Pursuant to the Investment Law and relevant legal documents, before establishing an economic organization in Vietnam, it must have an investment project and be granted an investment registration certificate. LSX Lawfirm will give you an article about: “Duration of investment projects for investors in Vietnam” as follows:
Legal grounds
Law on investment 2020
Decree No. 31/2021/ND-CP
What does investment projects means?
It is the basis for competent state agencies to implement investment management and licensing measures. It is also the basis for investors to deploy investment activities and evaluate the effectiveness of the project; especially important in persuading investors to decide on investment and credit institutions to finance the project.
Duration of investment projects
Duration of investment projects for investors in Vietnam according to Investment Law 2020
- Firstly, Inside an economic zone: shall not exceed 70 years.
- Secondly, Outside an economic zone: shall not exceed 50 years.
- Finally, In an disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery: may be longer but shall not exceed 70 years.
In addition, if an investment project uses land allocated or leased out by the State, but they delayed the transfer of land, the delay shall not include in the project duration or execution schedule.
Good information for investors is: Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum prescribed as above, except for the following investment projects:
a) Firstly, Investment projects using obsolete, environment threatening or resource-intensive technologies;
b) Secondly, Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.
Related article: Service of applying for an investment license for foreign investors
Duration of investment projects for investors in Vietnam according to Decree No. 31/2021/ND-CP
Accordingly, the duration of an investment project specified in Clauses 1 and 2 Article 44 of the Law on Investment including the duration of an investment project
- Inside an economic zone
- Outside an economic zone
- In an disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery
It begins from the date on which the investor is issued with the decision on investor approval, decision on approval for both investment guidelines and investor or the investment registration certificate for the first time.
Moreover, for the investment project which uses land allocated or leased out by the State orthe State permitted to repurpose land, its duration begins from the date on which the investor issued with the decision on land allocation, decision on land lease or decision on land repurposing. If the investor has obtained the decision on land allocation, decision on land lease or decision on land repurposing but the transfer of land is delayed, the duration of the investment project begins from the date on which land is transferred on site.
During the execution of the investment project, the investor is entitled to extend or shorten its duration. The adjusted duration shall not exceed the duration specified as above.
Related questions
Yes. One of the obligations of foreign investors is to declare and fully pay taxes in accordance with the law.
Within 5 working days; from the date of receipt of the decision on investment policy. The investment registration authority must issue the Investment Certificate to the investor.
+ Investment policy decision-making body: National Assembly; Prime Minister; People’s Committees of provinces and cities.
+ Investment registration certificate-issuing agency: Provincial Department of Planning and Investment; city.
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