Termination of investment projects of foreign traders in Vietnam. Condition and procedures for terminating investment projects. Let us learn about this topic with LSX law firm as follow:
Conditions and procedures about termination of investment projects and revoking the Investment Registration Certificate:
Terminating the operation of an investment project for investors in Vietnam
First, the investor decides to terminate the project’s operation;
Secondly, according to the termination conditions specified in the contract, the enterprise’s charter;
Thirdly, the operation term of the investment project expires;
In addition, the investment project falls into one of the following cases where the investor is unable to overcome the condition of cessation of operation;
Revoking the Investment Registration Certificate of foreign traders in Vietnam
Besides, the state management agency in charge of investment shall decide to stop; or partially stop the operation of an investment project in the following cases:
- Protecting relics, relics, antiquities, and national treasures in accordance with the Law on Cultural Heritage;
- Remedying environmental violations at the request of state agencies in charge of the environment;
- Also to take measures to ensure occupational safety at the request of the state agency in charge of labor;
- According to decisions, judgments of Courts, Arbitrators;
- The investor fails to comply with the contents of the Investment Registration Certificate; and has been administratively handled but continues to violate.
- The Prime Minister shall decide to suspend part or all of the operation of an investment project in case the project implementation poses a risk to national security at the request of the Ministry of Planning and Investment.
- Investors whose land is recovered by the State to implement investment projects; or not continue to use the investment location; and fail to carry out the procedures for adjusting the investment location within 06 months; from the date of the decision on land recovery or not to continue using the investment location;
- In case the investment project has ceased operation and within 12 months from the date of the shutdown; the investment registration agency is unable to contact the investor or the investor’s legal representative;
- After 12 months, the investor fails to implement or is unable to implement the project; according to the schedule registered with the investment registration agency; and is not eligible for an extension of the implementation schedule of the investment project;
- Accordingly the judgment, the decision of the Court, Arbitration.
Procedures for terminating investment projects of foreign traders in Vietnam
The investor decides to terminate the operation of the project and documents for investors need to prepare
The investor sends the decision to terminate the operation of the investment project to the Investment Registration Authority within 15 days from the date of the decision; enclosed with the Certificate receive investment registration (if any).
At the end of the operation term, comply with the conditions for termination of operation: The investor shall notify and return the Investment Registration Certificate (if any) to the Investment Registration Authority within 15 days from the date of termination. Terminate the operation of the investment project together with a copy of the document recording the termination of the investment project’s operation.
The remaining cases: The investment registration authority shall decide to terminate the operation of the investment project and at the same time revoke the Investment Registration Certificate for the investment project granted the Investment Registration Certificate. . The investment registration certificate shall cease to be effective from the effective date of the decision to terminate the operation of the investment project.
Liquidation of investment projects
Investors liquidate investment projects by themselves in accordance with the law on asset liquidation;
In case investment projects that are allocated, leased, or permitted by the State to change the land use purpose, the land use rights and land-attached assets shall comply with the provisions of the land law;
During the liquidation of an investment project; if the investor is an economic organization that is dissolved or falls into bankruptcy; The liquidation of investment projects shall comply with the provisions of the law on dissolution and bankruptcy of economic organizations.
Finally, hope this article about Termination of investment projects of foreign traders in Vietnam is helpful for you!
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.
Firstly, investment policy decision-making body: National Assembly; Prime Minister; People’s Committees of provinces and cities.
Secondly, investment registration certificate-issuing agency: Provincial Department of Planning and Investment; city.