What are the cases of termination of investment projects in Vietnam?

What are the cases of termination of investment projects in Vietnam? (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are the cases of termination of investment projects in Vietnam?

According to Article 48 of the Law on Investment 2020, cases of termination of investment projects in Vietnam as follows:

- An investor shall terminate their investment activities and/or investment project in the following cases:

+ The investor decides to terminate the project;

+ The project has to be terminated according to the conditions set out in the contract or charter of the enterprise;

+ The project duration is over.

- The investment registration authority shall terminate an investment project in part or in full in the following cases:

+ The investor fails to overcome the difficulties that lead to project suspension in the cases mentioned in Clause 2 and Clause 3 Article 47 of of the Law on Investment 2020;

+ The investor is no longer permitted to keep using the investment location and fails to complete the procedures for change of investment location within 06 months from the date on which the investor is no longer permitted to use the investment location, except for the case specified in Point d of Clause 2 of Article 48 of the Law on Investment 2020;

+ The investment registration authority cannot contact the investor or the investor’s legal representative after 12 months from the date of suspension of the project;

+ Land reserved for the investment project is expropriated by the State for the reason that the land is not used or the land use is delayed in accordance with regulations of law on land;

+ The investor fails to pay the deposit or obtain a bank guarantee as prescribed by law if project execution security is required;

+ The investor conducted the investment activities on the basis of a sham civil transaction in accordance with the civil law;

+ The investment project is terminated according to a judgment or decision of a court or an arbitral award;

- Regarding a project subject to approval for its investment guidelines, the investment registration authority shall terminate the investment project after obtaining the opinion of the authority granting approval for investment guidelines.

- The investor shall themself liquidate the investment project in accordance with the law on liquidation of assets upon termination of the investment project, except for the case specified in Clause 5 of Article 48 of the Law on Investment 2020.

- The settlement of the rights to use land and property on land upon termination of the investment project shall comply with the law on land and other relevant regulations of law.

- The investment registration authority shall decide to revoke the investment registration certificate if the investment project is terminated in accordance with Clause 2 of Article 48 of the Law on Investment 2020, except for the case of termination of part of the investment project.

2. Procedures for termination of investment projects in Vietnam

Pursuant to Clause 2 of Article 57 of Decree 31/2021/ND-CP, procedures for termination of investment projects in Vietnam are as follows:

- If the investor decides to terminate the investment project himself/herself/itself as prescribed in Point a Clause 1 Article 48 of the Law on Investment, such investor shall send the termination decision to the investment registration authority within 15 days from the date of making the decision together with the investment registration certificate (if any);

- If the investment project is terminated according to the conditions set out in the contract or enterprise's charter or upon the expiration of the project’s duration as specified in Points b and c Clause 1 Article 48 of the Law on Investment 2020, the investor shall notify and return the investment registration certificate (if any) to the investment registration authority within 15 days from the date of termination together with a copy of the document recording the termination.

The investment registration authority shall notify the project termination to relevant authorities;

- If the investment project is terminated according to Clause 2 Article 48 of tLaw on Investment 2020, the investment registration authority shall decide to terminate the project and revoke the investment registration certificate in the case of the project issued with the investment registration certificate.

The investment registration certificate shall be invalidated from the effective date of the decision on project termination.

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE