Is it permissible to extend the duration of investment projects in Vietnam?

Is it permissible to extend the duration of investment projects in Vietnam?

Pursuant to Article 44 of the Law on Investment in 2020 stipulating the duration of investment projects in Vietnam as follows: 

1. The duration of an investment project inside an economic zone shall not exceed 70 years.

2. The duration of an investment project outside an economic zone shall not exceed 50 years. The duration of an investment project project in an disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years.

3. If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.

4. Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum prescribed in Clauses 1 and 2 of this Article, except for the following investment projects:

a) Investment projects using obsolete, environment threatening or resource-intensive technologies;

b) Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.

5. The Government shall elaborate this Article.

As regulations above, your project takes place in an disadvantaged area shall be extended but not exceed 70 years. However, if investment projects using obsolete, environment threatening or resource-intensive technologies or being transferred assets without reimbursement to the State of Vietnam shall be operated more than 70 years.

What are requirements of investment in establishment of a business organization in Vietnam?

Pursuant to Article 22 of the Law on Investment in 2020 stipulating investment in establishment of a business organization in Vietnam as follows: 

1. Every investor shall establish a business organization in accordance with the following regulations:

a) A domestic investor shall establish a business organization in accordance with regulations of law on enterprises and law corresponding to each type of business organization;

b) A foreign investor that establishes a business organization shall satisfy market access conditions applied to foreign investors specified in Article 9 of this Law;

c) Before establishing a business organization, the foreign investor must have an investment project and follow the procedures for issuance or adjustment of an investment registration certificate, except for establishment of a small and medium-sized start-up enterprise and a  startup investment fund in accordance with regulations of the Law on Small and Medium-sized Enterprises.

2. From the date on which the enterprise registration certificate or an equivalent document is issued, the business organization established by a foreign investor shall be the investor that executes the investment project set out in the investment registration certificate.

Best regulations