1. Cases of termination of investment projects

According to Clause 1, Article 57 of Decree 31/2021/ND-CP, investment projects terminate their operation in the cases specified in Clauses 1 and 2, Article 48 of the Law on Investment 2020, specifically as follows:

Investors terminate investment activities or investment projects in the following cases

• The investor decides to terminate the operation of the investment project;
• According to the conditions for termination of operation specified in the contract and charter of the enterprise;
• The operation duration of the investment project has expired.

The investment registration agency shall terminate or partially terminate the operation of an investment project in the following cases

• The investment project falls into one of the cases specified in Clauses 2 and 3, Article 47 of the Law on Investment 2020 and the investor is unable to overcome the conditions for suspension of operation;
• Investors are not allowed to continue using the investment location and fail to carry out procedures for adjusting the investment location within 06 months from the date on which they are not allowed to continue using the investment location, except for the case specified at Point d, Clause 2, Article 48 of the Law on Investment 2020;
• If the investment project has ceased operation and expires 12 months from the date of suspension of operation, the investment registration agency cannot contact the investor or the investor’s legal representative;
• Investment projects are subject to land recovery due to failure to put land into use, delay in putting land into use in accordance with the land law;
• The investor does not make a deposit or does not have a guarantee for the deposit obligation as prescribed by law for an investment project that is subject to security for the implementation of the investment project;
• Investors carry out investment activities on the basis of fake civil transactions in accordance with the provisions of civil law;
• According to the Court’s judgment or decision, the arbitral award.

2. Procedures for termination of operation of an investment project

Pursuant to Articles 57, 58, 59 and 60 of Decree 31/2021/ND-CP detailing procedures for termination of operation of investment projects in many different cases, accordingly, the termination of operation of investment projects on a case-by-case basis must be carried out according to specific statutory procedures as follows:

In case the investor decides to terminate the operation of the investment project

Investors shall decide to terminate investment activities according to the procedures specified at Point a, Clause 2, Article 57 of Decree 31/2021/ND-CP as follows:

Step 1: The investor issues a decision to terminate the operation of the investment project.

Step 2: The investor sends the decision to terminate the operation of the investment project to the investment registration authority within 15 days from the date of the decision, enclosed with the investment registration certificate (if any).

The investment registration agency terminates or terminates part of the operation of the investment project

Case 1: The agency terminates investment activities in the case of Clause 2, Article 48 of the Law on Investment 2020

Step 1: The investment registration authority decides to terminate the operation of the project

Step 2: Revocation of the investment registration certificate for the investment project

The investment registration certificate shall cease to be valid from the effective date of the decision on termination of operation of the investment project.

Case 2: The investment registration agency terminates the operation of the investment project in case it cannot contact the investor according to the following procedures:

Step 1: Make a border about the investment project stopping operation and not being able to contact the investor.

Step 2: Send a written request to the investor to contact the Investment Registration Authority to settle the termination of the operation of the investment project to the address registered by the investor with the Investment Registration Authority.

Step 3: Send a written request for contact support and post a notice requesting investors to contact.

• After 30 days of not receiving the return from the investor, the business registration authority shall send a written request for assistance in contacting the investor to the commune-level People’s Committee of the locality where the investor resides (for domestic investors who are individuals), the diplomatic mission in Vietnam of the country of which the investor has nationality (for foreign investors external);
• Post a notice requesting investors to contact the Investment Registration Authority to settle the termination of the operation of the investment project within 90 days on the National Investment Portal.

Step 4: Issue a decision to terminate investment activities. After 12 months of applying the above measures, unable to contact the Investor, the Investment Registration Authority shall issue a decision to terminate the operation of the investment project.

Legal basis: Clause 2, Article 48 of the Law on Investment 2020; Point c, Clause 2, Article 57 and Article 58 of Decree 31/2021/ND-CP

Remaining cases of project termination

Case: Termination of operation of an investment project in case of compliance with the conditions specified in the contract, charter of the enterprise or the expiration of the operation duration of the investment project:

Step 1: The investor notifies and submits the Investment Certificate

Within 15 days from the date of termination of the operation of the investment project, the investor must notify and return the investment certificate (if any) to the investment registration agency, enclosed with a copy of the document recording the termination of the operation of the investment project.

Step 2: Notice of termination of investment activities

The investment registration agency shall notify the termination of the operation of the investment project to the relevant agencies.

Legal basis: Points b, c, Clause 1, Article 48 of the Law on Investment 2020 and Point b, Clause 2, Article 58 of Decree No. 31/2021/ND-CP

The above is the content of KALF’s consultation on regulations and procedures for termination of investment projects. All of our above advice is based on applicable legal regulations. If you have any questions or requests about legal issues, please contact us for timely answers.

K & ASSOCIATES LAW FIRM 

Address : 4th Floor, No. 05 Nguyen Thi Nhung, Van Phuc Urban Area, Thu Duc City, HCMC.

Email : info@k-associates.vn

Phone : (+84) 338747705 (Zalo, facebook, viber, Instagram)

Hotline : (+84) 937298177