Law on Investment 2014

This Law deals with business investments in Vietnam and outward business investments.

LAW

ON INVESTMENT

Pursuant to Constitution of Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Investment.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Law deals with business investments in Vietnam and outward business investments.

Article 2. Regulated entities

This Law applies to investors, other organizations and individuals (hereinafter referred to as entities) involved in business investment.

Article 3. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Register office means the regulatory body competent to issue, adjust, and revoke Certificates of investment registration.

2. Investment project means a collection of proposal to make midterm or long-term capital investment in business in a particular administrative division over a certain period of time.

3. Expansion project means a project to make investment to expand the scale, improve the capacity, apply new technologies, reduce pollution or improve the environment.

4. New investment project means a project that is executed for the first time or a project independent from any other running project.

5. Business investment means an investor’s investing capital to do business by establishing a business organization; making capital contribution, buying shares or capital contributions to a business organization; making investments in the form of contracts or execution of investment projects.

6. Certificate of investment registration means a paper or electronic document bearing registered information about the investment project of the investor.

7. National investment database means a system of professional information meant for monitoring, assessment, and analysis of investments nationwide in order to serve state management tasks and support for investors’ investment making process.

8. Public-Private Partnership contract (hereinafter referred to as PPP contract) means a contract between a competent authority and an investor or project management enterprise to execute an investment project as prescribed in Article 27 of this Law.

9. Business cooperation contract means a contract between investors for business cooperation and distribution of profits, products without establishment of a new business organization.

10. Export-processing zone means an industrial park specialized in manufacturing of exported products or provision of services for manufacturing of exported products and export.

11. Industrial park means an area with a defined geographical boundary specialized in industrial production and provision of services for industrial production.

12. Economic zone means an area with a defined geographical boundary which consists of multiple sectors and is meant to attract investments, develop socio-economic, and protect national defense and security.

13. Investor means an organization or individual that makes business investments. Investors include Vietnamese investors, foreign investors, and foreign-invested business organizations.

14. Foreign investor means an individual holding a foreign nationality or an organization established under foreign laws an making business investment in Vietnam.

15. Vietnamese investor means an individual holding Vietnamese nationality or a business organization whose members or shareholders are not foreign investors.

16. Business organization means an organization established and run in accordance with Vietnam’s laws. Business organizations include companies, cooperatives, cooperative associations, and other organizations that make business investments.

17. Foreign-invested business organization means a business whose members or shareholders are foreign investors.

18. Capital means money and other assets used invested in business.

Article 4. Application of the Law on Investment, relevant laws and international agreements

1. Investments made within Vietnam’s territory must comply with this Law and relevant laws.

2. Where regulations on banned business lines, conditional business lines, or investment procedures in this Law and other laws are inconsistent, regulations of this Law shall apply, except for investment procedures prescribed in the Law on Securities, the Law of credit institution, the Law on Insurance, and the Law on Petroleum.

3. Where regulations of this Law and those of an international agreement to which the Socialist Republic of Vietnam is a signatory are inconsistent, the latter shall apply.

4. With regard to any contract to which at least a party is a foreign investor or a business organization defined in Clause 1 Article 23 of this Law, the parties to which may reach an agreement on whether to apply foreign laws or international practice if such agreement does not contravene Vietnam’s laws.

Article 5. Policies on business investment

1. Investors are entitled to make investments in the business lines that are not banned in this Law.

2. Investors may decide their business investments on their own in accordance with this law and relevant laws; may access and make use of loan capital, assistance funds, land, and other resources as prescribed by law.

3. The ownership of assets, capital, income, another the lawful rights and interests of investors are recognized and protected by the State.

4. The State shall treat investors equitably; introduce policies to encourage and enable investors to make business investment and to ensure sustainable development of economic sectors.

5. International agreements on business investment to which Socialist Republic of Vietnam is a signatory are upheld by the State.

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Article 76. Effect

1. This Law takes effect on July 01, 2015.

2. The Law on Investment No. 59/2005/QH11 and the National Assembly’s Resolution No. 49/2010/QH12 on projects and works of national importance subject to decision of the National Assembly are annulled from the effective date of this Law.

3. The Government and competent authorities shall elaborate the Articles and Clauses assigned.

This Law is passed by the 13^th National Assembly of Socialist Republic of Vietnam on November 26, 2014 during the 8^th session.