1. Legal basis

- Investment Law 2020 No. 61/2020/QH14;

- Decree No. 31/2021/ND-CP;

- Decree No. 122/2021/ND-CP.

2. What is the Reporting Regime for Investment Project Implementation?
The reporting regime for investment project implementation refers to the mandatory requirement for investors to provide information on the progress, operation, and results of their investment projects to competent state authorities. This regime is an essential tool to monitor and evaluate the effectiveness of investment activities, ensure legal compliance, and enhance transparency in investment activities in Vietnam.

3. Legal Provisions on the Reporting Regime
Pursuant to Article 72 of the Law on Investment 2020, the periodic reporting regime is implemented as follows:

On a quarterly and annual basis, investors and economic organizations implementing investment projects must report to the investment registration authority and the local statistical agency on the project implementation status, including the following contents:

- Implemented investment capital;

- Results of investment and business activities;

- Information on labor, budget contributions, R&D investments, and environmental protection and treatment;

- Sector-specific indicators depending on the field of operation.
 

Reports must be submitted in writing and via the National Investment Information System. Ad-hoc reports must be submitted upon request by competent state agencies.

For projects not subject to the issuance of an Investment Registration Certificate, investors must report to the investment registration authority before project implementation.

According to Article 102 of Decree No. 31/2021/ND-CP, the reporting content and schedule for economic organizations implementing investment projects are specified as follows:

Economic organizations implementing investment projects must report to the investment registration authority and the local statistical authority.

Quarterly reports, to be submitted before the 10th day of the first month of the following quarter, must include:

- Implemented investment capital;

- Net revenue;

- Import and export performance;

- Labor utilization;

- Information on tax obligations and other state budget contributions;

- Land and water surface usage status.

Annual reports, to be submitted before March 31 of the following year, must include:

- Indicators from the quarterly report;

- Profit and employee income;

- Expenditure and investment in scientific research and technological development;

- Expenditures on environmental protection and treatment;

- Origin of the technology used.

4. Role of the Reporting Regime for Investment Projects
The reporting regime plays a crucial role in supervising, managing, and ensuring the effectiveness of investment projects in Vietnam. It serves as a mechanism for both state authorities and investors to monitor progress, assess impacts, and make timely adjustments to optimize investment outcomes. Its importance is reflected in the following aspects:

First, the regime provides accurate and timely data on project implementation, including investment capital, progress, revenue, profit, and other relevant factors. This allows state authorities to maintain tight control, identify delayed or non-compliant projects early, and take appropriate remedial measures.

Second, the requirement for both periodic and ad-hoc reporting enhances transparency, reduces the risk of false declarations or misappropriation of investment capital, and fosters a fair and healthy investment environment, protecting the interests of all stakeholders.

Third, the reporting regime is not merely an obligation but also a channel for investors to communicate difficulties encountered during project implementation. This facilitates timely support from competent authorities, reducing risks and helping businesses optimize their operations.

5. Administrative Sanctions for Violations of the Reporting Regime
Penalties for failure to comply with the investment reporting regime are provided in Article 15 of Decree No. 122/2021/ND-CP dated December 28, 2021, as follows:

A fine ranging from VND 20,000,000 to VND 30,000,000 shall be imposed for the following acts:

- Failure to prepare investment monitoring and evaluation reports on time or with incomplete contents as prescribed;

- Failure to submit periodic investment monitoring and evaluation reports on time or with incomplete contents, in accordance with Article 102 of Decree 31/2021/ND-CP.

A fine ranging from VND 30,000,000 to VND 50,000,000 shall be imposed for the following acts:

- Failure to submit investment activity reports or failure to submit them on time;

- Submitting untruthful reports or providing inaccurate information on investment activities;

- Failure to notify the investment registration authority within 07 working days from the date of decision on termination of the operation of the executive office of a foreign investor under a Business Cooperation Contract (BCC);

- Failure to notify the investment registration authority within 05 working days from the date of decision to suspend project implementation;

- Failure to notify or submit the decision on termination of project activities to the investment registration authority within 15 days from the date of termination, as stipulated in Clause 1, Article 48 of the Law on Investment No. 61/2020/QH14.

Complying fully and punctually with the reporting regime is not only a legal obligation for investors but also contributes to ensuring transparency, strengthening investment supervision and management, and fostering a healthy investment environment in Vietnam.

Anh Tuan

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