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FOREIGN INVESTORS ESTABLISH MINERAL EXPLOITATION COMPANIES
Vietnam is known as a country rich in natural resources, especially mineral resources. Therefore, the state always encourages investors to participate in mineral exploitation activities with the goal of developing the economy. Therefore, in order to both promote economic development and protect the natural environment, Vietnamese law has set out regulations for foreign investors to establish mineral exploitation companies.
CONDITIONS FOR FOREIGN INVESTORS TO ESTABLISH MINERAL EXTRACTION COMPANIES
According to the provisions of Clause 2, Article 53 of the Law on Minerals 2010, the conditions for granting mineral exploitation licenses to both domestic and foreign investors as:
- Having an equity capital at least equal to 30% of the total investment capital of the mining investment project.
- Having an environmental impact assessment report or an environmental protection commitment made under the environmental protection law;
- Having an investment project to mine minerals in the explored area with approved mineral deposits in conformity with the master plans relevant in accordance with the law on planning;
- Such a project must contain a plan on employment of professional human resources, and advanced and appropriate equipment, technologies and mining methods; for toxic minerals, the Prime Minister’s written permission is also required;
IN ADDITION, FOREIGN INVESTORS NOTE SOME MORE CONDITIONS FOR ESTABLISHING A FOREIGN-INVESTED MINERAL EXPLOITATION COMPANY IN VIETNAM AS FOLLOWS:
- Foreign investors need to apply for an Investment Registration Certificate before applying for an Enterprise Registration Certificate (company establishment) and must apply for a Mineral Exploitation License before officially putting into business operation;
- Foreign-invested enterprises in mineral exploitation may only establish enterprises of the following types: joint-stock companies or limited liability companies or partnerships with an investment capital ratio of between 1% and 100%.
PROCEDURES FOR FOREIGN INVESTORS TO ESTABLISH A MINERAL EXPLOITATION COMPANY
Step 1: Apply for a Investment Registration Certificate to establish a foreign-invested mineral exploitation enterprise.
Step 2: Apply for a Certificate registration of Establishment of a Mineral Exploitation Enterprise
Step 3: Publish business registration information on the National Information Portal
Step 4: The enterprise carves a seal and publishes the seal sample
Step 5: Apply for a Mineral Exploitation License
Step 1: Apply for a Certificate of Investment Registration to establish a foreign-invested mineral exploitation enterprise
✔️A document requesting to implement an investment project on mineral exploitation;
✔️A copy of the ID card/CCCD or passport for individual investors and a document confirming the legal status of the investor for institutional investors;
✔️A document proposing a mineral exploitation investment project including detailed contents;
✔️A copy of documents on financial matters of the foreign investor;
✔️Documents on land use needs, site lease agreements or site use rights to implement the investment project.
Agency submitting the dossier: Department of Planning and Investment or Management Board of industrial parks, export processing zones, economic zones and high-tech zones if the investment project is in those zones.
Time: For investment projects not subject to investment policy decisions, the deadline for returning documents is 15 – 20 working days from the date of receipt of complete documents.
Step 2: Apply for a Certificate of Establishment of a Mineral Exploitation Enterprise
✔️Application for registration of a mineral exploitation enterprise;
✔️The company’s charter with the mineral exploitation industry code;
✔️List of company members (LLC with 2 members)/List of founding shareholders and shareholders who are foreign investors (joint stock companies);
Copies of the following documents:
- CCCD/ID card, passport of individual members;
- CCCD/ID card, passport of authorized representative;
- Copy of Business Registration Certificate for foreign organization members.
✔️Investment registration certificate with foreign investors as prescribed;
✔️Authorization letter if the enterprise does not directly submit the application.
Agency submitting documents: Business Registration Office under the Department of Planning and Investment
Time: 03 – 06 working days from the date of receiving complete and valid documents
STEP 3: ANNOUNCE BUSINESS REGISTRATION INFORMATION ON THE NATIONAL INFORMATION PORTAL
Information on the establishment of a foreign-invested mineral exploitation enterprise must be made public on the National Business Registration Portal within 30 days from the date of issuance of the Business Registration Certificate. According to Clause 1, Article 26 of Decree 50/2016/ND-CP, if an enterprise fails to announce or fails to announce within the prescribed time limit the contents of business registration on the National Business Registration Portal, that enterprise will be fined from VND 1,000,000 to VND 2,000,000.
STEP 4: THE ENTERPRISE ENGRAVES THE SEAL AND ANNOUNCES THE SEAL SAMPLE
Enterprises may authorize or engrave their own seals and notify the Department of Planning and Investment of their company’s seal samples. Enterprises may decide on the form, quantity and content of seals by themselves but must show the name and code of the enterprise. After receiving the notice of the enterprise’s seal samples, the Business 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 on the enterprise’s seal samples to the enterprise.
STEP 5: APPLY FOR A MINERAL EXPLOITATION LICENSE
Before officially putting into operation, foreign investors must apply for a sub-license for mineral exploitation. The issuance of a mineral exploitation license must ensure the following principles according to Clause 1, Article 53 of the Minerals Law 2010:
- Do not divide mineral areas that can be exploited on a large scale in order to grant mineral exploitation licenses to organizations and individuals exploiting on a small scale;
- Mineral exploitation licenses shall only be granted in areas where there are no organizations or individuals engaged in mineral exploration and exploitation and are not in areas banned from mineral activities, areas temporarily banned from mineral activities, and national mineral reserve areas.
A dossier of application for a mining license comprises:
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- A map of the mining area;
- An application for a mining license
- A copy of the investment registration certificate
- A copy of the business registration certificate;
- Written safety appraisal in case of radioactive ore exploitation;
- A mining investment project; Decision on approval of investment guidelines
- An environmental impact assessment report or an environmental protection commitment;
- Document certifying the winning of the mining right with in case of winning the mining right
- A competent state agency’s decision approving mineral deposits
- Document confirming the owner’s charter capital of at least 30% of the total investment capital of the project
Agency submitting the dossier:
- The provincial People’s Committee is competent to grant a license to exploit minerals for common construction materials, peat, and scattered and small-scale minerals in areas zoned and announced by the Ministry of Natural Resources and Environment;
- The Ministry of Natural Resources and Environment is competent to grant a license to exploit minerals in cases not under the authority of the provincial People’s Committee.
Time: Within a maximum of 90 days from the date of receiving a complete and valid dossier, the competent authority shall grant a license to exploit minerals to foreign investors.
For comprehensive free CONSULTATION ON ESTABLISHMENT SERVICES FOR MINING ENTERPRISES FOR FOREIGN INVESTORS IN VIETNAM, please contact:
Phone: (+84) 961 366 238
Email:
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
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