What is the duration of investment projects in Vietnam? What are cases of termination of investment projects in Vietnam?

What is 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:

Duration of investment projects

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 in a 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.

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As regulations above, the duration of investment is different for each project, specifically:

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

- The duration of an investment project outside an economic zone shall not exceed 50 years.

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

- 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.

What is the duration of investment projects in Vietnam? What are cases of termination of investment projects in Vietnam? - Source: Internet

What are cases of termination of investment projects by an investor in Vietnam?

Pursuant to Article 48 of the Law on Investment in 2020 stipulating the termination of investment projects as follows:

Termination of investment projects

1. 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.

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

a) 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 this Law;

b) 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 of this Clause;

c) 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;

d) 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;

dd) The investor fails to pay the deposit or obtain a bank guarantee as prescribed by law if project execution security is required;

e) The investor conducted the investment activities on the basis of a sham civil transaction in accordance with the civil law;

g) The investment project is terminated according to a judgment or decision of a court or an arbitral award;

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As regulations above, 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.

What are forms of investment incentives in Vietnam?

Pursuant to Clause 1 Article 15 of the Law on Investment in 2020 stipulating 04 forms of investment incentives in Vietnam as follows:

(1) Corporate income tax incentives, including application of a lower rate of corporate income tax for a certain period of time or throughout the investment project execution;

Exemption from and reduction of tax and other incentives prescribed by the Law on Corporate Income Tax.

(2) Exemption from import tax on goods imported to form fixed assets; raw materials, supplies and components for manufacturing purposes in accordance with regulations of law on import and export tax;

(3) Exemption from and reduction of land levy and land rents;

(4) Accelerated depreciation, increasing the deductible expenses upon calculation of taxable income.

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