Not only do measures of investment assurance play an important role in drawing investment, but they also are the concern of foreign investors when carrying out investment in Vietnam. In the spirit of law, investment assurance measures are commitments of Vietnamese Government to ensure legitimate interests of all investors throughout investment process and the law has provided with 6 measures to assure investment.
Assurance of asset ownership
It is to say that lawful assets of investors shall not be nationalized or seized by administrative measures. Where an asset is bought or commandeered by the State for reasons of national defense and security, national interests, state of emergency, prevention or recovery of natural disaster, the investor shall be reimbursed or compensated in accordance with regulations on property commandeering.
Assurance of business investment
This is a previlege to investors as they are are not required by the State to satisfy the followings:
- Giving priority to buying, using domestic goods/services; or buying, using goods/services supplied by Vietnamese producers/service providers;
- Achieving certain export target for goods/services; limiting the quantity, value, types of domestic goods/services;
- Importing a quantity/value of goods which is equivalent to the quantity/value of goods exported; or balancing foreign currencies earned from export to meet import demands;
- Reaching a certain rate of domestic consumption for domestic goods;
- Reaching a certain level/value of domestic research and development;
- Providing goods/service at a specific location in Vietnam or overseas;
- Having headquarters situated at a location requested by competent authorities.
Depending on the orientation of socio-economic development, foreign exchange management policies, and the ability to balance foreign exchange in each period, Vietnamese Government will always take into account the assurance of fulfilling demands for foreign currencies of important investment projects, especially those of investment in infrastructural development.
Assurance of assets remittance
After fulfilling all financial obligations to Vietnamese government, foreign investors are permitted to remit the following assets:
- Investment apital and liquidations;
- Income from business investment;
- Money and other assets under the lawful ownership of the investors.
The Government’s guarantee for some important projects
For some important projects such as those of infrastructural development, Prime Minister of Vietnam shall decide provision on guarantees to ensure contract execution by competent authorities or state-owned companies participating in investment projects.
Assurance of business investment upon changes of laws
It should be noted that if a new law stipulating more favorable investment incentives than those currently enjoyed by investors is promulgated, investors shall enjoy the new incentives for the remaining period of the project’s incentive enjoyment.
Likewise, where a new law that provides less favorable investment incentives that those currently enjoyed by investors is promulgated, investors shall stick to the current incentives for the remaining period of the incentive enjoyment. However, such privilege is not applicable if regulations are changed for reasons of national defense and security, social order, social ethics, public health, or environmental protection. Besides, when an investor is no longer eligible for investment incentives, one or some of the following solutions shall be adopted: i. deducting the damage actually suffered by the investor from the investor’s taxable income; ii. adjusting objectives of investment project; iii. assisting the investor in recovering from damage.
Settlement of disputes over business investment
Disputes over business investment in Vietnam are settled preferably through negotiation and conciliation. In case, settlement cannot be reached through negotiation and conciliation, the dispute shall be resolved by arbitration or by the court. In general, every dispute over business investment between investors within Vietnam’s territory shall be settled by one of the following entities:
a) Vietnam’s court;
b) Vietnam’s arbitration;
c) Foreign arbitration;
d) International arbitration;
e) An arbitrary tribunal established by the parties in dispute.
The laws of Vietnam always attempt to provide as many methods as possible through time to safeguard investment of foreign investors
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