Investment Project Adjustment Procedure Guide

The investment project adjustment procedure under the in-principle approval authority of the Management Board is a critical component of investment activities in industrial zones, export processing zones, high-tech parks, and economic zones. This analysis details the projects under the Management Board’s jurisdiction, regulations on project adjustment, dossier components, and the procedural sequence.

Projects Under the Management Board’s In-Principle Approval Authority

The Management Boards of industrial zones, export processing zones, high-tech parks, and economic zones grant in-principle investment approval for projects specified in Clause 2, Article 32 of the Law on Investment 2020. These projects must be implemented within these zones and align with approved master plans. They include:

• Investment projects requesting land allocation or land lease from the State without auction, bidding, or transfer; projects requesting permission for land use purpose conversion. This excludes land allocation, lease, or conversion for households and individuals not requiring written approval from the provincial-level People’s Committee under land laws.
• Investment projects for constructing residential housing (for sale, lease, or lease-purchase) and urban areas, regardless of land area or population scale.
• Investment projects by foreign investors or foreign-invested business organizations located on islands; in border communes, wards, or towns; in coastal communes, wards, or towns; and in other areas affecting national defense and security.

Cases Requiring Investment Project Adjustment

According to Clause 3, Article 41 of the Law on Investment 2020, an investor with a project that has received in-principle approval must execute the investment project adjustment procedure for in-principle approval in one of the following cases:

• Changing the project’s objectives as specified in the in-principle approval document; adding objectives that are subject to in-principle approval.
• Changing the land use area by more than 10% or over 30 hectares, or changing the investment location.
• Changing the total investment capital by 20% or more, thereby altering the investment project’s scale.
• Extending the project implementation schedule, where the total investment duration exceeds 12 months from the schedule specified in the initial in-principle approval.
• Adjusting the project’s operational duration.
• Changing technology that was appraised or consulted upon during the in-principle approval process.
• Changing the investor of a project that received in-principle approval concurrently with investor approval before the project becomes operational, or changing conditions applicable to the investor (if any).

For projects with in-principle approval, the investor cannot extend the implementation schedule by more than 24 months from the initial approval, except in cases defined in Clause 4, Article 41 of the Law on Investment 2020:

• To overcome consequences of force majeure events.
• The adjustment is due to delays in land allocation, land lease, or land use purpose conversion permission by the State.
• The adjustment is required by a state management agency, or a state agency is delayed in performing administrative procedures.
• The project adjustment is due to changes in planning by a state agency.
• Changing the project’s objectives; adding objectives subject to in-principle approval.
• Increasing the total investment capital by 20% or more, thereby altering the investment project’s scale.

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Dossier Components and Submission Method

The investor submits one set of the dossier, including an electronic copy, to the Management Board of the industrial zone, export processing zone, high-tech park, or economic zone as per Clause 1, Article 46 of Decree 31/2021/NĐ-CP.

The dossier includes:

• A written request for investment project adjustment.
• A report on the project’s implementation status up to the time of adjustment.
• The investor’s decision on the project adjustment (for investors that are organizations).
• An explanation or documents related to the adjustment of legally specified content (if any).

Sequence of the Investment Project Adjustment Procedure

The investment project adjustment procedure under the in-principle approval authority of the Management Board is stipulated in Article 46 of Decree 31/2021/NĐ-CP.

1. Within 02 days of receiving a valid dossier, the Management Board sends the dossier to competent state agencies for opinions on the adjusted contents.
2. Within 07 days of receiving the dossier, the consulted agencies provide opinions on the adjusted contents within their state management scope.
3. Within 17 days of receiving a valid dossier, the Management Board issues the decision on in-principle approval of the adjustment. This decision is sent to the investor and relevant agencies involved in the project’s implementation.

For adjustments to the implementation schedule, operational duration, or updates to the project location information based on administrative unit restructuring, the investor follows this procedure:

• The investor submits one dossier set to the Management Board. The dossier includes: the investor’s written request; the decision on land allocation, land lease, land use purpose conversion, or the land handover document from the competent state agency.
• Within 05 working days of receiving a valid dossier, the Management Board issues the decision on in-principle approval of the adjustment. This decision is sent to the investor and relevant agencies.

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Consulting and Authorization Services by Long Phan Consulting Company

Long Phan Consulting Company provides comprehensive services for the investment project adjustment procedure under the Management Board’s in-principle approval authority.

Legal and Procedural Consultation

• Provide detailed advice on the conditions required for investment project adjustment.
• Clarify dossier components and the official process for the investment project adjustment procedure.
• Offer step-by-step guidance through the entire adjustment procedure.

Dossier Preparation and Review

• Conduct a legal review of all documents and evidence before submission.
• Draft and prepare a complete and accurate set of required dossier documents.
• Assist in finalizing the official dossier for submission to the competent authority.

Representation and Process Management

• Act as the client’s authorized representative to submit the dossier and monitor the review process.
• Follow up with the competent state authority to ensure timely processing.
• Receive and deliver the official results, providing detailed explanations to the client.

With a professional and dedicated team, Long Phan Consulting Company is committed to helping clients complete the investment project adjustment procedure efficiently and in compliance with all legal regulations.

Frequently Asked Questions

Long Phan Consulting Company provides answers to common questions regarding the investment project adjustment procedure.

Which agency has the authority to approve adjustments to in-principle investment approval?

The state agency that granted the initial in-principle approval has the authority to approve its adjustment. If a proposed adjustment causes the project to fall under the approval authority of a higher-level body, that higher-level body will have the authority to approve the adjustment. Legal Basis: Clause 5, Article 41, Law on Investment 2020.

What is required if a proposed adjustment makes the project subject to in-principle approval?

If a proposed project adjustment results in the project becoming subject to in-principle approval, the investor must first complete the procedure to obtain in-principle approval before making the adjustment. Legal Basis: Clause 7, Article 41, Law on Investment 2020.

When is it necessary to adjust the Investment Registration Certificate?

The investor must carry out the procedure to adjust the Investment Registration Certificate (IRC) if the project adjustment alters the contents of the IRC. Legal Basis: Clause 7, Article 57, Decree 31/2021/NĐ-CP dated March 26, 2021.

What is the distinction between an export processing zone, an industrial zone, and an economic zone?

• Export processing zone: An industrial zone specializing in producing goods for export and providing services for export production and export activities.
• Industrial zone: An area with a defined geographical boundary, specializing in industrial production and providing services for industrial production.
• Economic zone: An area with a defined geographical boundary, comprising multiple functional zones, established to attract investment, promote socioeconomic development, and ensure national defense and security. Legal Basis: Clauses 15, 16, and 17, Article 3, Law on Investment 2020.

What is in-principle investment approval?

In-principle investment approval is the competent state agency’s approval of a project’s objectives, location, scale, schedule, and duration; the investor or the form of investor selection; and special mechanisms and policies (if any) for project implementation. Legal Basis: Clause 1, Article 3, Law on Investment 2020.

Conclusion

The investment project adjustment procedure under the Management Board’s authority is strictly regulated to ensure transparency, legal compliance, and alignment with state investment management requirements. A clear understanding of this procedure enhances investors’ management efficiency and development within industrial zones, export processing zones, high-tech parks, and economic zones. For detailed consultation and support in executing the procedure quickly and correctly, please contact Long Phan Consulting Company via hotline: 1900636389 for dedicated and professional service.