Foreign-invested enterprises (FIEs) operating in Vietnam are subject to strict regulatory requirements, including the submission of various reports to ensure compliance with local laws. These reports serve as essential tools for monitoring investment activities, evaluating performance, and ensuring transparency in business operations. Below is a detailed explanation of the key reports that FIEs must prepare, their content, deadlines, and submission processes.
1. Investment Activity Report
The investment activity report consolidates information and data related to an organization’s or individual’s investment activities within a specific period. It is prepared for shareholders, investors, or management bodies to assess the performance and progress of investments.
This report typically includes:
- Details of executed investments.
- Transactions involving shares or other assets.
- Financial results of investment activities.
- Investment strategies and future plans.
The primary objective is to provide an overview and evaluation of capital utilization, effectiveness of investment decisions, and future strategies to help stakeholders make informed decisions.
Reporting Requirements:
As stipulated in Article 72 of the 2020 Investment Law, FIEs must periodically report investment project implementation to the investment registration authority and the local statistical office.
Reports must include:
- Capital implementation.
- Results of business and investment activities.
- Labor information and contributions to the state budget.
- Investment in research and development.
- Environmental protection measures.
- Sector-specific indicators.
Submission Method:
Reports must be submitted both in written form and via the National Investment Information System.
Deadlines: According to Article 102 of Decree 31/2021/ND-CP:
- Quarterly reports: Due by the 10th day of the first month of the following quarter, covering:
- Capital implementation.
- Net revenue.
- Imports and exports.
- Labor.
- Taxes and payments to the state.
- Land and water resource usage.
- Annual reports: Due by March 31 of the following year, covering:
- All items in the quarterly report.
- Profit indicators.
- Employee income.
- Expenditures on research, technology development, and environmental protection.
2. Monitoring and Evaluation Reports
FIEs must prepare and submit monitoring and evaluation reports in compliance with Clause 4, Article 100 of Decree 29/2021/ND-CP, addressing:
- Periodic reports: Every six months and annually.
- Reports before project adjustments: Submitted prior to any amendments to programs or projects.
- Completion reports: Evaluating finalized programs/projects.
- Comprehensive annual reports: Summarizing monitoring and evaluation for all managed projects.
Deadlines: As per Clause 11, Article 100 of Decree 29/2021/ND-CP:
- Semi-annual reports: Due by July 10 of the reporting year.
- Annual reports: Due by February 10 of the following year.
- Adjustment reports: Submitted prior to project modification approval.
These requirements apply to nationally significant projects, including:
- Projects governed by the Public Investment Law (2019) and Construction Law (2014).
- Projects approved by the National Assembly under the Investment Law (2020) and Public-Private Partnership (PPP) Law.
For other projects, investors must submit reports to the investment registration authority and the local monitoring office, including:
- Semi-annual and annual monitoring reports.
- Pre-adjustment evaluation reports.
- Completion evaluation reports (if applicable).
3. Report on Trading Activities and Related Operations
Under Clause 1, Article 40 of Decree 09/2018/ND-CP, FIEs must submit an annual report on trading activities and operations directly related to trade by January 31 each year.
FIEs are also obligated to provide documentation, clarify issues, or explain activities related to wholesale/retail operations as requested by competent authorities.
4. Financial Statements
As per Clause 2, Article 109 of Circular 200/2014/TT-BTC, FIEs must submit their annual financial statements no later than 90 days after the fiscal year ends.
Financial statements must be submitted to the Department of Finance in the province or city where the FIE is registered as its principal business location (Clause 5, Article 110 of Circular 200/2014/TT-BTC).
5. Labor Utilization Reports
In accordance with Clause 2, Article 4 of Decree 145/2020/ND-CP, FIEs must report on labor utilization:
- Semi-annual reports: Due by June 5.
- Annual reports: Due by December 5.
These reports help monitor employment levels, ensure compliance with labor laws, and provide insights into workforce management.
In summary, the reporting requirements for FIEs in Vietnam encompass a wide range of aspects, from investment activities and financial performance to labor utilization and compliance with environmental and operational standards. These reports are critical not only for meeting legal obligations but also for fostering trust and accountability among stakeholders. By adhering to these regulations, FIEs contribute to a transparent investment environment while supporting sustainable business practices in Vietnam.
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