Procedures for extending the operating term of investment projects

Extending the operating term of investment projects is an important legal procedure to maintain project operations. This process requires investors to prepare complete documents, meet prescribed conditions and follow the correct order. The extension needs to be carried out before the project expires. The article below by Long Phan will provide detailed information about the process, conditions and steps to extend the investment project’s operating term.

Operational term of the investment project

The operating term of an investment project is specifically stipulated in Article 44 of the  Law on Investment 2020. Specifically as follows:

• Projects in economic zones have a maximum term of 70 years.
• Projects outside economic zones have a maximum term of 50 years.
• Investment projects implemented in areas with difficult socio-economic conditions, areas with particularly difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery will have a limited time limit. The investment project’s operation may be longer but not exceed 70 years.

The operating term of an investment project is calculated from the date the investor is granted the first Investment Registration Certificate. For projects that do not require an Investment Registration Certificate, the duration of operation is calculated from the date the investor decides to approve the investment policy.

In case a project is allocated land or leased land by the State but is delayed in handing over the land, the delay in handover time is not included in the operating term and project implementation progress. This helps protect investors’ interests when encountering problems with land procedures.

Conditions for extending the operating term of investment projects

To extend the operating term, the investment project needs to meet the following conditions and conditions specified in Clause 4, Article 27 of Decree 31/2021/ND-CP:

Compatible with planning at all levels: The project must be consistent with national planning, regional planning, provincial planning, urban planning and special administrative-economic unit planning (if any). For investment projects to build housing and urban areas, the project needs to be consistent with the goals, urban development orientation, and housing development plan program.

Meet the conditions for land allocation and land lease: If the project requests an extension of land use, it must meet the conditions for land allocation and land lease according to the provisions of land law. This ensures the project’s land use complies with current regulations.

The investor wishes to continue implementing the project: This condition demonstrates the investor’s commitment to continue implementing the project, contributing to the local socio-economic development.

Procedure for extending the operating term of investment projects

Basic steps in the renewal process

The process for extending the operating term of investment projects is specifically prescribed in Clause 2, Article 55 of Decree 31/2021/ND-CP. Accordingly, investors must fully implement the following procedures for the project to maintain operations as planned:

Step 1: Investor submits application for extension. Investor prepares and submits 04 sets of documents to the Ministry of Planning and Investment or Investment Registration Authority, Management Board of economic zones and high-tech zones depending on the authority approving the investment policy of the project.

Step 2: The agency receiving the dossier sends the dossier for comments within 3 working days from the date of receiving the valid dossier. The receiving agency sends the dossier to the land management agency and relevant agencies for review. comments on meeting the conditions for extension.

Step 3: The consulted agencies are responsible for responding within 10 days from the date of receipt of valid documents. The consulted agencies must have an opinion on whether the project meets the conditions for participation. term or not.

Step 4: The competent authority reviews the application within 15 days from the date of receipt of the valid application, the Ministry of Planning and Investment or the investment registration agency considers the conditions for extension and prepares an appraisal report. .

Step 5: Make a decision to extend within 3 working days from receiving the appraisal report, the competent authority issues a decision to extend the operating term of the investment project.

Documents need to be prepared when extending the operating term of investment projects

To extend the operating term of an investment project, investors need to prepare complete documents according to regulations. The dossier includes 04 sets, each set includes the following documents:

• Document requesting extension of investment project’s operating term. This is an important document expressing the investor’s need and reason for extension.
• Decision approving the investment policy. This document proves that the project has been approved by the competent authority.
• Investment registration certificate. This is a document confirming the investor’s right to implement the project.
• Investor approval decision or documents of equivalent legal value. This document confirms the investor’s legal status.
• Certificate of land use rights or documents of equivalent legal value. This is a document proving the project’s legal land use rights.
• Documents proving the investor’s financial capacity, including one of the following: Financial statements of the investor’s most recent 02 years; Commitment to financial support of the parent company; Commitment to financial support from financial institutions; Guarantee of investor’s financial capacity; Other documents proving the investor’s financial capacity

Investors need to ensure all documents in the file are originals or valid copies. Preparing complete and accurate documents will help the renewal process go smoothly and quickly.

Competent authority processes extension documents

According to Article 15 of Decree 23/3021/ND-CP, the authority to handle applications for extension of investment projects will be divided according to the scope and nature of the investment project. The agency competent to issue investment registration licenses is also the corresponding agency that carries out procedures for extending investment projects.  Accordingly, depending on each specific case, the Management Board of economic zones, industrial parks, and high-tech parks;  The Ministry of Planning and Investment or the corresponding Investment Registration Authority with the authority to approve the project investment policy will receive and process the application.

Consulting services on extending the operating term of investment projects

The process of extending the operating term of investment projects can be complicated and requires a lot of time and effort. Long Phan is proud to be a pioneer in the field of investment consulting. Our consulting services include:

• Review project extension conditions.
• Instructions for preparing complete and valid documents.
• Provide guidance on implementation procedures and work with competent authorities.
• Consulting, supporting explanations, and supplementing documents when necessary.
• Consulting on other related issues.

Extending the operating term of investment projects is a particularly important procedure to ensure the operation of the investment project. Customers need to pay attention to the regulations on conditions, deadlines and renewal process to ensure the project is renewed successfully. If you need detailed advice on renewal procedures, please contact hotline 0906735386 for specific instructions.