Duties of the Department of Investment under the Ministry of Finance of Vietnam

Duties of the Department of Investment under the Ministry of Finance of Vietnam​ (Image from the internet)

On November 4, 2024, the Minister of Finance of Vietnam issued Decision 2628/QD-BTC outlining the functions, tasks, authorities, and organizational structure of the Department of Investment.

Duties of the Department of Investment under the Ministry of Finance of Vietnam​

- On policy framework development:

+ Lead the submission to the Minister of Finance for issuance, within their authority, or for submission to competent authorities to issue policies on: Management, payment, settlement of projects using public investment funds; financial management of investment projects following the public-private partnership model - PPP projects (excluding the utilization of public assets to support construction in infrastructure systems within PPP projects; using public assets for investor payment in projects executed in the Build-Transfer contract form; pricing policies and fees); management and usage of consulting revenues and project management by investors or project management boards using state budget capital; management and usage of expenses in investor selection; policies reporting on capital disbursement and settlement as prescribed by the Law on Public Investment and relevant legal provisions.

+ Lead the Ministry's participation and consultation with other Ministries, central agencies, and localities in constructing mechanisms and policies on public investment, investment in public-private partnerships, investment (excluding direct foreign investment into Vietnam and Vietnamese investment abroad); construction investment management, procurement, planning, and other related management mechanisms and policies within the management scope of the Department of Investment as assigned by the Minister of Finance.

- Participation with Ministry units on strategic, medium and long-term plans, annual financial budgeting, and public debt management; policies on state budget management, public debt management, public asset management, interest subsidy for preferential credit, and state capital investment in business production at enterprises and other related mechanisms and policies under the investment management scope.

- In the realm of strategy, planning, socio-economic development plans:

+ Lead participation in opinions on industry and sector development strategies and plans linked with investment finance management (excluding investments managed by the Department of Financial Institutions of Banks and Financial Organizations, Department of Defense and Security Finance, Ministry of Finance).

+ Lead participation in opinions on national master planning, national marine spatial planning, national sector planning (excluding public service provider network planning by sector; defense and security planning); technical and specialized planning (excluding public service provider planning by sector, security and defense planning, land use planning, regional, provincial, district-level planning, special economic administrative unit planning, border planning) as prescribed by the Planning Law.

+ Cooperate on participation with Ministry units concerning the strategy, planning, socio-economic development plans, development of sectors, fields, regions, and individual localities.

- On medium-term public investment plans:

+ Lead the Ministry's participation with the Ministry of Planning and Investment in developing criteria and allocation norms for public investment capital from state budget sources for the medium-term plan.

+ Lead, compile submissions to the Ministry for participation with the Ministry of Planning and Investment concerning the development of the national medium-term public investment plan; allocation plans, implementation, adjustment, addition to medium-term public investment plans for Ministries, central agencies, and localities; mid-term and final evaluations on the medium-term public investment plan's implementation as prescribed by the Law on Public Investment.

+ Participate with the State Budget Department on determining the total investment resources from the state budget in the medium-term.

- Concerning annual public investment plans:

+ Lead the Ministry's participation with the Ministry of Planning and Investment on creating, operating annual public investment plans, including: Developing, allocating, implementing yearly public investment capital plans for Ministries, central agencies, and localities; adjust and supplement annual public investment capital plans; plans for extending capital allocation for project implementation, implementation time, and annual public investment capital disbursement; setting criteria for capital advancement and repayment of the state budget advanced from the central budget for public investment projects as regulated by public investment and state budget laws.

+ Lead, cooperate with the Department of Debt Management and External Finance and relevant units to submit to the Ministry the content of inspecting the allocation of public investment capital from the state budget by ministries, central agencies (excluding ministries, central agencies under the management of the Department of Defense and Security Finance, special); provide comments in writing to ministries, central agencies if allocations are unsatisfactory and provide written comments for provinces and centrally-run cities if detailed capital allocation for public investment plans is unsatisfactory or not eligible for disbursement.

+ Lead, cooperate with the Department of Debt Management and External Finance, State Treasury, and relevant units to submit to the Ministry for appraisal opinions on public investment capital settlement from state budget sources per the fiscal year's budget of Ministries, central agencies (excluding ministries, central agencies under the domain of the Department of Defense and Security Finance, special).

+ Lead, cooperate with the Department of Debt Management and External Finance to input and approve estimates on the Budget and Treasury Management Information System (TABMIS) for state budget-funded public investment capital under management scope.

- Regarding appraisal and opinions on Programs and Projects:

+ Lead submissions to the Minister of Finance for opinions on appraisal (including adjustments) on investment policy proposals, pre-feasibility study reports, and feasibility study reports for public investment projects under management scope as prescribed by the Public Investment Law; PPP projects as per public-private partnership investment regulations (excluding projects proposed by foreign investors); participate in opinions on proposal, appraisal of public investment programs as prescribed by law.

+ Lead submissions to the Minister of Finance for opinions on appraisal (including adjustments) of investment policies for non-public investment projects under the acceptance authority of the Prime Minister, National Assembly as prescribed by the investment law, housing law (excluding foreign investment projects into Vietnam and Vietnamese investment abroad; projects using ODA loans, preferential foreign loans; state enterprise investment projects; investment projects involving betting, casinos).

+ Cooperate in providing opinions (including adjustments) for loan proposals, program proposals, ODA loan projects, preferential foreign loan projects, and articles on investment policies (pre-feasibility studies), feasibility reports for programs, projects under the management scope of Ministry units.

- On managing national target programs:

+ Lead submissions to the Minister of Finance for opinions on appraisal (including adjustments) of investment policy proposals, pre-feasibility study reports for national target programs as stipulated by the Law on Public Investment.

+ Lead submissions to the Minister of Finance on principles, criteria, allocation norms for central budget capital, and the counterpart funding ratio of local budgets for implementing national target programs as per law on public investment.

+ Lead management of public investment capital for national target programs as prescribed by law on public investment.

+ Lead submissions to the Minister of Finance for opinions on demand, allocation plans for medium-term and annual public investment for executing national target programs.

+ Cooperate with Ministry units to compile and report on monitoring the implementation of national target programs as per assigned tasks.

- Lead submissions to the Ministry for overall reports, monitoring, evaluation and publicizing the status of public investment disbursement, funding for national target programs per the Public Investment Law and guiding documents; assessing and recouping advanced investment capital from public investment plans; propose measures to accelerate public investment disbursement progress.

- Provide guidance, compile public reports on the annual settlement of public investment funds for completed projects.

- Lead submissions to the Minister of Finance to present to competent authorities the decisions on using the central budget reserve to pay for revenue decreases of PPP project companies. Lead the Ministry's participation with other Ministries, central agencies, or decide on handling plans for allocating central budget investment capital within the year from reserve sources and other legal funds according to legal regulations for Ministries, sectors, localities under management scope to execute implemented projects.

Cooperate with the State Budget Department to present to the Ministry or competent authorities the decision on supplemental public investment capital for Ministries, sectors, localities under management scope from remaining central budget reserves at year's end and increased revenues, central saving expenditures.

- Organize or cooperate with related units in guiding, inspecting, evaluating the implementation of legal documents, policies in investment finance under management authority; submit to competent agencies for handling violations in the designated field.

- Cooperate with Ministry units to urge, aggregate actions in handling, resolving the conclusions, recommendations of the State Audit, inspection agencies, investigative agencies relating to investment finance under the Department of Investment's management.

- Lead the organization of information dissemination, law education, review, and systemization of legal documents under the Department of Investment's scope; cooperate with the Legal Department to consolidate, codify legal documents as regulated. Self-check legal documents per the legal and assigned regulatory framework by the Ministry of Finance.

- Organize scientific research or collaborate in scientific research with units within and outside the sector as per plans and approved content by competent authorities; engage in international cooperation as regulated and assigned by the Minister of Finance.

- Execute other tasks as assigned by the Minister of Finance.

For details, refer to the Decision 2628/QD-BTC effective from November 4, 2024.

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