Procedures for termination of investment projects according to the latest regulations

Procedures for termination of investment projects according to the latest regulations

Currently, terminating the operation of investment projects is one of the concerns of many investors and enterprises in the investment market. Spending a large amount of money only for a project run poorly, for various reasons, leads to a loss and waste of resources. Therefore, the procedure for terminating the operation of an investment project needs to be carried out quickly and effectively. Let's find out more about this procedure with HTC Vietnam Law Firm in the article below.

1. Cases of termination of investment projects

An investor shall terminate their investment activities and/or investment project in the following cases:

- The investor decides to terminate the project;

- The project has to be terminated according to the conditions set out in the contract or charter of the enterprise;

- The project duration is over.

Furthermore, the investment registration authority may also terminate an investment project in part or in full in accordance with the applicable law on investment.

2. Procedures for termination of investment projects

Termination of investment projects shall comply with the procedures in Article 57 of Decree 31/2021/ND-CP, specifically as follows:

- If the investor decides to terminate the investment project himself/herself/itself.

Investor shall send the termination decision to the investment registration authority within 15 days from the date of making the decision together with the investment registration certificate (if any);

- If the investment project is terminated according to the conditions set out in the contract or enterprise’s charter or upon the expiration of the project’s duration.

The investor shall notify and return the investment registration certificate (if any) to the investment registration authority within 15 days from the date of termination together with a copy of the document recording the termination. The investment registration authority shall notify the project termination to relevant authorities;

- If the investment project is terminated in the case the investment registration authority shall terminate an investment project in part or in full in accordance with the law on investment in force.

The investment registration authority shall decide to terminate the project and

revoke the investment registration certificate in the case of the project issued with the investment registration certificate. The investment registration certificate shall be invalidated from the effective date of the decision on project termination.

3. Benefits of being consulted by a lawyer on procedures for terminating investment projects

A lawyer shall provide clients with needed assistance for a clear understanding of necessary steps as well as what needs to be prepared for the procedure of investment project termination.

Lawyers with extensive professional experience and a good understanding of investment law will help protect the legitimate rights and interests of clients in the best way, avoiding prolonging ineffective projects that can lead to loss and waste of resources.

Legal consulting services on the Procedures for termination of investment projects

The HTC Vietnam Law Firm provides the following consultation relating to the procedures for the termination of investment projects as follows:

- Consulting clients on conditions, dossiers, and procedures for terminating the issuance of investment certificates;

- Drafting legal documents for enterprises in accordance with the law and information provided by enterprises;

- Consulting on tax and accounting procedures for foreign investors;

- Consulting on cases of termination of investment projects;

- Consulting on the things to be done after the termination of the investment project.

Service Quality Commitment

The following are HTC Vietnam Law Firm’s Principles of Operation: Conscientious - Effective - Reliable. HTC Vietnam Law Firm assures service quality, specifically as follows:

- Ensure that the work is carried out according to the agreed schedule, in accordance with the law, and in accordance with the code of ethics and Codes of Conduct of Vietnamese lawyers.

- Give priority to customers' interests, and make every effort to provide customers with the best quality of service.

- Respect the confidentiality of information that clients provided and information pertaining to the clients.

We are looking forward to a long-term cooperation.

Best Regards!

(Writer: Nguyễn Thúy Hiền/187. 31/03/2022

Translator: Nguyễn Thị Liên)