New decree eases rules on VN investors' transfer of funds abroad
Vietnamese investors can transfer 5 per cent of the value of overseas projects' values in foreign currency worth up to US$300,000 (Bt10.6 billion) towards project-related activities before getting investment licences from foreign authorities.
This was regulated in a decree on overseas investments issued recently to replace one dated 2006. Previously, investors could transfer capital for their overseas investments only after getting investment licences and approval from the authorities of investment-receiving countries. The sum will be accounted to the project’s total overseas investment.
According to the new decree, investors can transfer abroad foreign currencies and machinery to meet expenses for their investment projects such as market and field surveys, international bidding, deposit or other financial guarantees, as well as asset purchases or hiring. The process must be in accordance with regulations governing foreign currency, export, customs and technology.
Projects abroad using state capital must abide by the Law on Investment of State Capital in Enterprises.
The decree also requires documents validating the site of projects for overseas investment in the fields of energy; agriculture, forestry and fish farming, exploitation and processing; and mineral survey, exploration, exploitation and processing; manufacturing, processing and engineering; and real estate and infrastructure.
Documents validating the site of projects can be one of the following: investment licences granted by host countries that specify the location and acreage of land of the projects; land-lease or land-use certificates; and land-lease contracts or business contracts specifying the location and the acreage of the land; or agreements on land transfer and lease, in addition to business cooperative agreements with authorised parties in host countries.
The decree also said investors must register investments through Vietnam’s national database for overseas investment, which would help simplify procedures.
Vu Van Chung, deputy director of the Foreign Investment Agency, was quoted by Dau Tu (Investment) online newspaper as saying that the new decree with simplified procedures, greater flexibility and advantages was expected to encourage Vietnamese to invest abroad.
As of the end of April, Vietnam had registered nearly $15 billion in 930 projects abroad, according to the Foreign Investment Agency under the Ministry of Planning and Investment.
Major sectors for overseas investments were agriculture, telecommunications and oil exploration. The largest markets are Laos and Cambodia, accounting for respective shares of 27 and 20 per cent of the total investment made abroad.
The latest update on the agency’s website showed that in the first half of this year, the ministry granted licences for 47 projects overseas, worth a total of $155.4 million.
