FOREIGN INVESTORS ESTABLISH FOOD PROCESSING BUSINESS

FOREIGN INVESTORS ESTABLISH FOOD PROCESSING BUSINESS

Vietnam has a large population and fast growth, so the demand for food consumption of people is huge. Besides, Vietnam also has an abundant and diverse source of raw materials from agriculture, forestry,  and fishery. However, domestic enterprises do not have enough potential to take advantage of this source of raw materials and have not met the demand for food consumption of people today. Therefore, foreign investors consider the food processing industry as a potential investment industry in Vietnam. The food processing industry includes the processing of products from agriculture, from raising livestock, poultry, and fisheries sectors into food that is food and beverages for humans and even animals.

Conditions for foreign investors to establish food processing enterprises

With the large demand for food of the people, it has created motivation for domestic and foreign enterprises to develop not only the domestic market but also meet export processing. Therefore, Vietnamese law does not restrict or regulate business conditions for this industry. In addition, Vietnam’s commitment schedule in the WTO does not stipulate investment conditions apply to foreign investors in the food processing industry. Therefore, foreign investors often choose to do business in this potential industry.

Procedures for foreign investors to establish food processing enterprises

Step 1: Apply for an Investment Registration Certificate in food processing

Step 2: Establish a business and apply for an Enterprise Registration Certificate on food processing

Step 3: Publish business registration information on the National Portal

Step 4: Enterprises engrave seals and announce seal samples

Step 5: Apply for a certificate of satisfaction of food hygiene and safety conditions

Dossier of foreign investor establishing a food processing enterprise

Step 1: Apply for an Investment Registration Certificate in food processing

• A written request for implementation of an investment project on food processing;
• A certified copy of ID card or passport for individual investors and documents confirming  legal status for  institutional investors;
• The investment project proposal document includes detailed contents of the project;
• Certified copies of documents on the investor’s financial affairs;
• Documents on land use needs, site lease agreements or site use rights for the implementation of investment projects.

Applicant agency: Department of Planning and Investment or Management Board of industrial parks, export processing zones, economic zones, and hi-tech parks if the investment projects are in such zones.

Time: For investment projects not subject to investment policy decisions, the time limit for returning dossiers is 15-20 working days from the date of receiving complete dossiers.

Step 2: Establish a business and apply for an Enterprise Registration Certificate on food processing

• An application for registration of an enterprise in food processing;
• The company’s charter contains the food processing industry code;
• List of company members/List of founding shareholders and shareholders being foreign investors;
• Certified copies of the following documents:

– ID card, passport of individual members;

– ID card, passport of the authorized representative;

– A certified copy of the Enterprise Registration Certificate for members of foreign organizations;

– Certificate of investment registration with foreign investors as prescribed;

– Written authorization if the enterprise does not apply in person.

Applicant agency: Enterprise Registration Office under the Department of Planning and Investment

Time: 03 – 06 working days from the date of receipt of complete and valid documents

Step 3: Publish business registration information on the National Portal

Information on business registration must be published on the National Business Registration Portal within 30 days from the date of issuance of the Enterprise Registration Certificate. According to Clause 1 Article 26 of Decree 50/2016/ND-CP, in case an enterprise fails to announce or does not publish on time the prescribed enterprise registration contents on the National Business Registration Portal, such enterprise will be fined from VND 1,000,000 to VND 2,000,000.

Step 4: Enterprises engrave seals and announce seal samples

Enterprises can authorize or engrave the seal themselves and notify the Department of Planning and Investment of their company’s seal samples. Enterprises can decide for themselves the form, quantity, and content of the seal but must show the name and enterprise code. After receiving the notice of the enterprise’s seal samples, the Enterprise Registration Office will issue a Receipt to the enterprise, post the enterprise’s notice on the National Enterprise Registration Portal and issue a notice of posting information of the enterprise’s seal samples to the enterprise.

Step 5: Apply for a certificate of satisfaction of food hygiene and safety conditions

• An application for a Certificate of satisfaction of food hygiene and safety;
• Notarized copy of the Enterprise Registration Certificate (received in step 2);
• Certificate of health eligibility for the owner of the food processing establishment and persons directly involved in food processing issued by the health unit;
• A written presentation satisfying the conditions on facilities, equipment and tools to ensure food hygiene and safety conditions for the food processing industry;
• Certificate of completion of the training course on food safety and hygiene for the owner of the food processing establishment and those directly involved in the food processing process.

Applicant agency: Food Safety and Sanitation Branch

Time: 15 – 20 working days from the date of receipt of complete and valid documents

Some codes of food processing business lines

Foreign investors can refer to the following industry codes for food processing businesses to choose the right industry for their enterprises:

– 1010: Processing and preserving meat and meat products

– 1020: Processing and preserving aquatic products and aquatic products

– 1030: Fruit and vegetable processing and preservation

– 1050: Processing of milk and dairy products

Siglaw Law Firm

Phone: (+84) 961 366 238

Email:

• vphn@siglaw.com.vn
• vphcm@siglaw.com.vn

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