How many years a BCC may be signed for looks like a question with a ready answer in the law, but in reality a BCC’s term does not stand alone: it is locked by the term of the investment project the BCC implements, by the project’s land use term, and by sector licences where the activity is licensed for a fixed period. Setting the term wrongly at the outset — too short for the asset’s life, or forgetting the extension conditions — erodes the value of the whole deal just as the project enters its most profitable phase.
The BCC term follows the project term: the 50-year frame and the 70-year exception
The Law on Investment 143/2025/QH15 continues the principle of earlier investment laws: an investment project’s operating term is at most 50 years, and in special cases decided by the competent level it may be longer but not beyond 70 years; projects in economic zones and projects with special characteristics may be considered for longer terms within that limit. Because a BCC is a method of implementing a project, the BCC term cannot exceed the project term stated in the Investment Registration Certificate; for a purely domestic BCC without an IRC, the term is agreed by the parties within the land use term and relevant sector licences. Three dates must align in the file: the BCC term, the project term on the IRC and the land lease or allocation term — the shortest of them decides the project’s fate. For BCCs in special fields such as petroleum, the petroleum contract term follows the separate frame of the Law on Petroleum 12/2022/QH15, tied to the exploration and production phases of each block.
Extension: procedure, timing, and what happens without one
Extending a BCC involves two parallel layers of work. The contract layer: the parties sign an extension addendum before expiry, adjusting the economic terms for the new phase — this is when the party that was weaker in the first phase often seeks to renegotiate the sharing ratio and additional investment obligations. The state procedure layer: for a project with an IRC, the investor must amend the Investment Registration Certificate as to the operating term before the old term expires, with an explanation of project implementation in the elapsed phase and the plan for the next; the registration authority may refuse extension where the project is in serious breach or falls within a case for termination. A common mistake is filing only at the edge of expiry, while processing time and requests for supplementation can run longer than expected. If a BCC expires without extension, the parties move into liquidation: financial and tax finalisation of the joint activity, division of remaining assets under the contract, and handling of staff and unfinished transactions with third parties. The clause on asset handling at expiry — especially assets attached to land and constructed works — must be written on the day the contract is signed, not negotiated when expiry arrives.
Frequently asked questions
1. What is the maximum term of a BCC?
There is no standalone figure for a BCC: the contract term is capped by the term of the investment project it implements — under the principle of the Law on Investment 143/2025, a project term is at most 50 years, exceptionally up to 70 years. The BCC term, the IRC project term and the land term must align.
2. How is a BCC extended?
Two parallel steps: the parties sign a contract extension addendum before expiry, and for an IRC project, amend the Investment Registration Certificate as to term at the registration authority with an explanation of implementation. File early, because supplementation may be requested.
3. What happens at expiry without extension?
The BCC moves into liquidation: financial and tax finalisation of the joint activity, division of remaining assets as agreed in the contract, and handling of staff and unfinished third-party transactions. Assets attached to land and works follow the clause written at signing.
4. Can a BCC extension be refused?
Yes, at the state procedure layer: the registration authority may decline to amend the term where the project is in serious breach, has failed to follow its committed schedule, or falls within a termination case under the Law on Investment.
5. Should the BCC term equal the land lease term exactly?
It should match or be shorter than the land term and the project term, because the shortest of the three dates governs in practice. A BCC term longer than the land lease creates a period where the contract lives but the project has no lawful site to operate on.
Key takeaways for investors
- A BCC term never stands alone — it is locked by the project term, the IRC and the land term.
- The usual frame: projects up to 50 years, special cases to 70, under the Law on Investment 143/2025.
- Extension has two layers: a contract addendum between the parties and an IRC amendment before expiry.
- The asset-at-expiry clause must be written at signing, not negotiated when expiry arrives.
This article has been quality-reviewed by the FLAW AI Legal Council