Procedures for formulating and approving the medium-term public investment plan financed by the State budget in Vietnam from January 1, 2025

Procedures for formulating and approving the medium-term public investment plan financed by the State budget in Vietnam from January 1, 2025​ (Image from the Internet)

On November 29, 2024, the National Assembly of Vietnam passed the Public Investment Law 2024.

Procedures for formulating and approving the medium-term public investment plan financed by the State budget in Vietnam from January 1, 2025

According to Article 59 of the Public Investment Law 2024, the procedures for developing, approving, and delegating the medium-term public investment plan using the state budget arre implemented as follows:

- Before June 30 of the fourth year of the medium-term public investment plan, the Prime Minister of the Government of Vietnam issues a directive on developing the medium-term public investment plan for the next period.

- Before July 31 of the fourth year of the medium-term public investment plan, the Government of Vietnam submits to the Standing Committee of the National Assembly for approval the principles, criteria, and norms for allocating medium-term public investment funds for the upcoming period.

- Before September 30 of the fourth year of the medium-term public investment plan, the Prime Minister of the Government of Vietnam announces the total projected public investment capital, equivalent to the total public investment capital of the previous medium-term public investment plan, to ministries, central agencies, and localities to serve as a basis for deciding the investment policy for the program, project in the upcoming period.

- Before December 31 of the fourth year of the medium-term public investment plan, the Government of Vietnam projects the capability of balancing the state budget for development investment expenditure in the upcoming period for each ministry, central agency, and locality, and the Prime Minister of the Government of Vietnam announces the total public investment capital for the upcoming period to ministries, central agencies, and localities.

- Before January 31 of the fifth year of the medium-term public investment plan of the previous period, the People's Committee at the provincial level submits to the People's Council at the same level for opinions on the contents specified in Article 52 of the Public Investment Law 2024, and sends them to the Ministry of Planning and Investment, Ministry of Finance for compilation and reporting to the competent authorities.

- At the year-end session of the National Assembly's fifth term, the Government of Vietnam submits to the National Assembly the proposed medium-term public investment plan for the upcoming period to gather opinions on the contents specified in Article 52 of the Public Investment Law 2024.

- Based on the opinions of the previous National Assembly term, the Government of Vietnam submits the new National Assembly at its first session the contents specified in Article 52 of the Public Investment Law 2024. The National Assembly considers and decides on the medium-term public investment plan including the following contents:

+ Objectives and orientation for medium-term public investment using state budget of the entire country;

+ Total capital of the medium-term public investment plan from the state budget, including central budget capital, local budget capital;

+ Detailed total capital of the medium-term public investment plan from the central budget according to each sector and field, projected allocation for each ministry, central agency, and targeted supplementary funds from the central budget to the budget of each locality.

For the remaining unallocated central budget capital of the medium-term public investment plan, the Government of Vietnam reports to the Standing Committee of the National Assembly for consideration and decision, reporting to the National Assembly at the closest session;

+ List and capital amount of national important projects, national target programs;

+ Key solutions and policies to implement the medium-term public investment plan.

- The Prime Minister of the Government of Vietnam allocates the medium-term public investment plan, including the total capital and structure of the central budget for ministries, central agencies, and localities; list, capital amount for public investment programs and projects, total capital for planning tasks, total capital for preparatory investment tasks, other public investment entities using central budget funds.

- The allocation of the medium-term public investment plan using the local budget is as follows:

+ Based on the resolution of the National Assembly on the medium-term public investment plan for the new period and the resolution of the provincial People's Council on the 5-year socio-economic development plan, the provincial People's Council decides on the locality's medium-term public investment plan, including total capital of the plan, list, capital amount allocated for each project, total capital for planning tasks, total capital for preparatory investment tasks, other public investment entities using provincial budget funds, and targeted supplementary funds for lower-level budgets, reporting to the Ministry of Planning and Investment, Ministry of Finance for compilation and reporting to the Government of Vietnam;

+ Based on the resolution of the provincial People's Council on the medium-term public investment plan, the district People's Council decides on its level's medium-term public investment plan, including total capital of the plan, list, local budget capital amount allocated for each project, total capital for planning tasks, total capital for preparatory investment tasks, other public investment entities, and targeted supplementary funds for lower-level budgets;

+ Based on the resolution of the district People's Council on the medium-term public investment plan, the commune People's Council decides on its level's medium-term public investment plan, including total capital of the plan, list, and local budget capital amount allocated for each project, total capital for planning tasks, total capital for preparatory investment tasks, other public investment entities;

+ Within 30 days from the date the People's Council issues a resolution on the medium-term public investment plan, the People's Committee at the same level allocates the medium-term public investment plan to executing units, including total capital, list of programs, projects, and allocated capital for each project.

- The Government of Vietnam stipulates in detail Article 59 of the Public Investment Law 2024.

Refer to the Public Investment Law 2024 effective from January 1, 2025.

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