This article is for reference only and does not constitute legal advice. Content reviewed by the FLAW AI Legal Council.
Under Vietnam’s new Investment Law 2025 (Law No. 143/2025/QH15, effective 1 March 2026), the grounds for terminating an investment project have been significantly expanded. This article compares the old and new rules so investors know exactly when a project may be shut down.
1. Termination grounds move from Article 48 to Article 36
Voluntary termination by the investor (Article 36.1) keeps the same 3 grounds as before. The major change is in termination ordered by the investment registration authority.
2. Authority-ordered termination: from 7 to 9 grounds
Article 36.2 of the 2025 Law lists 9 grounds (points a–i), adding two new ones:
- New point (b): the project fails to achieve its operational objectives after 24 months;
- New point (i): the economic organization has been dissolved but the project has not been wound up.
In addition, point (d) is broadened: under the 2020 Law, land recovery led to termination only where land was not put into use or was used behind schedule; under the 2025 Law, any land recovery in accordance with land law is a termination ground.
No termination ground has been abolished — the 2025 Law only adds and broadens.
3. Termination procedure: working days, not calendar days
The procedure moves from Article 57 of Decree 31/2021 to Article 66 of Decree 96/2026/ND-CP. The time limit changes from 15 days to 15 working days, and the investment registration authority must notify relevant agencies within 3 working days after termination.
4. Comparison table
| Item | Investment Law 2020 (Art. 48) | Investment Law 2025 (Art. 36) |
|---|---|---|
| Investor-initiated termination | 3 grounds | Same 3 grounds |
| Authority-ordered termination | 7 grounds (a–g) | 9 grounds (a–i) |
| Land recovery | Only for non-use or slow use | Any recovery under land law |
| Grounds abolished | — | None |
| Procedure | Art. 57 Decree 31/2021 (15 days) | Art. 66 Decree 96/2026 (15 working days + 3 working days notice) |
5. Practical notes for investors
- The two new grounds are tools against hanging projects — investors should track the 24-month operational milestone and complete dissolution procedures properly;
- Any land recovery decision should now be read together with the risk of project termination.
Contact FLAT Law Firm for advice on project termination and restructuring under the new Investment Law.