Offshore investment activities deployed by Vietnamese firms

Hi DMS Law firm in Vietnam! How Vietnamese companies transfer capital overseas to conduct offshore investment ? How Vietnamese firms repatriate their offshore profits ?

Hi!

Transactions for remittance of money overseas from Vietnam and into Vietnam relating to offshore investment activities must be conducted through a separate capital account opened at an authorized credit institution in Vietnam and must be registered at the State Bank of Vietnam in accordance with the law on control of foreign exchange.

Remittance of investment capital overseas (Transferring investment capital out of Vietnam):

Investors are permitted to remit oversees investment capital in order to conduct investment activities upon satisfaction of the following conditions:

They have been issued with an offshore Investment Registration Certificate (offshore IRC), except for the cases prescribed in clause 3 of this Article;

Their investment activities have been approved or licensed by the competent agency of the investment recipient country. Where the law of the investment recipient country does not regulates issuance of an investment licence or investment approval, the investor must have a document proving the right to conduct investment activities in the investment recipient country;

They have a capital account prescribed in Article 63 of this Law.

Any remittance of investment capital oversees must comply with the law on control of foreign exchange, export or technology transfer and other relevant laws.

Investors are permitted to remit overseas foreign currency or goods, machinery and equipment to serve the market survey, research and exploration activities and conduct other investment preparation activities in accordance with Government regulations.

Repatriation of profit of Offshore Investment Activities (Repatriation of profit into Vietnam):

Except for the case of use of profit for offshore investment in accordance with Article 66 of this Law, an investor must, within a period of six (6) months from the date on which there is the tax finalization or a document of equivalent validity prescribed by the law of the investment recipient country, repatriate all profit received and other income earned from the offshore investment.

In case of failure to repatriate profit and other income within the period stipulated in clause 1 of this article, the investor must report in writing to the Ministry of Planning and Investment and the State Bank of Vietnam. An extension of the period for repatriation of profit shall be granted on no more than two occasions and each extension shall not exceed six months and must be approved in writing by the Ministry of Planning and Investment (Articles 63, 64 and 65 Law on Investment  No. 67/2014/QH13 dated November 26, 2014).

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Offshore investment activities deployed by Vietnamese companies