According to the law in Vietnam, what is the definition of new investment project? What are the rules of execution of investment projects in Vietnam? What are regulations on duration of investment projects in Vietnam? Thank you!
Pursuant to Clause 6, Article 3 of the Law on Investment in 2020 stipulating as follows:
New investment project means a project that is executed for the first time or a project independent from any other running project.
Pursuant to Article 42 of the Law on Investment in 2020 stipulating as follows:
- For a project subject to approval for its investment guidelines, the approval for investment guidelines shall be granted before the investor executes the investment project.
- For a project subject to issuance of an investment registration certificate, the investor shall follow the procedures for issuance of the investment registration certificate before executing the investment project.
- Investors shall comply with regulations of this Law and the laws on planning, land, environment, construction, labor and fire prevention and fighting; other relevant regulations of law, written approval for investment guidelines (if any) and the investment registration certificate (if any) during execution of their investment projects.
Pursuant to Article 44 of the Law on Investment in 2020 stipulating as follows:
1. The duration of an investment project inside an economic zone shall not exceed 70 years.
2. The duration of an investment project outside an economic zone shall not exceed 50 years. The duration of an investment project in a disadvantaged area or extremely disadvantaged area or a project with large investment capital but with slow rate of capital recovery may be longer but shall not exceed 70 years.
3. If an investment project uses land allocated or leased out by the State, but the transfer of land is delayed, the delay shall not be included in the project duration or execution schedule.
4. Upon expiry of the duration of an investment project, if the investor wishes to keep executing the investment project and satisfies the conditions as prescribed by law, the duration of the investment project may be extended but shall not exceed the maximum prescribed in Clauses 1 and 2 of this Article, except for the following investment projects:
a) Investment projects using obsolete, environment threatening or resource-intensive technologies;
b) Investment projects in which the investor must transfer assets without reimbursement to the State of Vietnam or the Vietnamese side.
5. The Government shall elaborate this Article.
Best regards!