Procedures for extension of investment schedule for foreign investment projects according to the latest law.

Procedures for extension of investment schedule for foreign investment projects according to the latest law.

Currently, many investors are facing difficulties in project implementation according to the schedule, especially in the case of the complicated COVID-19 epidemic. Therefore, investors need to consider extending the investment progress for the avoidances of violation against committed project schedule and being subject to sanctions by competent agencies. In this article, HTC Vietnam Law Firm would like to provide the regulations related to procedures for extending investment progress for foreign investment projects according to the latest law.

1. What is the extension of investment progress?

Extension of investment progress is the regulated prolongation of investment projects’ duration from projects’ commencement until project’s completion and operation as prescribed by law. The investment project implementation schedule includes: Capital contribution progress and capital mobilization; progress in achieving the main objectives.

The extension of investment progress regulated in the Investment Law 2014 and related documents, however, the Investment Law 2020 (passed on June 17, 2020 and took effect from January 1, 2020) abolished the regulations on investment schedule extension to unify the procedures for adjusting the investment project’s schedule and synchronize with the provisions of the Land Law 2013.

2. Requirements for the extension of investment progress for investors

Although the regulations on investment schedule extension have been abolished in the Investment Law 2020, such content is still prescribed in Article 41 of this Law. Accordingly, in case the investor wants to extend the investment schedule, they must satisfy certain conditions and must carry out the investment project adjustment, specifically:

- The investor that has an investment project whose investment guidelines have been approved shall follow procedures for approving the adjustment to the investment guidelines in case the extension of the project execution schedule results in total duration of the project being extended by more than 12 months compared to that stated in the first written approval for investment guidelines;

- Investors with investment projects that are not subject to approval of investment policies or projects that have been approved for investment policies but are not in the above cases, only need to carry out the procedures for adjusting the Investment Registration Certificate.

- If a request for adjustment of an investment project results in the project being subject to approval for its investment guidelines, the investor has to apply for approval for investment guidelines before adjusting the investment project.

Thus, in order to extend the investment schedule, foreign investors must have an investment project that has been granted an investment registration certificate or a written decision approving the investment policy. Then, depending on each case, the investor conducts procedures to extend the project schedule accordingly.

3. Procedures for adjusting investment projects

Procedures for investment guideline approval by the Ministry of Planning and Investment.

- The investor shall submit 08 sets of application to the Ministry of Planning and Investment.

- Within 35 days from the receipt of the valid applications, the Ministry of Planning and Investment shall prepare an appraisal report on the adjustments for submission to the Prime Minister;

- Within 05 working days from the receipt of the appraisal report of the Ministry of Planning and Investment, the Prime Minister shall decide to approve adjustment of the investment guidelines. The decision on approval for adjustment of the investment guidelines shall be sent to investors

Procedures for investment guideline approval by provincial People’s Committees

- The investor submits 04 sets of application to the competent authority

- Within 25 days from the receipt of the valid applications, the investment registration authority shall prepare an appraisal

- Within 5 working days from the receipt of the appraisal report of the investment registration agency, the provincial People’s Committee shall decide to approve the adjustment of investmentguidlines. This decision will be sent to the investor.

- With investment projects that have been granted investment certificates and are not subject to approval for adjustment of investment policies.

- The investor submits 01 application to the Investment Registration agency. Within 10 days from the day on which the valid application is received, the Investment Registration agency shall amend the Investment Registration Certificate for the investor.

NOTES:

• With respect to the investment project whose investment guidelines are approved, the investor is not allowed to extend the investment execution schedule by more than 24 months compared to that stated in the first written approval for investment guidelines, except for the cases specified in Clause 4, Article 41 of the Law on Investment 2020;
• With projects that are allocated or leased land by the State and the extension leads to the fact that the land has not been put into use, the projects shall be extended for another 24 months and the investors must pay an adequate amount of money to the State. If the investors exceed the limited period, the State will recover the land without compensation for the land and properties attached to the land.

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