Only 5 sectors are eligible for PPP investment in Vietnam as of January 1, 2021

Only 5 sectors are eligible for PPP investment in Vietnam as of January 1, 2021 (Internet image) 

Specifically, according to the Law on Public – Private Partnership Investment 2020, public - private partnership investment refers to a form of investment carried out by the fixed-term cooperation between the state and a private-sector investor through conclusion and execution of a PPP project agreement in order to call for private sector involvement in a PPP project.

PPP investment sectors in Vietnam, including:

- Transportation;

- Power grids, power plants, except hydropower plants and those subject to the state monopoly requirement as provided in the Law on Electricity;

- Water resources and irrigation; clean water supply; water drainage and wastewater treatment; waste management and disposal;

- Healthcare; education – training;

- Information technology infrastructure.

Thus, according to this regulation, only the 5 sectors mentioned above will be eligible for PPP investment in Vietnam as of January 1, 2021. In particular, the minimum total investment scale of a PPP project is specified as follows:

- The minimum capital requirement of not less than VND 200 billion shall be imposed on projects in the following sectors:

+ Transportation;

+ Power grids, power plants, except hydropower plants and those subject to the state monopoly requirement as provided in the Law on Electricity;

+ Water resources and irrigation; clean water supply; water drainage and wastewater treatment; waste management and disposal;

+ Information technology infrastructure.

In case where projects are executed in areas facing socio-economic difficulties or extreme socio-economic difficulties under the provisions of laws on investment, they must meet the minimum capital requirement of not less than VND 100 billion;

- The minimum capital requirement of not less than VND 100 billion shall be imposed on the projects in healthcare; education – training sectors

Note: Regulations on the minimum capital requirement laid down above shall not apply to O&M projects.

More details can be found in Law on Public – Private Partnership Investment 2020 takes effect on January 1, 2021.

Nguyen Trinh

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