Vietnam: In 2021, 03 requirements of an investor-proposed PPP project shall apply

Vietnam: In 2021, 03 requirements of an investor-proposed PPP project shall apply (Illustrative photo)​

Under Article 26, the Law on Public-Private Partnership Investment 2020, an investor-proposed PPP project in Vietnam must meet the following requirements:

- Conforming to eligibility requirements of a project for PPP investment:

+ Necessity of making investment;

+ The selected project falls within the sectors prescribed in clause 1 of Article 4 in this Law and meets the minimum total investment requirement prescribed in clause 2 of Article 4 herein;

+ The selected project is not the duplicate of the PPP project obtaining an investment policy decision or a project approval decision;

+ PPP investment approach brings about more benefits than other investment approach;

- Ensuring that a PPP project is not duplicated with other PPP projects for which competent authorities have prepared pre-feasibility study reports or approved of other investors preparing pre-feasibility study reports;

- Conforming to the national socio-economic development strategies, plans and other relevant planning schemes in accordance with law on planning. 

Additionally, projects proposed by investors in Vietnam must undergo open bidding or competitive negotiation as detailed below:

Open bidding

- Open bidding is an approach to selecting investors in which the number of participating investors is not limited.

- Open bidding must be applied to all PPP projects, except the cases specified in Articles 38, 39 and 40 of this Law.

Competitive negotiation

- No more than 03 investors meeting project execution requirements are invited to attend;

- Projects use high technologies on the list of high technologies prioritized for investment and development thereof under the provisions of the law regarding high technologies;

- Projects use high technologies prescribed in law on technology transfer.

More details may be found in Law on Public-Private Partnership Investment 2020 effective from January 1, 2021.

Ty Na

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