Vietnamese investors can transfer foreign currency abroad as payment for activities relating to their projects before getting investment licences from foreign local authorities under a draft decree of the Ministry of Planning and Investment.
Vietnamese investors can transfer foreign currency abroad as payment for activities relating to their projects before getting investment licences from foreign local authorities under a draft decree of the Ministry of Planning and Investment.
The draft decree on direct overseas investment, released recently to garner public opinion, says payment in foreign currency can be made for activities related to investors' projects abroad, including market and investment opportunity research, field study and related document research, collection and purchase.
The money will also cover the assessment, appraisement, choosing and hiring of foreign consultants to help assess and appraise their projects.
The capital will be earmarked for activities such as organisation and participation in related conferences, establishment of representative offices related to the setting up of the projects, participation in international bidding and paying deposits, bank guarantees or other kinds of financial guarantees to procure an entity, as well as buying or hiring of assets for the projects.
These expenses are part of the total investment capital of the projects registered by investors.
Deputy Director of the ministry's Foreign Investment Agency Vu Van Chung said the new regulations would create favourable conditions for Vietnamese businesses to invest abroad.
However, he said, the decree would also have regulations to tighten control over capital sent abroad from Viet Nam, following the Foreign Currency Ordinance and other related laws.
The draft decree stipulates the transfer of foreign currency abroad must be made in line with regulations governing foreign currency management and other related regulations.
Investors will also be required to commit to balance their sources of foreign currency or to prove their investment capital capacity as part of requirements for granting of investment licences.
Under the existing regulations, investors are allowed to transfer foreign currency broad only when they receive investment licences from local authorities of the countries where the projects are located, or when the projects are approved by the foreign local authorities.
According to the planning and investment ministry, Vietnamese businesses invested in 930 projects abroad as of December last year, with a total registered investment capital of US$19.5 billion.
The draft decree can be viewed on the ministry's foreign investment agency's website at fia.mpi.gov.vn for discussion.
Source:VNS)
