The Vietnam Chamber of Commerce and Industry (VCCI) has recently proposed extending the deadline for company capital contribution from 90 days to 180 days to address the complex administrative procedures faced by foreign companies when raising capital. This proposal aims to optimize Vietnam’s investment environment and enhance its attractiveness to foreign investors.

According to the current Enterprise Law of 2020, company shareholders must complete their capital contributions within 90 days of obtaining the enterprise registration certificate. However, in practice, especially for foreign-invested enterprises, it is often difficult to complete the contribution within the specified time due to cumbersome administrative procedures and difficulties in cross-border fund transfers. VCCI suggests extending the contribution period to 180 days to alleviate compliance pressure on foreign companies and promote capital flow.

Extending the contribution deadline will give foreign companies more time for financial arrangements and capital raising, helping to increase Vietnam’s attractiveness to international investors. Compared to other countries such as China and Singapore, Vietnam’s current 90-day period is relatively short. By extending the deadline, Vietnam hopes to adopt international best practices and enhance market competitiveness.

If this proposal is approved, it is expected to boost investor confidence and drive more international capital inflow. Extending the capital contribution deadline will not only help companies better manage their funds but also stabilize market expectations and promote sustainable economic development in Vietnam.

This proposal by VCCI reflects the efforts of the Vietnamese government and business community to improve the investment environment. By adjusting laws and policies, Vietnam is actively seeking to become an ideal investment destination for foreign companies.

Impact of Extending Capital Contribution Deadline from Various Perspectives

• Legal: Extending the contribution deadline will simplify compliance processes for foreign companies, reduce legal risks, and increase corporate flexibility.
• Economic and Investment: This measure will help improve Vietnam’s investment environment, enhance attractiveness to foreign investment, and promote foreign capital inflow.
• Banking and Finance: It poses new challenges to banks’ compliance requirements and risk management, necessitating adjustments to operational processes to adapt to the changes.
• Corporate Operations: Companies need to adjust their financial planning and capital raising strategies to adapt to the longer contribution time requirement.
• International Comparison: Extending the contribution deadline will help Vietnam benchmark its investment policies against other Southeast Asian countries, enhancing regional competitiveness.
• Investor and Market Reaction: It may boost investor confidence, stabilize market expectations, and further drive Vietnam’s economic development.

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