The Law on Investment by Public-Private Partnership 2020 takes effect on January 1, 2021. This Law has detailed regulations on the investor selection approaches in PPP investment in Vietnam.
Article table of contents
4 investor selection approaches in PPP investment in Vietnam (Internet image)
Specifically, according to the provisions of the Law on Investment by Public-Private Partnership 2020, investor selection means the process of identifying investors with sufficient competence, experience, and feasible solutions to implement PPP projects on the principle of ensuring competition, fairness, transparency and economic efficiency. The investor selection approaches prescribed in this Law include:
Open bidding
- Open bidding is an approach to selecting investors in which the number of participating investors is not limited.
- Open bidding must be applied to all PPP projects, except the cases specified in Articles 38, 39 and 40 of the Law on Investment by Public-Private Partnership 2020.
Competitive negotiation
Competitive negotiation approach shall be employed in the following cases:
- No more than 03 investors meeting project execution requirements are invited to attend;
- Projects use high technologies on the list of high technologies prioritized for investment and development thereof under the provisions of the law regarding high technologies;
- Projects use high technologies prescribed in law on technology transfer.
Investor appointment
- The approach to appointing investors shall be employed in the following cases:
+ Projects need to meet the requirements concerning national defence, security and state secret;
+ Projects need to immediately select a substitute investor in accordance with Point a of Clause 4 of Article 52 of the Law on Investment by Public-Private Partnership 2020 to ensure continuity in the project implementation process.
- The authority having competence in granting the decision on approval of projects shall decide the investor appointment; in case of appointment of an investor in the projects that need to meet the requirements concerning national defence, security and state secret, prior to appointment of the investor, the Prime Minister's consent must be obtained upon consultation with the Ministry of National Defense and/or the Ministry of Public Security about national defense, security and state secret protection requirements.
Investor selection taking place in certain special cases
- In case where conditions arising in a PPP project are so specific or particular that the investor selection approaches referred to in Article 37, 38 and 39 of the Law on Investment by Public-Private Partnership 2020 cannot be applied, competent authorities shall seek the Prime Minister’s decision on the investor selection plan.
- Documentation submitted to the Prime Minister to seek his decision shall include the followings:
+ Basic project information;
+ Explanation about specific or particular conditions of a project;
+ Plan for selection of investors in special cases shall describe the following information: investor selection steps; specific solutions to address specific and particular characteristics of the project which are proposed to ensure the investment efficiency of the project.
More details can be found in Law on Public – Private Partnership Investment 2020 passed by the 14th National Assembly at its 9th Session, June 18, 2020.
Nguyen Trinh
