Under Vietnam Law, foreign investor can run its foreign investment project by either of establishment of foreign invested company or signing Business Co-Operation Contract with local partner or buying in an existing company.
For running investment project in Vietnam, it shall require Foreign Investor to obtain an Investment Certificate (hereinafter referred to as “IC”) from the licensing authority.
Depending upon the location for implementing such investment project, the licensing authority may be the Provincial People’s Committee (for projects located outside industrial or export processing zones) or the provincial Industrial and Export Processing Zones Management Authority (for projects located in industrial or export processing zones).
Upon submission of application dossier for IC, the relevant licensing authorities shall evaluate the legitimacy and the feasibility of such Investment Project to determine on granting of IC on the following basis:
- The legal framework including Vietnam’s WTO Commitments, Vietnam Investment Law, Vietnam Enterprise Law, Regulations applicable to specific industries as well as the master economic development plan of the city or province that the foreign investment project shall be carried out.
- Financial ability, investment capital to put in the Investment Project, facilities and human resources serving the implementation of such investment project in Vietnam.