Classification of construction investment projects in Vietnam from December 30, 2024

Classification of construction investment projects 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 a number of articles and measures to implement the Construction Law 2014 regarding the management of construction activities.

Classification of construction investment projects in Vietnam from December 30, 2024

Construction investment projects as stipulated in Article 49 of the Construction Law 2014 (amended and supplemented under the provisions of Clause 8, Article 1 of Law No. 62/2020/QH14) are classified to manage construction activities as stipulated in Decree 175/2024/ND-CP as follows:

- Based on service function, sectoral characteristics, project management purposes, and works within the project, construction investment projects are classified according to regulations in Appendix X of Decree 175/2024/ND-CP.

- Based on sources of funds, form of investment, construction investment projects are classified into: projects using public investment capital, projects using state capital outside public investment, PPP projects, and projects using other sources of capital. Construction investment projects using mixed capital, including multiple sources of the aforementioned funds are classified as follows:

+ Projects using a part of public investment capital are public investment projects, managed per public investment law;

+ PPP projects using public investment capital are managed under the provisions of the law on PPP;

+ 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; in other cases, they are managed according to regulations for projects using other capital. The proportion of state capital outside public investment is decided by the person with investment decision authority as a basis to prepare the Feasibility Study Report on construction investment, Technical - Economic Report on construction investment.

- Construction investment projects that only require the preparation of a Technical - Economic Report on construction investment include:

+ Construction investment projects for religious purposes;

+ New construction investment projects, renovations, upgrades with a total investment not exceeding 20 billion VND (excluding compensation costs, site clearance, land levy), except for projects of constructing cultural heritage structures implemented according to cultural heritage law;

+ Group C construction investment projects for maintenance purposes;

+ Dredging, maintenance of public maritime channels, and inland waterways projects;

+ Construction investment projects mainly involving the procurement of goods, provision of services, equipment installation or repair, and renovation that do not affect the structural safety of the building, where construction costs (excluding equipment costs) account for less than 10% of the total investment and do not exceed 10 billion VND (except for national important projects, Group A projects, projects under the partner public-private investment mode);

+ The person with the investment decision authority may decide on the preparation of a Feasibility Study Report for the projects mentioned above when the project has specific technical construction or technology design requirements needing basic design preparation; these projects do not need appraisal by a specialized construction agency. The person with investment decision authority must organize the appraisal of the Feasibility Study Report on construction investment, the investor must organize the appraisal of design tasks after basic design, ensuring the appraisal contents comply with legal regulations.

Refer to detailed content in Decree 175/2024/ND-CP effective from December 30, 2024.

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