Investment Capital & Equipment Appraisal in Vietnam

1. Bases for Determining Registered Investment Capital

The registered capital for executing an investment project is determined based on:

a) The investor's contributed capital in cash, machinery, equipment, intellectual property rights value, technology, technical know-how, land use rights value, and other assets in accordance with civil law and international investment treaties;

b) Raised capital for executing the investment project;

c) The investor's retained profits for re-investment (if any).

2. Determination of Implemented Investment Capital

The implemented investment capital of a project is determined based on the capital contributed, raised, and retained profits for re-investment by the investor during the project execution.

Note: Investors shall self-determine the value of the implemented investment capital after the project is put into operation and exploitation.

3. Cases Requiring Independent Appraisal of Capital, Machinery, and Technological Lines

Pursuant to Clause 3, Article 32 of the Law on Investment, an independent appraisal of the investment capital value, as well as the quality and value of machinery, equipment, and technological lines after the project commences operations, shall be conducted in the following cases:

a) The investment registration authority or the tax authority has grounds to determine that the investor has made dishonest, inaccurate, or incomplete tax declarations regarding the investment capital value under tax and tax administration laws;

b) The investment registration authority or the science and technology management authority has grounds to determine that the investor shows signs of violations in the application or transfer of technology during project execution under technology transfer laws.

4. Jurisdictions and Procedures for Technological and Capital Appraisal

Tax and Investment Capital Appraisal

For cases of suspected tax non-compliance (Point a, Clause 3):

• The tax authority shall conduct the appraisal to determine the exact tax amount payable by the investor.

• The investment registration authority shall be responsible for hiring an independent appraisal organization to verify the project's investment capital value.

Machinery, Equipment, and Technological Line Appraisal

For cases involving technology transfer violations (Point b, Clause 3):

• The Ministry of Science and Technology shall preside over and coordinate with relevant agencies to organize the quality and value appraisal of machinery, equipment, and technological lines for projects under the authority of the National Assembly or the Prime Minister to grant investment in-principle approvals.

• Specialized agencies under the Provincial People’s Committee shall preside over and organize appraisals for projects outside the aforementioned high-level category.

• The appraisal process shall be conducted through consultation with the Technology Evaluation Council, specialized organizations, or independent appraisal experts.

• The dossier, sequence, and procedures for evaluating machinery, equipment, and technological lines shall comply with the regulations of the Prime Minister.

5. Allocation of Appraisal Costs

The costs of organizing appraisals shall be allocated from the State Budget.

Critical Compliance Rule: In the event that the appraisal results lead to an increase in tax obligations toward the State, the investor must bear all appraisal costs.