In case the client intends to setup a factory for producing goods (hereinafter referred to as “Factory”), SBLaw would like to provide some information about it.
1. Investment certificate
Establishment of the Factory shall require an Investment Certificate from the licensing authority.
Depending upon the location of the Factory, the licensing authority may be the Provincial People’s Committee (for Factories located outside industrial or export processing zones) or the provincial Industrial and Export Processing Zones Management Authority (for Factories located in industrial or export processing zones).
Following items are key work streams for setting up any Factories in Vietnam:
Locating the suitable land lot: It is noted that all land in Vietnam is owned and administered by the State.
As such, there is no private ownership of land and all land is thus rented from the state. Before being granted the right to use land for business purposes, all land users must obtain a Land Use Right Certificate.
Despite of that Vietnam Authority shall grant the Land Use Right Certificate only after completion of obtaining the Investment Certificate of Investment for the Factory, foreign investor shall need to carefully work with the provincial Industrial and Export Processing Zones Management Authority to consult the availability of suitable land lot before starting the Licensing Process.
In-principal approval of the provincial Industrial and Export Processing Zones Management Authority on the land lot to be leased is considered as one of essential documents for obtaining Investment Certificate of the Factory.
Environmental impact assessment to evaluate the possible impacts that the Factory may have on the environment, consisting of the environmental, social and economic aspects.
Depending on specific position of the case, the provincial Industrial and Export Processing Zones Management Authority shall require foreign investor to conduct the Environmental Impact Assessment before the Licensing Process or not.
However, we highly recommend foreign investor to proceed with Environmental impact assessment before commencing the Licensing Process in order to avoid potential risk.
Obtaining Investment Certificates: Under Vietnam Law, obtaining Investment Certificate for the project with investment capital from at least 300 billion Vietnam Dong (about 15,000,000USD) shall be subjected to Investment Evaluation Process.
Accordingly, foreign investor shall need to prepare the Feasibility Study for the Project of setting up the Factory.
Time limit for obtaining Investment Certificate under the Investment Evaluation Process is 45 working days from submission of application dossier for the Investment Certificate. However, in practice, the process can be much longer as it requires the Licensing Authority to consult relevant Ministries before granting Investment Certificate.
Obtaining Certificate of Land Use Right: Vietnam Law requires all Entities to obtain Certificate of Land Use Right before being granted right to use land for business purpose. Time limit for obtaining Certificate of Land Use Right is about 10 working dates from the submission of application dossier to competent authority.
Obtaining Construction Permit: foreign investor shall be required to obtain Construction Permit before commencing its construction work. Time limit for obtaining Construction Permit under Vietnam Law is 20 working days from submission of application dossier for construction permit.
Submission of documents proving satisfaction of conditions for fire fighting and prevention
2.Our scope of work
Preparation of the application documents:
|
Licensing procedures:
|
| Post-licensing procedures:Upon the issuance of the investment certificate, the Factory shall be required to carry out immediate administrative procedures.
Our services include:
|
3. Our delivarables
The Deliverables will include documents prepared in English. Vietnamese Version shall be provided if the document is required for submission to licensing bodies.
Client will review, approve and where necessary sign these documents.
4.Timeline
Timeline for performing the SBLaw services as mentioned in item above will be as follows:
– Obtaining Investment Certificate: We anticipate that it shall take us about 10 working days to prepare the application dossier and about 03 months to obtain the Investment Certificate.
– Obtaining Tax Code Registration, Seal Sample and Announcement of establishment of the Factory: We anticipate that it shall take us about 14 working days to complete this work item.
– Obtaining Certificate of Land Use Right: We anticipate that it shall take us about 15 working days to complete the work item.
-Obtaining Construction Permit: We anticipate that it shall take us about 01 month to complete the work item.
