31 August 2021
After registering a successful investment project and receiving an Investment Registration Certificate, the investor must properly implement the investment project’s contents and ensure the progress of the project. However, during the implementation of the investment project, the investor may suspend the investment project. So, what should the investor do to comply with the law? Through this article, BLawyers Vietnam would like to share the procedures for suspending investment projects in Vietnam.
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Requirements for the investor to suspend the investment project
Suspension of an investment project means that the investor suspends the operation of the project in which they are investing. The total duration of the investment project’s suspension shall not exceed 12 months.
The investor must notify the investment registration agency in writing after 05 working days from the date of the decision to suspend the investment project.
If the investment project is suspended due to a force majeure event, the investor is exempted from land rents or reduced land levies for the suspension period to compensate for the consequences of the force majeure event. Of note, according to the prevailing law, a force majeure event is an event that occurs in an objective manner which is not able to be foreseen and that is not able to be remedied by all possible necessary and capable measures being taken.
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Implementation procedures
The following are the procedures for suspending the investment project:
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Step 1: The investor prepares the required documents;
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Step 2: The investor submits the dossier to the Provincial Department of Planning and Investment or the Management Board of Industrial Parks ("Investment Registration Agency”); and
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Step 3: The Investment Registration Agency keeps records of investment project suspensions, issues written approvals to investors, and notifies the relevant authorities of the project’s suspension.
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Required documents
The investor should prepare the following documents:
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Written notice of the investment project’s suspension;
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Written authorization letter for the applicant who is not the legal representative;
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Decision of the investor on the investment project’s suspension (Decisions and Minutes of Meetings of Members’ Council/ General Meeting of Shareholders/ Owners);
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Decision on an approval for investment project (if any);
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Investment registration certificate; and
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Other related documents.
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Penalties if failing to notify suspension of the investment project
If the investor suspends the investment project without written notice submission or without receiving written approval from the Investment Registration Agency, it is subject to a fine of VND 20,000,000 to VND 30,000,000. This fine level applies to organizations, the fine level for individual investors ranges is from VND 10,000,000 to VND 15,000,000. In addition, the investor must also take the remedial measures which includes notifying the Investment Registration Agency.
Thus, apprehending the regulations on procedures for suspending the implementation of investment projects will help investors in correctly understand and ensuring compliance with legal provisions when implementing investment projects in Vietnam.
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