Investment licensing agencies would not be required to refer to regulations issued by ministries, branches or localities to decide on the grant of investment licenses.
It is one of major contents of a draft circular which is being elaborated by the MPI to guide the implementation of Government Decree No. 108/2006/ND-CP of September 22, 2006.
Under the draft paper, licensing agencies would base themselves only on investment conditions specified in legal documents issued by the National Assembly, the National Assembly Standing Committee, the State President, the Government or the Prime Minister. For cases in which the currently prescribed investment conditions are unclear or unavailable, relevant ministries would give their opinions on a case-by-case basis. At the same time, licensing agencies may not require investors to submit or produce any papers other than those prescribed by law.
According to the draft circular, foreign investors may contribute capital to, or purchase shares from, Vietnamese enterprises in accordance with Vietnam’s international commitments and laws. If the Vietnamese enterprises which foreign investors intend to contribute capital to or purchase shares from are engaged in several production and business lines subject to different restrictions on investment forms or capital contribution caps, foreign investors would be subject to the highest level of restriction. In addition, foreign investors would not be allowed to hold more than 49% of the charter capital of Vietnamese enterprises trading in products subject to a ban placed under Vietnam’s commitments and laws.
If the foreign capital holding in a Vietnamese enterprise accounts for 49% or less of the enterprise’s charter capital, the enterprise would only carry out procedures to adjust its business registration certificate in accordance with the enterprise law. However, if a foreign investor holds more than 49% of charter capital of a Vietnamese enterprise which has one or several investment projects, the foreign investor would, together with its Vietnamese partner, carry out procedures for the grant of investment certificates.
The draft circular also contains provisions on the structure, organization and operation of enterprises engaged in investment.-