Term of Investment Certificate
The term of the Investment Certificate is also the operating term of the investment project. The term of the Investment Registration Certificate is considered and decided by the Investment Certificate Issuing Agency based on the objectives, scale, location, and operational requirements of the investment project. Accordingly, the maximum term of the Investment Certificate is specified as follows:
- The term of operation of an investment project in an economic zone must not exceed 70 years.
- The operating term of an investment project outside an economic zone must not exceed 50 years.
- Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery are required the operation term of an investment project may be longer but must not exceed 70 years.
The operating term of an investment project as prescribed in Clauses 1 and 2, Article 44 of the Investment Law 2020 is calculated from the date the investor is issued a Decision on investor approval, Decision on approval of joint investment policy with the investor approval or the initial investment registration certificate. For investment projects that are allocated land, leased land, or changed land use purpose by the State, the project’s operating term is calculated from the date the investor is given the decision to allocate land, decide to lease land, or decide to lease land. intend to change the land use purpose. In cases where the investor has had a decision to allocate land, a decision to lease land, or a decision to change the purpose of land use but is late in handing over the land, the operating term of the investment project is calculated from the above date of land handover in the field.
Term for extension of investment registration certificate in Vietnam
- Upon the expiration of the operation term of an investment project, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the investor may consider extending the operation term of the investment project but not exceeding 70 years for investment projects in economic zones; 50 years for investment projects outside economic zones.
- The extended operation period for investment projects specified in Clause 4, Article 27 of Decree 31/2021/ND-CP shall be considered on the basis of the project’s objectives, scale, location, and operational requirements and does not exceed a term of 70 years for investment projects in economic zones; 50 years for investment projects outside economic zones.
- In case the investment project satisfies the conditions for extension of operation specified at Point b, Clause 4, Article 27 of Decree No. 31/2021/ND-CP but fails to satisfy the conditions specified at Point a, Clause 4 of this Article, the competent authority to approve investment policies, the investment registration agency shall consider extending the operation term of the investment project year by year until an annual land use plan of the district is issued in accordance with the provisions of land law. Investors only carry out procedures to extend the project’s operation term for the first year of extension.
Conditions for extension of investment registration certificate in Vietnam
Based on the objectives, scale, location, and operation requirements of the investment project, if the investor wishes to continue implementing the investment project at the end of the operation term, the competent authority shall approve the investment policy project, the investment registration agency considers and decides to extend the operation term of that project if the following conditions are satisfied:
- In accordance with national planning, regional planning, provincial planning, urban planning, and special administrative-economic unit planning (if any); consistent with urban development goals and orientations, housing development planning programs (for investment projects to build housing and urban areas);
- Meet the conditions for land allocation and land lease according to the provisions of land law (in case of a request to extend land use).
Cases where investment certificates cannot be extended
Projects that do not allow extended investment certificates include:
- Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
- Investment projects in cases where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese party.
Application for extension of investment registration certificate in Vietnam
- A text request for an extension of the operation term of the investment project;
- Decision on approval of investment policy;
- Investment registration certificate;
- Decision on investor approval or equivalent legal documents;
- Certificate of land use right or papers of equivalent legal value;
- Documents proving the investor’s financial capacity include one of the following documents: the investor’s most recent 2-year financial statements; commitment to financial support from the Parent company;
- Commitment to financial support of financial institutions;
- Guarantee on the financial capacity of the investor;
- Other documents proving the financial capacity of the investor.
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