The project does not require investment policy approval helps investors save time and resources during project implementation. This process creates favorable conditions for the rapid implementation of investment projects, promoting economic development. Please follow the following article, Long Phan will provide detailed information on types of investment projects that do not require investment policy approval, implementation process and important notes for investors.
Regulations on projects that do not require investment policy approval
Is a deposit required for investment projects that are not subject to policy approval?
According to Clause 1, Article 43 of the Law on Investment 2020, investors must make a deposit or have a bank guarantee on the deposit obligation to ensure the implementation of an investment project that requests the State to allocate or lease land, allowing change of land use purpose.
However, there are some non-escrow exceptions. Specifically, investors do not have to deposit when:
Investors who win an auction of land use rights to implement an investment project are allocated land by the State with land use fees collected, or leased land with a one-time land rental fee for the entire lease period;
The investor wins the bid to implement an investment project using land;
Investors are allocated land or leased land by the State on the basis of receiving the transfer of an investment project that has made a deposit or has completed capital contribution and capital mobilization according to the schedule specified in the investment policy approval document and Investment Registration Certificate;
Investors are allocated or leased land by the State to implement investment projects on the basis of receiving transfer of land use rights and assets attached to land from other land users.
The project does not require investment policy approval
Investment projects that are not subject to investment policy approval are projects that are not on the list specified in Articles 30, 31 and 32 of the Law on Investment 2020. This includes projects not under the approval authority of the National Assembly, the Prime Minister, or the Provincial People’s Committee.
Therefore, investors need to carefully compare these regulations to determine whether their project does not need investment policy approval or not. Accurate determination will help save time and costs during project implementation.
Note about projects that do not require investment policy approval
Investment project registration procedures for projects that do not require investment policy approval
Registration documents
According to Official Dispatch 8909/BKHDT-PC on the implementation of the Law on Investment 2020, investment project registration documents for investment projects not subject to investment policy approval include the documents specified in Clause 1, Article 33 of the Law on Investment. Specifically, including:
A written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;
Documents on the investor’s legal status;
Documents proving the investor’s financial capacity include at least one of the following documents: the investor’s most recent 2-year financial statements; commitment to financial support from the parent company; commitment to financial support from financial institutions; guarantee of the investor’s financial capacity; Other documents proving the investor’s financial capacity;
The investment project proposal includes the following main contents: investor or form of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, implementation progress, information on current land use status at the project implementation location and proposed land use demand (if any), labor demand, proposed investment incentives, impact, socio-economic efficiency of the project, preliminary assessment of environmental impact (if any) according to regulations of Law on Environmental Protection.
In cases where the Law on Construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal;
In case the investment project does not request the State to allocate land, lease land, or allow a change of land use purpose, it must submit a copy of the land use rights document or other document determining the right to use the location to implement the investment project;
Content explaining the technology used in investment projects for projects subject to appraisal and consultation on technology according to the provisions of the Law on Technology Transfer;
BCC contract for investment projects in the form of BCC contract;
Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any).
Implementation process
The process of registering investment projects that are not subject to investment policy approval is specifically stipulated in Clause, Article 38 of the Law on Investment 2020 and Article 36 of Decree 31/2021/ND-CP. This process includes two main steps:
Step 1. Submit application
In case the investment project is implemented in 02 or more provincial administrative units, the investor submits documents to the Department of Planning and Investment of a province or centrally run city where the investor implements the project. Invest, set up or plan to set up an executive office to apply for an Investment Registration Certificate for the project.
In case of online submission to the National Investment Information System: The investor registers an account on the National Investment Information System; declares information, downloads digitally signed electronic documents on the National Investment Information System; Complete documents on the National Investment Information System (according to the announcement of the Department of Planning and Investment).
Step 2. Issue Investment Registration Certificates to investors
The investment registration agency issues an Investment Registration Certificate to the investor within 15 days from the date of receipt of valid documents when the project meets the following conditions:
Not belonging to industries or occupations banned from business investment as prescribed in Article 6 of the Law on Investment 2020 and international treaties on investment;
Have a location for implementing the investment project determined on the basis of a valid copy of documents on land use rights or a valid copy of the location lease agreement or other documents or documents determining the right to use the location to implement investment projects;
The investment project is in accordance with the planning as prescribed in Clause 7, Article 31 of Decree 31/2021/ND-CP;
Meet the conditions for investment rate per land area prescribed by the Provincial People’s Committee based on actual local conditions and approved by the Standing Committee of the Provincial People’s Council (if any), quantity labor used (if any);
Meet market access conditions for foreign investors.
Project registration steps do not require investment policy approval
Project consulting services do not require investment policy approval
Long Phan provides professional consulting services for projects that do not require investment policy approval. With extensive experience in the investment field, Long Phan is ready to support you from the preparation stage to project implementation.
Long Phan’s consulting and support services include:
Analyze and identify projects that do not require investment policy approval.
Support in preparing complete and accurate investment project registration documents.
Consulting on project registration processes and procedures with competent state agencies.
Guidance on compliance with relevant legal regulations during project implementation.
Consulting on optimizing investment incentives and minimizing legal risks for the project.
Mastering information about the project without requiring approval of the investment policy is the key for customers to make the most of investment opportunities. With professional support from Long Phan, customers will easily carry out legal procedures and speed up the progress of their investment projects. Please contact Long Phan immediately via the hotline 0906735386to receive detailed advice quickly and most effectively.
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Luật sư Nguyễn Thu Hương
Lawyer Nguyen Thu Huong is a leading expert in the field of investment and licensing for foreigners. With extensive knowledge of investment laws and the complex regulations related to licensing procedures, she has successfully assisted numerous businesses and foreign investors in establishing their operations in Vietnam.