THE PROVISONS ON SUSPENSION OF INVESTMENT PROJECTS
During the implementation of a project, investors may run into obstacles, including cases where state management agencies order the enterprise to halt or suspend operations. So, what are the procedures for suspending or terminating an investment project's operations?
- Law on Investment 2020.
1. Suspension of investment projects in the following cases:
If an investor suspends the operation of an investment project, he or she must notify the investment registration agency in writing. In the event of force majeure, the investor is free from paying land rent for the time it takes to recover from the effects of the force majeure.
In the following circumstances, the state management agency in charge of investment may decide to halt or partially halt the functioning of an investment project:
- In line with the Cultural Heritage Law, to conserve relics, relics, antiques, and national treasures;
- At the request of the environmental management agency, to correct environmental violations;
- In response to a request from the national labor authorities, to take steps to protect occupational safety;
- In accordance with the Court's or Arbitrator's ruling or verdict;
- The investor has been administratively dealt with yet continues to breach the contents of the Investment Registration Certificate.
On the request of the Ministry of Planning and Investment, the Prime Minister may decide to halt part or all of the project's activities if the project's implementation poses a threat to national security.
2. Dossier to be prepared
- Notice of Investment Projects Suspension;
Investor information; information on economic organizations implementing investment projects; operational status of the project (implementation of administrative procedures, progress of implementation); performance of financial obligations; contents of temporary suspension of investment projects; investor commitment should all be included in the notice of suspension.
- For the applicant who is not the legal representative, a power of attorney; The filing service provider's authorization contract or service contract, as well as the filing service provider's recommendation letter for the individual submitting the application;
- Suspension decision and (if applicable) meeting minutes;
- A copy of the Investment Policy Decision, the Investment Registration Certificate, the Investment Certificate, the Investment License, the Business License, or the Investment Policy Decision.
3. Execution sequence:
Step 1: The investor completes all necessary paperwork in accordance with the law.
Step 2: The investor files an application with the province's or city's Investment Registration Office – Department of Planning and Investment.
Investors come to the Investment Registration Office to submit their paperwork at the reception desk, where the Investment Registration Office's dossier-receiving specialist verifies the documents to see if they are valid (the dossiers have enough papers). Documents prepared in accordance with procedures and properly declared in compliance with legislation). The application will be received by the receiving specialist, who will then issue the Investor with a Receipt.
Step 3: The Investor visits the Investment Registration Office to obtain the application's results, based on the appointment date on the Receipt.
Administrative procedures provide the following results:
- The Department of Planning and Investment receives notice of the investment project's temporary suspension and records the project's operational status.
- In the event of force majeure, the investor is free from paying land rent while the operation is temporarily halted to mitigate the effects of the force majeure.
The above information is about the ‘The provisons on suspension of investment projects'. For more information and advice on this issue, please contact Doanh Tri Law Firm directly via:
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