Time is adjusted to maximize implementation progress for projects that only have an Investment Registration Certificate according to legal regulations

1. Regulations on adjusting investment projects?

Pursuant to Article 41 of the Law on Investment 2020, which stipulates:

– During the implementation of an investment project, investors have the right to adjust goals, transfer part or all of the investment project, merge projects or divide or split a project into multiple projects, use land use rights and assets on land belonging to an investment project to contribute capital to establish an enterprise, business cooperation or other contents and must comply with the provisions of law.

– Investors carry out procedures to adjust the Investment Registration Certificate in case the adjustment of the investment project changes the content of the Investment Registration Certificate.

– Investors whose investment projects have been approved with investment policies must do so. Procedures for approving investment policy adjustments if falling into one of the following cases:

+ Changing the objectives specified in the investment policy approval document; Adding targets subject to investment policy approval;

+ Changing the scale of land area used by more than 10% or over 30 hectares, changing the investment location;

+ Changing the total investment capital by 20% or more, changing the scale of the investment project;

+ Extending the progress of the investment project but the total time project investment exceeds 12 months compared to the investment project implementation schedule specified in the initial investment policy approval document;

+ Adjusting the operating term of the investment project;

+ Changing the technology that has been appraised and consulting during the investment policy approval process;

+ Changing the investor of the approved investment project Approve the investment policy simultaneously with the investor’s approval before the project is exploited, operated or changes in conditions for investors (if any).

– For investment projects with approved investment policies, investors are not allowed to adjust the investment project implementation schedule more than 24 months compared to the investment project implementation schedule specified in the initial investment policy approval document, except for one of the following cases:

+ To overcome consequences in cases of force majeure according to the provisions of civil law and law on land;

+ Adjustment of investment project implementation progress due to investors being slow in being allocated land, leased land, or allowed to change land use purposes by the State;

+ Adjustment of investment project implementation progress at the request of state management agencies or slow implementation of administrative procedures by state agencies;

+ Adjustment of investment projects by agencies the state changes the planning;

+ Changes the objectives specified in the investment policy approval document; adding targets subject to investment policy approval;

+ Increasing total investment capital by 20% or more, changing the scale of the investment project.

– State agencies with the authority to approve investment policies have the authority to approve adjustments to investment policies.

In case the request to adjust an investment project leads to an investment project falling under the jurisdiction of the investment policy. If a higher level has the authority to approve investment policies, that level has the authority to approve adjustments to investment policies according to the provisions of this Article.

– The order and procedures for adjusting investment policies shall comply with the corresponding provisions in Articles 34, 35 and 36 of this Law for adjusted contents.

– In case the request to adjust an investment project results in an investment project belonging to must approve the investment policy, the investor must carry out the investment policy approval procedure before adjusting the investment project.

– The Government regulates this Article in detail.

2. Principles for implementing investment projects?

Pursuant to Article 42 of the Law on Investment 2020 on principles for implementing investment projects, which stipulates:

– For investment projects subject to investment policy approval, investment policy approval must be done before the investor carries out the investment project investment.

– For investment projects subject to issuance of Investment Registration Certificates, investors are responsible for carrying out procedures for issuance of Investment Registration Certificates before implementing the investment project.

– Investors are responsible for complying with the provisions of this Law, laws on planning, land, environment, construction, labor, fire prevention and fighting, other relevant laws, investment policy approval documents (if any) and Investment Registration Certificate (if any) during the implementation of the investment project.

3. How is the maximum adjustment time for implementation progress for projects that only have an Investment Registration Certificate?

Official Dispatch 2541/CV-TCT 2022, guiding how the time limit for maximum adjustment of implementation progress for projects with only an Investment Registration Certificate is implemented:

According to the provisions of Clause 4, Article 41 of the Investment Law, for investment projects with approved investment policies, investors are not allowed to adjust the investment project implementation schedule by more than 24 months compared to the investment project implementation schedule specified in the initial investment policy approval document.

Thus, the limitation on the time limit for adjusting project implementation progress as prescribed in Clause 4, Article 41 of the Investment Law only applies to investment projects subject to investment policy approval, and does not apply to projects that only operate under the Investment Registration Certificate and are not subject to investment policy approval.