Factory Lease Extension Services In Vietnam

During the implementation and operation of investment projects, many enterprises need to continue using leased factories and land to ensure uninterrupted business and production activities. However, the procedure for extending a factory lease with the competent authorities (especially in industrial zones) often requires a high level of accuracy, in-depth legal expertise, and strict compliance with applicable regulations.

With a team of experienced lawyers in investment law and industrial real estate, VPL provides comprehensive consultancy and services for factory lease extensions, enabling enterprises to fulfill their legal obligations promptly and minimize potential risks.

dịch vụ gia hạn tiến độ góp vốn - tiến độ thực hiện dự án

Benefits of using VPL’s services

Extensive experience

Common mistakes such as using the wrong type of contract, lacking documents to prove the purpose of use, or signing without proper authority will be reviewed and corrected by VPL to ensure legal compliance and avoid repeated amendments.

Detailed consultancy

VPL will examine the lease term, type of land/factory, industrial zone, and legal documents of both the lessor and lessee to provide detailed advice on the permissible extension period, extension conditions, and necessary preparations – ensuring maximum protection of the client’s interests.

Minimizing risks

By reviewing the overall legality of the lease agreement, the current use status, and the land/factory planning, VPL helps enterprises avoid disputes and violations after the lease extension.

Fast processing time

VPL can process lease extension applications swiftly thanks to its experience in handling internal procedures with state authorities particularly in major industrial zones.

Legal review of the investment project

VPL will review project factors like facility use, construction density, layout, environmental and fire safety compliance to ensure legal conformity and address issues.

Scope of work provided by VPL

When using VPL’s factory lease extension services, clients will receive comprehensive support, including:

Advising on conditions, lease terms, and relevant legal regulations for lease extensions.

Drafting, reviewing, and revising factory lease addendum to ensure compliance with applicable laws.

Representing the client in negotiations on the lease contract addendum with the industrial park developer or the lessor.

Preparing lease extension applications and submitting them to the Department of Finance or the Industrial Zone Management Authority.

Monitoring progress, providing explanations, and liaising with investment authorities and other competent agencies.

Receiving the official results and delivering them to the client.

Advising on post-extension obligations (taxes, fees, and additional procedures, if any).

VPL’s service process

Receive client’s request, review legal documents, and liaise with relevant parties (industrial park authority, lessor)

Prepare application documents and guide the client in preparing required materials.

Submit the application for adjustment of the Investment Registration Certificate (specifically, extension of the factory lease term) to the Department of Finance or the Industrial Park Management Authority.

Receive inspection teams at the project site (if any) and provide clarifications to the relevant authorities.

Obtain the amended Investment Registration Certificate with the extended lease term and hand it over to the client.

Frequently asked questions

When should a factory lease extension be carried out?

Before the factory lease expires, you must submit an application to adjust the IRC. It is advisable to initiate the extension 3–6 months before the lease expiry to allow sufficient time for preparation and processing.

Is lease extension mandatory if the current status of use remains unchanged?

Yes. Failure to extend the lease in accordance with regulations may be considered unlawful use of the property and subject to penalties.

Does a factory lease extension require an adjustment to the Investment Registration Certificate?

It depends. If the lease term is recorded in the IRC, you must carry out the adjustment procedure. Otherwise, you may face an administrative fine ranging from VND 70 to 100 million.

How long does it take to process a factory lease extension on the IRC?

Normally, the process takes about 20–30 working days, depending on the project site and the competent authority.

Is the process more complicated if the lessor is an FDI enterprise?

It is necessary to verify whether the lessor is legally permitted to lease out the factory. VPL will provide full support in this regard.

Is there a risk of retroactive tax collection if the lease has expired but not been extended?

Yes, it is possible. This depends on the period of unauthorized use and the findings of the tax authority’s inspection.

Có cần xin lại giấy phép xây dựng nếu gia hạn thuê xưởng không?

Không bắt buộc nếu kết cấu và công năng không thay đổi. Tuy nhiên cần kiểm tra quy hoạch cụ thể.

Get more support

If you are in need of a reputable legal consultancy unit, effective and dedicated companion in every legal issue, do not hesitate to contact VPL today!