A Japanese electronics plant in Bac Ninh receives a letter asking it to explain why its capital contribution and land use diverge from its Investment Registration Certificate (IRC). The board wonders whether this is routine or a warning sign. It is investment monitoring – a standing activity of the registration agency, not an inspection or a penalty.
Applicable Legal Framework
The current framework is the Investment Law 143/2025/QH15 (effective 1 March 2026, replacing the 2020 Investment Law 61/2020) and Decree 96/2026/ND-CP of 31 March 2026, which covers reporting and investment monitoring and evaluation. Registration agencies (provincial Departments of Finance, or industrial park management boards for in-park projects) monitor through three channels: periodic investor reports on the National Investment Information System, planned or ad hoc site checks, and data cross-checks with tax, customs and land authorities.
Monitoring differs from inspection in purpose: it tracks project implementation against the IRC and presses for corrections. Only where signs of violation appear does the file move to administrative penalties under Decree 122/2021/ND-CP or a specialised inspection.
Detailed Answers to Practical Questions
How does the registration agency monitor an FDI project?
Through three combined activities: (1) receiving and analysing quarterly and annual investment activity reports and monitoring-evaluation reports filed on the National Investment Information System; (2) site checks comparing implemented capital, construction progress, land actually used and headcount against the IRC; and (3) written explanations where data from different sources (tax, customs, bank records via the ICA capital account) do not reconcile. Each round is recorded in the project’s monitoring file.
When does ad hoc monitoring happen?
When there are concrete signs: prolonged delay against the IRC schedule, land left idle, late or abnormal reports, complaints, or the project falling into a priority-monitoring group (large scale, land-intensive, conditional sectors). Ad hoc monitoring still requires a decision or written assignment from the competent authority stating scope; the enterprise may ask to see that document before the session starts.
How must the enterprise cooperate?
Assign an authorised representative, provide documents within the stated scope (IRC and amendments, capital contribution evidence via the ICA account, financial statements, land files, labour lists) and explain discrepancies in writing with evidence. Refusing to provide information or obstructing monitoring is itself punishable under Decree 122/2021/ND-CP even if the project is otherwise compliant. Keep a signed copy of every working minute.
What follows a poor monitoring result?
In ascending order: a written reminder with a deadline to rectify; a requirement to adjust the project (schedule, scale, capital) to match reality; administrative fines under Article 15 of Decree 122/2021/ND-CP where a violation exists; and only for projects falling under Clause 1, Article 36 of the Investment Law 143/2025 (for example, long-term non-implementation after repeated urging) consideration of termination and IRC revocation. One poor result never automatically revokes the IRC.
Action Checklist
- Reconcile every IRC item with reality: capital, schedule, objectives, land area; prepare explanations for each gap.
- Confirm all quarterly/annual reports and monitoring-evaluation reports were filed on the National Investment Information System.
- Assemble capital contribution and disbursement evidence through the direct investment capital account (ICA) under Circular 38/2026/TT-NHNN.
- Name one focal point for the monitoring team and prepare minutes, seal and authorisation letters.
- Archive all correspondence with the registration agency round by round for future cross-checks.
Frequently Asked Questions
Is investment monitoring the same as an inspection?
No. Monitoring is the registration agency’s ongoing supervision of project implementation; inspection is conducted by inspectorates under the Inspection Law and ends with formal inspection conclusions. Monitoring findings can, however, trigger an inspection.
Will we be told in advance about a site monitoring visit?
Planned visits are usually notified in writing; ad hoc visits are announced on arrival but still require a decision and a defined scope. Ask for the scope to be recorded in the opening minutes.
How do we keep monitoring figures consistent with tax data?
Draw them from one source of books: financial statements, tax returns and ICA account statements. Gaps usually come from timing differences on contributions and pre-registration costs; build a reconciliation table per indicator before filing.
This article has been quality-reviewed by the FLAW AI Legal Council
