Termination of investment projects in Vietnam

by BichNgoc
Termination of investment projects in Vietnam
Termination of investment projects in Vietnam

LSX Lawfirm will give you an article about: “Termination of investment projects in Vietnam”, 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?

Adjustment to the investment project in Vietnam

Rules for execution of investment projects in Vietnam

Termination of investment projects in Vietnam

Firstly

An investor shall terminate their investment activities and/or investment project in the following cases:

  • The investor decides to terminate the project.
  • The project is terminate according to the conditions set out in the contract or charter of the enterprise.
  • The project duration is over.

Secondly

The investment registration authority shall terminate an investment project in part or in full in the following cases:

  • Firstly, The investor fails to overcome the difficulties that lead to project suspension in the cases mentioned in Clause 2 and Clause 3 Article 47 of Law on investment 2020; you can refer to this article: Suspension of investment projects in Vietnam
  • Secondly, The investor is no longer permitted to keep using the investment location; and fails to complete the procedures for change of investment location within 06 months from the date on which the investor no longer permitted to use the investment location; except for the case in law.
  • Then, The investment registration authority cannot contact the investor or the investor’s legal representative after 12 months from the date of suspension of the project.
  • Land reserved for the investment project is expropriated by the State for the reason that the land is not used; or the land use is delayed in accordance with regulations of law on land.
  • Then, The investor fails to pay the deposit or obtain a bank guarantee as prescribed by law; if project execution security is required.
  • The investor conducted the investment activities on the basis of a sham civil transaction in accordance with the civil law.
  • Finally, pursuant to a judgment or decision of a court or an arbitral award.

Thirdly

So, regarding a project subject to approval for its investment guidelines; then the investment registration authority shall terminate the investment project; after obtaining the opinion of the authority granting approval for investment guidelines. So, The investor shall themselves liquidate the investment project in accordance with the law on liquidation of assets upon termination of the investment project; except for the case specified in the law.

In addition, the settlement of the rights to use land and property on land upon termination of the investment project shall comply with the law on land; and other relevant regulations of law. The investment registration authority shall decide to revoke the investment registration certificate if the investment project terminate in accordance with the law; except for the case of termination of part of the investment project.

Related questions

Suspension procedures in “firstly” above?

Such investor shall send a notification to the investment registration authority within 05 working days; from the date of making the decision. The investment registration authority shall receive the notification and notify the project suspension to relevant authorities.

Suspension procedures in “secondly” above?

If the investment authority decides to suspend the investment project, such authority shall; according to the competent authorities’ opinions to decide to suspend part or whole of the investment project and notify relevant authorities; and investor. The investment authority or competent authorities in the fields specified in Points a; b; c and dd Clause 2 Article 47 of the Law on Investment shall make a record prior to deciding to suspend or suspend part of the investment project. Where the investment project is suspended according to the court’s judgment or decision or arbitral award; the investment authority shall, according to the court’s effective judgment; or decision or effective arbitral award, decide to suspend part or whole of the investment project

Contact LSX Lawfirm

Finally, hope this article is useful for you to answer the question about: “Termination of investment projects in Vietnam”. If you need any further information, please contact  LSX Law firm : +84846175333 or Email: hoangson@lsx.vn

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