Legal basis

• Law on Investment 2020;
• Decree No.31/2021/ND-CP dated 26/03/2021 elaboration of some articles of the law on investment.

1. Forms of outward investment

According to the Article 52 of the Law on Investment 2020, regulated that:

• Investors shall carry out outward investment activities in the following forms:
  • Establishment of a business organization in accordance with the law of the host country;
  • Making investment on the basis of an overseas contract;
  • Contribution of capital to, purchase of shares or stakes of an overseas business organization to participate in management of such business organization;
  • Trading in securities, other financial instruments, or making investment via securities investment funds and other intermediary financial institutions in a foreign country;
  • Other forms of investment prescribed by law of the host country.
• The Government shall elaborate the forms of investment mentioned in Point d Clause 1 of this Article.

2. Business lines banned from outward investment

According to the Article 53 of the Law on Investment 2020, regulated that:

• Business lines specified in Article 6 of this Law and relevant international treaties.
• Business lines with technologies and products banned from export in accordance with the law on foreign trade management.
• Business lines banned from business investment in accordance with regulations of laws of the host countries.

3. Business lines subject to conditional outward investment

According to the Article 53 of the Law on Investment 2020, Business lines subject to conditional outward investment include:

• Banking;
• Insurance;
• Securities;
• Press, radio and television;
• Real estate business.

Besides, according to the Article 72 of the Decree No.31/2021/ND-CP dated 26/03/2021 guiding about conditions of condition business lines:

• Regarding banking, insurance and securities specified in Points a, b and c Clause 1 Article 54 of the Law on Investment, investors must satisfy the conditions prescribed by regulations of law on banking, insurance and securities and obtain a written approval from a competent authority.
• Regarding press, radio and television specified in Points d Clause 1 Article 54 of the Law on Investment, investors must be organizations that have been granted the license to conduct press, radio and television activities in Vietnam and the written consent from the Ministry of Information and Communications.
• Regarding real estate business specified in Point dd Clause 1 Article 54 of the Law on Investment, investors must be enterprises established under the Law on Enterprises.

4. Conditions for issuance of outward investment registration certificate

According to the Article 60 of the Law on Investment 2020, conditions for issuance of outward investment registration certificate is regulated that:

• Outward investment activities shall adhere to the rules prescribed in Article 51 of this Law.
• Outward investment activities do not involve any business line banned from outward investment as prescribed in Article 53 of this Law and conditions for outward investment applicable to business lines subject to conditional outward investment as prescribed in Article 54 of this Law are satisfied.
• The investor makes a commitment to prepare foreign currencies themself or obtains a commitment to prepare foreign currencies from an authorized credit institution for the purposes of conducting outward investment activities.
• There is an outward investment decision as prescribed in Article 59 of this Law.
• There is a tax authority’s certification of the fulfillment of tax obligation by the investor. Such certification must be issued by the tax authority within the last 03 months.