The Investment Law, promulgated on November 26, 2014, and effective from July 1, 2015, provides clearer regulations on investment-related issues compared to the 2005 Investment Law.
Accordingly, some terms used in the 2005 Investment Law have been replaced by new definitions, and the accompanying regulations are based on a clear understanding of these new definitions.
Here are some important terms to consider when discussing investment under the 2014 Investment Law:
1. Investment registration authority It is the competent authority to issue, amend, and revoke Investment Registration Certificates.
2. Investment It is a collection of proposals for medium-term or long-term capital investment to carry out business investment activities in a specific area, within a defined period of time.
3. Expansion investment project An investment project is an investment project that develops an existing business by expanding its scale, increasing capacity, innovating technology, reducing pollution, or improving the environment.
4. New investment project This refers to a project being implemented for the first time or a project operating independently from an ongoing investment and business activity.
5. Business investment This refers to investors contributing capital to conduct business activities through the establishment of economic organizations; investing capital, purchasing shares or capital contributions of economic organizations; investing in the form of contracts or implementing investment projects.
6. Investment registration certificate It is a document or electronic record containing the investor's registration information regarding the investment project. (Formerly known as an investment certificate or investment license)
7. National Investment Information System It is a specialized business information system for monitoring, evaluating, and analyzing investment trends nationwide to serve state management and support investors in carrying out investment and business activities.
8. Public-Private Partnership Investment Contract (hereinafter referred to as PPP contract) is a contract signed between a competent state agency and an investor or project enterprise to implement an investment project as prescribed in Article 27 of this Law.
9. Business cooperation agreement (hereinafter referred to as BCC contract) is a contract signed between investors to cooperate in business, sharing profits and products without establishing an economic organization.
10. Export processing zone It is an industrial zone specializing in the production of goods for export, providing services for the production of export goods, and engaging in export activities.
11. industrial area It is a geographically defined area specializing in the production of industrial goods and providing services for industrial production.
12. Economic zone It is a geographically defined area comprising various functional zones, established to achieve the goals of attracting investment, developing socio-economic activities, and protecting national defense and security.
13. Investors These are organizations and individuals engaged in investment and business activities, including domestic investors, foreign investors, and economic organizations with foreign investment capital.
14. Foreign investors This refers to individuals of foreign nationality or organizations established under foreign law that conduct investment and business activities in Vietnam.
15. Domestic investors This refers to individuals with Vietnamese nationality, or economic organizations that do not have foreign investors as members or shareholders.
16. Economic organization An organization established and operating in accordance with Vietnamese law includes enterprises, cooperatives, cooperative unions, and other organizations engaged in investment and business activities.
17. Foreign-invested economic organizations It is an economic organization in which foreign investors are members or shareholders.
18. Investment It is money and other assets used to carry out investment and business activities.
This law applies to investors and organizations and individuals involved in investment and business activities.
