The Vifo Act provides a Dutch (general) investment screening test. Transactions that fall within the scope of the Vifo Act must be reported to the Bureau Toetsing Investeringen (Bureau for Verification of Investments – “BTI”). These are transactions in which the legal entity acquiring influence over a Dutch company could potentially have consequences for the national security of the Netherlands. Although the Vifo Act was already passed on June 10, 2022, it has entered into force on June 1, 2023.
The entry into force of the Vifo Act does not only mean that future investments in vital providers or companies active in the field of sensitive technology must be reported to the BTI. Within eight months of the Vifo Act coming into force, the Minister of Economic Affairs and Climate may require parties to a transaction that took place after September 8, 2020, to submit a notification if the minister believes that an investment could pose a risk to national security. The BTI got off to a flying start and announced that its first investigation will be into the acquisition last fall of Delft-based chip company Nowi by Chinese tech company Nexperia.
In connection with the Vifo Act, a decree clarifying the operation and scope of the Vifo Act was published on May 31, 2023. The decree describes which technologies could potentially qualify as "sensitive" within the meaning of the Vifo Act. This includes not only military and dual-use goods, but also quantum, semiconductor and photonics technology, and High Assurance products.
For all information on the Vifo Act and FDI-related questions, please visit wetvifo.nl or read this, this and this blog.
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