What is the time limit to liquidate the project after the end of outward investment activities in Vietnam?

What is the time limit to liquidate the project after the end of outward investment activities in Vietnam?

Pursuant to Article 86 of Decree 31/2021/ND-CP regulating the termination of overseas investment activities as follows:

1. After terminating investment activities, the investor must liquidate their investment project in accordance with laws of the host country.

2. Within 06 months from the date on which the tax finalization report or another equivalent document is available according to laws of the host country in connection with liquidation of the investment project, the investor must repatriate all proceeds from the project liquidation.

3. If the investor wishes to extend the time limit specified in Clause 2 of this Article, at least 15 days prior to the expiration date, the investor shall submit an application form specifying the reasons to the Ministry of Planning and Investment for consideration and decision. Extension shall be granted only once for a period not to exceed 06 months. Within 15 days from the receipt of the application form, the Ministry of Planning and Investment shall give the investor a written response to the extension.

4. Within 60 days from the date of completing the project liquidation and repatriation of proceeds from the liquidation (if any), the investor shall follow procedures for invalidating the outward investment registration certificate as prescribed in Article 87 hereof.

Thus, according to the above provisions, within 6 months from the issuance of the tax finalization report or a document of equivalent legal value, the liquidation of the investment project must be carried out. In some cases, it may be extended but not more than once, for a period not exceeding 6 months in Vietnam.

Applications for invalidation of outward investment registration certificates

Applications for invalidation of outward investment registration certificates are specified in Article 87 of Decree 31/2021/ND-CP as follows:

1. The investor shall submit 02 sets of the application for invalidation of the outward investment registration certificate (including 01 original dossier). An application includes:

a) An application form for invalidation of the outward investment registration certificate;

b) Originals of issued investment registration certificates;

c) Decision on termination of outward investment project corresponding to the regulations set out in Article 59 of the Law on Investment;

d) Documents proving that the investor has completed the project termination and liquidation, and repatriation of proceeds from the project termination and liquidation as prescribed in Article 85 hereof;

dd) Document about the investor’s legal status.

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