Documents, order and procedures for the national assembly’s approval of foreign investment policies

In the context of globalization and deep international economic integration, overseas investment activities of Vietnamese enterprises are increasing in both scale and field. To ensure that investment is consistent with the socio-economic development strategy and national interests, the law clearly stipulates the authority, documents, order and procedures for approving overseas investment policies. In particular, the National Assembly plays an important role in large-scale projects or special policies.

1. Documents approving the National Assembly’s foreign investment policy

Pursuant to Clause 1, Article 57 of the Law on Investment 2020 and guiding documents, the dossier submitted to the National Assembly for approval of foreign investment policy includes the following main components:

– Documents for registration of foreign investment;

– Documents on legal status of investors;

– Investment project proposal;

– Documents proving the financial capacity of the investor;

– Commitment to arrange foreign currency or self-balance foreign currency sources, or written commitment to arrange foreign currency from a licensed credit institution;

– Document of the owner’s representative body (if the investor is a state-owned enterprise) approving the implementation of overseas investment; together with the internal appraisal report or overseas investment decision as prescribed in Article 59 of the Law on Investment;

– For overseas investment projects in conditional industries and professions (Article 54 of the Law on Investment): investors need to submit documents proving that they meet the conditions for overseas investment according to relevant legal regulations (if any);

– Appraisal report of the State Appraisal Council (when submitted to the National Assembly);

– The Government’s proposal to the National Assembly to approve the policy of foreign investment;

– Other relevant documents.

2. Procedures for approving the National Assembly’s policies

– Investors prepare and submit the above documents to the Ministry of Planning and Investment (now the Ministry of Finance).

– Within 05 working days from the date of receiving complete dossier, the Ministry of Finance shall submit to the Prime Minister the establishment of the State Appraisal Council.

– The appraisal council shall organize the appraisal within 90 days from the date of establishment. The appraisal content must include:

• Conditions for granting Certificate of registration for overseas investment according to Article 60 of the Law on Investment;
• Legal status of the investor;
• The need for foreign investment;
• Compliance with the provisions of Clause 1, Article 51 of the Law on Investment (principles of foreign investment);
• Form, scale, location, progress, investment capital, capital source;
• Assess the level of risk in the host country;
• Special mechanisms, policies, incentives, and applicable conditions (if any).

– At least 60 days before the opening date of the National Assembly session, the Government shall submit a dossier requesting approval of the overseas investment policy to the National Assembly’s presiding appraisal agency. This dossier includes: the Government’s submission; project dossier according to Clause 1, Article 57; appraisal report of the Appraisal Council; and other relevant documents.

– The agency in charge of the review (for example, the competent Committee of the National Assembly) conducts the review of the proposed content, including aspects: project authority criteria, necessity, suitability, capital, risks, special policy mechanisms, etc.

– At the session, the National Assembly considered and passed a resolution approving the policy of overseas investment, clearly defining the following contents: investors, objectives, locations, capital, capital sources, mechanisms, incentives, and applicable conditions, if any.

The National Assembly’s approval procedure for overseas investment policies is an important control mechanism to ensure effective capital use and national economic safety. Investors need to prepare complete documents, comply with the correct procedures and deadlines according to the Law on Investment 2020. This regulation contributes to increasing transparency, improving management efficiency and promoting sustainable overseas investment activities.

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Above are the basic contents of the dossier, order and procedures for approval of foreign investment policies by the National Assembly based on the provisions of law at the time of writing. If you need advice on the above issue or are interested in other legal services, please contact LS Law Firm immediately via Email: lslawfirm2014@gmail.com for timely support.

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