For the duration of operation of an investment project, the state will stipulate a certain term, not allowing the project to operate forever. So how many years is the operation time of an investment project? Do all projects have the same uptime? LSX Lawfirm will give you an article related to the issue, as follows:
Law on investment 2020
What does investment project means?
Accordingly, from a management perspective, an investment project is a tool to manage the use of capital, materials and labor to create financial, economic and social results in a long time. A project is a series of linked activities designed to achieve certain results within a defined budget and time.
Related article: What is an investment certificate?
Duration of the investment project
Investment project is a set of proposals to invest medium-term or long-term capital to conduct business investment activities in a specific area, within a defined period of time. It may operate for a maximum of 70 years, for investment projects in economic zones and investment projects implemented in areas with difficult socio-economic conditions, areas with poor economic conditions especially difficult socio-economic conditions or projects with large investment capital but slow capital recovery. For projects outside the economic zone, the term of operation is less, only 50 years.
Then, the duration of an investment project inside an economic zone shall not exceed 70 years.
The duration of an investment project outside an economic zone shall not exceed 50 years. It is 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.
If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.
Upon expiry of the duration of it, if the investor wishes to keep executing the project and satisfies the conditions as prescribed by law, it may extend but shall not exceed the maximum prescribed in Clauses 1 and 2 of this Article, except for the following projects:
a) Investment projects using obsolete, environment threatening or resource-intensive technologies.
b) Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.
Related questions about duration of the investment project
Are there any restrictions for foreign investors when investing in Vietnam?
Then, investors meet the investment conditions of WTO commitment, international treaties on investment that Vietnam has signed or acceded to and domestic laws.
Who do regard to the investment projects located therein?
Then, 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
Are foreign investors’ nationality restricted when contributing capital in Vietnamese companies?
Currently, investor nationality no longer restricted from receiving investment; except for a few nationalities who are not receive investment because it affects national defense; security; politics and social order, etc.
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Hope this article: “Duration of the investment project” is useful for you.