Content Summary
After an investment project has been registered and approved by the investment registration authority with an investment registration certificate, it must commence operations, perform the correct implementation of the project’s contents, and be on schedule. However, in some cases, the investor wants to terminate the investment project or must stop the investment project.
Cases of termination of investment projects
- The investor decides to terminate the project’s operation;
- According to the conditions for termination of operation specified in the contract, the enterprise’s charter;
- The operation term of the investment project expires;
- Projects that the State Management Agency for Investment, the Prime Minister decides to stop operating but investors are not able to overcome the conditions of cessation of operation;
- The investor is not allowed to continue using the investment location or the land for implementation of an investment project is recovered by the State. The investor doesn’t realize the adjustment of the investment location within 06 months from the date of issuance of a decision on land recovery or not to continue using the investment location.
- The investment project has ceased to operate and within 12 months from the date of the shutdown, the investment registration agency is unable to contact the investor or the investor’s legal representative;
- After 12 months, the investor fails to implement or is unable to operate the project according to the schedule registered with the investment registration agency and is not eligible for an extension of the implementation schedule of the investment project;
- According to the judgment, the decision of the Court, Arbitration.
Order and procedures for operation termination of investment projects
In case the investor decides to terminate the operation of an investment project:
- Decision to terminate operation of the investment project;
- Enclosed with the Investment Registration Certificate (if any);
In case the investors terminate the operation of an investment project under the conditions specified in the contract, the charter of the enterprise, or the expiration of the operation term of the investment project:
- Notice of investors;
- Investment registration certificate (if any)
- A copy of the document recording the termination of operation of the investment project: Charter or contract in case the charter or contract records the operation termination of the investment project, investor’s decision
In the remaining cases:
- The investment registration agency shall decide to terminate the operation of the investment project and revoke the Investment Registration Certificate. The investment registration certificate shall cease to be canceled from the effective date of the decision to terminate the operation of the investment project.
For an investment project operating under an Investment Certificate (also a Business Registration Certificate) or an Investment License, the Investment Registration Authority shall decide to terminate the operation of the investment project but not revoke the Investment Certificate (also the Business Registration Certificate) or the Investment License. In this case, the business registration contents in the Investment Certificate (also the Business Registration Certificate) and the Investment License are still valid.
The written decision on investment policies and the written decision on the adjustment of investment policies shall cease to be effective in case the investment project ceases to operate.
Liquidation of investment projects:
- Investors liquidate investment projects by themselves under the law on asset liquidation;
- For investment projects in which land is allocated, leased, or permitted by the State to change the land use purpose, the land use rights and land-attached assets shall comply with the land law;
- During the liquidation of an investment project, if the investor being an economic organization is dissolved or falls into bankruptcy, the liquidation of the investment project shall comply with the provisions of the law on dissolution and bankruptcy economics organizations.
Above is the basic information about the procedure for the termination of the operation of an investment project. For more information, please don’t hesitate to contact AZLAW for advice and detailed instructions on procedures.
