In the context of an increasingly volatile investment environment, ensuring the implementation schedule of a project is a main factor determining the success of each investment project. However, for various reasons, a project may not be completed in accordance with its initial schedule. Thus, the extension of a project implementation schedule becomes a necessary solution, allowing investors additional time to remedy difficulties and complete the project, while also safeguarding the lawful rights and interests of the parties concerned.

I. Current situation regarding the extension of project implementation schedules

During the implementation of investment projects, delays in project schedules are common. There are various causes for such delays, ranging from objective factors such as market fluctuations, natural disasters, and epidemics, to subjective factors such as inadequate management capacity of the investor, difficulties in capital mobilization, and obstacles related to legal procedures.

If duly considered and approved in accordance with the law, the extension of a project implementation schedule may facilitate the investor in overcoming difficulties, completing the project, and avoiding greater losses.

II. Legal regulations on the extension of project implementation schedules

1. Conditions for extending the project implementation schedule

Pursuant to Clause 3, Article 41 of the Law on Investment 2020:

  • An investor whose investment project has been approved in investment policies must implement procedures for approval of adjustment to the investment policy if it falls under one of the following cases: Extension of the implementation schedule of the investment project where the total investment duration exceeds 12 months compared to the implementation schedule stipulated in the initial investment policy approval.

Accordingly, prior to the expiration of the project’s operation term, the investor may implement procedures for adjustment of the investment project, including the extension of the project implementation schedule. Although there is no specific regulation prescribing detailed conditions for adjustment, in order to obtain approval for an extension, the investor must provide legitimate grounds for the request, and ensure that the extension dossier and procedures are fully and validly completed in accordance with the law.

2. Competent authorities for approving the extension of the project implementation schedule

Clause 5, Article 41 of the Law on Investment 2020 provides:

  • The state authority competent to approve the investment policy shall have the authority to approve adjustments to the investment policy.

Under current regulations, the authorities competent to approve investment policies include:

  • The National Assembly (Article 30 of the Law on Investment 2020);
  • The Prime Minister (Article 31 of the Law on Investment 2020);
  • Provincial-level People’s Committees (Article 32 of the Law on Investment 2020).

Accordingly, the authority to decide on the extension of the project implementation schedule depends on the authority that originally approved the investment policy of the project.

3. Statutory processing time for dossiers requesting extension of project implementation schedules

For projects under the authority of the National Assembly (Clause 6, Article 41 and Article 34 of the Law on Investment 2020):

  • Within 15 days from the date of receipt of a complete dossier, the Ministry of Planning and Investment shall report to the Prime Minister for the establishment of the State Appraisal Council;
  • Within 90 days from the date of its establishment, the State Appraisal Council shall conduct appraisal of the dossier and prepare an appraisal report to be submitted to the Government;
  • No later than 60 days prior to the opening date of the National Assembly session, the Government shall prepare and submit the dossier requesting approval of the investment policy to the agency responsible for appraisal of the National Assembly.

For projects under the authority of the Prime Minister (according to Article 44 of Decree No. 31/2021/NĐ-CP):

  • Within 03 working days from the date of receipt of a valid dossier, the Ministry of Planning and Investment shall send the dossier to relevant competent state authorities for opinions;
  • Within 15 days from the date of receipt of a valid dossier, the consulted authorities shall provide their opinions on the adjusted contents of the project falling within their respective state management scope;
  • Within 35 days from the date of receipt of a valid dossier, the Ministry of Planning and Investment shall prepare an appraisal report on the adjusted contents of the investment project and submit it to the Prime Minister;
  • Within 05 working days from the date of receipt of the appraisal report from the Ministry of Planning and Investment, the Prime Minister shall decide on the approval of the adjustment to the investment policy.

For projects under the authority of provincial-level People’s Committees (pursuant to Article 45 of Decree No. 31/2021/NĐ-CP):

  • Within 03 working days from the date of receipt of a valid dossier, the Investment Registration Authority shall send the dossier to relevant competent state authorities for opinions;
  • Within 15 days from the date of receipt of a valid dossier, the consulted authorities shall provide opinions on the adjusted contents of the project within their respective management scope;
  • Within 25 days from the date of receipt of a valid dossier, the Investment Registration Authority shall prepare an appraisal report on the adjusted contents of the investment project and submit it to the provincial-level People’s Committee;
  • Within 07 working days from the date of receipt of the dossier and appraisal report from the Investment Registration Authority, the provincial-level People’s Committee shall decide on the approval of the adjustment to the investment policy.

Accordingly, depending on the specific project, the processing time for dossiers requesting extension of the project implementation schedule shall be applied in accordance with the above regulations.

III. Questions regarding the extension of project implementation schedules

1. If the investor has not fully contributed capital for the investment project, is it possible to request an extension of the project implementation schedule?

Currently, there is no regulation stipulating full capital contribution as a mandatory condition for extending the project implementation schedule. However, the competent authority will conduct a comprehensive assessment of various factors, including the investor’s capital contribution status, in order to decide whether to approve the extension.

If the delay in capital contribution arises from objective causes (such as the impact of epidemics or fluctuations in financial markets), and the investor can demonstrate that the extension is necessary for project completion, the competent authority may consider approving the extension. Conversely, if the delay results from the investor’s subjective fault (such as weak financial capacity or lack of a feasible capital mobilization plan), the approval for extension will be unqualified.  

2. Can an investment project that violates land law regulations be granted an extension of the project implementation schedule?

Currently, there is no regulation prohibiting investors from applying for an extension of the project implementation schedule solely because the project violates land law regulations. However, when reviewing a dossier requesting an extension, the competent authority will conduct a comprehensive appraisal in accordance with the law. Therefore, the existence of land law violations constitutes a significant disadvantage, directly affecting the authority’s decision on whether to grant the extension. 

In certain cases, land law violations may even result in termination of the project, for example where land is recovered due to failure to put land into use or delayed land use in accordance with land law regulations (Point d, Clause 2, Article 48 of the Law on Investment 2020).

3. Is there a minimum statutory time for implementing procedures for extension of the project implementation schedule?

Current laws do not prescribe a minimum time for implementing procedures to extend the project implementation schedule. However, in order to avoid interruption of project operations and to ensure sufficient time for dossier appraisal, investors are advised to proactively submit extension dossiers before the expiration of the project implementation term specified in the Investment Registration Certificate or the investment policy approval document.

4. What are the consequences if the project operation term expires without applying for an extension of the project implementation schedule?

Clause 4, Article 44 of the Law on Investment 2020 provides: Upon expiration of the operation term of an investment project, if the investor wishes to continue implementing the project and satisfies the conditions prescribed by law, the operation term of the investment project may be considered for extension but shall not exceed the maximum duration stipulated in Clauses 1 and 2 of this Article, except for the following investment projects:

  • Investment projects using obsolete technology, posing risks of environmental pollution, or being resource-intensive;
  • Investment projects subject to the obligation to transfer assets without compensation to the State of Vietnam or to the Vietnamese party.

Accordingly, if the project operation term expires but the investor continues operating the project without adjusting the investment project in accordance with the law, administrative sanctions may be imposed according to Points b and c, Clause 2, Article 17 of Decree No. 122/2021/NĐ-CP, as follows:

- A fine ranging from 70,000,000 VND to 100,000,000 VND shall be imposed for any of the following acts:

  • Failure to implement procedures for adjustment of the Investment Registration Certificate where the adjustment of the investment project results in changes to the contents of the Investment Registration Certificate;
  • Failure to implement procedures for approval of adjustment to the investment policy, approval of adjustment to the investment policy concurrently with approval of the investor, or approval of adjustment to the investor in cases where adjustment is required by law.

Thus, failure to extend the project operation term upon expiration may result in a fine ranging from 70,000,000 VND to 100,000,000 VND in accordance with the above regulations.

5. Is it permissible to request multiple extensions of the project implementation schedule?

Current laws do not specifically regulate the number of times an extension may be requested. However, investors must satisfy the conditions for extension and must not adjust the project implementation schedule by more than 24 months compared to the schedule stipulated in the initial investment policy approval document, except for one of the cases provided in Clause 4, Article 41 of the Law on Investment 2020, including:

  • Remedial measures in cases of force majeure in accordance with civil law and land law;
  • Adjustment of the project implementation schedule due to delays in land allocation, land lease, or permission for change of land use purpose by the State;
  • Adjustment of the project implementation schedule at the request of a state management authority or due to delays in administrative procedures by state authorities;
  • Adjustment of the investment project due to changes in planning by state authorities;
  • Change of objectives stipulated in the investment policy approval document; addition of objectives subject to investment policy approval;
  • Increase of total investment capital by 20% or more, resulting in changes to the project scale.

IV. Legal advisory services on the extension of project implementation schedules

The above constitutes NPLaw’s legal overview of the extension of project implementation schedules under current regulations. With a team of experienced lawyers and legal professionals, NPLaw provides reputable and professional legal services, ensuring optimal protection of the lawful rights and interests of our clients. Should you require legal assistance, please contact NPLaw for consultation and support.