Latest procedure of renewal of Investment Certificate

According to the provisions of Vietnamese laws, each investment project has a certain term of operation. Upon the expiration of the prescribed term, if the Investors wish to continue operating the Project, they must carry out procedures for renew the Investment Certificate.

In the content of the article below, CIS Law Firm will provide detailed instructions on the Latest Procedure of Renewal of Investment Certificate.

1. What is Investment Certificate?

Investment Certificate (also known as Investment License) is a document issued by a competent authority of Vietnam to Foreign Investors that meet the investment conditions in Vietnam, which records information about the investment projects, including:

• Investors;
• Name of investment project, code of investment project;
• Implementation location of the investment project, area of land to be used;
• Objectives and scale of the investment project;
• Investment capital of the investment project (including contributed capital of the Investors and mobilized capital);
• Operation term of the investment project;
• Investment project implementation progress;
• Forms of investment incentives and support and bases and conditions for application (if any);
• Conditions for investors implementing investment project (if any).

2. Term of Investment Certificate.

The term of the Investment Certificate is also the operation term of the Investment Project. The term of the Investment Certificate shall be considered and decided by the Investment Certificate Issuing-agencies based on the objectives, scale, location and operational requirements of the investment project. Accordingly, the maximum term of an Investment Certificate is specified as follows:

• The operation term of investment projects in economic zones shall not exceed 70 years;
• The operation term of investment projects outside economic zones shall not exceed 50 years;
• Investment projects implemented in areas with difficult socio-economic conditions, areas with extremely difficult socio-economic conditions or investment projects with large investment capital but slow capital recovery may have the operation term longer but not exceeding 70 years.

3. When to renew Investment Certificate?

According to current regulations, when the operation term of the investment project expires, if the investors wish to continue implementing the investment project and meet the conditions prescribed by law, they may be considered of extending the operation term of the investment project but not exceeding the maximum term specified in Section 2.

To know the operation term for your Project, according to which, you know it’s time for you to carry out Procedure of renewal of the Investment Certificate, you can see in the Investment Registration Certificate of your company.

4. Conditions for renewal of Investment Certificate

To renew the Investment Certificate, the Investors need to meet the following conditions:

– Conform to national planning, regional planning, provincial planning, urban planning and special administrative-economic unit planning (if any); consistent with urban development objectives and orientations, housing development programs and plans (for investment projects on construction of houses and urban areas);

– Satisfy the conditions for land allocation or land lease according to the provisions of the land law (for the case of request for land use extension);

– The projects do not fall into the following cases:

• Investment projects using outdated technology, potentially causing environmental pollution and resource-intensive;
• Investment projects in which the investors must transfer without compensation to the State of Vietnam or the Vietnamese party.

5. Application of renewal of Investment Certificate

When wishing to renew the Investment Certificate, the Investors should pay attention to prepare all the following documents:

– A written request for renewal of the operation term of the investment project;

– Decision approving the investment policy;

– Investment Certificate;

– Decision on approval of Investors or equivalent legal documents;

– Certificate of land use right or papers of equivalent legal value;

– Documents proving the financial capacity of the Investors include one of the following documents:

• Financial statements for the last 2 years of the Investors;
• Commitment to financial support of the parent company;
• Commitment to financial support of financial institutions;
• Guarantee on the financial capacity of the Investors;
• Other documents proving the financial capacity of the

6. Where to submit application of renewal of Investment Certificate?

Investors can apply for renewal of the Investment Certificate at one of the following agencies:

♦ For Investment Projects that have been approved for investment policy: The Investors shall submit 04 sets of documents to one of the following two agencies:

• The Ministry of Planning and Investment in case the National Assembly or the Prime Minister is the agency approving the investment policy of the project;
• The agency that has issued the Investment Certificate in case the provincial People’s Committee approves the investment policy.

♦ For Investment Projects that have been granted the Investment Certificate and are not subject to approval of investment policy: The Investors shall submit 04 sets of project renewal documents to the agency that has issued the previous Investment Certificate. .

Investors can check the information of the agency that issued the Investment Certificate at the top left corner of the first page or the seal on the last page of the Investment Certificate.

7. Time for application of renewal of Investment Certificate

According to current regulations, the time to renew the Investment Certificate is from 15-31 working days from the date the competent agencies receive the complete and valid dossier.

8. Fee for application of renewal of Investment Certificate

Currently, Foreign Investors do not have to pay state fees and charges when carrying out procedures for renewal of the Investment Certificate.

9. Service of renewal of Investment Certificate by CIS Law Firm.

With a wealth of experience in the field of investment consulting, CIS Law Firm has supported many foreign investors from many different countries to invest successfully in Vietnam.

CIS Law Firm will assist clients in the following tasks:

• Consulting on conditions, dossiers and procedures for applying for an investment license, adjustment, change, extension of investment license, capital contribution or share purchase; establishment of a representative office/branch of a foreign company;
• Complete and quick drafting of documents;
• Representing investors to carry out procedures at competent state agencies;
• Monitoring the processing of dossiers by competent state agencies, explaining to state agencies on issues related to dossiers;
• Guiding investors to carry out legal procedures arising after carrying out the procedures;
• Consulting, carrying out procedures for applying for and adjusting relevant sub-licenses;
• Supporting for legal issues arising in the course of business activities for investors.

Above are detailed instructions on the latest procedure of renewal of Investment Certificate. If you have any problems in the process of renewing the Investment Certificate or you have any unclear content or need legal assistance, please immediately contact our lawyers of CIS Law Firm according to the following information:

ENTERPRISE LEGAL DEPARTMENT – CIS LAW FIRM

109 Hoang Sa, Da Kao Ward, District 1, City. Ho Chi Minh

Phone: 028 3911 8581 – 3911 8582 – Hotline: 0916.568.101

Email: info@cis.vn