On June 17, 2020, the National Assembly promulgated the Law on Investment No. 61/2020 /QH14 regulating business investment activities in Vietnam and business investment activities from Viet Nam to foreign countries.

Accordingly, at Article 44 of this Law has new provisions on the operation duration of investment projects as follows:

• For investment projects located in economic zones, the operation duration of investment projects must not exceed 70 years;
• For investment projects implemented outside economic zones, the operation duration of investment projects shall not exceed 50 years;
• Investment projects implemented in geographical areas with difficult socio-economic conditions, geographical areas with exceptionally difficult socio-economic conditions according to law provisions or investment projects with investment capital If the investment capital is large but the capital recovery is slow, the operation duration of investment projects may be longer but not exceeding 70 years;
• In case an investment project expires and the investor wishes to continue implementing the investment project and meets the conditions prescribed by law, it may be considered for extension of the operation duration of the project but not exceeding the maximum time limit prescribed by each type of project.

However, not all investment projects will have their operation duration extended, with the following investment projects not being extended:

• Investment projects using outdated technology, potentially causing environmental pollution, using resources to the point where they are in deficit.
• An investment project in which the investor has to transfer without compensation of assets to the Vietnamese State or Vietnamese party.

The Investment Law takes effect from January 1, 2021, and applies to investors, agencies, organizations and individuals related to business investment activities.