Procedures for adjusting capital for implementing investment projects

Capital for implementing investment projects is the capital that investors commit to contribute according to the regulations and the time limit recorded in the Investment Registration Certificate. During the operation of the project, depending on the development situation, investors can adjust the investment capital up or down according to the prescribed procedures and procedures to suit the actual status.

1. Dossier for adjusting the capital for implementing the investment project

• Document requesting to adjust the investment project;
• Report on the implementation status of the investment project up to the time of adjustment;
• Decision of the investor on adjusting the investment project;
• Explanation of the reason for adjusting the investment project (changes in increasing/decreasing the capital for implementing the investment project);
• Documents related to increasing/decreasing the capital for implementing the investment project, for example: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; commitment to financial support of the financial institution; guarantee of the financial capacity of the investor;…

2. Procedures for adjusting investment capital of investment projects

Step 1: Investors must ensure to prepare the number of dossiers according to the regulations for each type of investment project.

Step 2: Submit dossiers for adjusting the Investment Registration Certificate to competent authorities.

The competent authorities shall handle as follows:

• Investment projects under the Prime Minister's authority to approve investment policies: Ministry of Planning and Investment;
• Investment projects under the provincial People's Committee's authority to approve investment policies: Investment registration authority (Department of Planning and Investment);
• Investment projects under the authority to approve investment policies of the Management Board of industrial parks, export processing zones, high-tech zones, economic zones: Management Board of industrial parks, export processing zones, high-tech zones, economic zones;
• Investment projects that have been granted Investment Registration Certificates and are not subject to approval for investment policy adjustment: Investment registration agency (Department of Planning and Investment).

Step 3: Appraisal of documents and receipt of results.

3. Notes when adjusting the capital for investment projects

• The Investment Registration Certificate specifies the total investment capital of the project, including the investor's contributed capital and mobilized capital. When there is an increase or decrease in contributed capital or mobilized capital, in addition to performing the procedure for registering the adjustment of the project's investment capital, it may also result in the registration of changes to the business registration contents for contents related to charter capital.
• The change in investment capital leads to the need to carry out the procedure for adjusting the Investment Registration Certificate according to the law. In case the investor fails to make the adjustment, he/she will be subject to an administrative penalty with a fine of 70,000,000 - 100,000,000 VND.

In case of reducing the project investment capital, it may affect the scale and capacity of the project because the investment capital after reduction may not ensure the ability to maintain and implement the investment project as well as the previously registered scale and capacity. Therefore, the competent authority has the right to request the investor to adjust the capital reduction and at the same time reduce the scale and capacity of the project to align with the required capital reduction.