Procedures for ensuring the implementation of investment projects in Vietnam under Decree 19/2025

Procedures for ensuring the implementation of investment projects in Vietnam under Decree 19/2025​ (Image from Internet)

On February 10, 2025, the Government of Vietnam issued Decree 19/2025/ND-CP guiding the Investment Law 2020 on special investment procedures.

Procedures for ensuring the implementation of investment projects in Vietnam under Decree 19/2025

The assurance of investment project implementation is carried out according to the cases, requirements, and conditions specified in Article 43 of the Investment Law 2020, Articles 25 and 26 of Decree 31/2021/ND-CP, and the provisions of Article 4 of Decree 19/2025/ND-CP as follows:

- Investors are required to make a deposit or submit a commitment of guarantee from a credit institution concerning the deposit obligation after being granted the Investment Registration Certificate and before organizing the implementation of the compensation, support, and resettlement plan approved by a competent authority (in case the investor does not advance compensation, support, or resettlement money) or before the issuance of the land leasing decision, land use purpose change permission (in case the investor has advanced compensation, support, or resettlement money) or within 30 days from the issuance of the Investment Registration Certificate (in the case where the project land area has been compensated, supported, resettled, and reclaimed by the State).

- Return of the assurance obligation for project implementation

+ Return 50% of the deposit or reduce 50% of the deposit guarantee amount at the time the investor sends a commencement notice to the Management Board together with the documents stipulated in Clause 8, Article 36a of the Investment Law 2020: Before starting construction, the investor sends a notice of commencement to the competent state authority in charge of construction order management at local level and the Management Board of the industrial zone, export processing zone, high-tech zone, economic zone, together with the following documents:

++ An economic-technical report on construction investment including contents as prescribed by construction law, prepared, appraised, and approved by the investor;

++ A report on the results of appraisal of the economic-technical construction investment report conducted by qualified organizations or individuals in accordance with the law regarding construction safety, environmental protection, fire prevention, and firefighting; compliance with standards, technical regulations.

+ Return the remaining deposit amount and any accrued interest (if any) or terminate the effectiveness of the deposit guarantee at the time the investor submits the completion acceptance record of the construction work to the Management Board for exploitation and use.

Regulations on ensuring investment project implementation in Vietnam

According to regulations in Article 43 of the Investment Law 2020, the assurance of investment project implementation is carried out as follows:

- Investors must make a deposit or have a bank guarantee for the deposit obligation to ensure the implementation of an investment project requesting the State to allocate land, lease land, or permit change of land use purposes, except in the following cases:

+ Investors winning bids for land use rights to implement an investment project are allocated land by the State with a land levy or leased land with land rent paid once for the entire lease term;

+ Investors winning bids to implement an investment project involving land use;

+ Investors are allocated land, leased land by the State based on receiving the transfer of an investment project that has made a deposit or completed capital contribution, capital raising according to the schedule specified in the document approving investment policy, Investment Registration Certificate;

+ Investors are allocated land, leased land by the State to implement an investment project based on receiving the transfer of land use rights, assets attached to the land from another land user.

- Based on the scale, nature, and implementation progress of each investment project, the deposit amount to ensure implementation of the investment project ranges from 01% to 03% of the investment capital of the investment project. In the case where an investment project comprises various investment phases, the deposit amount is made and returned by each phase of the project implementation, except for cases not eligible for return.

More details can be found in Decree 19/2025/ND-CP, effective from February 10, 2025.

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