Minimum Investment Capital for HCMC Industrial Park Projects

Overview

One of the most common questions raised by domestic and foreign investors exploring opportunities in Ho Chi Minh City’s industrial parks is whether Vietnamese law requires a minimum investment capital amount for industrial park projects.

In practice, for most manufacturing, warehousing, logistics, and industrial projects, Vietnamese law does not prescribe a fixed minimum investment capital. However, investment authorities will assess whether the proposed capital is appropriate for the project's scale, objectives, and implementation plan.

1. Does Vietnamese Law Require a Minimum Investment Capital for Industrial Park Projects?

Under the Investment Law 2020 and its implementing regulations, there is no general minimum capital requirement applicable to all investment projects in industrial parks.

This means:

• Investors are not required to register a fixed minimum investment amount.
• Investment capital should be determined based on the actual needs and scale of the project.
• Investment authorities evaluate the feasibility and adequacy of the proposed capital during the licensing process.

If the registered investment capital appears insufficient compared to the project’s size, authorities may request additional explanations or supporting documents.

2. How Do Authorities Assess Investment Capital?

When reviewing an investment application, authorities generally consider several factors.

Factory or Land Area

For example:

• A project leasing a 1,000-square-meter factory requires different capital levels than a project occupying 20,000 square meters.
• Projects involving industrial land development typically require more capital than those leasing ready-built factories.

Production Capacity

Projects with large-scale production lines or advanced manufacturing systems are expected to demonstrate sufficient financial resources.

Machinery and Equipment Value

Imported machinery, automation systems, and high-tech equipment often represent a significant portion of the project's investment capital.

Workforce and Operating Costs

Investors should demonstrate adequate financial resources to support operations during the initial stages of project implementation.

3. How Must Foreign Investors Demonstrate Financial Capacity?

For foreign-invested projects (FDI), financial capacity documentation is a key component of the Investment Registration Certificate (IRC) application.

Individual Investors

Typical supporting documents include:

• Bank balance confirmation;
• Proof of lawful assets;
• Evidence of available investment funds.

Corporate Investors

Typical supporting documents include:

• Audited financial statements for the two most recent years;
• Annual financial reports;
• Parent company financial support commitment;
• Bank guarantees or financial institution support letters.

These documents help authorities evaluate the investor’s ability to implement and sustain the project.

4. Is There a Required Equity Ratio?

For most industrial park projects, Vietnamese law does not establish a fixed equity-to-investment ratio applicable to all cases.

However, licensing authorities typically review:

• The relationship between charter capital and total investment capital;
• The investor's financing capability;
• The proposed capital contribution schedule.

A reasonable capital structure generally improves the credibility and feasibility of an investment application.

5. How Should Investors Determine Investment Capital?

Investors should calculate total investment capital based on:

• Land or factory lease costs;
• Construction costs (if applicable);
• Machinery and equipment expenses;
• Labor costs;
• Initial operating expenses;
• Working capital requirements.

Registering a realistic investment capital amount can facilitate the approval process and reduce the need for future project amendments.

Conclusion

Vietnamese law currently does not impose a general minimum investment capital requirement for projects in Ho Chi Minh City industrial parks. Nevertheless, investors must demonstrate financial capacity appropriate to the project’s scale and maintain a reasonable capital structure to satisfy investment authorities.

For FDI projects, financial capability documentation remains one of the most important factors considered during the issuance of an Investment Registration Certificate (IRC).

References

• Investment Law No. 61/2020/QH14.
• Decree No. 31/2021/ND-CP guiding the implementation of the Investment Law.
• Enterprise Law No. 59/2020/QH14.
• National Public Service Portal.
• Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA).