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Investment Capital requirement for new project in Vietnam

Investment Capital requirement for new project

Investment Capital requirement for new project

(S&B Law) Generally, there is no requirement for minimum investment capital for incorporating a company in Vietnam, except for the conditional investment sectors or business lines.
Nevertheless, for smooth process of Investment Certificate, it is advisable that investor exhibits enough capital resources to successfully realize the business goals that would be set out in the Investment Certificate.
Investment Capital shall include Equity and Loan Capital, in which, the Equity must be at least 20% of total Investment Capital. Investor is expected to contribute its capital contribution adhering to the schedule in the Investment Certificate. Investor may during the implementation of the project in Vietnam, take a loan from an offshore lender. The failure to stick to the committed schedule shall entitle the competent authority to apply strict measures in regard to the Investment Certificate, up to and including withdrawal of the Investment Certificate.
The establishment of the new company requires an Investment Certificate from the licensing authority. Depending upon the location of the company, the licensing authority may be the Provincial People’s Committee (for companies located outside industrial or export processing zones) or the provincial Industrial and Export Processing Zones Management Authority (for companies located in industrial or export processing zones).

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