Procedures for adjusting the progress of investment project implementation for FDI companies

The progress of investment project implementation is an important factor ensuring the feasibility and success of the project. However, due to objective or subjective factors, businesses may need to adjust the project implementation schedule. This progress adjustment needs to comply with legal regulations so as not to affect the investment license of FDI companies in Vietnam. In the following article, Long Phan will introduce to customers information about procedures for adjusting the progress of investment projects.

In what cases is the progress of investment project implementation for FDI companies adjusted?

FDI companies can adjust the investment project implementation schedule in the following cases:

• Slow progress: The project does not complete progress milestones as committed in the investment registration certificate due to difficulties in finance, human resources, or legal procedures.
• Change investment scale: When the company wants to increase or decrease the project scale, leading to a change in completion time.
• Changing business conditions: Economic fluctuations, legal regulations or changes in market demand can affect project progress.

Conditions for implementing investment project adjustment procedures

Before making adjustments to the investment project progress, businesses need to check which category their project falls into to apply appropriate procedures.

The project is subject to investment policy approval

Pursuant to Clause 4, Article 41 of the Law on Investment 2020, for investment projects with approved investment policies, enterprises are not allowed to adjust the investment project implementation progress more than 24 months compared to the actual progress. current initial investment project, except in the following cases:

• To overcome consequences in cases of force majeure;
• Adjusting the progress of investment projects due to the State’s delay in land allocation, land lease, or permission to change land use purposes;
• Adjust the progress of investment project implementation at the request of competent state agencies;
• Adjusting investment projects due to changes in planning by state agencies;
• Change the objectives specified in the investment policy approval document; additional targets subject to investment policy approval;
• Increasing total investment capital by 20% or more changes the scale of investment projects.

Investment projects are not subject to investment policy approval

For projects that are not subject to investment policy approval, businesses need to meet the following conditions:

• Must ensure capital contribution time according to the schedule committed in the investment registration certificate;
• Fulfill obligations to report on the investment project implementation process up to the time of the change;
• Meet the conditions specified in the investment registration certificate.

Procedures for adjusting progress

Prepared documents

Pursuant to Clause 1, Article 33 of the Law on Investment 2020 and Point a, Clause 2, Article 43 of Decree 31/2021/ND-CP, the dossier to adjust the progress of investment project implementation is as follows:

• Written request for adjustment of investment project implementation progress;
• Documents on the investor’s legal status;
• Documents proving the investor’s financial capacity
• Proposed investment project, including contents such as investor implementing the project, investment objective, investment scale,…;
• Proposed land use needs;
• Explanation on technology use for projects using technology on the List of technologies restricted from transfer;
• BCC contract for investment projects in the form of BCC contract.

Steps to carry out adjustment procedures

Step 1: Enterprise prepares complete documents and submits them to the Department of Planning and Investment where the project is implemented.

Step 2: The management agency receives and checks the validity of the application. If the documents are not complete or do not comply with regulations, the business will be asked to supplement.

Step 3: The competent authority evaluates and makes a decision to adjust the investment project implementation progress.

Consulting on effective procedures and documents for implementing investment projects for FDI enterprises in Vietnam

Adjusting the progress of investment projects requires a deep understanding of legal regulations, implementation processes, and experience working with management agencies. Therefore, Long Phan is always willing to support customers in the process of adjusting the progress of investment projects as well as necessary notes on order and procedures for effective implementation. Our services include:

• Consulting on legal regulations related to adjusting the progress of investment projects;
• Assist customers in preparing and drafting necessary documents;
• Representing customers to carry out procedures to adjust investment project implementation progress at competent state agencies;
• Answer questions throughout the implementation process, after making adjustments to the investment project implementation schedule;
• Deliver and receive results at home, free of charge within the city. Ho Chi Minh.

Adjusting the investment project implementation schedule is an important process, helping FDI companies adapt to changes during project implementation. To ensure the adjustment process goes smoothly and in accordance with regulations, Long Phan’s team of experts will assist customers in effectively adjusting the progress of investment projects. Please contact the hotline immediately 0906735386 for more specific and detailed advice.