This is the notable content stipulated in the Law on Investment 2020 promulgated by the National Assembly on June 17, 2020.
Article table of contents
From January 1, 2021, the following 02 projects will not be allowed to extend their investment duration (Illustrative image)
According to Article 44 of the Investment Law 2020, the duration of operation for specific investment projects is regulated as follows:
- The duration of investment projects in economic zones shall not exceed 70 years.- The duration of investment projects outside economic zones shall not exceed 50 years. Investment projects located in areas with difficult socio-economic conditions, areas with especially difficult socio-economic conditions, or projects with large-scale investment but slow capital recovery may have a longer duration but shall not exceed 70 years.- For investment projects where the State allocates or leases land, but the investor is delayed in receiving the land, the time of the State's delay in handing over the land shall not be counted in the duration or progress of the project's implementation.
This duration remains consistent with the current regulations in the Investment Law 2014. However, from January 1, 2021, the effective date of the Investment Law 2020:
When the duration of the investment project expires, if the investor wishes to continue executing the project and meets the legal conditions, the project duration may be considered for extension but shall not exceed the maximum duration stipulated in Clauses 1 and 2 of this Article, except for the following investment projects:
- Investment projects utilizing outdated technology that poses environmental pollution risks or exhausts resources;- Investment projects where the investor must transfer assets to the State of Vietnam or a Vietnamese party without compensation.
Thus, the above two projects will not have their investment duration extended, even if they meet the legal requirements. Currently, the regulation on extending investment duration is not specified in the Investment Law 2014; however, under Decree 118/2015/ND-CP, investors can adjust the duration of investment projects.
Details can be found in the Investment Law 2020, which takes effect from January 1, 2021, replacing the Investment Law 2014.
Le Hai
