Criteria for classification of investment projects of national significance in Vietnam

Criteria for classification of investment projects of national significance in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. What are investment projects of national significance?

Investment projects of national significance may be classified by the level of significance and scale into investment projects of national significance

Public investment project refers to a project using all or part of public investment capital.

(Clause 13, Article 4, Clause 2, Article 6 of the Law on Public Investment 2019)

2. Criteria for classification of investment projects of national significance in Vietnam

According to Article 7 of the Law on Public Investment 2019, investment projects of national significance constitute independent investment projects or a complex of closely connected construction projects, and must meet one of the following criteria:

- Using public investment capital worth 10,000 billion dong or above;

- Having substantial environmental impacts or posing potential risks in making serious environmental impacts, including the following projects:

+ Nuclear power plants; those projects using land subject to the requirement for conversion of land use purposes from land in national parks, nature reserves, protected landscapes, research and experimental forests covering an area of 50 hectares or more;

+ Upstream protective forests covering an area of 50 hectares or more; protective forests, used as wind, sand screens, wave breakers, and for reclaiming land from the sea and protecting environment, that cover an area of 50 hectares or more; production forests covering at least 1,000 hectares;

- Using land subject to the requirement for conversion of land use purposes from arable land for growing wet rice during at least two cropping seasons which covers an area of 500 hectares or more;

- Moving and resettling at least 20,000 inhabitants in mountainous areas or at least 50,000 inhabitants in other regions;

- Requiring special legal frameworks or policies subject to the National Assembly's resolutions.

3. Modification of criteria for classification of public investment projects of national significance in Vietnam

The modification of criteria for classification of public investment projects is specified in Article 11 of the Law on Public Investment 2019 as follows:

- The National Assembly shall have authority to make its decision on modification of criteria for classification of projects of national significance referred to in Article 7 of the Law on Public Investment 2019.

- Criteria for classification of public investment projects may be modified in the event that the price index has varied critically and there is a major adjustment in decentralization of public investment management powers related to criteria for classification of public investment projects or existence of other important elements affects criteria for classification of public investment projects.

4. Public investment of national significance management principles in Vietnam

Since investment projects of national significance belong to the group of public investment projects, the management of this group of projects is carried out according to the principles specified in Article 12 of the Law on Public Investment 2019, specifically as follows:

- Comply with law on management and use of public investment capital.

- Conform to the national socio-economic development strategy, the national socio-economic development plan during the 5-year period and other relevant planning schemes prescribed in law on planning.

- Duly implement stipulated responsibilities and powers of state regulatory authorities, entities and persons involved in management and use of public investment capital.

- Manage the use of public investment capital classified by specific funding sources in accordance with regulations; ensure that investment is made on a concentrated and consistent manner, meets required quality standards, is economical and effective, and capability of balancing resources; avoid any waste and loss.

- Ensure transparency and public disclosure of public investment activities.

5 . Tasks involved in state management of public investment of national significance in Vietnam

Tasks involved in state management of public investment of national significance are prescribed as follows:

- Promulgate and direct implementation of legislative documents on public investment.

- Design and lead the implementation of public investment strategies, programs, plans, solutions and policies.

- Monitor and provide information about management and use of public investment capital.

- Assess effectiveness of public investment; check, inspect and oversee compliance with laws on public investment and conformance to public investment plans.

- Impose sanctions for violations against law, handle complaints and denunciations of entities and persons involved in public investment activities.

- Offer rewards to entities and persons who have delivered good performance of public investment activities.

- Enter into international cooperation in public investment.

(Article 13 of the Law on Public Investment 2019)

Nguyen Thi Hoai Thuong

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