On June 17, 2020, the National Assembly officially passed the Law on Amending and Supplementing the Construction Law 2020. This Law amends and supplements certain provisions of the Construction Law 2014 and the Housing Law 2014.
Article table of contents
What are the amendments to regulations on construction investors in Vietnam from 2021? (Illustrative image)
According to Clause 9, Article 3 of Construction Law 2014, it is stipulated: "A construction investor (hereinafter referred to as the investor) is an agency, organization, or individual that owns capital, borrows capital, or is directly assigned to manage and use capital to carry out construction investment activities."
According to the current regulations, the investor is clearly stipulated in Article 7 of Construction Law 2014. However, from 2021, the regulations on investors will change according to Clause 4, Article 1 of Amended Construction Law 2020. Specifically, the changes are listed in the table below:
| Construction Law 2014 Effective from January 1, 2015 |
Amended Construction Law 2020 Effective from January 1, 2021 |
| The investor is decided by the person making the investment decision before or at the time of project approval. | The investor is determined before the construction investment project is established or when the project is approved, or other cases as prescribed by relevant laws. |
| Depending on the funding source used for the project, the investor is specifically identified as follows: - For projects using state budget capital and off-budget state capital, the investor is the agency or organization assigned by the person making the investment decision to manage and use the capital for construction investment; - For projects using borrowed capital, the investor is the agency, organization, or individual borrowing capital for construction investment; - For projects implemented in the form of project contracts, public-private partnership contracts, the investor is the project enterprise established by agreement of the investor as prescribed by law; - Projects not subject to regulation at points a, b, and c of this clause are undertaken by organizations or individuals who own capital. |
Based on the funding source used for the construction investment project, the determination of the investor is stipulated as follows: - For projects using public investment capital, determination of the investor is carried out according to Clause 3 of this Article and the law on public investment; - For projects using state capital as prescribed by relevant laws (hereinafter referred to as state capital outside public investment), the investor is the agency or organization assigned by the person making the investment decision to manage and use the capital for construction investment; - For projects invested in the form of public-private partnerships (hereinafter referred to as PPP projects), the investor is the PPP project enterprise established in accordance with the law on public-private partnership investment; - For projects using lawful capital sources of organizations and individuals not subject to regulations at points a, b, and c of this clause (hereinafter referred to as other capital projects) where the law on investment requires selection of investors to implement the project, the investor is the investor agreed upon by the competent state authority. In case of many investors participating, the investors may establish an organization or authorize one investor to act as the investor. If relevant laws prescribe the selection and recognition of the investor, the selection and recognition must meet the conditions and comply with relevant laws; - Projects not subject to the provisions of points a, b, c, and d of this clause, the investor is the organization or individual who invests. |
| Based on specific conditions of projects using state budget capital, the person deciding the project investment assigns the specialized construction investment project management board or the regional construction investment project management board to act as the investor; if there is no project management board, the person making the investment decision chooses an agency or organization with sufficient conditions to be the investor. | Based on specific conditions of projects using public investment capital, the person making the investment decision assigns the specialized construction investment project management board or the regional construction investment project management board to act as the investor. If there is no project management board or if the project management board does not meet the conditions to perform, the person making the investment decision assigns an agency or organization with experience and management capacity to be the investor. |
| The investor is responsible before the law and the person making the investment decision within their rights and duties as prescribed by this Law and other relevant laws. | The investor is responsible before the law, the person making the investment decision, and the competent state authority within their rights and duties as prescribed by this Law and other relevant laws. |
Details can be found in Amended Construction Law 2020, effective from January 1, 2021.
Le Hai
