An FDI project in Long An registered USD 20 million of total investment, but after two years reported implemented capital is only USD 11 million. The registration agency asks for an explanation. The finance director asks: is implemented capital the amount transferred into the capital account, the costs incurred, or the assets formed – and is falling short punishable?
Applicable Legal Framework
Implemented capital is a core indicator in investment activity reports and investment capital statistics under the reporting regime of the Investment Law 143/2025/QH15 and Decree 96/2026/ND-CP. Recognition principle: implemented capital is what has actually been put into the project – money transferred through the direct investment capital account (ICA) under Circular 38/2026/TT-NHNN (replacing Circular 06/2019/TT-NHNN; the term DICA became ICA) and in-kind assets fully valued and handed over to the project.
Implemented capital figures are reconciled three ways: the investor’s report, data of the bank holding the ICA account, and customs declarations for imported machinery contributed as capital. Unexplained gaps are treated as inaccurate reporting under Decree 122/2021/ND-CP.
Detailed Answers to Practical Questions
Is implemented capital reported at actually disbursed amounts?
Yes – at value actually implemented by the reporting date, not at the IRC commitment. For cash: amounts transferred into the ICA account and used for the project. For construction and procurement: values accepted and paid. Report both numbers together – registered capital (commitment) and cumulative implemented capital – with a percentage progress so the authority sees the gap and its causes.
How do in-kind contributions count toward implemented capital?
Only once the full chain is complete: asset valuation under the Law on Enterprises 59/2020/QH14 (by founding members/shareholders or a valuation organisation), a handover minute to the project company, and – for imported machinery – customs declarations and ownership-transfer documents. The recognised value is the approved valuation, not merely the customs value where the two differ; any gap needs an explanatory note attached to the report.
What if implemented capital is lower than committed?
Falling behind schedule triggers monitoring: the agency requires explanations and a remediation plan; where delay is serious, the investor should proactively adjust the schedule or capital in the IRC rather than wait for enforcement. Honest low reporting is not fined; overstating figures to look compliant is untruthful reporting, fined VND 30-50 million under Article 15 of Decree 122/2021/ND-CP for investment activity reporting violations.
Must bank documents accompany the capital report?
For periodic system filings, attachments depend on each period’s requirements; but the enterprise must keep ICA bank confirmations and statements ready for reconciliation or monitoring. In practice agencies often require a bank-confirmed capital reconciliation when the enterprise adjusts capital, extends the project or completes it – preparing it early shortens every later procedure.
Action Checklist
- Build a cumulative implemented-capital table split by source: ICA cash, valued and handed-over in-kind assets, other eligible costs.
- Obtain ICA statements and balance confirmations from the servicing bank for the reporting period.
- Reconcile customs declarations for contributed machinery against valuation and handover minutes.
- If implementation is under 80 percent of the committed schedule, draft the explanation and top-up roadmap in advance.
- Lock one implemented-capital figure for investment reports, statistical reports and tax files alike.
Frequently Asked Questions
Do pre-IRC costs count as implemented capital?
Costs incurred before the IRC for project preparation count only if they fall in approved categories with valid documents under capital-transfer rules; agree the treatment with the registration agency and the ICA bank from the start.
Does borrowed capital count as implemented investment capital?
Total project capital comprises investor contributions and mobilised capital; reports must separate the two. Foreign loans are additionally subject to State Bank loan registration under separate FX rules.
Are small differences from bank statements fined?
Timing differences (funds in transit, bank fees) are acceptable if explained and reconciled; risk arises only where gaps are large, persistent and undocumented.
This article has been quality-reviewed by the FLAW AI Legal Council