Which agencies conduct regulatory control payment of public investment projects in Vietnam?

1. Which agencies conduct regulatory control payment of public investment projects in Vietnam?

Article 4 of Decree 99/2021/ND-CP stipulates agencies conduct regulatory control payment of public investment projects in Vietnam, including:

1. State Treasuries shall take regulatory control of settlement of public investments funded by the state budget and legitimate revenue retained by the state regulatory authority for investing purposes.

2. Public service units shall take regulatory control of settlement of investments funded by legitimate revenues that they retain for investment purposes.

3. The Ministry of National Defense and the Ministry of Public Security shall, under their mandate and delegated power, authorize an agency to take regulatory control of settlement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects notified to the Ministry of Finance.

2. How to open accounts for management, disbursement and final settlement of public investment capital in Vietnam? 

According to Article 5 of Decree 99/2021/ND-CP, regulations on open accounts for management, disbursement and final settlement of public investment capital in Vietnam are as follows:

1. Opening payment accounts for state budget-funded investments:

a) Investors in projects funded by state budget-controlled public investments or agencies signing PPP projects open accounts at State Treasuries where it is convenient to perform transactions. Managing agencies may act on behalf of investors (if investors are not in Vietnam) to sign up for their accounts for use in public investment projects in foreign countries that are funded by the state budget for fund control and payment purposes.

b) Signing up for an account for control and payment purposes shall be subject to the Government’s regulatory provisions related to administrative formalities for the state treasury field and those of the Ministry of Finance pertaining to instructions on signing up for and using accounts opened at State Treasuries.

2. Opening accounts for control and disbursement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security:

a) The Ministry of National Defense and the Ministry of Public Security shall open accounts at State Treasury for disbursement of investments in state secret-graded public investment projects in which policies for investment are decided by the Prime Minister; secret or top-secret public investment projects of the Ministry of National Defense and the Ministry of Public Security.

b) Signing up for a payment account shall be subject to the Government’s regulatory provisions related to administrative formalities for the state treasury field and those of the Ministry of Finance pertaining to instructions on signing up for and using accounts opened at State Treasuries.

3. Opening accounts for control and disbursement of investments derived from legitimate revenues retained by state regulatory authorities and public service units for investing in public investment projects shall be subject to the regulations laid down in Article 24 herein.

3. What are public investment management and disbursement principles of public investment capital in Vietnam? 

Pursuant to Article 6 of Decree 99/2021/ND-CP regulating public investment management and disbursement principles of public investment capital in Vietnam as follows:

1. Management and disbursement of public investments in mandates and projects should serve correct purposes and managed/receiving subjects; ensure cost efficiency, effectiveness and conformance to regulations on management of public investments and state budget that are set out in current law and regulations herein.

2. Investors utilizing public investments shall manage and use funds to serve correct purposes, managed/receiving subjects; ensure thrift, efficiency and compliance with laws and regulations on financial regimes for investment. Investors using state budget-derived public investments are obliged to comply with legislation on regimes for capital investment and capital construction investment expenditure as provided in the Law on State Budget.

3. Superiors to investors shall examine and push investors and project management authorities (hereinafter referred to as investors) under their jurisdiction towards implementation of public investment plans and utilization of public investments in compliance with current legislation.

4. Financial authorities at any level shall perform the tasks of financially managing public investments as part of the duties to comply with regulations and regulatory policies on management and disbursement of public investments in accordance with current legislation and regulations enshrined herein.

5. Regulatory payment bodies shall have the burden of controlling and disbursing funds in a timely, sufficient and legitimate manner for use in implementing mandates and projects when prescribed disbursement conditions and documentation requirements for disbursement are fully satisfied.

6. For public investment projects in foreign countries:

a) Signed contracts, current domestic law of host countries, international treaties to which the Socialist Republic of Vietnam is a contracting party, and the current domestic law of the Socialist Republic of Vietnam serve as the legal basis for management, advance allocation and disbursement of investments in public investment projects in foreign countries.

b) Managing bodies shall act on the investor’s behalf to request and carry out payment transactions related to public investments with regulatory payment bodies.

Best Regards!