Investment projects in accordance with Vietnamese law will have a certain term. Upon the expiration of the operation term on the Investment Certificate, if the investor wishes to continue the operation of the project, he/she must apply for an extension of the Investment Certificate. In the article below, OTIS LAWYERS would like to share with you the procedures for renewing the Investment Certificate!
What is an Investment Certificate?
Investment Certificate is a paper or electronic document issued by a competent state agency; which records the investor's registered information about the investment project, including:
– Name of investment project.
– Investors
– Investment project code
– Location of the investment project, land use area.
– Objectives and scale of investment projects.
– Investment capital of the investment project (including contributed capital of the investor and mobilized capital).
– Operational duration of the investment project.
– Investment project implementation progress
– Forms of investment incentives and support and grounds and conditions for application (if any).
– Conditions for investors implementing investment projects (if any).
Term of the operation of the investment project
Pursuant to Article 44 of the Investment Law 2020, the operation duration of an investment project is prescribed as follows:
- The duration of operation of an investment project in an economic zone shall not exceed 70 years.
- The operation term of an investment project outside an economic zone shall not exceed 50 years. Investment projects implemented in areas with difficult socio-economic conditions; geographical areas with extremely difficult socio-economic conditions; or investment projects with large investment capital but slow capital recovery; the operation term of the investment project may be longer but must not exceed 70 years.
- For investment projects allocated land by the State; lease land but investors are slow to hand over land; The period of delay in land handover by the State shall not be included in the operation duration and implementation progress of the investment project.
- When the operation term of the investment project expires, the investor wishes to continue implementing the investment project; and satisfy the conditions prescribed by law, they may be considered for an extension of the operation term of the investment project; but not exceeding the maximum time limit specified in Clauses 1 and 2 of this Article, except for the following investment projects:
a) Investment projects using outdated technology; potentially causing environmental pollution, resource-intensive;
b) An investment project in which the investor must transfer without refund of assets to the State of Vietnam or the Vietnamese party.
In addition, the Government details the operation duration of investment projects in Article 27 of Decree 31/2021/ND-CP, specifically:
- The operation term of an investment project as prescribed in Clauses 1 and 2, Article 44 of the Law on Investment is counted from the date the investor is issued with an investor approval decision; The decision to approve the investment policy concurrently with the investor's approval; or Certificate of Investment Registration for the first time.
For investment projects in which land is allocated, leased or changed by the State; the project's operation term is counted from the date the investor is given the decision to allocate land; decision on land lease, decision on change of land use purpose. In case the investor has made a decision on land allocation or land lease; decide to change the land use purpose but the land handover is delayed, the operation term of the investment project; calculated from the date of handing over the land in the field.
- During the implementation of investment projects; investors may increase or decrease the operating term of the investment project. The operating term of an investment project after adjustment must not exceed the time limit specified in Clauses 1 and 2, Article 44 of the Law on Investment.
- Based on the objectives, scale, location and operational requirements of the investment project; competent agencies approve investment policies; the investment registration agency considers and decides the duration of operation; adjust the operation term of the investment project according to the corresponding provisions in Clauses 1 and 2 of this Article.
Conditions for renewal of the Investment Certificate
When the operation term of the investment project expires; if the investor has the need to extend the investment project; (must not exceed the maximum time limit specified in Clauses 1 and 2, Article 44 of the Law on Investment 2020); and satisfy the conditions specified in Clause 4, Article 27 of Decree 31/2021/ND-CP:
a) Conform to the national master plan; zoning; provincial planning; urban planning and special administrative - economic unit planning (if any); consistent with urban development goals and orientations; housing development program (for investment projects on construction of houses and urban areas);
b) Satisfy the conditions for land allocation; lease land according to the provisions of the law on land (in case of request for extension of land use term).
In addition, in case the investment project meets the conditions for extension of operation; specified at Point b, Clause 4 of this Article; but does not satisfy the conditions specified at Point a, Clause 4 of this Article; competent agencies approve investment policies; the investment registration agency considers extending the operation term of the investment project year by year; until there is an annual land use plan of the district level; according to the provisions of the law on land. Investors only carry out procedures to extend the project's operation term for the first year of extension.
Cases in which the Investment Certificate cannot be renewed
a) Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
b) An investment project in which the investor must transfer without refund of assets to the State of Vietnam or the Vietnamese party.
Investment Certificate Renewal Procedure
Procedures for extending the operation duration of an investment project are carried out as follows:
a) For investment projects that have been approved with investment policies; investors submit 04 sets of dossiers to the Ministry of Planning and Investment; or the investment registration agency corresponding to the authority to approve the project investment policy.
The Dossier includes:
- A written request for extension of the operation term of the investment project;
- Decision approving the investment policy;
- Investment registration certificate;
- Decision on investor approval or equivalent legal document;
- Certificate of land use right or papers of equivalent legal value; documents proving the investor's financial capacity include one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution's commitment to financial support; guarantee on the financial capacity of the investor; other documents proving the investor's financial capacity;
b) Within 03 working days; from the date of receipt of a valid dossier specified at Point a of this Clause; Ministry of Planning and Investment; the investment registration agency sends the dossier to the land management agency and relevant agencies; to collect opinions on the satisfaction of conditions specified in Clause 4, Article 44 of the Investment Law and Clause 4, Article 27 of this Decree;
c) Within 10 days from the date of receipt of valid dossiers; the consulted agency gives opinions on the satisfaction of the conditions specified in Clause 4, Article 44 of the Investment Law and Clause 4, Article 27 of this Decree;
d) Within 15 days from the date of receipt of valid dossiers; Ministry of Planning and Investment; the investment registration agency considers the conditions for extending the operation term of the investment project; specified in Clause 4, Article 44 of the Investment Law and Clause 4, Article 27 of this Decree; to make an appraisal report and submit it to the investment policy-approving agency;
dd) Within 03 working days from the date of receipt of the report from the Ministry of Planning and Investment; the investment registration agency, the investment policy-approving agency shall decide to extend the operation term of the investment project;
e) For an investment project that has been granted an investment registration certificate; and not subject to approval of investment policy: The investor shall submit 04 sets of dossiers as prescribed at Point a of this Clause to the Investment Registration Authority. The investment registration agency shall carry out the prescribed procedures; respectively at points b, c, d and dd of this clause to extend the operation term of the investment project.
For investment projects using land; Within at least 06 months before the expiry of the operation term of the investment project; The investor shall carry out procedures for extending the operation duration of the investment project as prescribed in Clause 2 of this Article.
OTIS LAWYERS. Investment Certificate Renewal Service
OTIS LAWYERS is always proud to be a professional unit in the field of investment consulting and carrying out the procedures for applying for an investment license, adjusting, changing, and extending the Investment Certificate in accordance with the law. With a team of highly qualified lawyers, extensive experience and dedication to clients; We believe in providing investors with the best service; The most professional, reasonable cost and fastest time to complete the procedure. We commit that all customer information is absolutely confidential and customer interests always come first.
For any questions or comments, please contact:
OTIS AND PARTNERS LAW FIRM
Office address: K28 - Group K, Lane 68 Trung Kinh, Yen Hoa Ward, Cau Giay District, Hanoi
Email: [email protected]
Hotline: 0987748111
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