I. Understanding about the division of an investment project

1. What is the division of an investment project?
The division of an investment project refers to the act of splitting a currently implementing project into two or more separate projects to better align with strategic goals or to enhance operational efficiency in the market.

2. Does the division of an investment project require an adjustment of the investment project?
According to Point a, Clause 1, Article 50 of Decree No. 31/2021/ND-CP, investors are entitled to adjust their investment projects through the method of dividing the investment project into one or several projects. In other words, the division of an investment project constitutes an adjustment to the investment project.

II. Legal regulations on the division of investment projects

1. Conditions for dividing an investment project
To implement the division of an investment project, the following conditions stipulated in Clause 2, Article 50 of Decree No. 31/2021/ND-CP must be met:

- First, land use conditions as prescribed by land law, business investment conditions (if any), and other legal conditions must be satisfied.

- Second, investor conditions (if any) stated in the Decision on approving the Investment Policy or the Investment Registration Certificate must not be altered before the project division is conducted.

2. Dossier for dividing an investment project
To adjust an investment project through its division, the following documents must be prepared in accordance with Point a, Clause 3, Article 50 of Decree No. 31/2021/ND-CP:

1. A written request for adjustment of the investment project;

2. A report on the implementation status of the investment project up to the point of division;

3. The investor's decision on the division of the investment project or equivalent legal documentation;

4. Documentation proving the investor's legal status;

5. Other documents (if applicable), such as a copy of the Investment Registration Certificate or the Decision on approving the Investment Policy; a copy of the Decision on approving Investor.

3. Procedures for dividing an investment project
According to Clause 3, Article 50 of Decree No. 31/2021/ND-CP, the adjustment procedures through the project division depends on the specific case:

- Case 1: For investment projects that have obtained investment policy approval, the investor shall submit :

+ 08 sets of documents to the Ministry of Planning and Investment for projects under the approval authority of the Prime Minister;

+ 04 sets to the Provincial People’s Committee for projects under its authority;

+ or 04 sets to the Management Board of industrial parks, export processing zones, high-tech zones, or economic zones for projects under their authority.

The competent investment registration authority will assess whether the project meets the conditions for division (as analyzed above in Clause 2 of this Article) and then proceed with the project adjustment procedures.

- Case 2: For investment projects that have been issued the Investment Registration Certificate and do not fall under investment policy approval, or have been approved but are not subject to the provisions of Clause 3, Article 41 of the Law on Investment 2020 (such as adjusting the project's operational duration, changing appraised technology, etc.):

+ The investor only needs to submit 01 set of documents to the competent investment registration authority.

+ However, according to operation areas, the authority may be the Management Board of industrial parks, export processing zones, etc.,  for projects located in such zones, or the Department of Planning and Investment for projects outside those areas.

The competent authority will review the conditions and process the adjustment procedures accordingly.

4. Process for dividing an investment project
Once the required documents and applicable procedures are understood, the following steps should be taken:

- Step 1: Preparation of documents
The investor must fully prepare the required documents to ensure the project adjustment can be properly implemented.

- Step 2: Submission of the application
The investor submits the documents to the relevant investment registration authority as per the project’s jurisdiction.

- Step 3: Approval from the competent authority

- The investment registration authority will assess the conditions and review the application.

- If complete and valid, the authority will accept the application and issue an amended Investment Registration Certificate.

- If the application is incomplete or invalid, the authority will request additional clarification or documentation from the investor or may reject the application with a written explanation for the rejection.

III. Consulting services for dividing investment projects

If you are looking for more detailed consulting services regarding the division of investment projects, please contact Lawyer Nguyễn Ngọc Phú – Director of NPLaw and a member of the Ho Chi Minh City Bar Association. With years of experience and extensive legal expertise, he will provide thorough advice and answer any questions you may have on the matter.

To contact the lawyer at Ngoc Phu Law Company Limited, please send your request via email: phu.nguyen@nplaw.vn or call directly at: 0913 449 968.