I. Choosing the location to set up a factory
- Leasing facilities – pre-built factories from licensed infrastructure leasing companies in Vietnam. This option is suitable for investors wishing to lease land to build factories on a small scale;
- Renting land in industrial parks, export processing zones or high-tech zones. This option is suitable for investors who need to rent land with a long-term lease term and leased land to build a medium-sized or larger factory. When building a factory located in an industrial park or an export processing zone, investors will enjoy specific regulations specific to enterprises in industrial parks and export processing zones;
- Rent land directly from the State. This option is suitable for investors with long-term land lease plans and large land lease areas. However, this option has a limitation that it can take a lot of time and cost to get approval of investment policy from the competent authority on land use planning as well as methods of site clearance (in case the leased land has not been cleared);
- In case the investor has land and wishes to convert from residential land to land for factory construction, the investor needs to fully meet the conditions for construction density in accordance with regulations of the Law on Construction. Only that province will be granted a construction permit for their factory project. Along with that, the factory construction must always be consistent with the detailed construction planning approved by the competent state agency; ensure suitability for land use purposes in accordance with the approved state planning, in accordance with the approved work construction design and ensure the safety conditions for the issuance of construction permits. built for that project.
II. Please approve the environmental impact assessment report
When a foreign investor makes an investment in a service industry in Vietnam, the investor will face restrictions from the GATS schedule of commitments signed by Vietnam when joining the WTO such as regulations on the rate contributed capital, restricting the type of legal entity established for each specific industry in Vietnam. However, when building a manufacturing plant in Vietnam, foreign investors face very few limitations in terms of market access such as investment in service industries, except for some industries with conditions are regulated separately such as manufacturing and assembling automobiles, cosmetics, medical equipment, etc. Besides, the production process can have negative impacts that adversely affect the environment, so some Objects and projects specified in Appendix II to Decree No. 18/2015/ND-CP of the Government must carry out procedures for environmental impact assessment. This procedure must be performed during the project preparation phase.
Environmental impact assessment records
- Dossier of application for appraisal:
- One (01) written request for appraisal of the environmental impact assessment report made according to the prescribed form;
- Seven (07) environmental impact assessment reports of the project. In case the number of members of the appraisal council is more than seven (07), the project owner must provide an additional number of environmental impact assessment reports. The form of the cover page, the sub-cover page and the requirements on the structure and content of the environmental impact assessment report shall comply with the prescribed form;
- One (01) feasibility study report or investment project report or other equivalent document.
- Dossier submitted for approval after being appraised with approval results
- One (01) written request for approval of the environmental impact assessment report, clearly explaining the revised and supplemented contents according to the appraisal council’s conclusion, except for cases where no modification is required. , complementary;
- The environmental impact assessment report is bound in a hardback, the project owner signs at the bottom of each report page, including the appendix as prescribed.
The investor submits the application for approval of the environmental impact report to the People’s Committee of the province. The latest appraisal time limit is 30 days from the date of receipt of valid dossiers.
Note: For the case of building a production plant without applying for approval of an environmental impact assessment report, the investor must carry out procedures for certification of the environmental protection plan at the Department of Natural Resources and Environment where the factory is located.
Dossier for certification of the environmental protection plan includes:
- Three (03) copies of the environmental protection plan with the cover page and content requirements made according to the prescribed form;
- One (01) investment report or production, business or service plan.
III. Apply for an Investment Registration Certificate
For the project, the policy must be approved
Depending on the size of the project, investors must apply for approval of investment policies from different competent agencies such as the National Assembly, the Prime Minister or the People’s Committee of the province.
Dossier of application for policy approval include:
- A written request for the implementation of an investment project;
- A copy of the identity card, or passport for the investor being an individual; a copy of the Enterprise Registration Certificate or other equivalent document certifying the legal status of the investor being an organization;
- An investment project proposal includes the following contents: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, and investment schedule. , demand for labor, proposal for investment incentives, assessment of impacts, socio-economic efficiency of the project;
- A copy of one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution’s commitment to financial support; guarantee on the financial capacity of the investor; documents explaining the financial capacity of the investor;
- Proposing land use needs; In case the project does not request the State to allocate or lease land or permit the change of land use purpose, a copy of the location lease agreement or other document certifying that the investor has the right to use the site for implementation of the project must be submitted.
- An explanation on the use of technology for the project includes the following contents: technology name, technology origin, technological process diagram; main technical parameters, using status of main machinery, equipment and technological lines;
- BCC contract for investment projects in the form of BCC contract;
- Preliminary assessment of environmental impact, environmental protection solutions.
The investor will send the application to the investment registration agency for approval of the investment policy of the competent authority. After receiving the approval of the investment policy, the investor is not required to carry out the procedures for applying for an Investment Certificate. The investment registration agency will issue the Investment Registration Certificate to the investor within 05 working days from the date of receipt of the decision on investment policy.
For projects that do not require approval of investment policies
In order to establish a factory in Vietnam, foreign investors must be granted an investment registration certificate. An application file for an Investment Certificate includes:
- A written request for implementation of the investment project (made according to the form);
- Copy of identity card or passport for individual investors; a copy of the Enterprise Registration Certificate or another equivalent document certifying the legal status of the investor being an organization;
- An investment project proposal includes the following contents: investor implementing the project, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, and investment schedule, demand for labor, proposal for investment incentives, assessment of impacts, socio-economic efficiency of the project;
- A copy of one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution’s commitment to financial support; guarantee on the financial capacity of the investor; documents explaining the financial capacity of the investor;
- Head office lease contract, Documents proving the lessor’s right to lease (Land use right certificate, Construction permit, Business registration certificate with real estate business function of the lessor) or equivalent documents);
- Proposing land use needs; In case the project does not request the State to allocate or lease land or permit the change of land use purpose, a copy of the location lease agreement or other document certifying that the investor has the right to use the site for implementation of the project must be submitted;
- An explanation of the use of technology for investment projects, for projects using technologies on the list of technologies restricted from transfer in accordance with the law on technology transfer, include the following contents: name of technology , technology origin, technological process diagram; main technical parameters, using status of main machinery, equipment and technological lines;
- BCC contract for investment projects in the form of BCC contract.
Your company must declare online information about investment projects on the National Information System on Foreign Investment. Within 15 days from the date of online declaration, the investor must submit the application for the Investment Registration Certificate to the provincial Board of Management of Industrial Parks, Export Processing and Hi-tech Parks. After the application is received, the Investment Registration Authority will consider the validity and issue a code for the investment project. In case the application is refused, this Agency must notify the investor in writing and clearly state the reason.
IV. Apply for a Certificate of Business Registration
After being granted the Investment Registration Certificate, you can begin to carry out a number of procedures to establish a company.
Dossier to apply for a Business Registration Certificate:
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- Business registration application form (according to the form);
- Draft enterprise charter;
- List of members for two-member limited liability companies, founding shareholders for joint stock companies;
- A valid copy of one of the authenticated papers:
For individuals: valid ID card or passport or citizen identification card;
For organizations: Certificate of business registration for organizations and enclosed personal identification papers of the authorized representative of the organization;
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- Decision on capital contribution, document appointing authorized representative for company members, company shareholders being organizations;
- Other documents in special cases
After preparing all documents, your company submits the application at the Business Registration Authority through the National Portal on Business Registration. Within 03 – 05 days, the Business Registration Authority will issue the Certificate of Business Registration if your application is valid. After that, the investor must publish information on the National Portal on Business Registration.
Apply for a factory building permit
In case of building a new factory, the investor must apply for a new construction permit.
A construction permit dossier includes:
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- An application form for a construction permit (made according to the form);
- A copy or file containing the original copy of one of the papers proving the land use right as prescribed by the land law;
- A copy or a file containing two main sets of technical design drawings or construction drawings of construction works that have been approved and appraised by specialized agencies in accordance with the law on construction. construction, each set includes: Drawing of the total ground of the project or the total ground of each phase of the project at the scale of 1/100 – 1/500; Site drawings of each work on the land plot scale of 1/100 – 1/500, enclosed with a map of the location of the work; Drawings of elevations and main sections of each project, scale 1/50 – 1/200; Drawing of foundation ground plan at scale 1/100 – 1/200 and footing section at scale 1/50 of each work, together with diagram of connection with rainwater drainage, wastewater treatment, water supply, and electricity supply systems. , communication scale 1/50 – 1/200.
- A copy or file containing the original copy of the decision on approval of the work construction investment project;
- The copy or file containing the original copy of the report on design appraisal results of the construction specialized agency for the works as prescribed, subject to the design appraisal;
- A copy or file containing a photocopy of the original document of the investor’s commitment to ensure the safety of the works and neighboring works, for the built-in works with basements;
- A copy or a file containing a photocopy of the original declaration of capacity and experience of the organization or individual designed according to the form, enclosed with a copy of the construction practice certificate, for works not yet approved by a specialized construction and design appraisal agency.
Management boards of industrial parks, export processing zones, economic zones and high-tech zones will receive the application and issue a construction permit to the investor if the application is valid or issue a written refusal to grant a construction permit, in case the profile is not valid.
V. Apply for a fire protection license
An application file for a fire prevention and fighting license includes:
- An application for a Certificate of fire prevention and fighting (made according to the form);
- A certified true copy of the certificate of competence in fire prevention and fighting; test documents on fire prevention and fighting for newly renovated or newly built establishments, motorized vehicles that need to ensure fire prevention and fighting safety when converted or built; a certified copy of the record of safety inspection on fire prevention and fighting for other facilities and motor vehicles;
- A list of all fire prevention and fighting means and means of life-saving equipped (according to the form);
- Fire fighting plans;
- To decide on the establishment of grassroots fire prevention and fighting teams;
- List of individuals who have passed training in fire prevention and fighting.
Investors submit dossiers at the Police Department of Fire Prevention and Fighting and Rescue. In case of authorizing another individual or unit to perform, a written authorization must be attached.
Besides the above main procedures, foreign investors still have to carry out some basic procedures after establishing a factory similar to setting up a business such as paying taxes, applying for seals, hanging signs, and printing receipts…
In order to save time to find out the procedure, fill out the form, notarize, waiting for the application to be submitted, you can contact HTLaw for Set up a manufacturing company service.
Contact us
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- Email: hue.truong@htlaw.vn
- Phone number: +84 935 439 454.