Today, 14th August, the BBGV Breakfast seminar with the presence of Mr Tuan, Deputy Director of the Legal Department of the Ministry of Planning and Investment, drew a great attention from top-level of inhouse counsels and lawyers in Hochiminh City.
During 2 hours of the seminar, majors changes in the new Investment Law has been indicated and clarified. Main concerns surrounded the IRC, ERC and how the new law will be effective and helpful for foreign investors. Below are some main points from the Q&A session:
- Regarding M&A process and local department of planning and investment (DPI) approval: the timeline of 15 days are for the DPI to approve. The DPI does not need to check with the Ministries except for cases that need to be approved in principle under the LOI.
- Regarding business line that does not fall into WTO restriction but under 267 conditional sectors, the conditions are listed on www.dangkydoangnghiep.gov.vn. If the process and conditions are not clear please inform MPI to seek guideline.
- Regarding the request of Decree 23/2007 that any distribution related project need to obtain MOIT approval, the approval, if any, will be after issuance of the IRC. This will follow the upcoming Decree implementing the LOI.
- The principle is that ERC is for establishment of a legal entity. IRC is for investing in a project. Those are not related. IRC will be issued by either DPI or Industrial Zone Authority (IZA).
- If investors only wish to change the business line but not the current project, they don’t need to amend IRC not ERC.
- Any conditions not listed in 267 shall not be effective.
- As to IRC form, item 6 Art 39 (business objective) there is no need for CPC or HS code. HS code is for ERC and due to request of A different ministry. MPI is requesting MOIT to reform . MPI will discuss with MOIT and MOF on HS code with MOIT for final decision.
- Those are the guidance from MPI that are stated in OL 5122 and will be stated in the Decree implementing the LOI. If the local DPI and IZA has different opinion please contact MPI for guidance.
Thank you for such a great event and we’ll keep you updated on new movement of the law.
By Vietnam Law Insight (LNT & Partners)
Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact the author: Dr Le Net at Net.Le@LNTpartners.com us or visit the website: Http://LNTpartners.com