What is the duration of investment projects in Vietnam?

What is investment project?

Pursuant to 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.

What is the duration of investment projects in Vietnam? (Internet image)

What is the duration of investment projects in Vietnam? 

For each different investment project, there will be different duration; According to the provisions of Article 44 of the Law on Investment 2020, the duration of specific investment projects is as follows:

(1) The duration of an investment project inside an economic zone shall not exceed 70 years.

(2) The duration of an investment project outside an economic zone shall not exceed 50 years. The duration of an investment project in a disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years.

(3) If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.

(4) Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum prescribed in (1) and (2), except for the following investment projects:

- Investment projects using obsolete, environment threatening or resource-intensive technologies;

- Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.

Regulations on adjusting the investment project in Vietnam

Pursuant to Article 43 of the Law on Investment 2020, the investor shall pay a deposit or have a bank guarantee for investment project execution if the project uses land allocated or leased out by the State or is permitted by the State to repurpose land, except for the following cases:

- The investor is the successful bidder for the right to use a land area that is allocated by the State for land levy or leased out by the State for a lump-sum rent;

- The investor wins bidding for execution of an investment project using land;

- The State allocates or leases out land to the investor on the basis of receipt of an investment project for which a deposit has already been paid or for which the capital has been fully contributed or raised following the schedule specified in the written approval for investment guidelines or the investment registration certificate;

- The State allocates or leases out land to the investor for execution of an investment project on the basis of receipt of the land use right and assets on land from another land user.

Based on the scale, nature and execution schedule of each investment project, the deposit for assurance of project execution is 01% - 03% of the investment capital of the project.

If a project comprises multiple investment phases, the amount of deposit shall be paid and returned in each phase of execution of the investment project, except for the case in which the deposit is not returned.

Mai Thanh Loi

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