Cases of termination of investment projects in Vietnam

According to clause 4 Article 3 Investment Law 2020, “investment project” means a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time. what are cases of termination of investment projects in Vietnam?

Cases of termination of investment projects in Vietnam (Illustration)

According to Article 48 of Vietnam's Investment Law 2020, the termination of investment projects is as follows:

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

+ The investor decides to terminate the project;

+ The project has to be terminated according to the conditions set out in the contract or charter of the enterprise;

+ The project duration is over.

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

+ 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 Vietnam's Investment Law 2020;

+ 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 is no longer permitted to use the investment location, except for the case specified in Point d, Clause 2 of Article 48 of Vietnam's Investment Law 2020;

+ 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;

+ 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;

+ Pursuant to a judgment or decision of a court or an arbitral award;

- Regarding a project subject to approval for its investment guidelines, the investment registration authority shall terminate the investment project after obtaining the opinion of the authority granting approval for investment guidelines.

- The investor shall themself 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 Clause 5 of Article 48 of Vietnam's Investment Law 2020.

- 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 is terminated in accordance with Clause 2 of Article 48 of Vietnam's Investment Law 2020, except for the case of termination of part of the investment project.

- The Government shall elaborate procedures for terminating investment projects in accordance with Article 48 of Vietnam's Investment Law 2020.

Chi Nhan

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