An investment project’s operating term is not an administrative detail that can be left until the last minute: once the IRC expires without extension, the project falls into legal limbo — no further amendments can be processed, project-linked licenses are hard to renew, and in the worst case the project may face termination. The law caps the operating term at 50 years, or 70 years for projects in areas with difficult or especially difficult socio-economic conditions, including any extended time.
The make-or-break factor of an extension file is not the request template but the project’s “track record”: whether it has met its registered schedule and objectives, whether its land and tax financial obligations are complete, and whether it aligns with land-use and sectoral planning at the time of the extension request. Companies with delayed progress, land rental arrears or environmental violations will be closely scrutinized — and may be refused. An extension file should therefore be prepared like a full audit of the project’s implementation history, and submitted well before expiry to allow time for supplementary requests.
Quick summary
| Topic | Extending an investment project’s operating term on the IRC |
|---|---|
| Who this is for | FDI companies with projects approaching term expiry, and investors wanting to continue operating long-term in Vietnam. |
| Key checkpoints | Maximum term (50 years, 70 years in difficult areas), project implementation record, land and tax financial obligations, planning alignment; file at least 6 months before expiry. |
| Desired outcome | The IRC’s operating term extended, the project continuing to operate lawfully, and project-linked licenses renewed in sync. |
Core legal issue: extending an investment project’s operating term
The project’s operating term is mandatory IRC content. Once it expires without extension, the investor has no legal basis to continue the project; administrative procedures linked to the project (land lease renewal, IRC amendments for other contents, long-term work permit renewal for project personnel…) all stall. Extension must therefore be treated as a priority procedure, not a “later” one.
Investment law caps the term: no more than 50 years from the date the project received investment in-principle approval/decision or was issued the IRC; in special cases, projects in areas with difficult or especially difficult socio-economic conditions, or projects with large capital but slow capital recovery, may run longer but no more than 70 years. Every extension counts toward this cap — there is no unlimited extension.
On conditions, the investment registration authority assesses extension against three groups of criteria: (1) project implementation up to the request date — whether objectives, schedule and scale match registration; (2) financial obligation compliance — land rental, taxes, fees; and (3) alignment with land-use planning and sectoral development planning at the time of extension. Projects using land whose planned use has changed, or projects causing serious unremediated pollution, are hard cases for extension.
Legal basis and verification sources
- Law on Investment 2025
- Law 76/2025/QH15 amending the Law on Enterprises
- Decree 168/2025/ND-CP on enterprise registration
- Decree 29/2025/ND-CP on the functions and tasks of the Ministry of Finance
- Resolution on the 2025 rearrangement of provincial-level administrative units
- Resolution 203/2025/QH15 amending the Constitution on administrative units
Procedure and dossier checklist
Step 1 — Full review before filing (at least 6 months before expiry): check the remaining term on the IRC; compare actual progress, objectives and scale with registered contents; review financial obligations (land rental, taxes, fees, social insurance); check the project site’s alignment with current planning; settle all violations and outstanding debts before filing.
Step 2 — Prepare the extension request dossier: the dossier includes the written request to extend the project’s operating term; a copy of the IRC; the project implementation status report up to the request date (progress, capital disbursed, labor, financial obligations); audited financial statements for recent years; evidence of completed land and tax financial obligations; and the investor’s decision requesting the extension.
Step 3 — File and work with the investment registration authority: file with the authority that issued the IRC; cooperate in providing supplements when the authority consults relevant departments (natural resources and environment, tax, construction…); actual processing time depends on whether inter-agency consultation is needed — which is exactly why filing at least 6 months early matters.
Step 4 — Receive the amended IRC and synchronize related licenses: after extension, check the new IRC contents; synchronize land lease/sublease renewal in industrial parks, renew term-based project-linked licenses, and update information with banks and partners as needed.
Common risks
Risk 1 — Filing too close to expiry: extension procedures usually require inter-agency consultation, taking longer than the nominal processing time; late filing leaves the project in a legal gap when the old IRC expires before the new one is issued.
Risk 2 — A “bad track record”: prolonged delays, land rental arrears, environmental violations or unfulfilled tax obligations; the authority has grounds to refuse extension or grant only a short conditional one.
Risk 3 — No longer aligned with planning: the project site lies in an area whose planned land use has changed; even a well-performing project is hard to extend at the old location — relocation or conversion options must be considered.
Risk 4 — Exceeding the maximum term cap: total time (operated + requested extension) exceeding 50 years (or 70 years in difficult areas); the excess is not approved — a new investment rather than an extension must be planned.
Risk 5 — Forgetting post-extension synchronization: the IRC is extended but land leases and sub-licenses expire without parallel renewal; operations remain stuck because component licenses have lapsed.
Competent authorities and filing bodies
Operating term extension is handled by the investment registration authority that issued the IRC (the provincial/municipal Department of Finance or the Industrial Park, Export Processing Zone, Hi-Tech Park or Economic Zone Management Authority). For projects subject to investment in-principle approval, the extension is tied to the approving authority’s competence. Post-extension synchronization contents (land, construction, environment) fall under each specialized agency.
When to contact a lawyer
Engage a lawyer in three cases: (1) at least 6 months before expiry — for a full legal health check of the project and settling outstanding issues (debts, violations, delays) before filing; (2) when the project has complex factors — land with complicated origin, inter-agency consultation requirements, or planning misalignment risk; (3) when the extension file drags on or shows refusal signs — a plan for working with state authorities and contingency options (relocation, new investment, project transfer) is needed.
How FLAT LAW FIRM helps
FLAT LAW FIRM assists with comprehensive pre-extension legal review of the project, dossier standardization, working with the investment registration authority and relevant departments, and post-extension license synchronization, in Vietnamese, Chinese and English.
See also: Amending an Investment Registration Certificate | Adjusting an investment project’s implementation schedule | Changing investors in a project in Vietnam
FAQ
What is the maximum operating term of an investment project?
No more than 50 years; no more than 70 years for projects in areas with difficult or especially difficult socio-economic conditions, or projects with large capital but slow capital recovery. Every extension counts toward this cap.
How early should the extension file be submitted?
In practice, at least 6 months before expiry, because extension files usually require consultation with relevant departments (land, tax, environment), making actual processing longer than the nominal time.
Can a delayed project be extended?
It is difficult. Project implementation status is an extension criterion; projects with prolonged delays, unfulfilled financial obligations or unremediated violations may be refused or granted only a short conditional extension.
Does a planning change affect extension?
Yes. If the project site no longer aligns with land-use or sectoral planning at the request time, the project is hard to extend at the old location.
Does extending the operating term require an IRC amendment?
Yes. The operating term is IRC content, so extension is done through the IRC amendment procedure at the investment registration authority that issued the IRC.
What should be done after the IRC is extended?
Synchronize land lease/sublease renewal, renew term-based project-linked licenses, and update information with banks and partners as needed.
What if the term expires before extension is done?
The project loses its legal basis to continue; other amendment and license renewal procedures stall; prolonged cases may face project termination review. Act urgently as soon as discovered.
