Consultation question: Hello Lawyer, I have a problem I want to ask for advice as follows: My company is currently implementing an investment project with foreign capital. If I want to transfer this project now, what are the conditions for transferring foreign-invested project? Thank you.
Hi, thank you for your trust and send your questions to the consulting department of AMI Law Firm. With the content of your question, AMI would like to offer advice as follows:
Foreign investors investing in Vietnam must comply with the regulations and conditions of the law on foreign investment. Therefore, when executing the transfer of foreign-invested investment project, investors need to meet certain conditions.
The conditions for transferring foreign investment projects are as follows:
Under the provisions of Clause 1, Article 45 of the Law on Investment 2014, investor is entitled to transfer all or part of investment project to other investors when meeting the following conditions:
- Not falling in any of the cases subject to operation termination prescribed in Clause 1, Article 48 of the Law on Investment 2014;
- Satisfying the investment conditions applicable to foreign investors in case the project is transferred to a foreign investor and is in a sector or trade subject to conditional investment applicable to foreign investors;
- Satisfying the conditions prescribed in the land and real estate business laws, in case the project is transferred together with land use rights;
- The project meets the conditions of project transfer in accordance with the Investment Registration Certificate or approves the investment policy and other provisions of the relevant law.
For projects under the investment policy decision of the Management Board of industrial park, export processing zone, hi-tech park and economic zone, the Management Board of these units shall decide to adjust investment policy when investor meet the above conditions.
If the transfer of an investment project generates income, the investor transferring the investment project should perform tax obligations in accordance with the law.
Legal basis for transfer of investment project:
- Law on Investment No. 67/2014/QH13 passed by the XIII National Assembly of the Socialist Republic of Vietnam on November 26th, 2014;
- Decree No. 118/2015/ND-CP dated November 12nd, 2015 of the Government, detailing and guiding the implementation of a number of articles of the Law on Investment;
- The Law on Real Estate Business No. 66/2014/QH13 was passed on November 25th, 2014 by the XIII National Assembly of the Socialist Republic of Vietnam.
- Other legal documents related to the transfer of investment projects.
Whether the project is domestic investment or foreign investment, the investor still has the right to transfer the project because the project is owned by the investor so they have the right to dispose of the project. The transfer should be carried out properly and meet the conditions for transferring foreign-invested projects to ensure the legality of the project.