1. Regulations on transfer of investment capital abroad
According to Article 66 of the 2020 Investment Law, investors are allowed to transfer investment capital abroad to carry out investment activities if they meet the following conditions:
– They have been granted a Certificate of Registration of Investment Abroad, except in cases where investors are allowed to transfer foreign currency or goods, machinery, and equipment abroad to serve market research, survey, preparation of investment projects, and other investment preparation activities as stipulated in Article 82 of Decree 31/2021/NĐ-CP.
– The investment activities have been approved or licensed by the competent authority of the host country. In cases where the law of the host country does not provide for investment licensing or approval, investors must have documents proving their investment activities in the host country.
– They have an investment capital account abroad at a credit institution licensed in Vietnam in accordance with the law on foreign exchange management.
The transfer of investment capital abroad must comply with the regulations on foreign exchange management, export, technology transfer, and other relevant laws and regulations.
2. Cases of transferring investment capital abroad before being granted a Certificate of Registration of Investment Abroad
Investors are allowed to transfer foreign currency, goods, machinery, and equipment abroad before being granted a Certificate of Registration of Investment Abroad to cover expenses for investment project formation activities, including:
– Market research and investment opportunities;
– Field survey;
– Document research;
– Collection and purchase of documents and information related to investment project selection;
– Synthesis, evaluation, appraisal, including selection and hiring of consultants to evaluate and appraise investment projects;
– Organization of seminars, scientific conferences;
– Establishment and operation of liaison offices abroad related to investment project formation.
– Participating in international bidding, depositing, signing funds or other forms of financial guarantee, paying expenses, fees as requested by the inviting party, country, territory receiving investment related to bidding conditions, investment project implementation conditions;
– Participating in buying and selling, merging companies, depositing, signing funds or other forms of financial guarantee, paying expenses, fees as requested by the seller or according to the legal regulations of the host country or territory receiving investment;
– Negotiating contracts;
– Purchasing or leasing assets to support investment project formation activities abroad.
The transfer of foreign currency, goods, machinery, and equipment abroad is carried out in accordance with the regulations on foreign exchange management, export, customs, and technology.
Note:
– The foreign exchange transfer limit under the provisions of Section 2 shall not exceed 5% of the total investment capital abroad and shall not exceed USD 300,000, which shall be counted towards the total investment capital abroad, except where the Government has other regulations.
– The transfer of capital by machinery, equipment, and goods abroad and from abroad to Vietnam to implement investment projects abroad must comply with the customs procedures according to the provisions of the customs law.
