Adjust objectives of FDI company investment project in Vietnam

For starting a project, establishing investment objectives is a necessary task that almost every FDI enterprise needs to perform. However, for some reason during the operation process, the enterprise has changed in project objectives. In this case, adjusting the project objectives process must comply with the provisions of the law. The following article will inform you of the current Vietnam legal content related to adjust objectives of FDI company investment project in Vietnam.

The situation of adjusting investment project objectives

Project objectives are the deciding factor of the entire project. When implementing the project, for some reason, investors may adjust, change, or supplement objectives to suit their operations and development orientation. Specifically, changing project objectives is limited to the following cases:

Procedure to adjust objectives of FDI company investment project in Vietnam

Dossier

According to Article 47 of Decree 31/2021/ND-CP, the dossier for adjusting the objectives of investment projects in Vietnam includes:

• Document requesting adjustment of the investment project;
• Report on the implementation status of investment projects up to the time of adjustment;
• Investor’s decision on investment project adjustment;
• Explanation of the reason for adjusting investment project objectives;
• Investment project proposal including investment project objectives;
• Power of Attorney for Viet An Law (if any).

Note:

• Investors need to demonstrate the necessity of changing investment objectives as well as the feasibility of the project after changing objectives.
• The dossier is submitted to the Investment Registration Agency that issued the investment certificate to the enterprise.

Step of Procedure

Step 1: Investors register to declare their profile online on the foreign investment information portal. Some provinces require online submission of dossiers on the public administrative service page of that province.

Step 2: Investors submit investment project adjustment dossiers to the competent Investment Registration Agency;

Implementation time: Within 10 days from the date of application submission, the Investment Registration Agency shall issue an Investment Registration Certificate or notify the applicant of the request for amendment or supplementation of the application.

Step 3: The operational objectives of the projects correspond to the business lines in the business registration content. Therefore, when adjusting the operational objectives, the economic organization must change the business lines according to regulations. In case the economic organization is an enterprise, it must carry out the procedure to change the business registration content at the competent business registration agency;

Implementation time: Within 3 working days, the Business Registration Authority shall issue an Enterprise Registration Certificate after change or notify the request for amendment or supplementation of the dossier.

Note:

• In case the Investment Registration Certificate is also the Enterprise Registration Certificate, when the investor changes the project objective, he/she must carry out the procedures for granting the Investment Registration Certificate at the Investment Registration Agency according to the documents, order, and procedures prescribed in the Investment Law 2020 corresponding to the adjusted content.
• In case the investment project has been specified in the document approving the investment policy or adding objectives subject to the investment policy approval, the investor must carry out the procedure to adjust the Decision approving the investment policy accordingly by the changed content. After basing the Decision approving the adjustment of the investment policy, the adjustment will be made on the Investment Registration Certificate.

Authority to adjust investment project objectives

• The Department of Planning and Investment where the investment project is implemented shall adjust the Investment Registration Certificate for projects: implemented in 02 or more provincial-level administrative units; Projects implemented inside and outside industrial parks, export processing zones, high-tech zones, and economic zones; Investment projects implemented in industrial parks, export processing zones, high-tech zones, economic zones where the Management Board of industrial parks, export processing zones, high-tech zones, economic zones has not been established or is not under the management of the Management Board above.
• The Management Board of industrial parks, export processing zones, high-tech zones, and economic zones shall adjust the Investment Registratio Certificate for the following projects: Investment projects on construction and business of infrastructure of industrial parks, export processing zones, high-tech zones, and functional areas in economic zones; Investment projects implemented in industrial parks, export processing zones, high-tech zones, and economic zones.

Conditions to note when adjust objectives of FDI company investment project in Vietnam

The investment registration authority shall issue an Investment Registration Certificate to the investor when the project meets the following conditions:

• Not in the prohibited business investment sectors as prescribed in Article 6 of the Investment Law and international treaties on investment;
• The location for implementing the investment project is determined based on a valid copy of the land use rights document or a valid copy of the location lease agreement or other documents or papers determining the right to use the location to implement the investment project;
• Investment projects following planning;
• Meet the conditions on investment rate per land area prescribed by the Provincial People’s Committee;
• Meet market access conditions according to Vietnam’s international commitments in effect.

Above is the content of Viet An Law’s advice on adjust objectives of FDI company investment project in Vietnam. If you have any legal problems or need to use the service of implementing procedures for adjusting project objectives, register investment project in Vietnam, please contact Viet An Law for timely support.

Updated: 8/2024