Client: Dear SB lawfirm,
Currently, we have a client who wants to invest in Vietnam, some basic information of our company is as follows:
-Investment project: set up a 100% Foreign Owned Company and build factory.
– Scope of work: Paper packs manufacturing and supplying it to others factories in VN.
– Location: Industrial Park in Hanoi or others areas around Hanoi, with area of 5 – 15 hectare
– Total construction area: Estimated 60,000m2.
– Expected investment capital: 10 – 30 million USD.
As we want to cooperate with you on this project, we need you to supply your valuable answers on some question below and provide us with your company profile and quotation as well.
-Availability for establishment of FOC with above mentioned business line.
– Needed document and capacity of Korean investor.
– Time for getting FOC license
– Service fee.
Faithfully yours,
Lawyer of SBLAW: This is reference to the conservation between you and our from which, we understand that your Company (herein after referred to as “Client”) intends to setup a 100% foreign owned company to run an investment project of manufacturing paper pack having total capital value up to 10-30 million US Dollar in an Industrial Park of Hanoi City (hereinafter referred to as “Investment Project”).
You therefore would like us to assist in legal advice for obtaining Investment Certificate for the above said Investment Project. We are grateful to present you hereinafter our Legal Services Proposal for your review and consideration.
- BACKGROUND OF THECASE AND Scope of works
1.1. BACKGROUND OF THE CASE
It is our understanding that Client plans to invest about more than 10-30 million US Dollar to setup a 100% foreign owned company in Vietnam. The Company shall manufacture paper pack and supply the same to companies in Vietnam. The factory shall be located in an Industrial Park in Hanoi or others areas around hanoi, with area of 5 – 15 hectare, in which the total construction area is about 60,000m2.
Establishment of the Foreign Owned Company (hereinafter referred to as “FIC”) shall require an Investment Certificate from the competent authority.
In this case, the Client shall be required to prepare Feasibility Study of the project to provide detailed explanation on budget for the project, technology utilized for manufacturing of products, environment impact assessment, proposed revenue of the factory ect.
The Feasibility Study and other related documents must be approved by Prime Minister of Vietnam. Following items shall be key factors for obtaining the Investment Certificate in this case:
(i) 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 FIC, Client shall need to carefully work with the provincial Competent Authority or Board of Management of Industrial Park to consult the availability of suitable land lot before starting the Licensing Process. In-principle approval of land lot shall be one of essential documents for obtaining the Investment Certificate.
(ii)Environment Impact Assessment: Client shall be required to provide a comprehensive environment impact assessment for the Investment Project. This matter shall be one of essential factor to determine success of the project.
(iii)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) or Investment Certificate in the conditional investment sectors such as banking, finance, real estate, culture etc shall be subjected to Investment Evaluation Process. Accordingly, Client shall need to prepare the Feasibility Study for the Project of setting up and operating the Investment Project. 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 Prime Minister and other relevant Ministries before granting Investment Certificate.
Thanks to our strong relationship with the Ministries, we can help you to accelerate the process of getting their opinions.
