Initial conditions for FDI investment in aquaculture sector

Vietnam is following a trend of relaxing restrictions on foreign direct investment (FDI) and expanding its market. However, investors must adhere to certain conditions and procedures to ensure a safe and sustainable environment for integration.

Regulations on Foreign Direct Investment (FDI) in Aquaculture Sector.

1. EVFTA: 

a) Annex 8-B: no commitments on the capture and aquaculture segment. 

b) Annex 8-C (Vietnam’s national treatment exemptions). 

Vietnam is allowed to apply and maintain any measures related to business activities, even if they are inconsistent with Article 8.5. However, these measures can only be implemented if they are not in conflict with the commitments in Annex 8-B.

2. CPTPP

a) Appendix NCM II-VN-29: Fishery Vietnam reserves the right to apply and maintain any measures related to fishing activities in its sovereign and jurisdictional waters. FDI investors are not granted licenses to invest in the following areas: Marine and freshwater fishing; Exploitation of natural coral and pearls.

b) Appendix NCM II – Appendix A Fishery-related services including specialized consultancy on freshwater and saltwater fishing, aquaculture services: Not limited.

3. Vietnamese law

FDI investors must be granted a license by the Ministry of Agriculture and Rural Development to engage in aquaculture activities at sea. The specific regulations are stipulated in Decree 26/2019/ND-CP.

The procedures for establishing a foreign-invested company.

Step 1: Apply for the Investment Registration Certificate

The dossier for obtaining the Investment Registration Certificate for a foreign-invested company includes:

• Project implementation proposal;
• Documentation on the legal status of the investor;

• For individual investors: Copy of ID card or Passport;
• For organizational investors: Copy of Certificate of Establishment or equivalent documents;

• Investment project proposal;
• Copy of one of the following documents:

• Financial statements of the past 2 years;
• Financial support commitment from the parent company;
• Financial support commitment from financial institutions;
• Financial capacity guarantee of the investor;
• Documentation explaining the financial capacity of the investor;

• Proposal on land use needs or a copy of the lease contract for the project location, or other documents confirming the investor’s right to use the location for project implementation (depending on specific cases);
• Presentation on the use of high technology;
• Build-Transfer-Operate (BTO) contract (if applicable)

The investor submits the registration dossier for the Certificate to the investment registration agency:

• If the enterprise is located in an industrial zone: Submit to the Management Board of the industrial zone;
• If the enterprise is located outside the industrial zone: Submit to the Foreign Economic Relations Division – Department of Planning and Investment of the province.

Step 2: Apply for Business Registration Certificate

The dossier for establishing a foreign-invested company includes:

• Business registration application form;
• Company’s Articles of Association;
• List of members/shareholders;
• Copies of ID card, Passport, or other valid personal identification documents;
• Decision on establishment, Business Registration Certificate, or equivalent documents;
• Authorization letter, along with copies of ID card, Passport of the authorized representative;
• For members who are organizations: Copy of Business Registration Certificate or equivalent documents;
• Investment Registration Certificate for FDI investors.

Step 3: Apply for the License for Offshore Aquaculture

The dossier for obtaining the license for offshore aquaculture includes:

• Registration form;
• Project description for offshore aquaculture;
• Preparation of an environmental impact assessment report;
• Map of the offshore area with coordinates of the corner points of the intended offshore area.

Vietnam has established clear legal frameworks.

Vietnam has made progress in improving the conditions for connecting FDI markets. However, this still remains a challenge for investors, especially first-time investors in Vietnam. With the support of legal advisors and local partners, investors can fully leverage resources, supportive policies, etc., to gain profits from their investments.

Harley Miller Law Firm “HMLF”
Head office: 14th floor, HM Town building, 412 Nguyen Thi Minh Khai, Ward 05, District 3, Ho Chi Minh City.
Phone number: +84 937215585
Website: hmlf.vn Email: miller@hmlf.vn