Investment Law 2020 officially took effect from January 1, 2021 with numerous noteworthy contents. Among them is the regulation on cases where investors are not required to make a deposit to implement investment projects.
Article table of contents
04 cases where investors are not required to deposit to implement an investment project from 2021 – Illustrative Image
To be specific, according to the provisions of Article 43 of the Investment Law 2020, investors must deposit or provide a bank guarantee for the obligation to deposit in order to ensure the implementation of the investment project that requests the State to allocate land, lease land, or allow the change of land use purpose, except for the following 04 cases:
- Investors winning an auction for land use rights to implement an investment project are allocated land by the State with land levy collection, or lease land with one-time rent payment for the entire lease period;
- Investors winning a bid to implement an investment project using land;
- Investors allocated land or leased land by the State on the basis of receiving the transfer of an investment project that has either already deposited or has completed the capital contribution and fundraising as per the schedule specified in the investment policy approval document or Investment Registration Certificate;
- Investors allocated land or leased land by the State to implement an investment project based on receiving the transfer of land use rights and assets attached to the land from other land users;
- Investors being public service providers with revenue, or high-tech park development companies established by decision of a competent state agency to implement an investment project to develop infrastructure in industrial parks, export processing zones, high-tech parks, or functional areas within economic zones.
Currently, the Investment Law 2014 does not stipulate cases where ensuring the implementation of the investment project is not required. This content is guided by Decree 118/2015/ND-CP. In addition to the 04 cases mentioned above, there is also a case where the investor is a public service provider with revenue, or a high-tech park development company established by a decision of a competent state agency to implement an investment project, and is allocated land or leased land by the State to develop infrastructure in industrial parks, export processing zones, high-tech parks, or functional areas within economic zones.
Note: In cases where ensuring the implementation of the investment project is required, depending on the scale, nature, and implementation progress of each investment project, the deposit level to ensure the implementation of the investment project is from 01% to 03% of the investment capital of the investment project. If the investment project consists of multiple investment phases, the deposit amount will be paid and refunded according to each phase of the project implementation, except in cases where the refund is not allowed.
See more details at: Investment Law 2020 officially adopted by the XIV National Assembly at its 9th session on June 17, 2020.
Nguyen Trinh
