List of investment projects subject to approval for investment guidelines by provincial People’s Committees in Vietnam

List of investment projects subject to approval for investment guidelines by provincial People’s Committees in Vietnam

Pursuant to Article 32 of the Law on Investment in 2020 (amended by Clause 2 Article 3 of the Law on amendments to certain articles of the Law on Public Investment; the Law on Public-Private Partnership Investment; the Law on Investment; the Law on Housing; the Law on Bidding; the Law on Electricity; the Law on Enterprises; the Law on Special Excise Duties; the Law on Civil Judgment Enforcement in 2022) stipulating the power of provincial People’s Committees to approve investment guidelines in Vietnam:

The power of provincial People’s Committees to approve investment guidelines

1. Except for the investment projects set out in Articles 30 and 31 of this Law, the provincial People’s Committees shall grant approval for investment guidelines of the following investment projects:

a) Investment projects that request the State to allocate or lease out land without auction or bidding for or receipt of land use rights, and investment projects that request permission to repurpose land, except for cases of allocation, lease or permission for repurposing of land of households or individuals not subject to the written approval by the provincial People's Committee in accordance with regulations of law on land;

b) Investment projects on construction of residential housing (for sale, lease or lease purchase) and urban areas that use less than 300 hectares of land or with a population of less than 50,000 people;

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As regulations above, except for the investment projects required approval from the National Assembly and the Prime Minister, the provincial People’s Committees shall grant approval for investment guidelines of the following investment projects:

- Investment projects that request the State to allocate or lease out land without auction or bidding for or receipt of land use rights, and investment projects that request permission to repurpose land, except for cases of allocation, lease or permission for repurposing of land of households or individuals not subject to the written approval by the provincial People's Committee in accordance with regulations of law on land;

- Investment projects on construction of residential housing (for sale, lease or lease purchase) and urban areas that use less than 300 hectares of land or with a population of less than 50,000 people;

- Projects on investment in golf course construction and business;

- Investment projects of foreign investors and foreign-invested business organizations executed on islands or in border or coastal communes; in other areas affecting national defense and security.

Which investment projects shall be approved by the provincial People’s Committees in Vietnam? - image from internet

What documents are included in the application for approval for investment guidelines of an investment project proposed by an investor in Vietnam?

Pursuant to Clause 1 Article 33 of the Law on Investment in 2020, an application for approval for investment guidelines of an investment project proposed by an investor includes:

- An application form for execution of the investment project, including a commitment to incur all costs and risks if the project is not approved;

- A document about the investor’s legal status;

- Document(s) proving the financial capacity of the investor including at least one of the following documents:

+ The investor’s financial statements for the last two years;

+ Commitment of a parent company to provide financial support;

+ Commitment of a financial institution to provide financial support;

+ Guarantee for the investor’s financial capacity;

+ Other document proving the investor’s financial capacity;

- Proposal for the investment project including the following main contents:

+ Investor or method of investor selection;

+ Investment objectives;

+ Investment scale

+ Investment capital;

+ Investment plan for raising capital;

+ Location, duration and schedule of the investment project, information about the current use of land in the location of the project and proposed demand for land use (if any);

+ Demand for labor;

+ Proposal for investment incentives, impact and socio – economic efficiency of the project and preliminary assessment of environmental impact (if any) in accordance with regulations of law on environmental protection.

- If the project does not require the State to allocate or lease out land or to permit land repurposing, a copy of the document regarding the land use rights or other document identifying the right to use the location for execution of the investment project is required to be submitted;

- Contents of the explanation for the technology to be used in the investment project if the project requires appraisal and collection of opinions on the technology in accordance with the Law on Technology Transfer;

- The business cooperation contract if the investment project is executed under a business cooperation contract;

- Other documents relating to the investment project, and requirements on the eligibility and capacity of the investor in accordance with regulations of law (if any).

What documents are included in the application for approval for investment guidelines of an investment project prepared by a competent authority in Vietnam?

Pursuant to Clause 2 Article 33 of the Law on Investment in 2020, an application for approval for investment guidelines of an investment project prepared by a competent authority in Vietnam includes:

- An application for approval for investment guidelines;

- Proposal for the investment project including the following main contents:

+ Investment objectives, investment scale, investment capital and plan for raising capital, location, duration and schedule of the investment project;

+ Information about the current use of land in the location of the project, conditions for land expropriation if the project is subject to land expropriation, expected demand for land use (if any);

+ Preliminary assessment of environmental impact (if any) in accordance with the law on protection of the environment protection;

+ Expected method of investor selection and conditions applicable to the investor (if any);

+ Special mechanisms and policies (if any).

Note: If the law on construction requires formulation of a pre-feasibility study report, the competent authority is entitled to submit the pre-feasibility study report instead of a proposal for the investment project.

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