At present, investment is one of the most common activities conducted by individuals and organizations. Therefore, the State requires all investors, whether domestic or foreign, to obtain an Investment Registration Certificate before implementing any investment activities. The purpose of this requirement is to allow the Vietnamese government to manage investment activities nationwide.
In addition, this procedure plays a particularly important role for foreign-invested enterprises. In this article, NPLaw will provide you with legal regulations regarding the procedure for requesting investment policy approval from the Provincial People's Committee.
I. When to request approving the Investment Policy
What is investment policy approval, and when should it be requested?
According to Clause 1, Article 3 of the Law on Investment 2020, investment policy approval is defined as follows:
- Investment policy approval means the competent authority's approval of the objectives, location, scale, progress, implementation duration of the project; the investor or method for selecting the investor, and any special mechanisms or policies (if applicable) for implementing the investment project.
Thus, whenever an enterprise intends to implement a project, it must seek approval for the project’s purpose, form, location, scale, timeline, duration, investor, and any special mechanisms or policies involved.
However, not all investment projects are required to obtain investment policy approval. This procedure only applies to projects specified under Articles 30, 31, and 32 of the Law on Investment 2020.
II. Guidelines for requesting the investment policy approval
1. Application dossiers for the investment policy approval
How to prepare dossiers? NPLaw recommends including the following documents:
- Application form for project implementation;
- Personal or organizational identity documents;
- Project proposal or pre-feasibility study report;
- Financial statements of the investor for the last two years; commitment of financial support from the parent company or financial institutions; documents proving the investor's financial capability;
- Land use demand statement or land lease agreement;
- Explanation of technology used in the investment project (if the project is subject to technological appraisal as per the Law on Technology Transfer);
- Business Cooperation Contract (BCC), if applicable;
- Other relevant documents.
2. Process for approving the Investment Policy
Here is the process for submitting the request:
- Step 1: Submit four (04) sets of the application dossier to the Department of Planning and Investment.
- Step 2: Within 50 days from the date of receiving a valid dossier, the competent authority will issue a decision on investment policy approval.
- Step 3: If the project does not meet the conditions for approval, the authority will issue a written notice of rejection.
3. Content of an evaluation report of the Investment Policy
NPLaw provides the key contents for evaluating the investment policy approval request, along with investor selection:
- Contents specified in Clause 4, Article 33 of the Law on Investment 2020;
- Legal basis and conditions for investor approval under Clause 1, Article 29 of the Law on Investment 2020 and Article 29 of Decree 31/2021/ND-CP;
- Assessment of compliance with regulations on construction, housing, urban development, and real estate business.
III. Questions on requesting the investment policy approval
1. Which Agency receives the investment policy approval application?
According to Clause 5, Article 31 of Decree 31/2021/ND-CP, the agencies authorized to receive applications are:
- The Department of Planning and Investment receives dossiers for projects under the Provincial People's Committee’s authority that are located outside of industrial zones, export processing zones, high-tech zones, and economic zones; for projects implemented both inside and outside these zones; and for projects located in areas not under the management of any specialized zone management boards.
- The Management Boards of industrial zones, export processing zones, high-tech zones, and economic zones receive dossiers for projects within their respective zones and under the authority of the Provincial People's Committee.
2. How is the application evaluated?
NPLaw explains the regulations on investment policy appraisal as follows:
According to the Law on Investment 2020 and Decree 31/2021/ND-CP:
- If the provincial planning has not yet been approved, the evaluation will be based on the project's compliance with relevant sectoral or national planning under Article 59 of the Law on Planning and relevant government resolutions integrating various types of planning.
- If the previous planning has expired, it may be extended until new planning is approved.
IV. Contact NPLaw for investment policy approval services
The process of requesting investment policy approval is complex and not easy to handle without legal experience. If you find the above information confusing or challenging, please contact us for direct consultation.
We provide legal support through phone or email and assist clients with:
- Legal consultation and guidance;
- Drafting and preparing the full set of documents for the application;
- Representing clients in dealing with authorities;
- Delivering results directly to clients.
At NPLaw, we strive to be a reliable legal partner contributing to your business success. Your trust is the foundation for our future growth.
