Investment Project Progress Adjustment Services in Vietnam

During the implementation of an investment project, many investors may encounter delays due to objective circumstances or unforeseen events beyond their control, commonly referred to as force majeure. These delays not only affect business efficiency but also carry potential risks such as administrative sanctions or even project revocation. Adjusting the project implementation timeline is a legitimate legal solution that allows investors to buy additional time, safeguard their interests, and maintain the legal status of their projects. The following article provides information on the investment project progress adjustment services in Vietnam offered by Viet An Law.

Definition of investment project progress adjustment

Investment project progress adjustment refers to the procedure by which an investor applies for an extension of the implementation period of an investment project, as prescribed by law. This period extends from the date of investment approval or issuance of the investment registration certificate to the project’s completion, operation, and utilization.

Grounds for investment project progress adjustment services in Vietnam

• Objective Reasons

• • Delayed site clearance / lack of cleared land: The local authority has not yet completed compensation procedures; the project is subject to zoning plans or awaiting approval of partial planning adjustments.
  • Epidemics – natural disasters – force majeure events: Project implementation is suspended due to social distancing measures; natural disasters have damaged infrastructure and equipment, hindering construction progress.
  • Changes in legal or policy framework: The project must wait for new guidance from relevant ministries or governmental authorities.

• Subjective Reasons

• • Lack of capital – financial difficulties: The investor is waiting for disbursement from foreign partners or has not yet mobilized sufficient funds.
  • Technical or technological obstacles: Equipment transportation routes are blocked; existing equipment is defective and requires mass replacement.
  • Adjustment to investment strategy: The investor wishes to transfer the project, expand its scale, change the project name, or add new business lines.

Conditions for adjustment of investment project implementation schedule

The following conditions generally apply for approval of project progress adjustment services in Vietnam:

• Adjustment extending beyond 12 months: If the total extended duration of project implementation exceeds 12 months compared to the schedule specified in the investment policy approval document, the investor must apply for an amendment to the approved investment policy.
• Fulfillment of capital contribution commitments: The investor must have contributed capital in full and on schedule, as committed in the Investment Registration Certificate. This means all funding obligations must be met as per the investment plan. If the investor fails to contribute capital sufficiently or in a timely manner, the project implementation plan must be amended accordingly.
• Compliance with conditions specified in the Investment Registration Certificate: These include regulations on investment capital, methods of project execution, project content, implementation timeline, and any other conditions prescribed in the certificate. Full compliance with these conditions is a prerequisite for obtaining approval to adjust the project’s implementation schedule.
• Compliance with Investment Reporting Obligations: Investors must fully and timely fulfill their investment reporting obligations in accordance with relevant regulations. Failure to meet these obligations shall result in the ineligibility for an adjustment to the project implementation schedule.

Maximum allowable extension for investment project implementation

For projects subject to investment policy approval, article 41(4) of the Law on Investment 2020 stipulates that investors are not permitted to extend the project implementation schedule by more than 24 months beyond the timeline initially stated in the original investment policy approval document.

However, exceptions apply in the following circumstances:

• Force majeure events as defined under civil and land laws, requiring remedial measures;
• Delays in land allocation, lease, or approval of change in land use purposes by the State, causing postponement of project implementation;
• Delays in administrative procedures on the part of competent authorities, or where the adjustment is made at their request;
• Adjustment due to changes in planning initiated by a competent State agency;
• Modifications to project objectives previously approved in the investment policy decision, or the addition of new objectives subject to investment approval;
• Increase of investment capital by 20% or more, resulting in a change to the scale of the project.

Maximum extension period for projects with investment registration certificate only

According to Official letter No. 2541/CV-TCT 2020, the maximum period for adjusting the implementation timeline of projects with only an investment registration certificate is regulated as follows:

Pursuant to clause 4, article 41 of the Law on Investment 2020, for investment projects subject to investment policy approval, the investor may not extend the project implementation timeline by more than 24 months beyond the initial schedule specified in the original policy approval document.

Therefore, this restriction applies only to projects that require investment policy approval. It does not apply to projects that are only required to obtain an Investment Registration Certificate and are not subject to investment policy approval. In such cases, the law provides more flexibility regarding timeline extensions.

Dossier for investment project progress adjustment

Investors seeking to adjust the project implementation schedule must submit a dossier comprising the following documents:

• Written request for adjustment of project implementation schedule (Form A.I.18 issued under Circular No. 03/2021/TT-BKHDT);
• Financial statements on project implementation up to the time of request;
• Investor’s resolution/decision on the project adjustment, in the case of a corporate investor (for LLCs and JSCs, meeting minutes approving the adjustment must also be included);
• Explanation of reasons for the schedule adjustment;
• Supporting documents substantiating the justification for the adjustment;
• Copy of the investment registration certificate (or the investment policy decision, if applicable);
• Power of attorney, where applicable.

Procedure for investment project progress adjustment services in Vietnam

Step 1: Preparation of a valid dossier

Prepare a complete and accurate dossier with clear justification and supporting documents demonstrating the need for schedule adjustment.

Step 2: Submission to the investment registration authority

Depending on the project’s scale, the application should be submitted to either:

• The Department of Planning and Investment of the relevant province/city; or
• The Management Board of the Industrial Park/Economic Zone.

In addition, investors may submit their application online via the National public service portal (link to be inserted as applicable).

Step 3: Receive results of application processing

The processing timeframe is from 10 to 15 working days, excluding any additional time needed for document supplementation.

Upon acceptance of a valid dossier, the competent authority will proceed with issuing the amended investment registration certificate (IRC) for the investor.

After receiving approval for adjustment, the investor must fulfill periodic reporting obligations and ensure compliance with the revised implementation timeline. Continued delays may lead to project revocation pursuant to article 48 of the Law on Investment 2020.

Viet An Law’s investment project progress adjustment services in Vietnam

Viet An Law provides comprehensive legal support to clients, including:

• Preliminary legal consultation and assessment of the feasibility of project timeline adjustment;
• Strategic advice on appropriate adjustment options to minimize risks of rejection or investment certificate revocation;
• Assistance with drafting and completing all required documents for the adjustment application;
• Representation in submitting dossiers and liaising with competent state authorities;
• Handling rejected applications and advising on remedial measures to prevent project revocation;
• Ongoing legal consulting services for long-term investor support.

Adjusting the implementation schedule of an investment project is not merely a legal procedure—it is a legitimate mechanism enabling investors to adapt proactively, optimize strategies, safeguard their rights, and maintain confidence among stakeholders. In a regulatory environment of constant change, mastering the legal basis and procedure for schedule adjustment is essential to avoiding unnecessary risks.

Viet An Law, with its team of seasoned legal professionals specializing in investment and regulatory procedures, stands ready to accompany and support clients throughout this process.