Reference situation:

Tien Nguyen Company is established in Vietnam and has a great reputation in the market. The company is implementing an investment project on building a high-classic resort in Ha Long Bay, Quang Ninh province.

In 2015,  the company proposed this project to Quang Ninh People’s Committee, in which 10 hectares of land would be changed its use purpose from agriculture into service and trade. The Committee agreed and issued an investment in-principle decision and an investment registration certificate to the company in 2016.

As the company has the demand to increase its investment capital in this project by 20% and to extend the schedule on construction 03 years, the company would like to consult lawyers to change the investment registration.

Our legal advice:

1. Proposal for increasing investment capital by 20%

– According to clause 4 Article 40 of Law on Investment 2014, in case the project subject to the in-principle investment decision is increased by more than 10% of investment capital, the investor must perform the procedures for changing the in-principle investment decision before changing the investment registration certificate.

– Accordingly, Tien Nguyen company needs to perform the procedures for changing the in-principle investment decision before changing the investment registration certificate, at Quang Ninh Department of Planning and Investment.

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2. Proposal for 03 year - extension on the construction schedule

- According to clause 1 Article 46 of Law on Investment 2014, if an investor would like to change the construction schedule of the project, the investor must obtain prior acceptance of investment licensing authority.

- However, according to clause 3 Article 46 of Law on Investment 2014, time for project implementation schedule must not exceed 24 months, therefore, the proposal of Tien Nguyen company needs to be changed under the law (i.e 02 years).

- After Tien Nguyen company the prior acceptance, the company needs to change its investment registration certificate at Ha Long city Department of Planning and Investment.

Please click here to refer to the procedures for the issuance of the in-principle investment decision by the provincial People's Committee. 

This is the preliminary legal advice of Bizlawyer & Partners. Please do not hesitate to contact us through the following address should you have the demand to use our service. Bizlawyer & Partners looks forward to our cooperation. 

Bizlawyer & Partners Law Firm

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