Investment projects play an extremely important role in promoting the economic and social development of a country. However, to ensure the effectiveness and sustainability of these projects, project adjustment and management is indispensable. Understanding that importance, regulations on adjusting investment projects have been put in place to optimize the implementation and management of these projects.
Basic concepts of investment project adjustment activities
Adjustment of an investment project is the process of adjusting the basic elements of the project to meet the changing needs of the market and the business environment. This adjustment helps to optimize project implementation, enhance competitiveness and reduce risks for investors. However, in order to do this, investors must strictly comply with the regulations and legal procedures prescribed by Vietnamese law.
In Vietnam, regulations on the adjustment to investment projects are clearly stated in the Law on Investment, the Law on Construction, and many other related legal documents. These regulations ensure transparency, fairness, and reliability in project management, from the licensing process and necessary paperwork to resolving issues arising during project implementation.
Regulations on adjustments to investment projects according to the current Law on Investment
According to the Law on Investment 2020, during the implementation of an investment project, an investor has the right to adjust objectives, transfer part or the whole investment project, merge projects or divide or split a project into multiple projects, using land use rights and assets on land under investment projects to contribute capital to establish enterprises, business cooperation or other contents and must comply with the provisions of law.
If the adjustment of an investment project changes the contents of the Investment Registration Certificate, the investor must carry out procedures for adjusting the Investment Registration Certificate.
In addition, in case an investor has an investment project that has been approved with investment policies, it must carry out the procedures for approval of adjustment of investment policies if it falls into one of the following cases:
- Change the target specified in the investment policy approval document; adding targets subject to the approval of investment policies;
- Change in the size of the land used for more than 10% or more than 30 hectares, change the investment location;
- Change of total investment capital by 20% or more, resulting in a change in the scale of investment projects;
- Prolonging the implementation schedule of an investment project but the total project investment time exceeds 12 months compared with the progress of the investment project specified in the written approval of the initial investment policy;
- Adjusting the operation term of the investment project;
- Changing the technology that has been appraised and consulted during the approval of the investment policy;
- Change of investor of an investment project with approved investment policy concurrently with investor approval before the project is exploited, operated, or changed conditions for investors (if any).
In case of adjusting the contents of an investment project according to the above case, the investor shall carry out the procedures for adjusting the decision on approval of investment policies according to the corresponding provisions in Articles 44, 45, and 46 of Decree 31/2021/ND-CP. Pursuant to the Decision approving the adjustment of investment policies, the investor shall carry out the procedures for adjusting the Decision on approval of the investor (if any) or the Investment Registration Certificate (if any).
Some notes when adjusting investment projects
- When the enterprise carries out the procedures for adjusting the Investment Certificate, the enterprise needs to change the relevant contents in the Enterprise Registration Certificate; Business licenses (if any);
- For enterprises having an Investment Certificate, an Investment Registration Certificate (which was granted before July 1, 2015) needs to be changed to an Investment Registration Certificate;
- If the enterprise changes and has more investors to contribute capital, it should be noted that the new investor must contribute investment capital to the direct investment capital account of the enterprise and pay attention to contribute on schedule according to the committed time limit according to the adjusted Investment Registration Certificate. In case the investor fails to contribute capital on schedule as committed in the Investment Registration Certificate, the enterprise must carry out procedures for extending the capital contribution term and be fined according to the provisions of law.
In conclusion, the adjustment of investment projects not only helps to reduce risks and solve problems arising in the implementation process but also positively promotes the achievement of business goals and creates value. sustainability for both business and society. This creates a favorable business environment, attracts investment, and promotes economic development. The government and regulatory agencies are responsible for establishing a clear, transparent, and effective regulatory environment to support the implementation of regulations on investment project regulation. At the same time, businesses and investors also need to strictly abide by these regulations to ensure compliance with the law and achieve satisfaction from the community and related partners.