Vietnam: Implementation of public investment plan and disbursement of capital therein

Decree No. 120/2018/NĐ-CP of Vietnam’s Government has amended regulations on implementation of public investment plan and disbursement of capital therein as follows:

1. Time for implementation of the annual and medium-term public investment plan and disbursement of capital therein shall comply with Article 76 of the Law on Public Investment 2014 of Vietnam.

2. Regarding the project funded by the state budget, sovereign bonds, government bonds, local government bonds or revenues which are retained but not recorded in the state budget balance, time for disbursement of capital specified in the annual public investment plan shall be extended by December 31 of the year succeeding the plan year.

In special cases, the Prime Minister shall decide to extend the time for disbursement of capital specified in the annual public investment plan to each project to the subsequent years, but not exceeding the time specified under Point a Clause 1 Article 76 of the Law on Public Investment 2014 of Vietnam.

3. Regarding the project funded by ODA and concessional loans of foreign sponsors:

- The foreign capital specified in the annual public investment plan and recorded as debts of the Vietnamese Government but not yet disbursed, the time shall be extended by December 31 of the year succeeding the plan year.

- The foreign capital specified in the annual public investment plan but not yet recorded as debts of the Vietnamese Government but disbursed, upon the end of the time limit for adjustments to the final statement of state budget, capital which have been estimated but not yet disbursed shall be canceled.

In special cases, the Government shall request the Standing Committee of the National Assembly to adjust the next year's budget estimate, not exceeding the total foreign capital specified in medium-term investment plan decided by the National Assembly.

4. Procedures for extending the time for implementation of the annual public investment plan and disbursement of capital for central government budget, sovereign bonds, Government bonds, ODA and concessional loans of foreign sponsors therein according to Point a Clause 3 Article 46 of Decree No. 77/2015/NĐ-CP of Vietnam’s Government;

- Upon the end of the time limit for adjustments to the final statement of state budget, ministries and local governments shall direct investors to follow procedures at the State Treasury to transfer the remaining capital that has not been disbursed to the subsequent year as prescribed.

- By March 31, ministries and local governments shall consolidate all lists of projects and aggregate capital that is transferred to the subsequent year for disbursement and submit them to the Ministry of Planning and Investment and Ministry of Finance.

- After March 31, cancel or return the previous year’s remaining capital that has not yet been disbursed and aggregated or reported as prescribed in Point b Clause 3 Article 46 of Decree No. 77/2015/NĐ-CP of Vietnam’s Government to the central government budget.

5. The capital specified in the investment plan of the previous year with the extended time for disbursement as prescribed in Clause 2 and Point b Clause 3 Article 46 of Decree No. 77/2015/NĐ-CP of Vietnam’s Government shall be recorded in the subsequent years’ budget by the actual disbursement for each year.

View more details at Decree No. 120/2018/NĐ-CP of Vietnam’s Government, effective from September 13, 2018.

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