What is the maximum operating term of the investment project?

The operational term of the investment project is a factor that investors need to consider carefully when deciding to invest in a project. Understanding the regulations on the operating terms of investment projects helps investors have effective business plans, make the most of investment incentives, and ensure their rights. This article will provide customers with detailed information about the investment project’s operating terms.

What is the maximum operating term of the investment project?

According to the provisions of Article 44 of the Law on Investment 2020, the operating term of an investment project is determined as follows:

• Investment projects in economic zones: No more than 70 years.
• Investment projects outside economic zones: No more than 50 years.
• In case the investment project is implemented in an area with difficult socio-economic conditions or an area with extremely difficult socio-economic conditions; or an investment project with large investment capital but slow capital recovery, the operating term of the investment project may be longer but not more than 70 years.

Note: For investment projects allocated or leased land by the State but the investor is late in handing over the land, the time the State is late in handing over the land is not included in the operating term and implementation progress of the investment project.

How to calculate the operating term of an investment project

Pursuant to Clause 1, Article 27 of Decree 31/2021/ND-CP detailing how to calculate the operating term of an investment project as follows:

• For investment projects in general: The duration of an investment project is calculated from the date the investor is granted the Decision on Investor Approval, the Decision on Investment Policy Approval concurrently with the investor approval or the First Investment Registration Certificate.
• For investment projects allocated land, leased land, or changed land use purpose by the State: The project’s operating term is calculated from the date the investor decides to allocate land, decides to lease land, decides to intend to change the land use purpose.
• In case the investor has a decision on land allocation, land lease decision, or land use purpose conversion decision but the land handover is delayed: The investment project’s operation period is calculated from the date of land handover on site.

Is it possible to extend the operating term of the investment project?

Pursuant to Clause 4, Article 44 of the Law on Investment 2020 and Clause 4, Article 27 of Decree 31/2021/ND-CP, when the investment project’s operating term expires, investors can consider extending the operating term. investment project if the following conditions are met:

• In accordance with national planning, regional planning, provincial planning, urban planning and special administrative-economic unit planning (if any); in accordance with the goals, urban development orientation, and housing development planning program (for investment projects to build housing and urban areas).
• Meet the conditions for land allocation and land lease according to the provisions of land law (in case of request to extend land use).

However, the following investment projects will not be renewed:

• Investment projects using outdated technology have the potential to cause environmental pollution and are resource-intensive.
• Investment projects in cases where the investor must transfer assets without compensation to the Vietnamese State or Vietnamese party.

Consulting services on the operating term of investment projects

To ensure benefits and optimize investment efficiency, customers should use professional consulting services.

Long Phan is a reputable unit providing investment consulting services. With an experienced team, we provide customers with the following services:

• Consulting on investment incentives in Vietnam;
• Consulting on the operating term of investment projects;
• Consulting on cases of extension of investment term;
• Consulting on conditions for extending investment project deadlines;
• Instructions for preparing documents and procedures for registering extension of project operation term;
• Customer representative registers to extend project term.

The operating term of an investment project is a factor that helps investors manage and deploy the project effectively. If customers want to learn more or need advice on regulations related to the operating term of investment projects, please contact Long Phan immediately via the hotline 0906735386. Our experts will assist. Dedicated customer support, helping customers understand and implement investment projects most effectively.