What are regulations on requirements of an investor-proposed PPP project in Vietnam?

1. What are regulations on requirements of an investor-proposed PPP project in Vietnam?

Pursuant to Article 26 of the Law on public - private partnership investments 2020 stipulates requirements of an investor-proposed PPP project:

1. An investor-proposed PPP project must meet the following requirements:

a) Conforming to eligibility requirements of a project for PPP investment specified at Point a, b, c and d of Clause 1 of Article 14 in this Law;

b) 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;

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

2. The open tendering and competitive negotiation for projects proposed by investors must be conducted according to the provisions of Article 37 or Article 38 of this Law.

2. What are procedures for preparation of investor-proposed PPP projects in Vietnam? 

According to Article 27 of the Law on public - private partnership investments 2020 stipulates procedures for preparation of investor-proposed PPP projects as follows:

1. Procedures for preparation of the proposal documentation shall be as follows:

a) The investor submits the written proposal form for implementation of a PPP project to a relevant competent authority. In case where a receiving competent authority cannot be identified, it shall be sent to the state PPP investment authority;

b) The competent authority considers responding in writing that the investor approves or refuses the investor’s bid for preparation of the pre-feasibility study report. The written approval may delineate the way to coordinate with a competent authority’s affiliates, requirements concerning the deadline for submission of an investor’s project proposal and other relevant matters; in case of disapproval, clearly stating the reasons;

c) In case of being approved by a competent authority, the investor prepares a project proposal, including: pre-feasibility study report, documents and records on the investor’s legal status, capacity and experience;

d) The investor sends the proposal documentation to the competent authority;

dd) If the project proposal documentation is not approved, the investor shall bear all costs and risks.

2. Projects proposed by investors shall be subject to the assessment and investment policy decision according to the provisions of Article 6, 12, 13, 14, 15, 16 and 17 of this Law.

3. Feasibility study report formulation and assessment, and project approval procedures shall be carried out as follows:

a) The investor takes charge of preparing the feasibility study report under Article 19 herein;

b) The feasibility study report prepared by the investor shall be subject to the assessment conducted under Article 20 herein;

c) The project is approved under the regulations laid down in Article 21, 22 and 23 herein;

d) If the project is not approved, the investor shall bear all costs and risks.

4. Project announcement procedures shall be subject to the following regulations:

a) After an investor-proposed project obtains the investment policy decision or the project approval decision from a relevant competent authority, the competent authority shall publish project information in accordance with Article 25 of this Law and name of the investor proposing the project;

b) For projects containing information related to intellectual property rights, trade secrets, technologies or capital raising agreements for project execution subject to the confidentiality requirement, the investor agree with a relevant competent authority about unpublished information.

5. The adjustment or modification of a PPP project investment policy shall be subject to regulations laid down in Article 18 herein while the adjustment or modification of a PPP project shall be subject to regulations laid down in Article 24 herein.

6. Costs of preparation of the pre-feasibility study report or the feasibility study report shall be charged into total investment in the project.  In case where the investor submitting the project proposal is not selected, the expenses incurred from making the pre-feasibility study report or the feasibility study report shall be reimbursed by the selected investor.

7. The Government shall elaborate on this Article.

Best Regards!