Content Summary
The term of operation of an investment project is the main content in the Investment Registration Certificate/ Investment Certificate. Therefore, at the end of the term on the investment certificate, in case the investor who wishes to continue implementing the project needs to perform the procedures for adjusting the Investment Registration Certificate according to the provisions of the investment law 2020 to extend the project’s operation.
Maximum operation duration of foreign investment projects in Vietnam
According to the provisions of Article 44 of the Investment Law 2020, the maximum operation term of investment projects in Vietnam is as follows: no more than 70 years for projects in economic zones; 50 years for projects outside economic zones; 70 years for projects outside economic zones in areas with difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery.
For an investment project allocated or leased land by the State, if the land handover is delayed, the delay time shall not be included in the operation duration and implementation progress of the investment project.
Upon the expiry of the operation term of an investment project, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the investor may consider extending the operation term of the project but not exceeding the maximum period specified above.
Investment projects are not allowed to be extended
According to the provisions of Article 44 of the Investment Law 2020, there are two cases where an investment project is not allowed to be extended, including:
- Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
- An investment project in which the investor must transfer without compensation to the State of Vietnam.
Dossiers and Procedures for extension of investment projects
Step 1: Prepare the application for adjustment registration
To extend the investment project, the investor must apply an adjustment of the Investment Registration Certificate to the agency that has granted it. An application file for adjustment of the Investment Registration Certificate includes the following documents:
- A written request for adjustment of the investment project;
- Report on project implementation and report on investment project implementation up to the time of request for adjustment of the investment project;
- Investor’s decision on the adjustment of investment project (Decision and valid copy of meeting minutes of Members’ Council/General meeting of shareholders/general partner/owner of economic organization) implementation of investment projects on adjustment of investment projects or other legal documents as prescribed by law);
- Certified copy of the audited financial statements closest to the adjusted date;
- Information for making project proposals: Number of foreign workers, number of Vietnamese workers; Phone number, investor email, Company phone number in Vietnam, Head office area;
- Notarized passport and confirmation of temporary residence (temporary residence card) of the legal representative;
- Copies of issued Investment Registration Certificates/Investment Certificates/Investment Licenses/Business Licenses (for projects not subject to investment policy decisions); Or a copy of the Investment Policy Decision and the Investment Registration Certificate/ Investment Certificate/ Investment License/ Granted Business License (if any) (For the case of an investment project under decision-making authority on investment policies);
- Copy of Tax Registration Certificate (In case the company has not separated the Investment Registration Certificate and the Business Registration Certificate);
- Authorization letter in case the investor does not directly apply.
Step 2: Apply for adjustment registration documents
After preparing the dossier, the investor submits the dossier to the competent authority. Investors can choose one of the following two forms of application:
- Submit directly at the competent investment registration agency;
- Online submission on website dautunuocngoai.gov.vn or fdi.gov.vn.Within 15 working days from the date of online declaration, the investor must apply to amend the Investment Project Certificate to the Investment Registration Authority.
Agencies competent to amend investment certificates: Any agency that issues investment registration certificates shall have the authority to amend investment registration certificates for investors
Step 3: Process the application and get the result
The investment registration authority has the authority to receive and examine the application, if the application is complete and valid, it shall receive the application and issue a receipt of the application to the investors; if the dossier is incomplete, the receiving specialist/guide will explain to the investor to supplement and complete the dossier.
Within 15 working days from the reception of the complete application, the Investment Registration Authority shall amend the Investment Registration Certificate; In case of refusal to amend the Investment Registration Certificate, a written notice must be given to the investor, clearly stating the reasons.
Investors will receive results based on the appointment date on the application receipt.
Some notes on the extension of investment projects.
- An enterprise may only extend the term of an investment project if, by the time of extension, has fully contributed capital following current law and has fully complied with investment reports and other conditions as prescribed in the Certificate of investment registration ;
- Enterprises can make parallel adjustments to other contents on the Investment Registration Certificate with the procedures for extending the Investment Registration Certificate.
- Before the project’s license expires, about 03-05 months, the company should perform procedures for renewing the investment registration certificate and extending the project implementation period.
The above are AZLAW’s advice on extending investment projects, if you have any questions or need legal support, please don’t hesitate to contact us for advice.
AZLAW LAWFIRM & ACCOUNTING
K28, Alley 68 Trung Kinh, Yen Hoa, Cau Giay, Hanoi
Tel: 0422.151.888 – 0987.748.111
Email: info@azlaw.com.vn
Website: https://azlaw.com.vn/
