Is investor entitled to transfer part or whole of the investment project to another investor in Vietnam?

Is investor entitled to transfer part or whole of the investment project to another investor in Vietnam? - Thanh Tich (Nghe An)

What is investment project?

Pursuant to the provisions of the Law on Investment 2020, investment project means a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time.

Is investor entitled to transfer part or whole of the investment project to another investor in Vietnam?

Is investor entitled to transfer part or whole of the investment project to another investor in Vietnam? (Internet image)

Is investor entitled to transfer part or whole of the investment project to another investor in Vietnam?

Pursuant to the provisions of Article 46 of the Law on Investment 2020, an investor is entitled to transfer part or whole of the investment project to another investor when the following conditions are satisfied:

- The investment project or the part of the investment project which is transferred has not been terminated in accordance with Clauses 1 and 2 Article 48 of the Law on Investment 2020;

- The foreign investor receiving the investment project or part of the investment project must satisfy the conditions set out in Clause 2 Article 24 of the Law on Investment 2020;

- The conditions set forth in the law on land are complied with if the transfer of an investment project is associated with transfer of the land use rights/assets on land;

- The conditions set forth in the laws on residential housing and on real estate business are complied with in the case of transfer of a residential housing construction project or real estate project;

- The conditions set forth in the written approval for investment guidelines or the investment registration certificate or in relevant laws (if any) are complied with;

- Upon transfer of an investment project, in addition to compliance with this Article, the state-owned enterprise shall comply with the Law on Management and Use of State Capital Invested in Manufacturing and Business Activities of Enterprises before making any adjustment to the investment project.

If the conditions for transfer set forth in Clause 1 of Article 46 of the Law on Investment 2020 are satisfied, the investor shall follow the procedures for transferring the investment project in part or in full as follows:

- In the case of an investment project in which the investor has been approved in accordance with Article 29 of the Law on Investment 2020w and the investment project has been issued with an investment registration certificate, the investor shall follow procedures for adjusting the investment project as prescribed in Article 41 of the Law on Investment 2020;

- For an investment project other than that prescribed in Point a of this Clause, the transfer of the investment project or transfer of asset ownership to the investor receiving the investment project shall be carried out in accordance with the civil law, the law on enterprises, the law on real estate business and other regulations of law.

Regulations on suspension of investment projects in Vietnam

Pursuant to the provisions of Article 47 of the Law on Investment 2020, when suspending an investment project, the investor must notify the investment registration authority in writing. If the project has to be suspended in a force majeure event, the State shall allow the investor to be exempt from paying land rents or reduce land levies for the suspension period with a view to remedying consequences caused by the force majeure event.

The investment authority shall decide to suspend an investment project in part or in full in the following cases:

- To protect sites/monuments, relics, antiques or national treasures in accordance with the Law on Cultural Heritage;

- To rectify a violation of the law on environmental protection at the request of the environment authority;

- To take measures to ensure occupational safety at the request of the labor authority;

- Pursuant to a judgment or decision of a court or an arbitral award;

- The investor fails to adhere to the written approval for investment guidelines or the investment registration certificate and recommits administrative violations after incurring penalties.

The Prime Minister shall decide to suspend a project in part or in full if the project execution is detrimental or potentially detrimental to national defense and security at the request of the Ministry of Planning and Investment.

Mai Thanh Loi

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