PROCEDURES FOR TERMINATING INVESTMENT PROJECTS UPON THE EXPIRATION OF ITS OPERATING PERIOD

PROCEDURES FOR TERMINATING INVESTMENT PROJECTS UPON THE EXPIRATION OF ITS OPERATING PERIOD

An investment project is a compilation of medium- to long-term capital proposals aimed at conducting business investment activities within a specific geographical area over a defined period. During the developmental phase and the country's integration, numerous investment projects are directed towards our nation. These investment projects are allocated a stipulated operational timeframe. Upon the expiration of the project's operational period, investors are required to undertake the process of terminating the investment project. The subsequent discourse by HTC Vietnam provides an overview of “Procedures for Terminating Investment Projects upon the expiration of its operating period”.

I. Legal basis

- Investment Law 2014

- Decree 118/2015/ND-CP

- Decree 83/2015/ND-CP

- Cicular 03/2018/TT-BKHDT

II. Scope of consultation

Pursuant to the provisions stipulated in Article 62 of the Law on Investment 2014, upon the expiration of the operational period of the investment project, the investor must terminate the investment project. Under the Law on Investment, The project duration is over, which is as prescribed in point b, clause 1, Article 62 of the Law on Investment, is the case wherein the operational period of the investment project has expired in accordance with the regulations of the national law or the territorial jurisdiction receiving the investment, and the investor has failed to undertake the extension procedures or has not been granted an extension for the investment activity.

1. Sequence of implementation

Step 1: Submit one set of the proposal to terminate the validity of the Investment Registration Certificate to the Ministry of Planning and Investment.

Step 2: The Ministry of Planning and Investment shall verify the validity of the dossier. In cases where the dossier is invalid or contains information that needs clarification, the Ministry of Planning and Investment shall notify the investor in writing within a period of 05 working days from the date of receiving the dossier to complete the documentation.

Step 3: The Ministry of Planning and Investment shall make a decision to terminate the validity and withdraw the Investment Registration Certificate for foreign investment, sending it to the investor, and concurrently forwarding it to the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Labor - Invalids and Social Affairs, the sector management authority, the State Bank of Vietnam, and the People's Committee of the province or centrally-run city where the investor's main office is located.

2. DOCUMENTATION REQUIREMENTS

(1) An application for the termination of the validity of the Foreign Investment Registration Certificate, following the template provided by the Ministry of Planning and Investment.

(2) The original Foreign Investment Registration Certificate.

(3) The decision to terminate the foreign investment project in accordance with the authority stipulated in Article 57 of the Law on Investment (original or valid copy).

For foreign investment projects by state-owned enterprises holding 100% of the charter capital, the decision to invest abroad, as stipulated in point e, Article 55 of the Law on Investment, consists of the following documents:

+ A written certification of the owning authority permitting the investor to carry out the foreign investment project, including essential details such as the investor, objectives, scale, form, investment location, total investment capital, capital mobilization plan, capital structure, project implementation schedule, and investment efficiency criteria to be achieved.

+ The internal appraisal report on the proposal for the foreign investment project, serving as the basis for approval by the owning authority as mentioned in Point a above.

(4) Documentation proving that the investor has completed the liquidation of the project in accordance with Article 24 of this Decree (valid copy). Specifically:

+ Immediately after concluding the investment project, the investor must liquidate the investment project in accordance with the laws of the host country or territory receiving the investment.

+ Within a period of 6 months from the date of the tax settlement report or an equivalent legally valid document in accordance with the laws of the host country or territory related to the conclusion of the investment project, the investor must repatriate to the home country all remaining funds from the liquidation of the investment project.

+ In need of extending the deadline stipulated in Paragraph 2 of this Article, no later than before the investor's deadline, the investor must submit a written request with clear reasons to the Ministry of Planning and Investment for consideration and decision. The extension shall be granted only once and for no more than 6 months. Within 15 days from the date of receiving the investor's request, the Ministry of Planning and Investment shall issue a written response to the investor regarding the extension of the deadline for repatriating all remaining funds from the liquidation of the investment project.

+ Within 60 days from the completion of the liquidation of the foreign investment project and repatriating all remaining funds from the liquidation of the investment project (if applicable), the investor shall proceed with the termination procedures for the foreign investment project in accordance with Article 25 of this Decree.

3. RESOLUTION TIMEFRAMES

In cases where the dossier is invalid or contains information that needs clarification, the Ministry of Planning and Investment shall notify the investor in writing within a period of 05 working days from the date of receiving the dossier to complete the documentation.

Within 15 days from the date of receiving a valid dossier, the Ministry of Planning and Investment shall make a decision to terminate the validity and withdraw the Foreign Investment Registration Certificate.

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

(Writer: Tran Ha)

Translator: Pham Nguyen Nhat Linh