08 groups of public investment subjects in Vietnam from January 1, 2025

08 groups of public investment subjects in Vietnam from January 1, 2025​ (Image from Internet)

On November 29, 2024, the National Assembly of Vietnam passed the Public Investment Law 2024.

08 groups of public investment subjects in Vietnam from January 1, 2025​

According to Article 5 of the Public Investment Law 2024, the groups of public investment entities from January 01, 2025 include:

- Investment in programs, projects for socio-economic infrastructure.

- Investment to support the activities of state agencies, public service providers, political organizations, socio-political organizations.

- Investment and support for providing public service products and social welfare.

- State investment in participating projects under the public-private partnership method (PPP projects) as per laws on PPP investment, compensation, termination of PPP project contracts prior to appointed time as decided by competent authorities, covering revenue reduction in PPP projects for state responsibilities, payment per construction - transfer project contracts (BT projects) in cash.

- Investment for the task of planning.

- Subsidizing preferential loan interest rates, management fees; capital provision for policy banks, off-budget state financial funds; investment support for other entities as decided by the Government of Vietnam or the Prime Minister of the Government of Vietnam.

The Government of Vietnam prescribes the order and procedures for investment realization in this clause.

- Local budget allocation for implementing preferential credit policies through Social Policy Banks in provinces and centrally managed cities.

The Government of Vietnam prescribes conditions, criteria, and principles for capital allocation to entrust the realization of preferential credit policies through the Social Policy Bank.

The Provincial People's Council decides on specific mechanisms, policies, and local budget allocation to implement this policy. The Provincial People’s Committee entrusts local budget funds to execute preferential policies as decided by the Provincial People's Council.

- Other public investment entities as stipulated by relevant laws.

Prohibited acts in public investment in Vietnam from January 01, 2025

Specifically, as detailed in Article 17 of the Public Investment Law 2024, the prohibited acts in public investment from January 01, 2025 are:

- Deciding investment policies or adjusting investment policies inconsistent with strategies, plans; without identifying funding sources and budget balancing capability; not following authorized sequences, procedures as mandated by law.

- Approving investment programs, projects without authorized decision of investment policy as regulated; deciding investment or adjusting programs, projects not authorizedly, inconsistently with targets, location, exceeding public investment capital, exceeding the superior budget's public investment capital, exceeding the total investment in the authorized investment policy. Adjusting the total investment of the program, total investment of the project against legal regulations.

- Abusing position, authority to misappropriate, seek profits, engage in corruption in public investment capital management and usage.

- Program owners, investors colluding with consulting organizations, contractors leading to investment policy decisions, decisions to invest in programs, projects causing loss, waste of state capital, assets, national resources; harming, infringing on citizens' legitimate interests and the community.

- Offering, receiving, brokering bribery.

- Requiring organizations, individuals to self-sponsor investments when the program, project has not been decided upon investment policy, not approved as an investment decision; executing projects when no public investment plan has been assigned, causing basic construction debt.

- Misusing public investment capital for improper purposes, improper objects, exceeding standards, norms as defined by law.

- Forging, falsifying information, documents, records related to investment policy decisions, investment decisions, implementing programs, tasks, projects.

- Intentionally reporting, providing information inaccurately, dishonestly, subjectively affecting the formulation, appraisal, decision of plan, programs, projects, monitoring, evaluation, checking, inspection, sanctioning violations in the implementation of plans, programs, tasks, projects.

- Intentionally destroying, deceiving, hiding or not fully retaining documents, records relating to the decision of investment policies, investment decisions, implementing programs, tasks, projects.

- Hindering the detection of legal violations in public investment.

More details can be found in the Public Investment Law 2024 effective from January 01, 2025.

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