What Has Changed in Vietnam Investment Law 2014? | ANT Lawyers

The new Investment Law 2014 announced by Vietnam Government on December 26th, 2014 has come into effect on July 1st, 2015. The new law introduces changes which include more opening policies for foreign investors to establish and set-up businesses in Vietnam.

What makes foreign investors hesitate to invest and set-up business in Vietnam? The administrative problems and lack of transparency; the inconsistencies in implementing the principle of freedom to do business.

Theoretically, the new Investment Law 2014 will resolve the above mentioned issues by offering a faster amendment mechanism on registering changes or issuing the new Business Registration Certificate or Investment Certificate. Generally, the process and procedures are expected to become more straightforward and convenient for foreign owned companies compared with 2005 Investment Law and the 2005 Enterprise Law by reducing the volume of paper and the administrative works.

In conclusion, the 2014 Investment Law will help clear up some of the confusions that accompanied the 2005 Investment Law and the 2005 Enterprise Law and their application, as well as ease and simplify the foreign investment process which, it is hoped, will promote business activities and investment into Vietnam. The investment of foreign investor into a Vietnamese company in certain situations would be treated in the same manner as a domestic investor that provides an opportunity to offer clients creative structuring solutions to facilitate investment in Vietnam.

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Vietnam and Japan Signed 12 Cooperation Agreements

The Secretary General of Liberal Democratic Party of Japan, the President of Japan – Vietnam Friendship Parliamentary Union- Nikai Toshihiro, on January 12th, 2020 met with the Vietnam’s Prime Minister- Mr. Nguyen Xuan Phuc in Hoi An to discuss economic, cultural and tourist exchange topics.

At the meeting, the representative of Vietnam welcomed the Japanese delegation to come and exchange of economic, cultural and tourism exchanges of the two countries. The representative of Vietnam affirmed that Vietnam appreciate the cooperation with Japan, especially in economic matters. At the moment, Japan is the top country with FDI in Danang in particular and Vietnam in general. The Japanese investors set up company, obtain investment registation certificate and invest in various business lines including IT, trading, real estate, design consultancy, engineering. Based on the cooperation between the countries, Vietnam and Japan have achieved many positive effects on the economy, education, culture, social security.

The representative of Vietnam confirmed that the relationship between the countries developed into many fields as “extensive strategic partnership for peace and prosperity in Asia” established in 2014, in which, Japan always is the trustful, important partner of Vietnam.

The representative of Japan expressed his pleasure to visit Vietnam in the beginning of 2020. He said that the organization of the delegation has the largest scale ever with more than 1,000 delegates, and diverse members from National Assembly deputies, representatives of ministries, branches, local leaders, businesses and people of Japan showed high interest and consensus within Japan from the National Assembly, the Government, localities, business community and people towards strengthening and deepening friendly and cooperative relations with Vietnam in the coming time.

By this meeting, the representatives of the two countries witnessed the signing and exchange of 12 cooperation documents, memorandums of understanding between ministries, branches, localities and businesses of the two countries. By these cooperation documents, the two countries hope that in the future, they will cooperate more together in all aspects of culture, education, economy and society to realize their construction goals and develop the countries.

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Japan Investors Expand Investment in Dong Nai

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Japan is one of the two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year and the main investment sector is supporting industry.

According to the Dong Nai Department of Planning and Investment, in the first three months of 2017, the province has granted investment registration certificates to 31 projects with foreign direct investment (FDI), with total investment capital of more than 314 million USD, including 15 newly licensed projects with total capital of nearly 137 million USD and 16 projects register to increase capital with total capital increase of more than 177 million USD.

Japan is one of two leading countries in pouring capital to invest in Dong Nai province since the beginning of this year. The field that Japanese businesses invest in Dong Nai is mainly supporting industry. Dong Nai is also the province that is currently calling for investment to increase the rate of supplying input materials for enterprises and also reducing imports.

In the recent 3 years, there are large numbers of Japanese enterprise come to Dong Nai to invest. In addition to Long Duc Industrial Park, which is primarily attracting Japanese businesses, other provinces have formed subdivisions to invite Japan’s SMEs to invest. Japanese enterprises investing in Dong Nai mainly in supporting industries, electricity, electronics, mechanics, machinery…

From the beginning of 2017, there are continuously Japan’s enterprises and local governments come to Dong Nai to explore investment opportunities. Notably, 22 enterprises coming from Sakai city, Osaka operating in the fields of mechanical engineering, steel, electricity, electronics… came to Dong Nai to visit Amata Industrial Park, Long Duc Industrial Park… to learn policies and investment opportunities.

Recently, Kobelco Environmental Solutions Joint Stock Company under Kobe Steel Group has proposed to the Dong Nai authorities to invest in the clean water treatment sector of the province. Kobelco entered Vietnam at the end of 2010 with the main activities which is water treatment, wastewater, recycling, waste treatment, operation and maintenance. In Dong Nai, the company has invested in waste water treatment system in Loteco Industrial Park and Long Duc Industrial Park.

According to experts, Vietnam’s participation in new FTAs offers many opportunities for businesses operating in Vietnam, including Japanese companies. Hence, more and more Japanese companies are choosing to set up company in Vietnam. 

ANT Consulting assists clients with Market Entry, Legal Advice, Tax Advice and Outsourcing Services in Vietnam.

We are located in Hanoi, Da Nang and Ho Chi Minh City.

Talk to our consultants at +84 28 3520 2779 or email us ant@antconsult.vn

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