(Tiểu luận) international investmentorganization and establishment of fdi project

Bạn đang xem bản rút gọn của tài liệu. Xem và tải ngay bản đầy đủ của tài liệu tại đây (1.55 MB, 22 trang )

Trang 1<div class="page_container" data-page="1">

MINISTRY OF EDUCATION AND TRAINING HO CHI MINH CITY

HO CHI MINH CITY OPEN UNIVERSITY

School of Advanced Study

</div>Trang 2<div class="page_container" data-page="2">

TABLE OF CONTENTS

I.ORGANIZATION AND ESTABLISHMENT OF FDI PROJECT...1

1.Investment preparation stage...1

1.1 Researching the investment environment:...1

1.1.1 Research purpose (For investors)...1

1.1.2 A good investment environment...1

1.1.3 Basic contents of the investment environment...1

1.2 Identify investment opportunities...2

2.The stage of finding partners to invest in...3

2.1 Find an investment partner...3

2.2 Standards of investment affiliate partners...3

2.3 Negotiating to implement investment linkage...4

3.The stage of applying for an investment license or applying for an investment license...4

3.1 Information on investment procedures...4

3.2 Procedures for applying for a certificate of foreign investment activities inVietnam... 4

4. The stage of appraisal is to approve the investment permission of the State management agency in the country receiving the investment capital...5

4.1. Project execution time...5

4.2. Issues of verification of FDI projects:...7

5.The issue of adjusting FDI projects...7

5.1. The stage of implementing FDI projects in Vietnam...7

6.Other issues related to the implementation of FDI projects in Vietnam:...8

6.1. Transfer projects:...8

6.2. Hire a manager... 9

6.3. Problems opening an account:...9

II. FEASIBILITY STUDY OF THE FDI PROJECT...10

The role of the Feasibility study of the FDI project:...11

1.1 . The concept of market research...11

1.2. Purpose of market research...11

1.3. Role of market research...11

</div>Trang 3<div class="page_container" data-page="3">

1.4. Market research content...11

2.Market and consumer research...12

2.1. Meaning... 12

2.2. Market research and product consumers:...12

3.Research the market's demand for the project's products:...13

4.Research the level of competition of products in the market:...13

4.1. Research competitors:...13

5.Example of market content research in the international hotel construction project in Ho Chi Minh City:...14

REFERENCE...I.

</div>Trang 4<div class="page_container" data-page="4">

I.

ORGANIZATION AND ESTABLISHMENT OF FDI PROJECT.

An FDI project in general (investment abroad or foreign investment in Vietnam) must go through 5 stages following principles:

- Investment preparation stage.

- The stage of finding partners to invest in. (If it is in the form of a business cooperation contract or a joint venture)

- The stage of applying for an investment license or applying for an investment license.

- Appraisal stage to approve the investment permission of the regulatory agency. State in the receiving country.

- The stage of implementing FDI investment projects.

1. Investment preparation stage

At this stage, the investor must perform the following tasks:

1.1 Researching the investment environment:1.1.1 Research purpose (For investors).

• Identify the ideal investment environment to invest capital.

• Proactively propose solutions to limit unfavorable impacts of the investment environment on businesses.

Thus, carefully studying the investment environment allows to minimize risks in investment activities to improve capital efficiency.

1.1.2 A good investment environment.

In order to choose a good investment environment, investors often survey and consider many environments, thereby choosing the best investment environment. A good investment environment is one that is capable of bringing high returns and minimizing risks for investors.

1.1.3 Basic contents of the investment environment

To assess the investment environment, traders need to have a basic understanding of

</div>Trang 5<div class="page_container" data-page="5">

the content (structure) of the investment environment. Having problems reflects8

different aspects of the investment environment.

The first aspect: Socio-political environment The second aspect: Cultural environment

The third aspect: Legal and administrative environment The fourth aspect: Resource economic environment Fifth aspect: Financial environment Sixth aspect: Infrastructure environment The seventh aspect: Working environment Eighth aspect: International environment

1.2 Identify investment opportunities

Identification of investment opportunities can take place in parallel with the determination of the investment environment, or after the investment environment has been identified.

The basis for determining investment opportunities:

• Business interests or investment purposes • Financial capacity

• Market demand

There can be multiple investment opportunities for an investment purpose. To choose the best investment opportunity often go through the following steps:

Step 1: Research and evaluate investment opportunities.

1. Objectives and necessity of investment 2. Total amount of capital required 3. Expected funding sources

4. Estimation of economic efficiency indicators

Step 2: Build a technical and economic justification

Goals in this step: To create a solid basis for making a decision to invest capital or

not, so they capitalize on the identified investment opportunity.

Step 3: Study the feasibility of the technical and economic argument*Notes at the investment preparation stage:

</div>Trang 6<div class="page_container" data-page="6">

In complex projects with large investment capital to accurately assess the feasibility of an investment project, one or several additional surveys (depending on the necessity of the project) are conducted such as:

- Market survey.

- Survey of raw materials supplied. - Survey on equipment technology. - Site survey, construction geology. - Survey on the capacity of contractors, etc

Prof. Dr Vo Thanh Thu and PhD. Ngo Thi Ngoc Huyen (2011). Ky Thuat Dau Tu Truc

Tiep Nuoc Ngoai (4th edition). Ho Chi Minh City General Publishing House,

379-385, 389- 392.

2. The stage of finding partners to invest in

This stage only takes place when the investor has a continuous intention in investment activities in the form of business cooperation contracts or investment joint ventures

2.1 Find an investment partner

● To find investment partners abroad, investors often use the following information: Association of investors in the host country.

● Embassy and consulates.

● Chamber of Commerce and Industry.

● Overseas trade and investment development center.

● List of projects calling for investment of State agencies at central and local management levels.

● Through business partners.

● Through websites of businesses sounding call investment link

2.2 Standards of investment affiliate partners

In order to choose a good partner, investment projects are introduced to many partners. A good partner usually has to satisfy the following basic conditions:

● Have Business premises in line with the project's objectives

</div>Trang 7<div class="page_container" data-page="7">

● Have financial capacity: Intangible and tangible capital to meet project

implementation requirements.

● Have a need for investment cooperation? 2.3 Negotiating to implement investment linkage

During the negotiation process, lawyers or professional consulting agencies. The stage of finding a partner and carrying out the negotiation plays an important role, it determines the success of the project later, experience shows that it is necessary to carefully study the partner and the situation of the project to actively negotiate and find an appropriate solution.

Prof. Dr Vo Thanh Thu and PhD. Ngo Thi Ngoc Huyen (2011). Ky Thuat Dau Tu Truc

Tiep Nuoc Ngoai (4th edition). Ho Chi Minh City General Publishing House,

3. The stage of applying for an investment license or applying for aninvestment license.

3.1 Information on investment procedures

Each country in different stages of development has different regulations on procedures for foreign investment activities in its territory. Investors should exploit information sources to know about the procedure for applying for an investment license.

3.2 Procedures for applying for a certificate of foreign investment activities in Vietnam

Investment certificate-issuing agencies:

Depending on the scale, importance, and influence of FDI projects, the following agencies participate in granting investment certificates:

● Prime Minister

● Ministry of Investment Planning (Foreign Investment Department).

● People's Committees of provinces and cities (Department of Planning and Investment)

</div>Trang 8<div class="page_container" data-page="8">

● Management boards of Industrial Zones, Export Processing Zones, and High-tech Zones (when investing in IZs, EPZs, and HZs...)

Format of the certificate:

● The project investment registration is the investment registration certificate,

which is also the business registration certificate.

● With the project, investment verification is an investment certificate as well as a business registration certificate

Prof. Dr Vo Thanh Thu and PhD. Ngo Thi Ngoc Huyen (2011). Ky Thuat Dau Tu Truc

Tiep Nuoc Ngoai (4th edition). Ho Chi Minh City General Publishing House,

4. The stage of appraisal is to approve the investment permission of the State management agency in the country receiving the investment capital.4.1. Project execution time

* For investment projects under the authority of the Prime Minister:

● In case the dossier is invalid, the investment-receiving agency shall notify the investor in writing, making it easy to amend and supplement the dossier. ● Within 15 working days from the date of receipt of the investment project

dossier, the consulted agency shall verify in writing and take responsibility for the project's issues under its management function.

● Within 25 working days from the date of receipt of complete and valid dossiers, the investment certificate-issuing agency shall make an inspection report for each and submit it to the Prime Minister for the decision on investment policies.

● Within 7 working days from the date of receipt of the verification report submitted to the Prime Minister by the People's Committee of the province or

</div>Trang 9<div class="page_container" data-page="9">

the Management Board of the Government Office notify in writing the Prime Minister's opinion on the investment project.

● Within 5 business days from the date of receipt of the approval of the Prime Minister, the People's Committee of the province, or the Management Board that issues the Investment Certificate.

● In case investment projects are not approved the investment project dossier-receiving agency shall send a written notice to the investor, clearly stating the reason.

● Within 7 working days from the date of issuance of the Investment Certificate, the agency receiving the investment project dossier shall send a copy of the Investment Certificate to the Ministry of Planning and Investment; The financial; Department of Commerce; Ministry of Natural Resources and Schools; Banks in Vietnam; Ministry of industry management and relevant agencies.

*For investment projects under the authority of the People's Committees ofprovinces and cities:

● Investors must pay 8 sets of records to the Department of Planning and

Investment Conscious, the city where the project will take place.

● Within 3 working days from the date of receipt of the investment project dossier, the dossier-receiving agency shall check the validity of the dossier and send the dossier to the Department for verification opinions, unrelated branches; In case of necessity, the dossier shall be sent to the concerned ministries and branches for opinions. In case the dossier is invalid, the application-receiving agency shall notify the investor in writing to amend and supplement the dossier.

● Within 15 working days from the date of receipt of the investment project dossier, the agency in question shall give written opinions for verification and take responsibility for the issues of the project under its management function. ● Within 20 working days from the date of receipt of complete and valid

dossiers. The Department of Planning and Investment shall make an inspection report and submit it to the People's Committee of the province for decision

</div>Trang 10<div class="page_container" data-page="10">

within the time limit 5 of business days from the date of receipt of the inspection report. Provincial People's Committees grant investment certificates. ● For projects granted investment certificates by the Management Board, within a period of 20 working days from the date of receipt of complete and valid dossiers. The Management Board synthesizes opinions from the consulted agencies to decide on the issuance of the Investment Certificate.

● In case the investment project is not approved, the agency receiving the investment project dossier shall send a written notice to the investor, clearly stating the reason.

● Within7 working days from the date of issuance of the Investment Certificate,

the agency receiving the investment project dossier shall send a copy of the Investment Certificate to the Ministry of Planning and Investment and the Ministry of Finance; Department of Commerce; Ministry of Natural Resources and Environment; The bank of Viet Nam; Ministry of industry management and relevant agencies.

4.2. Issues of verification of FDI projects:

For projects subject to inspection, the State management agency for foreign

investment activities will verify 5 core issues.

● Verification of the parachute cord and correctness of the records ● Appraisal of legal status and financial situation of investment parties

● Appraisal of the suitability of the investment project with the social fund of the investment project

● Appraisal of technical and technological level for application, rational use and protection of natural resources, protection of the ecological environment ● Appraisal of the reasonableness of land use, valuation of assets contributed as

capital by the Vietnamese side

Prof. Dr Vo Thanh Thu and PhD. Ngo Thi Ngoc Huyen (2011). Ky Thuat Dau Tu Truc

Tiep Nuoc Ngoai (4th edition). Ho Chi Minh City General Publishing House,

5. The issue of adjusting FDI projects.

</div>Trang 11<div class="page_container" data-page="11">

5.1. The stage of implementing FDI projects in Vietnam● Establish an operating organization

* Form of business cooperation contract:

To conduct the operation in the form of a business cooperation contract, the Participating Parties may choose to 2 forms:

- Establishing a Coordination Committee - Setting up the Executive Office.

a) Coordinating Committee:

The Coordinating Board is not the governing body of the joint ventures. Functions, duties, and powers of the Articles of Association reflect the agreement of the business cooperation party. The Coordinating Board has no legal status and has no seal

b) Executive office:

The foreign business cooperation party may establish an Executive Office in Vietnam to act as its representative in the performance of the business cooperation contract and take responsibility for the operation of the Executive Office.

The executive office of the foreign business cooperation party has a seal, can open an account, recruit contracted laborers and conduct business activities within the scope of rights and obligations specified in the investment certificate and business cooperation contract.

How to set up an executive office:

The executive office of the foreign business cooperation party may be proposed to be established by either of the following two processes:

- Simultaneously with the application for an investment certificate if necessary: The foreign business cooperation party proposes to establish an Executive Office with the investment certificate-issuing agency and if approved, the establishment of the operating office will be specified in the investment adjustment certificate.

Prof. Dr Vo Thanh Thu and PhD. Ngo Thi Ngoc Huyen (2011). Ky Thuat Dau Tu Truc

Tiep Nuoc Ngoai (4th edition). Ho Chi Minh City General Publishing House, 415,

417- 418.

</div>