CAN FOREIGN INVESTORS WITHDRAW FROM VIETNAM BY TRANSFERRING 100% OF THE PROJECT TO VIETNAMESE INVESTORS?
QUESTION
Dear TLK Law Firm, I hope to have your answer to the following question: I am a foreign investor, currently investing in Vietnam, I am in need of transferring the project to Vietnamese investors, but I still don't know how much percentage of the project I am allowed to transfer, can I transfer the entire project to another investor? Looking forward to your answer. Thank you!
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3. What do documents for converting loan into investment capital include?
Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Decree No. 31/2021/ND-CP issued by the Government on March 26, 2021 detailing and guiding the implementation of a number of articles of the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Currently, in the trend of global economic integration, more and more foreign investors have invested in Vietnam, however, later there may be some cases where they need to transfer, merger, division, separation,... from which related legal issues arise that need to be clearly understood to avoid improper implementation.
Transferring investment projects is one of the related issues that investors need to clearly understand such as regulations on transfer conditions, transfer time, transferee, etc., join us to learn about regulations related to investment project transfer through the article Can foreign investors withdraw from Vietnam by transferring 100% of the project to Vietnamese investors?
Photo 1. Can foreign investors withdraw from Vietnam by transferring 100% of the project to Vietnamese investors?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO CAN FOREIGN INVESTORS WITHDRAW FROM VIETNAM BY TRANSFERRING 100% OF THE PROJECT TO VIETNAMESE INVESTORS?
1. What is an investment project transfer?
An investment project is a collection of proposals to invest medium-term or long-term capital to conduct business investment activities in a specific area, within a specified period of time. Investors can choose investment forms such as capital contribution, share purchase, capital contribution purchase, etc. to make investments depending on the amount of capital and knowledge that investors have.
During the implementation of an investment project, investors have the right to adjust goals, transfer part or all of the investment project, merge projects or divide or split a project into multiple projects, use land and assets on land under investment projects to contribute capital to establish enterprises, business cooperation or other contents and must be in accordance with the provisions of law.
Pursuant to the Investment Law 2020, investment project transfer is the transfer of all or part of the investment project by the project's investors to another investor when all the prescribed conditions are met. .
In short, transferring an investment project is transferring an investment project owned by one to another investor when all the prescribed conditions are met.
=> See more: Conditions for converting loans into project capital?
2. Conditions for transferring investment projects?
Investors have the right to transfer all or part of the investment project to another investor when the following conditions are met:
(1) The investment project or portion of the transferred investment project is not subject to termination of investment activities;
(2) Foreign investors receiving transfer of investment projects, part of investment projects must meet the following conditions:
- Market access conditions for foreign investors;
- Ensuring national defense and security;
- Land law regulations on conditions for receiving land use rights, land use conditions in islands, communes, wards, border towns, coastal communes, wards and towns.
(3) Conditions according to the provisions of land law in case of transfer of investment projects associated with transfer of land use rights and assets attached to land;
(4) Conditions according to the provisions of housing law and real estate business law in case of transferring housing construction investment projects or real estate projects;
(5) Conditions specified in the investment policy approval document, Investment registration certificate or other relevant provisions of law (if any);
(6) When transferring investment projects, in addition to complying with the provisions of this Article, state-owned enterprises are responsible for complying with the provisions of law on management and use of state capital invested in export products and do business at the enterprise before making adjustments to the investment project.
In short, the law allows investors to transfer investment projects if they fully meet the conditions specified above.
Photo 2. Can foreign investors withdraw from Vietnam by transferring 100% of the project to Vietnamese investors?_Hotline: 0972118764
II. SUMMARY OF ANSWER SECTION: CAN FOREIGN INVESTORS WITHDRAW FROM VIETNAM BY TRANSFERRING 100% OF THE PROJECT TO VIETNAMESE INVESTORS?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Foreign investors are allowed to withdraw from Vietnam by transferring 100% of the project to Vietnamese investors when the following conditions are met:
(1) The investment project or portion of the transferred investment project is not subject to termination of investment activities;
(2) Conditions according to the provisions of land law in case of transfer of investment projects associated with transfer of land use rights and assets attached to land;
(3) Conditions according to the provisions of housing law and real estate business law in case of transferring housing construction investment projects or real estate projects;
(4) Conditions specified in the investment policy approval document, Investment registration certificate or other relevant laws (if any);
(5) When transferring investment projects, in addition to complying with the provisions of this Article, state-owned enterprises are responsible for complying with the provisions of law on management and use of state capital invested in export products and do business at the enterprise before making adjustments to the investment project.
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time while the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the company providing the best legal services on the market, we satisfy all of the above criteria and more will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO WITHDRAWING FROM VIETNAM BY TRANSFERRING 100% OF THE PROJECT TO VIETNAMESE INVESTORS
Question 1: How does the law regulate property ownership in investment?
Reply:
According to the Investment Law 2020, ensuring investors' property ownership rights is regulated as follows:
(1) The investor's legal assets must not be nationalized or confiscated by administrative measures;
(2) In case the State requisitions or requisitions assets for reasons of national defense, security or national interest, state of emergency, or natural disaster prevention and control, the investor will be paid and compensated according to provisions of law on acquisition and requisition of assets and other relevant provisions of law.
In order to ensure the protection of investors' interests when investing, the law always sets out the most optimal regulations to protect investors according to the above regulations.
Question 2: In business investment activities, when there is a dispute, what methods can be resolved?
Reply:
In business investment activities, when there is a dispute, it can be resolved through negotiation and mediation. In case negotiation or mediation cannot be achieved, the dispute will be resolved in Arbitration or Court.
Question 3: Does the law limit the operation of investment projects?
Reply:
The answer is yes.
The operating term of an investment project in an economic zone must not exceed 70 years. The operating term of an investment project outside an economic zone must not exceed 50 years. Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery are the operating term of the investment project can be longer but must not exceed 70 years.
For investment projects that are allocated or leased land by the State but the investor is late in handing over the land, the time the State is late in handing over the land is not included in the operating term and implementation progress of the investment project.
At the end of the investment project's operating term, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the project's operating term will be considered for investment extension but not exceeding the maximum term specified above, except for the following investment projects:
(1) Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
(2) Investment projects in cases where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese party.
=> See more:
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
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