Investment Guarantees for Investors and PPP Project Enterprises from 2021

Investment guarantees for investors, PPP project companies enjoyable from 2021 (Illustration)

To be specific, the Law on Public-Private Partnership Investment (PPP) 2020 stipulates that investors and PPP project companies are entitled to tax incentives, land levy, land rent, and other incentives as prescribed by law. In addition, such investors and PPP project companies also enjoy investment guarantees as stipulated in Article 80 as follows:

1. Guarantee of access to land, land use rights, and other public assets

- PPP project companies are allocated land, leased land by the State, or allowed to use other public assets to implement PPP project contracts in accordance with the law on land and the law on the management and use of public assets;- The purpose of the project's land use is ensured not to change throughout the entire duration of the contract, even in cases where the lender exercises rights as stipulated in Article 53 of this Law.

2. Guarantee of public service provision

- PPP project companies are entitled to use public works and other supportive facilities to implement the project as per legal regulations;- In case of scarcity of public services or restrictions on the subjects allowed to use public works, PPP project companies are prioritized for public service provision or prioritized for the right to use public works to implement the project;- The competent authority is responsible for assisting PPP project companies in carrying out the necessary procedures to be prioritized for using public services and public works.

3. Guarantee of the right to mortgage assets, business rights over works, and infrastructure systems

- PPP project companies have the right to mortgage assets, land use rights, and business rights over works and infrastructure systems to lenders as per the law on land and civil law. The mortgage period does not exceed the contract term unless otherwise stipulated in the contract;- The mortgage agreement regarding assets, business rights over works, and infrastructure systems must be made in writing between the lender and the contracting parties;- Mortgaging assets, business rights over works, and infrastructure systems must not affect the objectives, scale, technical standards, implementation progress of the project, and other conditions agreed upon in the contract.

Note: The contract signing agency and competent authority are responsible for cooperating with local authorities where the PPP project is implemented to ensure security, order, and safety for humans and assets of the PPP project company and contractors during the implementation of the PPP project.

For more details, refer to the Law on Public-Private Partnership Investment (PPP) 2020 effective from January 01, 2021.

Ty Na

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