05 notable contents regarding direct investment in projects of the Local Development Investment Funds in Vietnam

05 notable contents regarding direct investment in projects of the Local Development Investment Funds in Vietnam (Internet image)

Specifically, Decree 138/2007/ND-CP stipulates 05 notable contents in direct investment of the Local Development Investment Fund as follows:

1. Investment targets

Direct investment is targeted to infrastructure investment projects under programs and objectives according to socio-economic development strategies and plans approved by Peoples Councils of provinces or centrally run cities (below referred to as provincial-level Peoples Councils for short), including:

- Projects on the construction of technical infrastructure;

- Projects on the construction of infrastructure of industrial parks, export-processing zones, economic zones or hi-tech parks; subsidiary projects outside fences of industrial parks, export-processing zones, economic zones or hi-tech parks;

- Investment projects on the construction of dwelling houses and projects on the development of new urban centers;

- Projects on environmental protection and improvement;

- Other key investment projects as decided by provincial-level Peoples Committees.

2. Investment conditions

- Investment projects for which investment decisions have been made under the provisions of law.

- Investment projects must be efficient and capable of directly retrieving capital.

3. Investment modes

- A local Development Investment Fund may make investment in the capacity as an investor or, together with other organizations, contribute capital to making investment, and take responsibility for its investment decisions according to responsibility decentralization by the provincial-level Peoples Committee.

- A local Development Investment Fund may directly manage investment projects or hire professional organizations to do so in accordance with law.

4. Investment forms

- Depending on specific conditions, a local Development Investment Fund may select the following investment forms:

+ Making investment under Build-Operate -Transfer (BOT) contracts, Build-Transfer-Operate (BTO) contracts or Build-Transfer (BT) contracts in accordance with law.

+ Seeking projects, performing investment preparations, then making investment, or transferring projects to other investors for investment.

- A local Development Investment Fund shall make investment in accordance with the law on investment and construction management.

5. Investment-deciding competence

- A local Development Investment Fund may decide on the investment capital amount for a project accounting for up to 10% of owner capital of the Fund;

- The provincial-level People Committee may decide on the investment capital amount for a project accounting for over 10% of owner capital of a local Development Investment Fund.

More details can be found in Decree 138/2007/ND-CP which comes into force from September 19, 2007.

Ty Na

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