When are investment projects suspended? What are the procedures for investors to suspend investment projects in Vietnam?
When are investment projects suspended?
Pursuant to Article 47 of the 2020 Law on Investment in Vietnam on the suspension of investment projects as follows:
Suspension of investment projects in Vietnam
1. When suspending an investment project, the investor must notify the investment registration authority in writing. If the project has to be suspended in a force majeure event, the State shall allow the investor to be exempt from paying land rents or reduce land levies for the suspension period with a view to remedying consequences caused by the force majeure event.
2. The investment authority shall decide to suspend an investment project in part or in full in the following cases:
a) To protect sites/monuments, relics, antiques or national treasures in accordance with the Law on Cultural Heritage;
b) To rectify a violation of the law on environmental protection at the request of the environment authority;
c) To take measures to ensure occupational safety at the request of the labor authority;
d) Pursuant to a judgment or decision of a court or an arbitral award;
dd) The investor fails to adhere to the written approval for investment guidelines or the investment registration certificate and recommits administrative violations after incurring penalties.
3. The Prime Minister shall decide to suspend a project in part or in full if the project execution is detrimental or potentially detrimental to national defense and security at the request of the Ministry of Planning and Investment.
4. The Government shall elaborate conditions, procedures and time limit for suspending investment projects in accordance with this Article.
Thus, 03 cases of investment projects being suspended include:
- The investor suspends the investment project
- State management agencies decide to suspend
- The Prime Minister decided to suspend
When are investment projects suspended? What are the procedures for investors to suspend investment projects in Vietnam?
What are the procedures for investors to suspend investment projects in Vietnam?
Pursuant to Clause 1, Article 47 of the 2020 Law on Investment in Vietnam, when suspending an investment project, the investor must notify the investment registration authority in writing.
According to that, when suspending an investment project, the investor must notify the investment registration authority in writing. If the project has to be suspended in a force majeure event, the State shall allow the investor to be exempt from paying land rents or reduce land levies for the suspension period with a view to remedying consequences caused by the force majeure event.
Pursuant to Clause 3, Article 56 of Decree No. 31/2021/ND-CP stipulating as follows:
Conditions and procedures for suspension of investment projects in Vietnam
…
3. Suspension procedures are as follows:
a) If the investor decides to suspend the investment project himself/herself/itself as prescribed in Clause 1 Article 47 of the Law on Investment, 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;
Thus, the 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;
How long can an investor suspend investment projects in Vietnam?
Pursuant to Clause 2, Article 56 of Decree No. 31/2021/ND-CP stipulating as follows:
Conditions and procedures for suspension of investment projects in Vietnam
…
2. The total period of suspension of an investment project shall not exceed 12 months. If the investment project is suspended according to a court’s effective judgment or decision, effective arbitral award or investment authority’s decision, the suspension period shall be determined according to the court’s judgment or decision, effective arbitral award or investment authority’s decision. If these documents do not specify the suspension period, the total suspension period shall not exceed the period prescribed in this Clause.
Thus, the investor is entitled to suspend the investment project for no more than 12 months.
On the other hand, if the investment project is suspended according to a court’s effective judgment or decision, effective arbitral award or investment authority’s decision, the suspension period shall be determined according to the court’s judgment or decision, effective arbitral award or investment authority’s decision.
If these documents do not specify the suspension period, the total suspension period shall not exceed the period prescribed in this Clause.
LawNet