Defining the objectives of an investment project is a crucial step that every FDI enterprise must undertake when implementing an investment project in Vietnam. However, during the course of operation, due to business expansion dema
Cases Requiring Adjustment of Investment Project Objectives
The objectives of an investment project constitute the core content determining the scope and operational direction of the project. During the implementation process, changes in development strategies, or other practical factors, enterprises may need to amend or supplement the registered objectives of their investment projects. In such cases, investors are required to carry out procedures for adjusting the investment project objectives in accordance with the prevailing laws and regulations.
The article below provides key legal considerations regarding the adjustment of investment project objectives of FDI enterprises in Vietnam.
Enterprises may arise the need to amend or supplement such objectives in order to align with their business strategies and actual operational demands. Common cases include:
- The enterprise supplements new manufacturing or business activities associated with the investment project;
- The enterprise changes the business activities already registered under the investment project objectives;
- The enterprise adjusts the project objectives at the request of competent state authorities or in accordance with applicable laws and regulations.
Procedures for Adjusting Investment Project Objectives of an FDI Company
Dossier for Adjustment of Investment Project Objectives
Pursuant to Article 47 of Government Decree No. 31/2021/ND-CP, the dossier for adjustment of investment project objectives includes:
- A written request for adjustment of the investment project;
- A report on the implementation status of the project up to the time of the adjustment request;
- The investor’s decision on adjustment of the investment project;
- An explanatory document stating the reasons for adjusting the project objectives;
- An investment project proposal specifying the adjusted project objectives;
- A power of attorney authorizing Siglaw Law Firm to carry out the relevant procedures.
Notes:
- The investor must demonstrate the necessity of changing the investment objectives and the feasibility of implementing the project after such adjustment;
- The dossier shall be submitted to the investment registration authority that issued the Investment Registration Certificate (“IRC”) to the enterprise.
Procedures for Implementation
Step 1:
The investor declares the application information online via the National Foreign Investment Information System or the local public service portal (if required).
Step 2:
Submit the dossier for adjustment of the investment project to the competent investment registration authority.
Processing time: Within 10 days from the receipt of a complete and valid dossier, the investment registration authority shall issue the amended Investment Registration Certificate or notify the investor of any request for amendment or supplementation of the dossier.
Step 3:
In cases where the adjustment of the project objectives results in changes to the enterprise’s registered business lines, the investor must simultaneously carry out procedures for amendment of enterprise registration contents with the business registration authority.
Processing time: Approximately 03 working days from the receipt of a complete and valid dossier.
Important Notes
- In cases where the Investment Registration Certificate concurrently serves as the Enterprise Registration Certificate, the enterprise must carry out adjustment procedures in accordance with the provisions of the Law on Investment 2020 corresponding to the amended contents;
- If the project is subject to investment policy approval, or if the additional project objectives fall into cases requiring investment policy approval, the investor must first carry out procedures for adjustment of the investment policy approval decision before adjusting the Investment Registration Certificate.
Authority for Adjustment of Investment Project Objectives
Department of Finance
The Department of Finance has the authority to adjust the Investment Registration Certificate for projects that:
- Are implemented in two or more provincial-level administrative units;
- Are implemented both inside and outside industrial parks, export processing zones, hi-tech zones, or economic zones;
- Are implemented in industrial parks, export processing zones, hi-tech zones, or economic zones where the Management Board has not yet been established or where the project does not fall under the Management Board’s authority.
Management Boards of Industrial Parks, Export Processing Zones, Hi-tech Zones, and Economic Zones
These authorities have the power to adjust the Investment Registration Certificate for:
- Investment projects on construction and business of infrastructure of industrial parks, export processing zones, hi-tech zones, and functional areas within economic zones;
- Investment projects implemented within industrial parks, export processing zones, hi-tech zones, and economic zones.
Conditions to Be Noted When Changing Investment Project Objectives
The investment registration authority shall consider issuing an amended Investment Registration Certificate when the project satisfies the following conditions:
- The project does not fall within sectors or trades prohibited from business investment under the Law on Investment and relevant international treaties;
- The project has a lawful implementation location;
- The project is consistent with approved planning schemes;
- The project satisfies local regulations on investment capital per land area ratio;
- The project satisfies market access conditions applicable to foreign investors under Vietnam’s international commitments.
Contact Siglaw Firm for In-depth Consultation
Headquarters in Hanoi: No. 44/A32 – NV13, Geleximco Area A, Le Trong Tan Street, Tay Mo Ward, Hanoi, Vietnam.
Southern Branch: No. 103 – 105 Nguyen Dinh Chieu Street, Xuan Hoa Ward, Ho Chi Minh City, Vietnam.
Central Branch: VIFC DN – ICT Building, Software Park No. 2, Nhu Nguyet Street, Hai Chau Ward, Da Nang, Vietnam.
Hotline: 0961 366 238
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