Adjusting the investment project under Article 42, Law on Investment 2020 of Vietnam

Adjusting the investment project under Article 42, Law on Investment 2020 of Vietnam as follows:

Adjusting the investment project under Article 42, Law on Investment 2020 of Vietnam

Article 41. Adjusting the investment project

1. During execution of an investment project, the investor is entitled to adjust its objectives, transfer the project in part or in full, merge projects or fully divide or partially divide a project into multiple projects or use the land use rights or assets on land which is part of the investment project to contribute capital to establish an enterprise, carry out business cooperation or carry out other activities, and the aforementioned activities shall comply with regulations of law.

2. The investor shall follow procedures for adjusting the investment registration certificate if the adjustment to the investment project changes contents of the investment registration certificate.

3. The investor that has an investment project whose investment guidelines have been approved shall follow procedures for adjusting the investment guidelines in one of the following cases:

a) Any objective specified in the written approval for investment guidelines is changed; any objective that is subject to approval for investment guidelines is added;

b) The land area is increased or reduced by 10% or more than 30 hectares or the investment location is changed;

c) The total investment capital is increased or reduced by 20% or more, thereby changing the scale of the investment project;

d) Extension of the project execution schedule results in total duration of the project being extended by more than 12 months compared to that stated in the first approval for investment guidelines;

dd) The duration of the investment project is adjusted;

e) Any technology that has been appraised or about which opinions have been collected during the process of approving the investment guidelines is changed;

g) There is a change of the investor in the investment project whose investment guidelines are approved together with approval for the investor before the exploitation or operation of the project or there is a change of conditions (if any) applicable to the investor.

4. With respect to the investment project whose investment guidelines are approved, the investor is not allowed to extend the investment execution schedule by more than 24 months compared to that stated in the first approval for investment guidelines, except for one of the following cases:

a) It is necessary to remedy the consequences of an event of force majeure in accordance with the civil law and the land law;

b) The project execution schedule is adjusted because the State delays allocating or leasing out land to the investor or allowing the investor to repurpose land.

c) The project execution schedule is adjusted at the request of a regulatory agency or the regulatory agency delays in performing administrative procedures;

d) The investment project is adjusted because the regulatory agency changes the planning;

dd) Any objective specified in the written approval for investment guidelines is changed; any objective that is subject to approval for investment guidelines is added;

e) The total investment capital is increased or reduced by 20% or more, thereby changing the scale of the investment project.

5. The regulatory agency that has the power to approve investment guidelines also has the power to approve adjustments to investment guidelines.

If the adjustment to an investment project results in the project being subject to approval for its investment guidelines by an authority at a higher level, such authority will have the power to adjust investment guidelines as prescribed in this Article.

6. Procedures for adjusting investment guidelines are specified in Articles 34, 35 and 36 of this Law.

7. If the adjustment to an investment project results in the project being subject to approval for its investment guidelines, the investor has to apply for approval for investment guidelines before adjusting the investment project.

8. The Government shall elaborate this Article.

------------------

Golden Star is a professional consulting company specializes in providing accounting services, chief accountant services, tax procedure services, tax declaration services, tax consultancy services, tax agency services, tax refund services, services for representative office, company establishment services, company dissolution services in Vietnam, performing investment procedures for foreign investor in Vietnam, salary calculation services, payroll and labour services, law consultancy services, office leasing services, virual office services and other business advisory services.