Application for the Government’s approval of the investment policy.
Question: If a foreign investor want to invest in Vietnam by incorporating an economic organization (one member limited liability company) to build a cigarette factory, does that investor need to apply for the Government’s approval of the investment policy? If yes, then what is the procedure?
I. Legal grounds:
1.1 Investment Law No. 67/2014/QH13 dated 26 November 2014 (the "Investment Law");
1.2 Decree No. 118/2015/ND-CP detailing and guiding the implementation of a number of articles of the Investment Law;
1.3 Circular No.16/2015/TT-BKHDT.
II. Reply:
Prior to the incorporation of an economic organization, such foreign investor must have an investment project. In order to set up a one-member limited liability company for constructing a cigarette factory, pursuant to Point e, Clause 1, Article 31 of the Investment Law, the investor must apply for the Prime Minister’s approval of the investment policy.
The procedure for such application is stipulated in Article 34 of the Investment Law.
2.1. The investor submits the dossier of the investment project to the investment registration authority where the investment project will be implemented.
The dossier consists of:
+ A written request for implementing the investment project (Form No. I.1, Appendix No. I, Circular No. 16/2015/TT-BKHDT);
+ A copy of the identity card, passport for investor who is an individual. A copy of the certificate of incorporation or other equivalent documents certifying the legal status of the investor who is an organization;
+ Proposal of the investment project includes the following contents: The Investor implementing the project, investment objectives, investment scale, investment capital and capital raising plan; investment location, time limit and progress; labor demand, proposal for investment incentive, impact assessment, and socio-economic efficiency of the project; (Form No. I.2, Appendix No. I, Circular No. 16/2015/TT-BKHDT)
+ A copy of one of the following documents: financial statements of 02 most recent years of the investor; financial support commitment of parent company; financial support commitment of the financial institution; guarantee of the investor’s financial capacity; documents expressing the investor’s financial capacity;
+ Proposal of the need for land;
+ Explanation on the use of technology (if using technology on the list of transfer-restricted technologies);
+ The plan on ground clearance, migration and resettlement (if any);
Preliminary assessment of environmental impacts and solutions for environmental protection;
+ Assessment of the socio-economic efficiency of the investment project.
Number of dossier: 08 dossiers.
2.2. Dossier-receiving authority: The Department of Planning and Investment of the locality where the project will be implemented.
2.3. Processing time limit: Within 35 working days from the date of receipt of valid dossiers.
The Department of Planning and Investment issues a investment registration certificate to the investor within 05 working days from the date of receipt of the approval of the investment policy.
After obtaining the investment registration certificate, the foreign investor shall carry out the procedure for incorporating a one member limited liability company in accordance with Article 22 of Enterprise Law.
