PLF Tutorials

LEGAL TUTORIALS FOR DOING BUSINESS IN VIETNAM

Investment assurance in Vietnam


To assure the rights of investors when performing their business activities in Vietnam, Vietnam Government commits on the safe, transparent and advantageous investment environment to foreign investors.

Assurance on the property ownership

Rightful properties of the investors shall not be nationalized or confiscated by any administrative measures.

In the circumstance of proper reasons (national benefit, national safety, disaster prevention, etc.) that Vietnam Government offers a compulsory purchase to properties of the investors, the investors would be compensated in compliance with the laws.

Article 9 of the Law on Investment 2014


Offshore property transference

Upon the sufficient performance of the financial obligations to Vietnam Government in compliance with the laws, foreign investors are entitled to transfer offshore the following properties:

  • Investment capital, investment liquidation;
  • Income from business activities;
  • Money and other properties rightfully owned by foreign investors.

Article 11 of the Law on Investment 2014

 

Fair treatment

Foreign investors shall acquire a fair treatment as Vietnamese investors:

  • Not having to purchase or use goods, service in Vietnam;
  • Not being limited for locations, objectives, operating scale of goods trading, service provision activities;
  • Not having to comply with any ratio of export, import, goods or service localization;
  • Not having to perform R&D activities (research and development) in Vietnam or overseas.

Article 10 of the Law on Investment 2014

Interests assurance on the law variation

  1. If the new legal documents provide a higher investment incentive level than that of the current, the investor shall be entitled to acquire the new investment incentive for the remaining period of the project.
  2. If the new legal documents provide a lower investment incentive level than that of the current, the investor shall be entitled to acquire the current investment incentive level for the remaining period of the project.
The commitment in section (1) shall not be applied to the case of the law regulation varieties due to national defence, national safety, social discipline and safety, morality, health, environment protection.


In case the law regulations result in the failure of investors to acquire the aforementioned-incentive level, the investors shall be considered to receive a compensation by the following measures:

  • Damages deduction in the taxable income.
  • Amendments to the investment activities. 
  • Other damage recovery measures.
The above measures shall only be applied upon the written request of the investors within the term of 3 years from the effective date of the new legal documents.

Article 13 of the Law on Investment 2014, Article 3 of the Decree 118/2015/NĐ-CP  


Unconditionally choosing investment dispute settlement

Investors shall be entitled to unconditionally choose the jurisdiction agency to settle their dispute:

  • Vietnamese court
  • Vietnamese arbitrator
  • Foreign arbitrator
  • International arbitrator
  • Ad-hoc arbitrator established by the parties

PLF often advise clients to choose foreign arbitrators and international arbitrators since they are the agencies who would ensure the transparency and the objectiveness.

Article 14 of the Law on Investment 2014

 

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