What is implementation of procedures for termination of investment projects in Vietnam when investors stop investing in projects?
My company has implemented an investment project in a resort project. However, after re-evaluating the effectiveness, we decided to terminate the investment activities. So what are procedures for termination of investment projects? What is implementation of liquidation investment projects?
1. What is implementation of procedures for termination of investment projects in Vietnam when investors stop investing in projects?
Pursuant to Clause 1, Article 48 of the Investment Law 2020, an investor shall terminate their investment activities and/or investment project in the following cases:
a) The investor decides to terminate the project;
b) The project has to be terminated according to the conditions set out in the contract or charter of the enterprise;
c) The project duration is over.
Termination procedures of investment activities are specified at Point a, Clause 2, Article 57 of Decree 31/2021/ND-CP as follows:
2. Termination procedures are as follows:
a) If the investor decides to terminate the investment project himself/herself/itself as prescribed in Point a Clause 1 Article 48 of the Law on Investment, such investor shall send the termination decision to the investment registration authority within 15 days from the date of making the decision together with the investment registration certificate (if any);
Thus, in the case of your company, it will have to send the decision to terminate the investment project to the Investment Registration Authority in Vietnam within 15 days from the date of making the decision together with the investment registration certificate (if any).
2. What is implementation of liquidation investment projects in Vietnam?
The liquidation of investment projects is specified in Clause 8, Article 57 of Decree 31/2021/ND-CP as follows:
8. After the investment project is terminated, the liquidation thereof shall be carried out as follows:
a) The investor shall liquidate the project himself/herself/itself in accordance with regulations of law on asset liquidation;
b) For the project which uses land allocated or leased out by the State or is permitted by the State to repurpose land, the handling of the rights to use land and property on land shall comply with regulations of law on land and relevant regulations of law;
c) During the project liquidation, if the investor being a business organization is dissolved or on the verge of bankruptcy, the project liquidation shall comply with regulations of law on dissolution and bankruptcy.
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