Classification of construction investment projects according to new regulations in Vietnam from December 30, 2024

Classification of construction investment projects according to new regulations in Vietnam from December 30, 2024​ (Image from the internet)

On December 30, 2024, the Government of Vietnam issued Decree 175/2024/ND-CP detailing certain articles and measures for implementing the Construction Law 2014 regarding the management of construction activities.

Classification of construction investment projects according to new regulations in Vietnam from December 30, 2024

According to Article 5 of Decree 175/2024/ND-CP, construction investment projects defined in Article 49 of the Construction Law 2014 (as amended and supplemented at Clause 8 Article 1 of the Amended Construction Law 2020) are classified to manage construction activities as prescribed in Decree 175/2024/ND-CP as follows:

- Based on the functionality, specialized characteristics, management purpose of the projects, and the facilities under the projects, construction investment projects are classified as stipulated in Appendix X of Decree 175/2024/ND-CP.

- Based on the capital source, form of investment, construction investment projects are classified into: public investment projects, projects using state capital outside public investment, PPP projects, and projects using other capital sources. Construction investment projects using mixed capital, consisting of various sources mentioned above, are classified as follows:

+ Projects using a portion of public investment capital are public investment projects, managed according to public investment law;

+ PPP projects utilizing public investment capital are managed in accordance with PPP law;

+ Projects using mixed capital, including state capital outside public investment and other capital: in cases where the proportion of state capital outside public investment exceeds 30% or is over 500 billion VND in total investment, they are managed according to regulations for projects using state capital outside public investment; otherwise, they are managed according to regulations for projects using other capital. The proportion of state capital outside public investment is determined by the investment decision-maker as a basis for preparing Feasibility Study Reports for construction investment, and economic-technical reports for construction investment.

- Construction investment projects that only require preparation of economic-technical reports include:

+ Construction investment projects for religious purposes;

+ New construction, renovation, or upgrading projects with a total investment of not more than 20 billion VND (excluding compensation costs, land clearance, and land levy), except for construction investment projects for cultural heritage according to cultural heritage law;

+ Group C construction investment projects for maintenance, upkeep, and repair purposes;

+ Dredging and maintenance projects for public maritime channels and inland waterways;

+ Construction investment projects primarily involving the procurement of goods, service provision, equipment installation, or repair or renovation projects that do not affect the structural safety of the project, with construction costs (excluding equipment costs) below 10% of the total investment and not exceeding 10 billion VND (excluding national important projects, group A projects, and projects following the public-private partnership method);

+ The investment decision-maker can decide to prepare a Feasibility Study Report for construction investment for projects listed in the aforementioned point when the project has specific technical construction or technology design requirements, needing preliminary design. These projects are not subject to assessment by specialized construction authorities.

The investment decision-maker is responsible for organizing the assessment of Feasibility Study Reports for construction investment, and the investor is responsible for organizing the assessment of designs implemented after preliminary design, ensuring assessment content compliance with legal regulations.

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