Tiếng Việt
Table of Contents
1. What is business investment?
2. Will investors have their business investment activities terminated when their activities pose a risk of harming national defense and security?
3. What requirements are investors not required to fulfill to ensure business investment activities?
- What is business investment?
Based on Clause 8, Article 3 of the Investment Law 2020, it can be understood that business investment is the act of an investor investing capital to carry out business activities. - Will investors have their business investment activities terminated when their activities pose a risk of harming national defense and security?
Pursuant to Article 5 of the Investment Law 2020, the investment and business policies are as follows:
“Investment and business policies
- Investors are entitled to carry out business investment activities in the business lines that are not banned by this Law. Regarding conditional business lines, investors must satisfy business investment conditions as prescribed by law.
- Investors may decide their business investment activities on their own and take responsibility therefor in accordance with this law and relevant laws; may access and make use of loan capital, assistance funds, land, and other resources as prescribed by law.
- Any business investment activity of an investor shall be suspended, stopped or terminated if such activity harms or potentially harms national defense and security.
- The ownership of assets, capital, income, other lawful rights and interests of investors are recognized and protected by the State.
- The State shall treat investors equitably; introduce policies to encourage and enable investors to carry out business investment activities and to ensure sustainable development of economic sectors.
- International investment-related treaties to which Socialist Republic of Vietnam is a signatory are upheld and implemented by the State.“
Thus, according to the above provisions, in case investment and business activities cause harm or pose a risk of causing harm to national defense and security, investors shall have their investment and business activities suspended, stopped, or terminated.
3. Investors are not required to comply with any requirements to ensure business investment activities
Pursuant to Article 11 of the Investment Law 2020, it is stipulated as follows:
“1. Investors are not required by the State to satisfy the following requirements:
a) Prioritize the purchase and use of domestic goods and services or purchase and use goods and services from domestic manufacturers or service providers;
b) Achieve a certain export target; restrict the quantity, value, types of goods/services that are exported or domestically produced/provided;
c) Import a quantity/value of goods that is equivalent to the quantity/value of goods exported; or balance foreign currencies earned from export to meet import demands;
d) Reach a certain rate of import substitution;
dd) Reach a certain level/value of domestic research and development;
e) Provide goods/service at a particular location in Vietnam or overseas;
g) Have the headquarters situated at a location requested by a competent authority.
2. Depending on the socio-economic conditions and demands for investment attraction in each period, the Prime Minister shall decide to apply forms of guarantee of the State to execute investment projects subject to approval for their investment guidelines by the National Assembly, the Prime Minister, and other important investment projects on infrastructural development.
The Government shall elaborate this Clause.“