Vietnam: Guidance on evaluation of investment efficiency of the public investment program from January 01, 2020

Clause 3 Article 1 of Decree No. 01/2020/ND-CP of Vietnam’s Government newly guides the evaluation of investment efficiency of the public investment program from January 01, 2020 (not regulated in Article 11 of Decree No. 84/2015/ND-CP). Specifically, the method and criteria for evaluation of investment efficiency of the public investment program are specified as follows:

Firstly, the method for evaluation of investment efficiency of the public investment program: comparative method (comparison between results/data actually collected at the evaluation time and the expected objectives/planned data; or comparison between parameters of the project at the evaluation time and standard indicators; or combination thereof).

Secondly, criteria for evaluation of investment efficiency of the public investment program: The conformity of the program with national socio-economic objectives, local socio-economic objectives, the conformity between the demand of beneficiaries and the sponsor’s development policies (if any); the level of achievement of investment objectives of the program according to the approved investment decision; actual operation indexes of the program compared with those of an approved program; socio-economic impacts, environmental impacts, and other specific development objectives (such as poverty reduction, gender equality, households benefiting social policies, and priority entities, etc.); adopted measures for minimizing negative social and environmental impacts.

Besides, Decree No. 84/2015/ND-CP of Vietnam’s Government stipulates that a public investment program shall be assessed as follows:

- Every public investment program must undergo an initial assessment, midterm assessment, terminal assessment, and impact assessment;

- The regulatory body and person competent to decide investment shall decide extraordinary assessment of the program where necessary.

View other provisions at Decree No. 01/2020/ND-CP of Vietnam’s Government, effective from January 01, 2020.

Thu Ba

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