The investment project is officially considered as one of the five investment forms under Investment Law 2020. It is also one of the changes comparing to the former Investment Law.

Definition of Investment Project under Investment Law 2020

According to Point 4, Article 3, Investment Law 2020, Investment Project is a collection of proposals for the expenditure of mid-term or long-term capital to carry out investment activities in a particular administrative division over a certain period of time.

Legal features

Investment purposes

Investment purposes are one of the most important points of investment projects and a determinant of approval of the projects in Vietnam.

When registering for a new investment project, investment purposes have to be written clearly on the investment project proposal.

Duration of investment projects

Duration of an investment project depends on many factors. However, the legal timeframe regulates the duration based on the location of a project. In detail:

– Projects inside the economic zones: duration of an investment project is not over 70 years.

– Projects outside the economic zones: duration of an investment project is not over 50 years. In some special circumstances, the duration could be lengthened no longer than 70 years:

(i) The projects are located in the difficult/ especially difficult socio-economic areas;

(ii) The projects with large investment capital but slow capital recovery.

Transferable investment projects

According to Article 46, the Law on Investment 2020, an investor has the right to transfer part or the whole of an investment project to another investor when fully meeting the provisions of the law:

– The investment project or part of the transferred investment project is not terminated according to the provisions of Clauses 1 and 2, Article 48;

– The investment project must satisfy the conditions specified in Clause 2, Article 24;

– Land conditions;

– Conditions according to the Investment Registration Certificate…

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