Vietnamese Investment Law 2014 – Temporary guidance by the Ministry of Planning and Investment

One day before the Investment Law 2014 become effective (1 July 2015), the Ministry of Planning and Investment (MPI) issued Official Letter 4326 providing temporary guidance for the implementation of the Investment Law 2014. Under OL 4326,

• An investor applying for an Investment Registration Certificate (Investment Registration) will need to open a temporary account with the online registration system and is encouraged to make an online declaration at  www.fdi.gov.vn;

• Similar to tax code, an investment project  will now be given an unique project code during its life;

• Various forms to be used in the licensing process are provided;

• A quick review of these forms suggests that domestic investors are still required to apply for Investment Registration when they apply to establish a new company together with foreign investors. Under Enterprise Law 2014, only foreign investors are required to apply for Investment Registration when establishing a new company in Vietnam; and

• The investment forms also indicate that before a company is set up, the investors who sign the application form are the founding members/shareholders of the company. After a company is set up, the company will be regarded as the investor for signing of the application form.  [Update 17 July 2015]: Despite the general statement that the company will be regarded as the investor for signing of the application form, the actual application form  still requires each investor to sign on the application. Therefore, this point may require further clarification in practice.