In the context of deep international integration, Vietnam is increasingly attracting strong capital inflows from both domestic and foreign investors. However, this also comes with stricter requirements for the management of technology and equipment quality in investment projects — aiming toward sustainable development, resource efficiency, and environmental protection. Therefore, understanding the definition of investment projects and the role of inspection certificates in technology-utilizing projects is something businesses must not overlook.

Vietnam strengthens control over technology and equipment quality in investment projects

CONTENTS:

1. What is an investment project?

According to Clause 4, Article 3 of the Investment Law 2020, an investment project is defined as:

"A collection of medium or long-term capital investment proposals to conduct business investment activities in a specific geographical area within a specified period."

In other words, an investment project is a plan to use capital (self-owned or borrowed) to carry out production, business, or infrastructure development activities in order to achieve socio-economic benefits.

According to Clause 1, Article 3 of Decision No. 29/2023/QĐ-TTg, a technology-based investment project is defined as:

"An investment project that uses machinery, equipment, and technological lines to produce products."

2. Characteristics of an investment project

From the above definitions, a typical investment project will generally exhibit the following key characteristics:

First, an investment project involves multiple stakeholders.

These may include investors, investment management authorities, project consultants, contractors, and beneficiaries of the investment. Depending on the source, scale, and location of the investment, the involvement and roles of these stakeholders will vary.
Effective and transparent coordination among stakeholders is a critical factor that determines the success or failure of an investment project.

Second, an investment project can be short-term or long-term and has a finite lifespan.

Projects usually have a clear time frame. According to Article 44 of the Investment Law 2020:

• The operational duration of an investment project in an economic zone must not exceed 70 years;

• The duration of projects outside economic zones must not exceed 50 years. For projects located in areas with difficult or especially difficult socio-economic conditions, or projects with large-scale investment but slow capital recovery, the duration may be extended up to 70 years;

• If a project is delayed due to late land handover by the government, the delay period will not be counted towards the project’s operational duration or progress.

Third, every investment project must have clear objectives and purposes.

Each project must be built around specific objectives — this is also a mandatory requirement in the project proposal or investment policy application. Objectives may include optimizing production, scaling operations, adopting new technology, or developing new products/services.

Defining clear goals helps ensure effective operation and provides the basis for authorities to assess the feasibility, transparency, and sustainability of the project.

Fourth, investment projects can be transferred.

According to Article 46 of the Investment Law 2020, investors are allowed to transfer all or part of their projects to other investors if the following conditions are met:

• The project is not subject to termination as specified by law;
  

• In cases where the transferee is a foreign investor, the project must meet investment conditions applicable to foreign investors in conditional business sectors;
  

• For projects involving land use rights, the transfer must comply with laws on land and real estate business;
  

• The conditions stated in the investment registration certificate or other relevant legal provisions (if any) must be satisfied.

3. Extension of investment project duration

According to Clause 4, Article 44 of the Investment Law 2020:

When the operational duration of an investment project expires and the investor wishes to continue, they may apply for an extension if they meet the legal requirements. However, the extended duration must not exceed the maximum limits specified by law, except in the following cases:

• Projects using outdated technology, posing environmental pollution risks, or overexploiting resources;
  

• Projects that require the investor to transfer assets to the Vietnamese State or a Vietnamese party without compensation.
  

The extension of the project’s operational duration does not apply to investment projects that use outdated technology, pose potential environmental pollution risks, or excessively exploit natural resources

4. Inspection certificates in technology-based investment projects

Identifying the technology used in an investment project involves reviewing, evaluating, and determining the technological lines, machinery, and equipment used, as specified in points a and b, Clause 10, Article 27 of Decree No. 31/2021/NĐ-CP. This assessment determines whether the project uses outdated technology that may pose environmental risks or resource inefficiencies.
This activity is carried out by the Ministry of Science and Technology in coordination with other relevant agencies.

The application documents, procedures, and steps for technology identification in investment projects are governed by Decision No. 29/2023/QĐ-TTg of the Prime Minister. Among these documents, the Inspection Certificate of machinery, equipment, and technological lines used in the project (commonly referred to as the Inspection Certificate) is a mandatory component of the application.

→ See more: Designation decision by the Ministry of Science and Technology

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