Procedures for approving the investment guidelines by the Prime Minister of Vietnam (Latest)

Procedures for approving the investment guidelines by the Prime Minister of Vietnam (Latest) (Image from internet)

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

Procedures for approving the investment guidelines by the Prime Minister of Vietnam (Latest)

(1) Implementation process:

- Step 1: Investors or competent state agencies as stipulated in point a, clause 4, Article 31 of Decree 31/2021/ND-CP submit 08 sets of application dossiers requesting approval of the investment guideline as prescribed in clauses 1 or 2, Article 33 of the Investment Law to the Ministry of Planning and Investment of Vietnam.

- Step 2: The Ministry of Planning and Investment of Vietnam sends the dossier to solicit appraisal opinions from relevant ministries, agencies, and provincial People's Committees where the project is expected to be implemented regarding the project's content under the state management scope of those agencies as stipulated in clause 6 or clause 8, Article 31 of Decree 31/2021/ND-CP.

For investment projects proposing to change the purpose of using rice cultivation land, protective forest land, special-use forest land, or change the purpose of using forests, the opinion gathering procedure is as follows:

+ For projects proposing to change the use purpose of rice cultivation land, protective forest land, or special-use forest land to other purposes, the Ministry of Planning and Investment of Vietnam shall solicit appraisal opinions from the Ministry of Natural Resources and Environment, the Ministry of Agriculture and Rural Development, relevant ministries, agencies and the provincial People's Committee where the project is expected to be implemented regarding the project's compliance with the land use planning approved by competent state agencies; the remaining allocated land use quotas up to the time of project proposal; the current land use status (types of land, land user entities); preliminary plan for land acquisition, compensation, support, resettlement (if any); compliance with land laws in case investors are using land allocated or leased by the State for implementing other investment projects.

+ For projects proposing to change the use purpose of forests, the Ministry of Planning and Investment of Vietnam shall solicit appraisal opinions from the Ministry of Agriculture and Rural Development, the Ministry of Natural Resources and Environment, relevant ministries, sectors and the provincial People's Committee where the project is expected to be implemented on the policy of changing forest use purposes in accordance with forestry laws. If the dossier requesting the decision on policy to change the forest use purpose has been prepared and appraised under forestry law, the Ministry of Agriculture and Rural Development shall submit to the Prime Minister to consider, decide on the policy of changing forest use purpose (in cases under the competence of the Prime Minister), and concurrently send to the Ministry of Planning and Investment of Vietnam to compile and submit to the Prime Minister for approval of the investment guideline; the provincial People's Committee submits to the provincial People's Council for consideration and decision on the policy of changing forest use purpose (for cases under the competence of the provincial People's Council), and concurrently sends to the Ministry of Planning and Investment of Vietnam for compilation and submission to the Prime Minister for approval of the investment guideline.

- Step 3: The solicited agency provides appraisal opinions on contents under its state management scope, and sends them to the Ministry of Planning and Investment of Vietnam.

- Step 4: The Ministry of Planning and Investment of Vietnam organizes dossier appraisal and compiles an appraisal report including contents prescribed in clause 6 or clause 8, Article 31 of Decree 31/2021/ND-CP to submit to the Prime Minister for approval of the investment guideline.

For investment projects concurrently under the approval authority of the investment guideline of 02 or more provincial People's Committees and proposing investor selection through land use rights auction or bidding, the Ministry of Planning and Investment of Vietnam proposes one provincial People's Committee of a province or city directly under the central government to chair, cooperate with relevant agencies, and localities to organize land use rights auction or bidding to select investors or propose to assign a ministry, ministerial-level agency, or agency under the Government to chair, cooperate with relevant agencies and localities to organize bidding to select investors.

- Step 5: The Prime Minister approves the investment guideline after receiving the appraisal report from the Ministry of Planning and Investment of Vietnam.

(2) Implementation method:

- Directly at the office of the state administrative agency.

- Through public postal service.

(3) Composition of application dossier:

- The dossier requesting approval of the investment guideline of the investment project proposed by the investor includes:

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

+ Documents related to 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 latest 02 years; commitment to financial support from the parent company; commitment to financial support from financial institutions; a financial capacity guarantee of the investor; other documents proving the financial capacity of the investor;

+ Proposal for the investment project encompassing the following main contents: investors or form of investor selection, investment objectives, investment scale, investment capital and capital mobilization plan, location, duration, implementation schedule, information on the current land use status at the project implementation location, and proposed land use demand (if any), labor demand, proposal for investment incentives, economic - social impact and efficiency of the project, preliminary environmental impact assessment (if any) in accordance with environmental protection laws.

In case construction law stipulates the preparation of a pre-feasibility study report, the investor may submit the pre-feasibility study report instead of the project proposal;

+ In case the investment project does not request the State to allocate land, lease land, or permit changing the purpose of land use, a copy of the land use rights or other documents identifying the right to use the location for implementing the investment project shall be submitted;

+ Explanation content on the technology used in the investment project for projects subject to technological appraisal and opinion gathering in accordance with the technology transfer law;

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

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

+ Documents, papers explaining the proposed form of investor selection according to Clauses 1 and 2 Article 33 of the Investment Law include:

++ A copy of the List of land recovery projects approved by the provincial People's Council; documents proving the land has been cleared (if any), other explanatory documents (if any) in case of proposing investor selection through land use rights auction as prescribed by land law;

++ A copy of the List of land recovery projects approved by the provincial People's Council; documents proving the land has not been cleared (if any), other explanatory documents (if any) in case of proposing investor selection through a project bidding with land use. In this case, the project proposal determines the preliminary total cost for project implementation based on the project's total investment as prescribed by construction law, excluding compensation, support, resettlement costs.

In case of investor selection through bidding under the provisions of the law on private investment in, specialized law, explanatory documents on legal basis and condition to apply investor selection form through bidding under the law on private investment in, specialized law;

++ Documents proving the project is not part of the List of land recovery projects approved by the provincial People's Council; a valid copy of the Land Allocation or Lease Decision, land use rights lease contract, or Land Use Rights Certificate, Certificate of Home Ownership and Homestead Land Use Rights, Certificate of Land Use Rights, House Ownership, and Other Assets Attached to Land in case of proposing investment guideline approval simultaneously with investor approval for investors with land use rights according to point a, clause 4, Article 29 of the Investment Law;

++ A valid copy of the written approval of the competent People's Committee for transfer, capital contribution reception, land use rights lease to implement the investment project and a valid copy of other documents, agreements on using the location to implement the investment project in case of proposing investment guideline approval simultaneously with investor approval for investors receiving transfer, capital contribution, or leasing agricultural land to implement non-agricultural production, business investment projects as stipulated at point b, clause 4, Article 29 of the Investment Law;

+ For housing development investment projects, besides the contents stipulated at point d, clause 1, point b, clause 2 Article 33 of the Investment Law, the investment project proposal should include additional content: explanation of the project implementation aligning with urban development objectives, urban housing development programs, and plans; expected division into component projects (if any); preliminary phase-wise investment plan ensuring synchrony; preliminary structure of housing products and allocation of land fund for social housing development; preliminary investment construction plan, urban infrastructure management inside and outside the project area. For other construction investment projects, add expected division into component projects (if any);

+ In cases where the investment project is proposed by investors or competent state agencies in which proposes investor selection according to bidding law, besides contents as stipulated at point d clause 1, point b clause 2 Article 33 of the Investment Law, the investment project proposal should include additional preliminary total project cost as per bidding law. The preliminary total project cost is determined based on the project's total investment as prescribed by construction law, excluding compensation, support, resettlement costs.

- The dossier requesting approval of the investment guideline of the investment project prepared by the competent state agency includes:

+ Official letter requesting investment guideline approval;

+ Proposal for the investment project encompassing the following main contents: investment objectives, investment scale, investment capital, location, duration, implementation schedule, economic - social impact and efficiency of the project; information on the current land use status at the project implementation location, land recovery conditions for projects subject to land recovery, estimated land use demand (if any); preliminary environmental impact assessment (if any) according to environmental protection laws; proposed form of investor selection and investor conditions (if any); special mechanisms and policies (if any).

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

(4) Number of dossiers: 08 sets of dossiers.

(5) Processing time:

- Within 03 working days from the date of receiving a complete and valid dossier as stipulated at item c, the Ministry of Planning and Investment of Vietnam sends the dossier to solicit appraisal opinions from relevant ministries, agencies, and provincial People's Committees.

- Within 15 days from the date of receiving the request from the Ministry of Planning and Investment of Vietnam, the solicited agency provides appraisal opinions on contents under its state management scope and sends them to the Ministry of Planning and Investment of Vietnam.

- Within 40 days from the date of receiving the dossier, the Ministry of Planning and Investment of Vietnam organizes dossier appraisal and prepares an appraisal report.

- Within 07 working days from the date of receiving the appraisal report from the Ministry of Planning and Investment of Vietnam, the Prime Minister approves 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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