Vietnam: How is the evaluation of investment efficiency of public investment projects in 2020?

Specifically, according to Clause 5 Article 1 of Decree No. 01/2020/ND-CP of Vietnam’s Government supplementing Clause 4 Article 18 of Decree No. 84/2015/ND-CP, the evaluation of investment efficiency of public investment projects is specified as follows:

- Method for evaluation of investment efficiency of a public investment project: depending on the scale and nature of the project, either 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) or cost/benefit analysis method may be employed;

- Criteria for evaluation of investment efficiency of a public investment project: the level of achievement of investment objectives of the project according to the approved investment decision; actual operation indexes of the project compared with those of approved projects; the economic internal rate of return (EIRR); socio-economic impacts, environmental impacts, and other specific development objectives (such as poverty reduction, gender equality, households benefiting social policies, and priority entities); adopted measures for minimizing negative social and environmental impacts.

In particular, from January 01, 2020, when the Law on Public Investment 2019 of Vietnam officially comes into force, contents of assessment of public investment projects shall comply with Article 73 of this Law (according to Clause 4 Article 1 of Decree No. 01/2020/ND-CP).

Decree No. 84/2015/ND-CP of Vietnam’s Government specifies that the inspection shall be carried out as follows:

a) Projects of national importance and Group A projects must undergo an initial assessment, midterm assessment, terminal assessment, and impact assessment;

b) Group B and Group C projects must undergo terminal assessment and impact assessment;

c) In addition to the assessments mentioned in Point a and Point b of this Clause, the investment deciders and public investment authorities shall decide other types of assessment prescribed in Clause 4 Article 2 of this Decree where necessary.

View more details at: Decree No. 01/2020/ND-CP of Vietnam’s Government takes effect from January 01, 2020.

Thu Ba

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