Newest regulations on procedures for approval of investment guidelines by the Provincial People's Committee in Vietnam

Newest regulations on procedures for approval of investment guidelines by the Provincial People's Committee in Vietnam (Image from the internet)

On October 25, 2024, the Ministry of Planning and Investment of Vietnam promulgated Decision 2469/QD-BKHDT announcing the amendment and supplementation of investment-related administrative procedures in Vietnam and overseas investments from Vietnam under the scope of management functions of the Ministry of Planning and Investment of Vietnam.

Newest regulations on procedures for approval of investment guidelines by the Provincial People's Committee in Vietnam

(1) Implementation Procedure:

- Step 1: The investor or competent state agency submits the application for approval of the investment guideline as stipulated in Clause 1 or Clause 2 Article 33 of the Investment Law, Clauses 2 and 3 Article 31 of Decree 31/2021/ND-CP to the Department of Planning and Investment where the project is intended to be implemented.

- Step 2: The Department of Planning and Investment sends the application for appraisal opinions from the departments, district-level People's Committees where the project is intended to be implemented, and relevant agencies concerning matters within their state management scope as stipulated in Clause 6 or Clause 8 Article 31 of Decree 31/2021/ND-CP.

- Step 3: Agencies receiving requests provide appraisal opinions concerning matters within their state management scope and send them to the Department of Planning and Investment.

- Step 4: The Department of Planning and Investment compiles an appraisal report covering the appraisal contents as stipulated in Clause 6 or Clause 8 Article 31 of Decree 31/2021/ND-CP, and submits it to the provincial People's Committee.

- Step 5: The provincial People's Committee considers approving the investment guideline for the project, including the contents regulated in Clause 7 Article 32 of Decree 31/2021/ND-CP.

(2) Method of Implementation:

- Directly at the headquarters of the state administrative agency.

- Through public postal services.

(3) Component Dossier:

- Application dossier for approval of the investment guideline of the investment project proposed by the investor includes:

+ Written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;

+ Documents regarding the legal status of the investor;

+ Documents proving the financial capacity of the investor, including at least one of the following documents: the investor's financial statements for the last two years; commitment of financial support from the parent company; commitment of financial support from financial institutions; guarantee of the investor's financial capacity; other documents proving the investor's financial capacity;

+ Proposal for the investment project including key contents: the investor or form of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, and implementation progress, information on the status of land use at the project's location and proposed land use demand (if any), labor demand, proposed investment incentives, impact, and socio-economic effectiveness of the project, preliminary assessment of environmental impact (if any) according to environmental protection laws.

If construction laws require the preparation of a pre-feasibility study report, the investor is allowed to submit the pre-feasibility study report instead of the investment project proposal;

+ In cases where the investment project does not request the State to allocate land, lease land, or permit the conversion of land use purpose, a copy of documents on land use rights or other documents identifying usage rights for implementing the investment project is submitted;

+ Details about the technology used in the investment project for those projects subjected to technology assessment and consultation according to technology transfer laws;

+ BCC contract for investment projects in the form of BCC contracts;

+ Other documents related to the investment project, requirements for conditions, and capacity of the investor as prescribed by law (if any);

+ Documents and papers explaining the proposed form of selecting investors as stipulated in Clauses 1 and 2 Article 33 Investment Law include:

++  Copy  of  the  list  of  land  acquisition  projects  approved  by  the  provincial  People's  Council;  documents  proving  that  land  has  been  cleared  (if  any),  other  explanatory  documents  (if  any)  in  cases  proposing  investor  selection  through  land  use  right  auction  according  to  land  laws;

++  Copy  of  the  list  of  land  acquisition  projects  approved  by  the  provincial  People's  Council;  documents  proving  that  land  has  not  been  cleared  (if  any),  other  explanatory  documents  (if  any)  in  cases  proposing  investor  selection  through  land  use  projects  auction.

In this situation, the investment project proposal determines the preliminary total costs, based on the total project investment value as per construction laws, excluding compensation, support, and resettlement costs.

In cases of tender selection for investors according to private investment laws, specialized laws, documents explaining the legal basis and conditions for applying tender selection methods comply with private investment in laws and specialized laws;

++ Documents proving that the project is not within the list of land acquisition projects approved by the provincial People's Council; a valid copy of the land allocation decision or land lease decision, land use right lease contract, or Land Use Right Certificate, House Ownership and land use right homstead Certificate, Land Use Right Certificate, ownership of housing and other assets associated with the land in cases proposing simultaneous approval of investment guideline and investor approval for investors with land use rights according to point a, clause 4, Article 29 Investment Law;

++ A valid copy of the competent People's Committee's document approving the acquisition, contribution, lease of land use rights for implementing the investment project and a valid copy of other documents or agreements on using the location to implement the investment project in cases proposing simultaneous approval of investment guideline and investor approval for investors receiving land acquisition, contribution, lease of agricultural land use rights to implement non-agricultural production and business projects according to point b, clause 4, Article 29 Investment Law.

+ For investment projects on residential construction, urban areas, aside from contents stipulated at point d, clause 1, point b, clause 2 Article 33 Investment Law, the investment project proposal adds: explanation of how the project meets urban development objectives and orientations, housing development programs and plans; proposal for dividing component projects (if any); preliminary phasing plan ensuring synchronization; preliminary housing product structure and land reserve for social housing development; preliminary plan for urban infrastructure construction and management within and outside the project boundary. For remaining construction investment projects, the proposal must include anticipated division into component projects (if any);

+ For investment projects proposed by the investor or competent state agency, proposing investor selection in accordance with bidding laws, aside from contents stipulated at point d, clause 1, point b, clause 2 Article 33 Investment Law, the investment project proposal should supplement the preliminary total cost of project implementation as per bidding laws. The preliminary total cost is determined based on the project's total investment level according to construction laws, excluding compensation, support, and resettlement costs.

- Application dossier for approval of the investment guideline by a competent state agency in Vietnam includes:

+ Submission for approval of investment guideline;

+ Proposal for the investment project including the main contents: investment objectives, investment scale, investment capital, location, duration, implementation progress, impact, and socio-economic effectiveness of the project; information on the current land use status at the project's location, conditions for land acquisition for projects requiring land acquisition, proposed land use demand (if any); preliminary assessment of environmental impact (if any) according to environmental protection laws; proposed investor selection method and conditions for the investor (if any); special mechanisms and policies (if any).

In cases where construction laws require the preparation of a pre-feasibility study report, the competent state agency may use the pre-feasibility study report instead of the investment project proposal.

(4) Number of Applications: 04 sets of applications.

(5) Processing Time:

Within 03 working days from the date of receiving a valid application, the Department of Planning and Investment sends the dossier for appraisal opinions from departments, district-level People's Committees where the project is intended to be implemented, and relevant agencies.

Within 15 days from the date of receiving the Department of Planning and Investment's request, agencies with authority provide appraisal opinions concerning matters within their state management scope and send them to the Department of Planning and Investment.

Within 25 days from the date of receiving a valid application, the Department of Planning and Investment prepares an appraisal report for submission to the Provincial People's Committee.

Within 07 working days from the date of receiving the dossier and appraisal report, the Provincial People's Committee considers approving the investment guideline.

More details can be found in Decision 2469/QD-BKHDT, which comes into force in Vietnam from February 15, 2024.

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