Guarantee for Investment
Please let me know in which cases investors do not have to make a deposit to secure the implementation of an investment project?
Hope to get an answer soon.
We would like to answer questions from Investors.
According to Article 43 of the Law on Investment in 2020, it is stipulated as follows:
Article 43. Guarantee for execution of investment projects
1. The investor shall pay a deposit or have a bank guarantee for assurance of investment project execution if the project uses land allocated or leased out by the State to allocate or lease out land or is permitted by the State to repurpose land, except for the following cases:
- a) The investor is the successful bidder for the right to use a land area that is allocated by the State for land levy or leased out by the State for a lump-sum rent;
- b) The investor wins bidding for execution of an investment project using land;
- c) The State allocates or leases out land to the investor on the basis of receipt of an investment project for which a deposit has already been paid or for which the capital has been fully contributed or raised following the schedule specified in the written approval for investment guidelines or the investment registration certificate;
- d) The State allocates or leases out land to the investor for execution of an investment project on the basis of receipt of the land use right and assets on land from another land user.
2. Based on the scale, nature and execution schedule of each investment project, the deposit for assurance of project execution is 01% - 03% of the investment capital of the project. If a project comprises multiple investment phases, the amount of deposit shall be paid and returned in each phase of execution of the investment project, except for the case in which the deposit is not returned.
3. The Government shall elaborate this Article.
Investment Promotion Department – CPA