Procedures for suspension of investment projects under Vietnamese Law on Investment

Nowadays, the development economy creates many opportunities for businesses as well as entrepreneurs. Many investors start to contribute capital to enterprises to make a profit. However, you may have to suspend the operation of an investment project when your project encounters difficulties during operation. In this article, LSX legal firm will give you an insight into: “Procedures for business suspension of investment projects under Vietnamese Law on Investment”

Cases of suspension of investment projects

According to the wishes of investors

In case you are an investor and wish to suspend the operation of an investment project, you must notify in writing the investment registration agency. In case of force majeure, you are exempted from the land rent during the period of temporary suspension of operation to overcome the consequences.

According to the decision of the state management agency

The state management agency in charge of investment shall decide to suspend or partially stop the operation of an investment project in the following cases:

• Firstly, to protect relics, antiquities, and national treasures.
• Secondly, to remedy environmental violations.
• Thirdly, to take measures to ensure labor safety.
• Fourthly, according to the decision, the judgment of the Court, Arbitration.
• Lastly, you fail to comply with the contents of the Investment Registration Certificate; or have been administratively handled but then continue to violate.

According to the decision of the Prime Minister

The Prime Minister shall decide to suspend part or all of the project’s operations in case the project implementation poses a risk to national security.

Steps to suspend investment projects

In case investor decided to stop the operation of an investment project

Step 1: Submit an application for the suspension

Submit your application to the Investment Registration Office. At the reception desk, the dossier-receiving specialist of the Investment Registration Office checks the validity of dossiers. If the application valid, the receiving officer will receive the application and issue a Receipt to the Investor.

Step 2: Receive the result

Based on the appointment date on the receipt, you go to the Investment Registration Office to receive the results. The Department of Planning and Investment receives the notice of temporary suspension of the investment project and records the operation status of the project.

In case the state management agency decides to suspend the operation of the investment project

That agency based on the opinions of competent state authorities and issues a decision to stop all or part of the operation of the investment project, then notify relevant agencies and investors. The competent agency shall make a record before deciding to stop or partially stop the operation of the investment project.
For the suspension of investment projects according to court judgments, decisions, arbitration ruling, the state management agencies in charge of investment based on the legally effective judgment or decision of the court, or the legally effective judgment of the arbitrator to decide to stop the whole or part of the investment project;

For investment projects that harm or pose a threat to national defense and security

In this case, the Provincial People’s Committees shall notify in writing the Ministry of Planning and Investment. The notice includes the following contents: Investor implementing the project; project objectives, locations, and contents; project implementation process; appraise the impact or risk of the project’s impact on national defense and security; proposal to stop the whole or part of the operation of the investment project.
At the request of the People’s Committee of the province, the Ministry of Planning and Investment consults with the Ministry of National Defense and the Ministry of Public Security to submit to the Prime Minister for the decision to stop the whole or part of the operation of the investment project.

Dossiers for application to suspend investment project

In case you decide to stop the investment project yourself, prepare a set of dossiers as follows:

• Notice of suspension of operation of investment projects. The notice of suspension should contain the following main contents: Investor information; information on economic organizations implementing investment projects; operational status of the project; performance of financial obligations; contents of temporary suspension of investment projects; investor commitment.
• Power of attorney for the applicant who is not the legal representative. Also, authorization contract/service contract for the organization providing the submission service; recommendation letter of the organization for the individual submitting the application.
• The decision, and meeting minutes (if any) on the suspension.
• Copy of Decision on Investment Policy/Certificate of Investment Registration/Investment Certificate/Investment License/Business License or Decision on Investment Policy.

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