CONSEQUENCES OF PROCEDURES FOR TERMINATING INVESTMENT PROJECT ACTIVITIES?
QUESTION
Dear TLK Law Firm, I currently have questions and hope to hear from you as follows: I am a Japanese citizen and have contributed capital to implement an investment project in Vietnam. Due to a number of reasons, I decided to terminate the investment project. Currently, I am carrying out procedures to terminate the operation of the investment project. So let me ask, what are the consequences of the procedure for terminating investment project activities? Looking forward to your company's answer. Thank you!
RELATED ARTICLES
1. Comprehensive investment project termination and consulting services
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
Implementing investment projects is one of the legal forms of investment recognized by Vietnamese law and is of interest to many investors, because this is one of the forms of investment that brings high profits. However, the procedures related to investment projects are not easy to implement. One of them must include procedures for terminating investment projects. So, what consequences will there be when terminating an investment project? 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 the consequences of procedures for terminating investment project activities?
Photo 1. Consequences of procedures for terminating investment project activities?_Hotline: 0972118764
I. SOME IMPORTANT LEGAL ISSUES RELATED TO THE CONSEQUENCES OF PROCEDURES FOR TERMINATION OF INVESTMENT PROJECT ACTIVITIES
1. Characteristics of investment projects?
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.
Based on this concept, it can be seen that investment projects have the following basic characteristics:
First: Investment projects always have clear goals
No matter what field the investment project you build is in, how long it takes, what the estimated cost is,... it must have a clear purpose and specific goals. Investment objective is also one of the important contents expressed in the investment project proposal submitted along with the application for investment policy decision. Therefore, in order to have a project approved, the person preparing the budget, the human resources team, and the investor must set specific goals consistent with the project implementation process.
Second: Investment projects have a finite lifespan
An investment project during construction can be a medium-term or long-term project. And whether the implementation time is long or short, they are all finite. More specific:
(1) The operating term of an investment project in an economic zone must not exceed 70 years;
(2) 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 projects with large investment capital but slow capital recovery will have a limited time limit longer but not exceeding 70 years.
Third: Investment projects can be transferred
Investors have the right to transfer all or part of the investment project to another investor when meeting the conditions prescribed in the Investment Law 2020. Including:
(1) Does not fall into one of the cases of termination of operations;
(2) Meet the investment conditions applicable to foreign investors in case the foreign investor receives the transfer of a project in an investment industry or profession with investment conditions applicable to foreign investors;
(3) Comply with the conditions prescribed by land law and real estate business law in case of project transfer associated with transfer of land use rights;
(4) Conditions specified in the Investment Registration Certificate or other relevant laws (if any).
2. 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.
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.
3. Consequences of procedures for terminating investment project activities
Terminating an investment project means ceasing to continue investment and business activities. According to the Investment Law 2020, terminating investment project activities has the following consequences:
First: The investor will have to liquidate the investment project according to the following regulations:
(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.
Second: The investment registration agency decides to revoke the Investment Registration Certificate in case the investment project terminates its operations, except in the case of partial termination of the investment project's operations.
Third: If the process of terminating or liquidating an investment project results in the investor being dissolved, bankrupt or inactive, the liquidation after termination of the investment project will be carried out in accordance with the provisions of law on dissolution and bankruptcy.
Thus, it can be seen that terminating investment project activities is a relatively complicated procedure. After completing the termination of investment project activities, this procedure is not yet completed. There are many tasks that the investor needs to carry out after this procedure.
=> See more: How to carry out procedures for terminating investment project activities?
Photo 2. Consequences of procedures for terminating investment project activities?_Hotline: 0972118764
II. SUMMARY OF THE ANSWER SECTION: CONSEQUENCES OF PROCEDURES FOR TERMINATION OF INVESTMENT PROJECT ACTIVITIES?
Dear Customers, from the above synthesis and analysis, TLK Law Firm would like to give the following answer:
Implementing procedures to terminate investment project activities leads to the following consequences:
(1) The investment project must be liquidated;
2) Investment registration certificate revoked.
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.
=> See more: Cases of terminating investment project activities? Can a project that has not yet expired be terminated?
IV. SOME QUESTIONS RELATED TO THE CONSEQUENCES OF PROCEDURES FOR TERMINATION OF INVESTMENT PROJECT ACTIVITIES
Question 1: What is the content of the investment registration certificate?
Reply:
According to the Investment Law 2020, the investment registration certificate has the following contents:
1. Name of investment project;
2. Investors;
3. Investment project code;
4. Location of investment project, land area used;
5. Objectives and scale of investment projects;
6. Investment capital of investment projects (including investors' contributed capital and mobilized capital);
7. Operational term of the investment project;
8. Progress of investment project implementation, including:
- Progress of capital contribution and mobilization of capital sources;
- Progress in implementing the main operational objectives of the investment project. In case the investment project is divided into stages, the progress of each stage must be specified.
9. Forms of incentives and investment support and grounds and conditions for application (if any);
10. Conditions for investors implementing investment projects (if any).
Question 2: What is the deposit level to ensure investment project implementation?
Reply:
According to the Investment Law 2020, based on the scale, nature and implementation progress of each investment project, the deposit level to ensure the implementation of the investment project ranges from 01% to 03% of the project's investment capital. In case an investment project includes many investment stages, the deposit amount is paid and refunded according to each stage of investment project implementation, except in cases where it is not refundable.
=> See more: What industries can foreign-invested enterprises operate in?
Above is some general advice that we would like to offer to our customers. As a service provider, we always understand and are ready to accompany and solve the needs and difficulties that customers are facing. If you still have questions or need more in-depth advice, please contact the hotline: 0972118764 to receive direct advice from a lawyer (completely free consultation).
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