New decree tightens oversight of Vietnamese firms investing abroad

New decree tightens oversight of Vietnamese firms investing abroad

Comprising five chapters and 45 articles, the decree establishes a comprehensive framework governing outbound investment for business purposes, including procedures and State management responsibilities.

FPT’s semiconductor chip display booth at an expo in Việt Nam. The Ministry of Finance is authourised to grant, amend or revoke outward investment registration certificates for projects valued at VNĐ7 billion (US$265,200) or more. — Photo qdnd.vn

The Ministry of Finance will take a central role in approving overseas investment projects under a new Government decree designed to tighten supervision of capital outflows.

Under Decree No. 103 dated April 3, the ministry is authorised to grant, amend or revoke outward investment registration certificates for projects valued at VNĐ7 billion (US$265,200) or more, as well as those operating in conditional sectors.

For large-scale investments worth at least VNĐ1.6 trillion, or projects seeking special policy mechanisms, the ministry must first seek approval from the Prime Minister before issuing licences.

The decree also introduces stricter compliance requirements for investors. Applicants must provide a valid outbound investment decision and a tax clearance certificate issued within three months prior to submission. Projects must adhere to the principles of the Law on Investment, avoid prohibited sectors and meet conditions applied to regulated industries.

Administrative procedures will be processed digitally via the national investment information system as part of efforts to streamline licensing and enhance transparency.

Comprising five chapters and 45 articles, the decree establishes a comprehensive framework governing outbound investment for business purposes, including procedures and State management responsibilities.

Certain activities are excluded from its scope, including indirect overseas investment through securities, investment funds or financial intermediaries, as well as oil and gas projects, which remain subject to separate regulations.

The new rules apply to investors, competent State agencies and organisations or individuals involved in overseas investment activities. 

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