New points of the Law on Investment 2020 in Vietnam
After more than 06 years of implementation, the Law on Investment 2020 has been officially issued with many new points to improve the quality and efficiency of attracting domestic and foreign investment resources.
Banned debt collection services
In the Law on Investment 2020, the debt collection service business has been removed from the list of conditional investments, which was officially transferred to the List of the banned business lines.
The law also stipulates that the transitional provision is a transaction to provide debt collection services before the effective date of this Law (January 1, 2021) from the effective date of this Law. Participating in transactions may conduct activities to liquidate debt collection transactions according to the provisions of civil law and relevant laws.
Abolish many conditional business investment sectors
The industries and trades previously included in the List of sectors and trades subject to conditional business investment have now been abolished, including:
– Service activities of commercial arbitration organizations;
– Logistic service business;
– Shipping agency services;
– Business training services, fostering knowledge about real estate brokerage, operating real estate trading floors;
– Trading in HIV testing services;
– Providing reproductive support services, sperm storage, embryo storage;
– Trading in services of testing microorganisms causing infectious diseases;
– Sales of vaccination services;
– Trading in opioid addiction treatment services;
– Trading in cosmetic surgery services;
– Trading in services of performing surrogacy techniques …
Additional many sectors and trades with investment incentives
Article 16 of this Law supplements a number of sectors and trades eligible for investment incentives compared to the old regulations as follows:
– University education;
– Producing products formed from scientific and technological results according to the provisions of law on science and technology;
– Production of products on the list of products of industries supporting development priority;
– Preserving drugs, producing medical equipment;
– Producing goods and providing services that create or join value chains and industry clusters.
Supplement conditional business lines
The conditional business lines are supplemented with:
– Trading in smoking cessation services, HIV / AIDS treatment, care for the elderly, people with disabilities and children;
– Trading in clean water (daily-life water);
– Business architecture services;
– Registering fishing ships;
– Training and fostering crew members of fishing ships …
Additional provisions on incentives and special investment support
The Government has decided to apply special investment incentives and supports to encourage the development of a number of investment projects with great socio-economic impacts, including:
– Newly established investment projects (including the expansion of such newly established projects), innovation centers, research and development centers with a total investment capital of VND 3,000 billion or more, actually at least VND 1,000 billion is disbursed within 3 years after being granted investment registration certificates or investment policy approvals; national innovation center established under the decision of the Prime Minister;
– Investment projects in sectors and trades eligible for special investment incentives with an investment capital of VND 30,000 billion or more and disbursed at least VND 10,000 billion within 03 years after being granted the certificates investment registration or approval of investment policy.
Preferential levels and duration of application of special incentives comply with the Law on Enterprise Income Tax and the Land Law.
4 cases are not guaranteed to implement investment projects
The investor must pay a deposit or have a bank guarantee on the deposit obligation to secure the implementation of an investment project that requires the State to allocate, lease land or permit the change of land use purpose, except 04 the following case:
– The investor who wins the land use right auction to execute an investment project is allocated land with land use levy or leased land by the State with one-off rental payment for the entire lease term;
– The investor wins the bidding to execute the investment project using land;
– Investors are assigned or leased land by the State on the basis of transfer of investment projects that have made deposits or completed capital contribution and capital mobilization according to the schedule prescribed in the written approvals of owners. investment policy, investment registration certificate;
– Investors are allocated or leased land by the State to execute investment projects on the basis of receiving land use rights and properties attached to land of other land users.
Amending and supplementing subjects entitled to investment preferences
Under the amended Investment Law, the subjects eligible for investment incentives include:
– Investment projects in the lines of investment incentives prescribed in Clause 1, Article 16 of this Law;
– Investment projects in geographical areas eligible for investment incentives prescribed in Clause 2, Article 16 of this Law;
– Investment projects with a capital of VND 6,000 billion or more, disbursing at least VND 6,000 billion within 3 years after being granted investment registration certificates or approving investment policies. and at the same time one of the following criteria: having a total turnover of at least VND 10,000 billion per year within the latest time limit of 03 years from the year when the turnover or employing over 3,000 employees;
– Social housing construction investment project; investment projects in rural areas employing 500 workers or more; investment projects that employ employees with disabilities in accordance with the law on people with disabilities;
– High-tech enterprises, science and technology enterprises, scientific and technological organizations; projects with technology transfer on the list of technologies encouraged for transfer under the law on technology transfer; technology incubator, science and technology business incubator in accordance with regulations of law on high technology and law on science and technology; enterprises producing and supplying technologies, equipment, products and services serving the requirements of environmental protection in accordance with the law on environmental protection;
– Investment project for creative start-up, innovation center, research and development center;
– Investment in the distribution chain of products of small and medium-sized enterprises; business investment in technical facilities supporting small and medium-sized enterprises, incubators of small and medium-sized enterprises; business investment in a working area to support small and medium-sized enterprises in their creative start-ups in accordance with the law on supporting small and medium-sized enterprises.
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