Procedures for terminating investment activities in Vietnam

Procedures for terminating investment activities are the legal process investors need to follow when they want to end a project in Vietnam. This process requires investors to comply with investment laws, submit complete documents and take prescribed steps. The following article will analyze in detail the conditions, procedures for terminating investment activities in Vietnam.

Cases of termination of investment activities in Vietnam

According to the provisions of Clause 1 and Clause 2, Article 57 of Decree 31/2021/ND-CP dated March 26, 2024 of the Government detailing and guiding the implementation of a number of articles of the Investment Law and Article 48 of the Law on Investment 2020. In termination of investment activities will be carried out in the following cases:

The investor decides to terminate the operation of the investment project

The investor decides to terminate the operation of the investment project in the following cases:

• The investor decides to terminate the operation of the investment project: This happens when the project has completed its goals, the investor wants to withdraw capital or no longer needs to continue implementing the project;
• According to the conditions specified in the contract and business charter: This is the case where the parties agree in advance to terminate the project when certain goals are achieved or when a predicted event occurs;
• Expiry of the investment project’s operating term: Each investment project has a defined operating term. At the end of this term, the project will terminate operations unless extended.

The investment registration agency terminates or partially terminates the activities of the investment project

The investment registration agency terminates or partially terminates the investment project’s activities in the following cases:

• The investment project falls into one of the cases specified in Clauses 2 and 3, Article 47 of the Law on Investment where the investor is unable to overcome the conditions of cessation of operations;
• The investor is not allowed to continue using the investment location and does not carry out procedures to adjust the investment location within 06 months from the date of discontinuation of the investment location, except for the cases specified in Point d of this Clause;
• The investment project has stopped operating and after the 12-month period from the date of shutdown, the investment registration agency cannot contact the investor or the investor’s legal representative;
• Investment projects subject to land recovery due to failure to put land into use or delay in putting land into use according to the provisions of land law;
• Investors do not deposit or do not have a guarantee for deposit obligations according to the provisions of law for investment projects subject to investment project implementation guarantee;
• Investors carry out investment activities on the basis of fake civil transactions according to the provisions of civil law;
• According to court judgments, decisions, and arbitration awards.

Procedures for terminating investment activities in Vietnam

Procedures for terminating investment activities in Vietnam are carried out as follows:

First, in case the investor decides to terminate the operation of the investment project:

• The investor prepares documents including: Decision to terminate investment project operations, Investment registration certificate (if any);
• The investor submits the above documents to the Investment Registration Authority within 15 days from the date of decision.

Second, in case of terminating the operation of an investment project according to the conditions specified in the contract, enterprise charter or the expiration of the investment project’s operating term:

• The investor shall notify and return the Investment Registration Certificate (if any) and a copy of the document recording the termination of the investment project to the Investment Registration Authority within 15 days from the date of receipt. date of termination of operation of the investment project;
• The investment registration agency notifies relevant agencies of the termination of operations of the investment project.

Third, in case of termination or partial termination of investment project activities according to the decision of the investment registration agency in Clause 2, Article 48 of the Law on Investment 2020:

• The investment registration agency decides to terminate the operation of the investment project, and at the same time revoke the Investment Registration Certificate for investment projects that are granted Investment Registration Certificates;
• The investment registration certificate ceases to be effective from the effective date of the decision to terminate the operation of the investment project.

Liquidation of investment projects is carried out as follows:

• Investors themselves liquidate investment projects according to the provisions of law on asset liquidation;
• For investment projects that are allocated land, leased land, or allowed to change land use purposes by the State, the handling of land use rights and assets attached to land is carried out in accordance with the provisions of land law. belt and relevant laws;
• During the liquidation of an investment project, if the investor is an economic organization that is dissolved or falls into bankruptcy, the liquidation of the investment project shall comply with the provisions of law on dissolution and bankruptcy. economic organization.

Based on the content of Clause 2 and Clause 8, Article 57 of Decree 31/2021/ND-CP.

Procedures for terminating investment activities in some special cases

The investment registration agency cannot contact the investor

In case the Investment Registration Authority cannot contact the investor or the investor’s legal representative, the procedures for terminating investment activities will be carried out according to Article 58 of Decree 31/2021/ND- CP is as follows:

Step 1: The investment registration agency makes a record of the investment project ceasing operations and being unable to contact the investor.

Step 2: Send written notification to investor contact address. This notice requires investors to contact the investment registration agency to resolve the issue.

Step 3: Within 30 days from the date of sending the written notice, if the investor does not contact, the Investment Registration Authority shall send a written request for assistance in contacting the investor to:

• Commune-level People’s Committee where the investor resides (for domestic investors who are individuals);
• Diplomatic representative agency in Vietnam of the country of which the investor is a citizen (for foreign investors).

At the same time, post a notice requesting investors to contact the Investment Registration Authority to resolve the termination of investment project operations within 90 days on the National Investment Information Portal.

Step 4: At the end of 12 months from the date the investment project stops operating, if the investor or the investor’s legal representative cannot be contacted, the Investment Registration Authority shall decide to terminate the operation of the investment project. private.

Carrying out investment activities on the basis of fake civil transactions

According to the provisions of Article 59 of the Law on Investment  2020, when an investor is discovered to carry out investment activities on the basis of fake civil transactions, procedures for terminating investment activities will be carried out as follows:

• The investment registration agency issues a decision to terminate the operation of the investment project. This decision is based on the effective judgment or decision of the Court or the arbitration award;
• The investment registration agency, relevant agencies, organizations and individuals have the right to request a competent court to declare invalid a civil transaction due to fraud during the implementation of the investor’s investment project. investment as a basis for terminating all or part of the investment project’s activities.

The order and procedures for terminating investment activities in this case are carried out as procedures for terminating investment project activities according to Article 57 of Decree 31/2021/ND-CP as in section 2.

Investors must be responsible for liquidating investment projects in accordance with the law on asset liquidation. The liquidation process must ensure the interests of related parties.

Based on the content of Article 59 of Decree 31/2021/ND-CP.

According to court judgments, decisions, and arbitration awards

In case there is a court judgment, decision or arbitration award on termination of investment project activities, procedures for terminating investment activities will be carried out as follows:

• The investment registration agency issues a decision to terminate the operation of the investment project. This decision is based on the judgment, decision of the Court or effective arbitration award;
• Investors must fulfill financial obligations to the State and liquidate the project according to regulations. The liquidation must comply with the provisions of law on asset liquidation.

Based on the content of Article 60 of Decree 31/2021/ND-CP.

Consulting services for terminating investment activities in Vietnam

To ensure the procedures for terminating investment activities goes smoothly, investors can use Long Phan’s professional consulting services. This scope of services includes:

• Consulting on procedures for terminating investment activities. The consultant will guide investors on the steps to take and documents to prepare;
• Support in preparing and submitting documents to terminate investment activities, helping investors save time and ensure complete and accurate documents;
• Investor representatives work with competent authorities, this is especially useful when the investor is not present in Vietnam.

Procedures for terminating investment activities are complex processes, requiring a deep understanding of Vietnamese investment law. Customers need to prepare carefully and comply with regulations to ensure the termination process goes smoothly. If you need in-depth consulting support, customers can contact Long Phan via hotline: 0906735386 for detailed instructions on procedures for terminating investment activities in Vietnam.