From 2021, What Are the Regulations on the Duration of Investment Projects?

From 2021, how is the duration of the investment project regulated? - Illustrative photo

Article 44 Investment Law 2020 provides details on the duration of investment projects as follows:

- Investment projects in the economic zone have a duration of no more than 70 years.

- Investment projects outside the economic zone have a duration of no more than 50 years.

- Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions, or investment projects with large capital but slow capital recovery can have a longer duration, but not exceeding 70 years.

Note: For investment projects where the State allocates land or leases land but the investor is late in receiving the land, the time the State delays handing over the land is not counted towards the project's duration and implementation schedule.

Furthermore, Clause 4 of Article 44 of the Investment Law 2020 also stipulates that when the project's duration ends, if the investor needs to continue implementing the project and meets the lawful conditions, the project’s duration can be extended but not exceeding the maximum period of 70 years for investment projects in the economic zone and projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions, or investment projects with large capital but slow capital recovery; 50 years for investment projects outside the economic zone, except for the following cases:

- Investment projects using outdated technology, posing environmental pollution risks, resource-intensive.

- Investment projects where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese parties.

Details of the regulation are available in the Investment Law 2020, effective January 1, 2021.

Le Vy

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