- What isthe transfer of investment capital abroad?
Outward transfer of investment capital means an outward investment activity, using profits earned from investment capital sources that are transferred from Vietnam abroad to carry out overseas business investment activities.
- Conditions for remittance of investment capital abroad
Investors may transfer investment capital abroad to carry out investment activities when they meet the following conditions:
– Having been granted an outward investment registration certificate, except for cases where investors are allowed to transfer foreign currencies or goods, machinery and equipment abroad to serve market surveys, research and exploration activities and carry out other investment preparation activities as prescribed by the Government.
– Investment activities have been approved or licensed by competent agencies of the host country. In case the law of the host country does not provide for the issuance of investment licenses or investment approvals, the investor must have documents proving the right to conduct investment activities in the host country;
– Having a capital account as prescribed in Article 65 of the Law on Investment 2020.
In addition, the transfer of investment capital abroad must comply with the provisions of the law on foreign exchange management, export, technology transfer and other relevant provisions of law.
Investors may transfer foreign currencies or goods, machinery and equipment abroad to serve market surveys, research, exploration and other investment preparation activities in accordance with the Government’s regulations.
- Dossiers and procedures
Enterprises that want to transfer investment capital outward, that is, carry out investment activities abroad, need to apply for an outward investment certificate. Dossiers and procedures for applying for an outward investment certificate shall comply with Article 62 of the Law on Investment 2020, specifically:
– For investment projects subject to approval for outward investment guidelines, the Ministry of Planning and Investment shall issue outward investment registration certificates to investors within 05 working days from the date of receipt of written approval for investment guidelines and decisions on outward investment as prescribed in Article 59 of the Law Investment 2020.
– For investment projects other than those specified above:
Step 1: Prepare the dossier, including:
- Offshore investment registration documents;
- Documents on the legal status of the investor;
- Decision on outward investment in accordance with the provisions of Article 59 of the Law on Investment 2020;
- A written commitment to self-balance foreign currency sources or a written commitment to arrange foreign currency for investors of a licensed credit institution as prescribed in Clause 3, Article 60 of the Law on Investment 2020;
- For outward investment projects in the sectors and trades specified in Clause 1, Article 54 of the Law on Investment 2020, the investor shall submit a written approval from a competent state agency on the satisfaction of conditions for outward investment in accordance with relevant laws (if any).
Step 2: Submit the application
The investor submits a dossier of application for an outward investment registration certificate to the Ministry of Planning and Investment.
Step 3: Receive and process the dossier
In case the capital in foreign currencies transferred abroad is equivalent to VND 20 billion or more, the Ministry of Planning and Investment shall seek written opinions from the State Bank of Vietnam.
Within 15 days from the date of receipt of a valid dossier, the Ministry of Planning and Investment shall issue an outward investment registration certificate;
In case of refusal to grant an outward investment registration certificate, the investor must be notified in writing and clearly state the reason.
Above is the content of KALF’s advice on dossiers and procedures for transferring investment capital abroad. All of our above advice is based on applicable legal regulations. If you have any questions or requests about legal issues, please contact us for timely answers.
