Extension of Investment Project Operation Term
Foreign Capital Company After the expiry of the operation term of an investment project as registered on the Certificate of Investment Registration. If the investment project continues to be implemented, the investor must follow the procedure to extend the project operation period before the license expires. The extended period shall not exceed 50 years for a location outside the economic zone, and not exceeding 70 years for a location within the economic zone.
The operating time of an investment project is prescribed by Vietnamese law as follows
(Excerpt from Article 43 of the Law on Investment 2014. Duration of an investment project)
🔸 The operation term 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, areas with extremely difficult socio-economic conditions, or projects with large investment capital but slow capital recovery, longer but not more than 70 years.
🔸 For an investment project that is allocated or leased land by the State but the investor is late in handing over the land, the delay in handing over the land by the State shall not be included in the operation term of the investment project. Thus, for the case that the Investor has implemented the project but the time limit is near the end, the time will still be extended. Depending on the area where the company invests, the maximum time is specified in Article 43 of the Investment Law.
Difference between the term of the Investment Certificate and the Certificate of Business Registration.
The term of the Investment Certificate is also the operation period of the investment project. It is specified in Article 43 of the Law on Investment 2014. In some cases, depending on the investment field or for some other reason, the licensing agency only grants a certain term.
The Enterprise Law 2014 does not stipulate the duration of the Enterprise Registration Certificate. Thus, the company has the right to self-determine or not in the company's charter.
Procedures for extending the PROJECT OPERATION TIME on the Investment Certificate
DOCUMENTS REQUEST FOR EXPANDING PROJECT OPERATION TIME:
☑️ A written request for adjustment of the investment project (form prescribed in Appendix I.7);
☑️ Report on project implementation (form prescribed in Appendix I.8);
☑️ Investment project proposal (form prescribed in Appendix I.3);
Copy of one of the following documents:
- The investor's financial statements for the last 2 years.
- Commitment to financial support of the parent company.
- Commitment to financial support from a financial institution.
- Guarantee of investors' financial capacity.
- Documents explaining the financial capacity of the investor.
☑️ Investor's decision on changing project location;
☑️ BCC contract for investment projects in the form of BCC contract.
Time limit for settlement of PROJECT OPERATION TIME extension: 10-15 working days.
See more:
RESULT OF REPRESENTATIVE OFFICE LICENSE
ESTABLISHMENT OF BRANCH REPRESENTATIVE OFFICE
For a free consultation procedure EXTENDED PROJECT PERFORMANCE please contact ABA VISA by Hotline 0938165817
