CASES OF TERMINATING INVESTMENT PROJECT ACTIVITIES. CAN A PROJECT THAT HAS NOT YET EXPIRED BE TERMINATED?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: I am investing in a project in Hanoi, but due to some personal reasons, I want to terminate the project's activities. So let me ask, in what cases can an investment project be terminated? Can a project that has not yet expired be terminated? Looking forward to your company's answer. Thank you!
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1. Consulting on establishing investment projects quickly, professionally and comprehensively
2. Company providing investment certificate adjustment service
Thank you for your trust and sending questions to TLK Law Firm. Based on legal regulations and practical solutions, we would like to send you the following consulting content:
LEGAL BASIS
1. Investment Law No. 61/2020/QH14 passed by the National Assembly on June 17, 2020;
2. Decree No. 31/2021/ND-CP issued by the government on March 26, 2021 detailing and guiding the implementation of the Investment Law;
3. Other legal documents providing relevant guidance.
CONSULTATION CONTENT
Currently, our country's economic market is increasingly integrating with the world market, attracting many large domestic and foreign investors. Construction projects are invested with large capital, bringing many benefits. However, due to many different reasons, many businesses, despite taking many corrective measures, still cannot maintain operations, leading to project termination. So what is the case of terminating investment project activities? Can a project that has not yet expired be terminated? This is the question that most customers send to TLK Law Firm.
Therefore, through this article, we - TLK Law Firm will answer your questions about cases of terminating investment project activities? Can a project that has not yet expired be terminated?
Photo 1. Cases of terminating investment project activities. Can a project that has not yet expired be terminated?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO CASES OF TERMINATION OF INVESTMENT PROJECT ACTIVITIES
1. What is an investment project?
According to the Investment Law 2020, an investment project is a collection of proposals to invest medium-term or long-term capital to conduct business investment activities in a specific area, within a specified period of time.
Thus, an investment project is a collection of information, data, activities and some financial and labor factors... to implement a previously established plan. The ultimate goal of this activity is to bring initiatives and ideas into reality, true to the original purpose. At the same time, investment projects are the basis for competent state agencies to carry out management measures and grant investment licenses; it is the basis for investors to implement investment activities and evaluate the effectiveness of the project.
2. Cases of terminating investment projects? If the project has not yet expired, can it be terminated?
According to Decree 31/2021/ND-CP, investment projects terminate operations in the following cases:
First: According to the decision of the Investor or according to the contract or charter of the enterprise, the investor terminates the investment project in the following cases:
(1) The investor decides to terminate the operation of the investment project;
(2) According to the conditions for termination of operations specified in the contract and charter of the enterprise;
(3) Expiration of the investment project's operating term.
Second: According to the decision of the investment registration agency, the investment registration agency terminates part or all of the investment project's activities in the following cases:
(1) The project temporarily suspends investment according to the decision of a state agency or the Prime Minister. The investor's inability to overcome the shutdown condition;
(2) The investor is not allowed to continue using the investment location; Failure to carry out procedures to adjust investment location within 06 months;
(3) The investment project has stopped operating; expires 12 months from the date of cessation of operations; The investment registration agency cannot contact the investor/legal representative of the investor;
(4) Investment projects subject to land recovery due to not putting the land into use; delay in putting land into use in accordance with land laws;
(5) Investors do not deposit; There is no margin obligation guarantee;
(6) Investors carry out investment activities on the basis of fake civil transactions;
(7) According to court judgments, decisions, and arbitration awards.
Thus, the investment project will be terminated in the above cases. In case the investment project has not expired but falls into one of the above cases, it will be terminated before its expiration date.
3. Operational term of the investment project
According to the Investment Law 2020, the term of investment projects is prescribed as follows:
First: The operating term of an investment project in an economic zone must not exceed 70 years.
Second: The operating term of an investment project outside an economic zone must not exceed 50 years. Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery are the operating term of the investment project can be longer but must not exceed 70 years.
Third: For investment projects that are allocated or leased land by the State but the investor is late in handing over the land, the time the State is late in handing over the land is not included in the operating term and implementation progress of the project. investment project.
Fourth: When the investment project's operating term expires, if the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, the operating term will be considered for extension of investment projects but not exceeding the maximum term specified in the first and second sections, except for the following investment projects:
(1) Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
(2) Investment projects in cases where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese party.
Thus, depending on the type of investment project, there will be different deadlines. In case the investment project's operating term expires and the investor wishes to continue implementing the investment project, they can apply for an extension.
Photo 2. Cases of terminating investment project activities. Can a project that has not yet expired be terminated?_Hotline: 0972118764
II. SUMMARY OF THE ANSWER SECTION: CASES OF TERMINATION OF INVESTMENT PROJECT ACTIVITIES. CAN INVESTMENT PROJECTS THAT HAVE NOT EXPIRED BE TERMINATED?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
(1) Investment projects terminate operations in the following cases:
- Terminate the project according to the wishes of the Investor;
- Termination of investment project activities by the investment registration agency.
(2) Unexpired investment projects can be terminated.
III. HOW SHOULD YOU BEST CHOOSE AN ORGANIZATION THAT PROVIDES LEGAL SERVICES?
An organization providing quality and reputable legal services should have the following criteria:
First: Must be an official legal organization with a legal operating license;
Second: It is better if the Board of Directors must be lawyers, experienced and have high degrees;
Third: Have a team of lawyers and a systematic, professional, and thoroughly trained human resources system;
Fourth: Friendly, dedicated and make every effort for the benefit of customers. Consider customer satisfaction and work quality as your own honor;
Fifth: Professional, thoughtful, flexible and logical service provision process to optimize work performance and save customers' time;
Sixth: Reasonable and competitive service prices;
Seventh: Rich services in both fields of supply and service packages in the same field for customers to choose the appropriate service package, as well as comprehensive support for customers throughout the operation process. movement;
Eighth: Have the ability to Connect - Promote commercial relationships for customers if customers have needs,...
Finding a comprehensive, professional and reputable legal consulting organization is what every customer wants. Because no one wants to risk losing both money and time while the results are not as expected. However, finding such an organization is not easy because the number of service providers in the Vietnamese market today is very large with varying quality.
A suggestion for you: Although our TLK Law Firm does not dare to claim to be the company providing the best legal services on the market, we satisfy all of the above criteria and more. will definitely be a good choice for you.
IV. SOME QUESTIONS RELATED TO CASES OF TERMINATION OF INVESTMENT PROJECT ACTIVITIES
Question 1: What types of investment projects are there?
Reply:
According to the Investment Law 2020, there are the following types of investment projects:
(1) Expansion investment project is an investment project that develops an active investment project by expanding scale, increasing capacity, innovating technology, reducing pollution or improving the environment;
(2) New investment project is an investment project implemented for the first time or an investment project independent of an active investment project;
(3) Creative startup investment projects are investment projects that implement ideas based on exploiting intellectual property, technology, new business models and have the ability to grow rapidly.
Question 2: According to what principles are investment projects implemented?
Reply:
According to the Investment Law 2020, investment projects are implemented according to the following principles:
(1) For investment projects subject to investment policy approval, the investment policy approval must be done before the investor carries out the investment project;
(2) 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;
(3) Investors are responsible for complying with laws on planning, land, environment, construction, labor, fire prevention and fighting, other relevant laws, and written approvals. Investment policy (if any) and Investment registration certificate (if any) during the implementation of the investment project.
Question 3: After the investment project terminates operations, how is the liquidation of the investment project carried out?
Reply:
According to Decree 31/2021/ND-CP regulating the liquidation of investment projects after the investment project terminates operations as follows:
(1) Investors themselves liquidate investment projects according to the provisions of law on asset liquidation;
(2) For investment projects that are allocated land, leased land, or allowed to change land use purposes by the State, the handling of land use rights and assets attached to land is carried out in accordance with the provisions of law land law and related laws;
(3) During the liquidation of an investment project, if the investor is an economic organization that is dissolved or falls into bankruptcy, the liquidation of the investment project shall comply with the provisions of law on liquidation. entity, bankruptcy of economic organizations.
=> See more: The company provides services for establishing, adjusting and terminating professional investment projects
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