Foreign-owned companies in Vietnam are subject to a number of periodic reporting obligations. In fact, many companies do not pay attention to these reports, leading to a breach of reporting obligations and being fined. Therefore, Nova Law has compiled top 5 common reports, complete with detailed submission instructions for your reference. 

1. Report on the implementation of investment project (compulsory)

a. Instructions for submitting reports

Step 1: Register for a company account in FIA system

After being granted the Enterprise Registration Certificate, the company needs to prepare an application according to the regulated form to sign up for an account and submit it to the Department of Planning and Investment in the province/city where the project is implemented. After about 10 working days, the company will directly receive the account and password at the registry office or receive this information via the company’s email.

Step 2: Submit the report

After being granted an account, the company will access to National Investment Information System, declare and submit periodic reports online.

b. Reporting period

• Quarterly reports: submit the reports before the 10th of the first month of the next quarter.
• Annual reports: submit the reports before 10th February of the year following the reporting year.

c. Penalties for violating the reporting obligations

In case of violating the reporting obligations (failure/late/inaccurate reporting), the company will be fined from 30 million VND to 50 million VND as prescribed in Article 15.2 of Decree No. 122/2021/ND-CP

2. Report on investment monitoring and evaluation (compulsory)

a. Instructions for submitting reports

Investors make a report according to the prescribed form and submit it to the Department of Planning and Investment of the province/city implementing the project.

b. Reporting period

• 6 – month reports: submit reports before 10 July
• Annual reports: submit reports before 10 February of the year following the reporting year

­c. Penalties for violating the reporting obligations

In case of violating the reporting obligations (failure/late/inaccurate reporting), the company will be fined from 20 million VND to 30 million VND as prescribed in Article 15.1 of Decree No. 122/2021/ND-CP

3. Report on the situation of using foreign workers (if any)

Companies using foreign workers have to submit periodic reports to the Department of Labor – Invalids and Social Affairs.

a. Instructions for submitting reports

The company prepares a Report on the situation of using foreign workers according to Form No. 07/PLI specified in Decree No. 70/2023/ND-CP and submits it to the Department of Labor – Invalids and Social Affairs of the province/city where the company uses foreign workers.

b. Reporting period

c. Penalties for violating the reporting obligations

Companies will be fined from 1 million VND to 3 million VND according to Article 32.1(a) of Decree 12/2022/ND-CP

4. Report on the situation of trade activities and trade directly related activities (if any)

FDI companies being granted Retail Business Licenses are subject to reporting on the situation of trade activities and trade directly activities.

a. Instructions for submitting reports

The company prepares a Report according to Form No. 13 of the Appendix issued with Decree 09/2018/ND-CP and submits it to the Department of Industry and Trade of the province/city where the company registered its retail business license.

b. Reporting period

Annual report: The company submits the report before 31 January of the year following the reporting year.

c. Penalties for violating the reporting obligations

The company failing to report on goods purchase and sale activities and activities directly related to goods purchase and sale to the competent state management agency will be fined from 10 million VND to 20 million VND, depending on the seriousness of the violation according to Article 70 of Decree No. 98/2020/ND-CP

5. Report on the implementation of foreign loans (if any)

Companies having foreign loans are required to submit reports on the implementation of foreign loans on the Vietnam State Bank’s website.

Note: Companies with short-term loans (not having to apply for a loan) are also required to report as medium and long-term loans.

a. Instructions for submitting reports

Step 1: Register an account

The company fills in the application for an account on the website of the Foreign Exchange Management Department – the State Bank of Vietnam. After entering all the required information, the company prints the declaration form from the website, signs, stamps it, and then submits the form either by delivery or in person to the State Bank branch in the province/city where the company’s head office is located. The outcome of this process includes the issuance of a username and password, which are sent to the company’s email.

Step 2: Submit a Report

The company submits an online report on the performance of short, medium, and long-term loans at the Website. In case the Website has technical errors, the company has to send a report to the State Bank branch approving the report on the Website.

b. Reporting period

Monthly report: before the 5th of the month following the reporting period.

c. Penalties for violating the reporting obligations

The company will be fined from 5 million VND to 10 million VND for sending reports not on time as prescribed in Article 47.1 of Decree No. 88/2019/ND-CP

Conclusion

This article provides information on several important reports that FDI companies in Vietnam need to pay attention to. Violating the reporting obligations will cause the company unnecessary penalties. Therefore, companies need to prepare and submit reports accurately and on time.

To assist companies in complying with these regulations, Nova Law provides the service of preparing and submitting the aforementioned periodic reports. Please contact Nova Law for more details