In case the application for adjustment of an investment project results in the investment project being subject to approval of the investment policy, what should the investor do? LSX Lawfirm will give you the answer in this article: “Adjustment to the investment project in Vietnam”, as follows:
Law on investment 2020
Decree No. 31/2021/ND-CP
Some concepts related to investment project
- Investment project means a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time.
- Expansion project means an investment project on development of a running project by expanding the scale; improving the capacity, applying new technologies, reducing pollution or improving the environment.
- New investment project means a project executed for the first time or a project independent from any other running project.
- Start-up project means an investment project that implements ideas on the basis of exploiting intellectual property; technologies and new business models and is able to grow quickly.
Related article: Duration of the investment project
You can also refer to the article at LSX.VN
Adjustment to the investment project in Vietnam
Firstly, during execution of an investment project, the investor entitled to adjust its objectives; transfer the project in part or in full; merge projects or fully divide or partially divide a project into multiple projects or exercise the rights to use land and property on land; which is part of the investment project to contribute capital to establish an enterprise, carry out business cooperation or carry out other activities; and the aforementioned activities shall comply with regulations of law.
Secondly, the investor shall follow procedures for adjusting the investment registration certificate if the adjustment to the investment project changes any content of the investment registration certificate.
Thirdly, the investor that has an investment project whose investment guidelines approved shall follow procedures for approving the adjustment to the investment guidelines in one of the following cases:
- Any objective specified in the written approval for investment guidelines changed; any objective that is subject to approval for investment guidelines added.
- The land area increased or reduced by 10% or more than 30 hectares or the investment location is changed.
- The total investment capital is increased or reduced by 20% or more, thereby changing the scale of the investment project.
- Extension of the project execution schedule results in total duration of the project extended by more than 12 months compared to that stated in the first written approval for investment guidelines.
- The duration of the investment project is adjusted.
- Any technology appraised or about which opinions the law collected during the process of approving the investment guidelines changed.
- There is a change of the investor in the investment project whose investment guidelines are approved together with approval for the investor before the exploitation; or operation of the project or there is a change of conditions (if any) applicable to the investor.
In addition related to adjust the investment project in Vietnam
With respect to the investment project whose investment guidelines are approved; the investor is not allow to extend the investment execution schedule by more than 24 months compared to that stated in the first written approval for investment guidelines; except for one of the following cases:
- It is necessary to remedy the consequences of an event of force majeure in accordance with the civil law and the land law.
- The project execution schedule adjusted because the State delays allocating; or leasing out land to the investor or allowing the investor to repurpose land.
- The project execution schedule adjusted at the request of a regulatory agency; or the regulatory agency delays in performing administrative procedures.
- The investment project adjusted because the regulatory agency changes the planning.
- Any objective specified in the written approval for investment guidelines changed; any objective that is subject to approval for investment guidelines added;
- The total investment capital increased or reduced by 20% or more, thereby changing the scale of the investment project.
Related questions about “Adjustment to the investment project in Vietnam”
Management boards of industrial parks, export-processing zones, hi-tech zones and economic zone shall issue; adjust and revoke investment registration certificates with regard to the investment projects located therein
If a request for adjustment of an investment project results in the project being subject to approval for its investment guidelines, the investor has to apply for approval for investment guidelines before adjusting the investment project.
The regulatory agency that has the power to approve investment guidelines also has the power to approve the adjustment to investment guidelines. If a request for adjustment of an investment project results in the project being subject to approval for its investment guidelines by an authority at a higher level, such authority will have the power to adjust the adjustment to investment
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