DECISION ON PROJECT TERMINATION AND REVOVATION OF THE INVESTMENT REGISTRATION CERTIFICATE

DECISION ON PROJECT TERMINATION AND REVOVATION OF THE INVESTMENT REGISTRATION CERTIFICATE

Upon project implementation, there are various causes for projects to be shutdown, including both subjective reasons from investors and other objective reasons. Thus, when must the investment project be shut down and how should the procedures to terminate the investment be? HTC Vietnam Law firm will assist investors in answering this matter in the article below.

I. Legal basis

- Investment Law 2014

- Decree 118/2015 / ND - CP

II. Scope of consultation

1. Cases of termination of investment projects

Under the provisions of the Law on Investment 2014, an investment project shall be terminated in the following cases:

- The investor decides to terminate the project;

- The project has to be terminated according to the regulations of the contract or company’s charter;

- The project duration is over;

- The investor fails to overcome the difficulties that lead to project suspension in the cases of decision on suspending part or all of the project;

- The land of the project is withdrawn by the State, or the investor is not permitted to keep using the premises and fails to complete procedures for change of project location within 06 months from the day on which the decision on land/premises withdrawal is issued;

- The registry office cannot contact the investor or the investor’s legal representative after 12 months from the date of suspension of the project;

- The investor fails to execute or is not able to execute the project after 12 months according to the schedule registered with the registry office and is not permitted to extend the project execution schedule;

- The project is terminated under a decision of the Court or arbitral tribunal.

2. Procedures for termination of an investment project

The termination of an investment project shall be carried out by the investor in the following order:

- If the investor decides to shut down the project due to the investor decides to terminate the project, the investor shall send the decision on project shutdown to the investment registration authority within 15 days from its issuance date together with the Investment Registration Certificate (if any);

- Where a project is shut down under the conditions of a contract, enterprise’s charter, or upon the expiration of its operating period, the investor shall submit a notification and return the Investment Registration Certificate (if any) to the investment registration authority within 15 days from the date of shutdown of the project together with documents about the shutdown;

- As for the rest of the cases, the investment registration authority shall issue a decision on project shutdown and revoke the Investment Registration Certificate (if the project has one). The Investment Registration Certificate is annulled from the effective date of the decision on project shutdown.

- With regard to a project operating under an Investment Certificate (also the certificate of business registration) or Investment License, the investment registration authority shall issue a decision on project shutdown without revoking the Investment Certificate (also the certificate of business registration) or Investment License. In this case, the business registration information on the Investment Certificate (also the certificate of business registration) or Investment License is still effective.

- In case of concurrent shutdown of a project and a business organization, the project shall be shutdown as set out in this Article and the investor shall follow procedures for shutting down the business organization according to relevant regulations of law.

After the project is shut down, it shall be liquidated as follows:

- The investor liquidates the project in accordance with regulations of law on asset liquidation;

- With regard to a project that receives land, leases land from the State, or repurposes land, the right to use land and property on land shall comply with regulations of law on land;

- During the course of liquidation of a project, if the investor is a business organization that is dissolved or goes bankrupt, the project shall be liquidated in accordance with regulations of law on dissolution and bankruptcy of business organizations.

The above HTC’s are our consultation on the investment procedures for investment in the form of capital contribution or purchase of shares or stakes. HTC Vietnam Law Firm is honored to accompany clients in resolving all legal issues. Please contact us for the best consulting services.

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For more details, please contact:

HTC Vietnam Law Firm

Address: 15th Floor, Multipurpose Building, 169 Nguyen Ngoc Vu, Trung Hoa Ward, Cau Giay District, Hanoi.

Tel: 0989.386.729; Email: [email protected]

Website: https://htc-law.com; https://luatsuchoban.vn

Translator: Pham Nguyen Nhat Linh