in Vietnam as prescribed in Article 2 of Decree 143/2018/NĐ-CP, the employees have to pay compulsory social insurance when meet 3 conditions:

• Foreigner hold work permits, certificates or practice permits issued by competent authorities in Vietnam
• Foreigners who have signed a Labor contract with a term of at least 1 year or an indefinite term with employer in Vietnam
• Foreigner citizens are still of working age, have not reached retirement age (according to the retirement age regulation of Law on Social Insurance)

Social insurance contribution for foreigner is as prescribed in Article 12 & 13 of Decree 143/2018/NĐ-CP

• Step 1: Register labor demand

• Step 2: Prepare dossier
• Step 3: Submit dossier to Department of Labor War Invalids and Social Affairs

• Step 4: Receive work permit

Decree 38/2022/NĐ-CP stipulating the minimum wage for employees working under labor contract shall be applied from 1 July 2022:

Minimum wage per month:

• Region 1: 4,680,000VND/month
• Region 2: 4.160.000 VND/month
• Region 3: 3.640.000 VND/month
• Region 4: 3.250.000 VND/month

In addition to taxes such as license tax, corporate income tax, and personal tax, the investment must pay one-time land rental charge for the entire lease term or pay annual land rental to the developer of Industrial Cluster (provision in Article 149 Law on Land)

In addition, there are a number of other taxes that must be paid according to characteristics of each organization such as: natural resources tax, import and export tax, environmental protection tax, special consumption tax, non-agriculture land use tax.

Investors are exempted from land rent 7- 11 years, and enjoy CIT incentives: 17% for a period of 10 years, tax exemption for 2 years, 50% reduction of payable tax for the next 4 years.

One time

For goods and export services to be eligible for input VAT credit or refund, the following 4 conditions must be met:

• Must have a contract to sell and process goods (for the case of processing goods)
• Custom declaration
• Must pay via bank
• Must have Invoice

If an enterprise suffers a loss after tax finalization, it shall transfer all and continuously the loss into income (taxable income minus tax free income) of the following years. The loss transfer period shall be calculated continuously for not more than 5 years, from the year following year of loss (According to Article 9 Circulate 78/2014/TT-BTC)

Foreign contractor tax is a tax applied to entities that are foreign organization and individuals (not operating under Vietnamese law) that generate income from the provision of services or services associated with goods in Vietnam)

Le Mont is planning to develop office space, commercial building with restaurant, convenience area, and in addition we have 76ha with the Phuong Do Township outside the Industrial Cluster. Le Mont is building the infrastructure, health and education system in Xuan Phuong commune and Phu Binh District.

Main FDI in Thai Nguyen is Korean, Japanese, Chinese Investors

In previous years, investment projects in Thai Nguyen were mainly Korean companies, such as Samsung, Dongwha, etc. However, in the past 2 years, Thai Nguyen has opened our doors to the public. Expanding to attract businesses to different countries such as Hong Kong, China, emerging with DBG project, Trina Solar, or Sunny Optical project, etc. The province currently has more than 170 FDI projects with total investment capital collected. attracting more than 10.3 billion USD and in addition, nearly 850 domestic direct investment projects with a capital of over 145 trillion VND, creating favorable conditions for local workers and promoting economic development in the province.

With the aspiration to turn Thai Nguyen into one of the modern industrial economic centers of the northern midland and mountainous region and the Hanoi Capital Region by 2030, Thai Nguyen province has developed a program and plan to Specifically, in detail to create conditions for investors to research and learn about investment opportunities in the province, especially large corporations and enterprises, bringing growth momentum to the local economy. In particular, the province has focused on perfecting the socio-economic infrastructure in a synchronous and modern direction, and regionally linked transport infrastructure such as expanding the Ring 5 traffic route connecting Thai Nguyen – Bac Giang, and especially the province is interested in investment in site clearance, creating a land fund to attract investors, completing the infrastructure of industrial zones and clusters, making policies to attract investors. has the capacity to create a green economy with highly competitive key products