SERVICE FOR IMPLEMENTING SUPERVISORY REPORTS OF ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL

 

I. SERVICE PROVISION PROCESS AT VINASC:

 

Step 1. Vinasc receives information regarding the implementation of the monitoring report from the customer with the following basic contents:

• Number of years of operation of the enterprise: Through the Investment Registration Certificate, Enterprise Registration Certificate;
• Number of years the enterprise has not implemented monitoring reports;
• Customer’s needs for monitoring report services: Number of years the customer requests to report;

Step 2. Depending on each specific case, Vinasc will consider to advise and guide on procedures for implementing monitoring reports. The two parties discuss to agree on the service content. Then Vinasc based on the documents provided to prepare the necessary documents to hand over to the business for authentication;

Step 3. Vinasc instructs customers to prepare their own documents related to the procedures for implementing monitoring reports as follows:

• In case customers use accounting services at Vinasc: the accounting department supports checking data, providing accurate data to perform services;
• In case customers do not use accounting services at Vinasc:

Customers provide data according to the following contents:

• Capital contribution in the period to implement the project; Cumulative capital contribution up to the time of project implementation;
• Employment situation (Quantity): foreign workers, Vietnamese workers
• Obligations with the budget:
• Number of implementations in the reporting period;
• Cumulative number up to the reporting time;
• Number to be paid
• Profit situation: Number of implementations in the reporting period; cumulative number up to the reporting time;
• Preliminary financial situation of the enterprise (short-term debt, long-term debt, total assets)
• Meeting the conditions for investment and business for projects in conditional investment and business industries and professions: meeting sub-licenses, meeting investment capital, meeting certificates of the head,…

Depending on each specific situation, we will send a file summarizing the details of the data to be prepared to the Customer for reference.

Step 4. Vinasc prepares the following documents and transfers them to the customer for signing: /h4>

Monitoring and Evaluation Report on Investment Implementation

– Monitoring and evaluation report during the exploitation and operation phase

Details of the list of documents, we will send to you specifically when the two parties proceed to sign the service contract.

Step 5. Receive the documents from the customer and check the authenticity of the documents;

Step 6. Submit documents to the competent authority:

• Provincial Department of Planning and Investment: For projects outside industrial parks, export processing zones, hi-tech zones and economic zones
• Management Board of industrial parks, export processing zones, hi-tech zones and economic zones: For projects in industrial parks, export processing zones, hi-tech zones and economic zones.

Step 7. Receive results from competent authorities and transfer specific results to customers.

II. SPECIFIC RESULTS

Documents proving that Vinasc has completed the service;

III. ESTIMATED IMPLEMENTATION TIME

– Implementation of investment report, investment monitoring report: 03 working days

The above estimated time is calculated from the date Vinasc receives the full documents as requested and sent to you.

IV. REGULATIONS ON THE TIME TO IMPLEMENT INVESTMENT REPORTS AND MONITORING REPORTS OF ECONOMIC ORGANIZATIONS WITH FOREIGN INVESTMENT CAPITAL:

1. What types of monitoring reports need to be implemented?

According to the provisions of Clause 8, Article 100 of Decree No. 29/2021/ND-CP dated March 26, 2021 of the Government on the order and procedures for appraisal of national important projects and investment monitoring and evaluation, it is required:

“8. Investors of projects funded by other sources of capital shall make and send the following reports to investment registration authorities and agencies in charge of investment supervision and assessment of the localities where such projects are executed:

1. a) Periodic supervision and assessment reports: 6-month report and annual report;
2. b) Supervision and assessment reports prior to adjustment of the project;
3. c) Terminal report (if any);”

What are the regulations on the deadline for submitting investment monitoring and evaluation reports?

According to the provisions of Clause 11, Article 100 of Decree No. 29/2021/ND-CP dated March 26, 2021 on the time limit for investment monitoring and evaluation reports:

“Every program owner, project owner and investor shall submit:

– a 6-month report before July 10 of the reporting year;

– an annual report before February 10 of the succeeding year;

– a report before adjusting the program/project.”

Investors and economic organizations implement the investment monitoring and evaluation reporting regime and send it to the Department of Planning and Investment in accordance with current regulations.

2. What contents related to the monitoring report should investors report?

According to Article 70 of Decree No. 29/2021/ND-CP dated March 26, 2021, investors and economic organizations must monitor and inspect the project and report the following contents:

Article 70. Contents of supervision by investors

Each investor and business entity shall monitor and inspect their own projects and make a report on the following issues:

1. Progress of the project and achievement of its objectives.
2. Progress of contribution of capital, charter capital, and legal capital (if required).
3. Project operation: investment results, information about employment, payment to state budget, investment in research and development, financial status of the enterprise, and other professional indicators depending on the business lines.
4. Adherence to regulations on environmental protection, use of land and natural resources as prescribed.
5. Implementation of the regulations laid down in the decision on or written approval for investment guidelines and investment registration certificate (if any).
6. Fulfillment of business investment conditions (if the business lines of the project is subject to certain conditions).
7. Investment incentives (if any).

3. What are the penalties for violating reporting regulations?

According to Decree No. 122/2021/ND-CP dated December 28, 2021, of the Ministry of Planning and Investment on administrative sanctions in the field of Planning and Investment, violations of information and reporting regulations on investment activities in Vietnam will be handled according to Article 15 of Decree No. 122/2021/ND-CP as follows:

“Article 15. Violations against regulations on reporting and providing information about investment activities in Vietnam

1. A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for any of the following violations:
2. a) Making a report on investment supervision/assessment behind schedule or in an insufficient manner as prescribed;
3. b) Failure to comply with regulations on reporting investment supervision/assessment on a periodic basis as prescribed.
4. A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for any of the following violations:
5. a) Failure to comply with regulations on reporting investment activities or reporting investment activities behind prescribed schedule;
6. b) Submitting an untruthful or inaccurate report on investment activities;

…

3. Remedial measures:

The violator is compelled to:

1. a) complete the investment supervision/assessment report if the violation specified in Point a Clause 1 of this Article is committed;
2. b) comply with regulations on reporting investment supervision/assessment on a periodic basis if the violation specified in Point a Clause 1 of this Article is committed.
3. c) comply with regulations on reporting investment activities in case of failure to comply with reporting regulations if the violation specified in Point a Clause 2 of this Article is committed;”

In the Investment Registration Certificate of projects, the Investment Registration Agency has stipulated a binding condition for the project that investors and economic organizations must implement the reporting regime as prescribed. During the inspection, monitoring, or appraisal of the investment project adjustment registration dossier; if investors or economic organizations do not implement the reporting regime, it will be transferred to the Inspectorate for administrative sanctions as prescribed.

 

*Summary Table of Required Documents

No.	Required documents	Implementer
		Customer (1)	Vinasc Group (2)	Vinasc Group handles on behalf of our client (3)
1	Reporting data (According to the attached Excel file)	X	X
2	6-month periodic monitoring and evaluation report		X
3	Annual periodic monitoring and evaluation report		X
4	6-month periodic monitoring and evaluation report during the exploitation and operation phase		X
5	Annual periodic monitoring and evaluation report during the exploitation and operation phase		X

 

(*) According to the process, the customer is obligated to carry out the procedures in column (1) and Vinasc will be obligated to carry out the procedures in column (2).

(*) In some special situations, state agencies may request additional information to supplement the application. In that case, we will immediately notify you to update your application as soon as possible.

The types of reports that enterprises with foreign direct investment (FDI) need to submit to the foreign investment management agency include the following reports:

• Investment activity report.
• Investment monitoring and evaluation report.
• Report on the status of goods trading and activities directly related to goods trading.
• Financial statement.
• Labor utilization report.

For any information regarding the implementation of the monitoring report, please contact Vinasc Group Joint Stock Company for detailed advice.