Procedures for grant of decisions on policies for investment in group-A, B and C foreign public investment projects in Vietnam

Procedures for grant of decisions on policies for investment in group-A, B and C foreign public investment projects in Vietnam (Internet image)

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

1. Procedures for grant of decisions on policies for investment in group-A, B and C foreign public investment projects in Vietnam 

Procedures for deciding the investment policy of public investment projects of groups A, B and C abroad in Vietnam according to Article 8 of Decree 40/2020/ND-CP are as follows:

- Heads of ministries or central regulatory bodies:

+ Authorize their directly controlled units to prepare pre-feasibility study reports or investment policy recommendation reports;

+ Establish Assessment Councils or authorize competent units to assess pre-feasibility study reports and investment policy recommendation reports; assess funding sources and capacity to balance project-related capital;

+ Direct those units specified in point a of this clause to complete pre-feasibility study reports and investment policy recommendation reports; submit them to respective competent authorities to seek their approval decisions on investment policies for public investment projects.

- Presidents of People’s Committees at any level:

+ Authorize their specialized agencies and directly affiliated units under their authority to prepare pre-feasibility study reports or investment policy recommendation reports for public investment projects;

+ Establish Assessment Councils or authorize competent units to assess pre-feasibility study reports and investment policy recommendation reports; assess funding sources and capacity to balance project-related capital;

+ Direct those units specified in point a of this clause to complete pre-feasibility study reports and investment policy recommendation reports; submit them to respective competent authorities to seek their approval decisions on investment policies for public investment projects.

- Components of pre-feasibility study reports or investment policy recommendation reports for group-B and C projects:

+ Investment necessity, prerequisites for carrying out investments, assessment of relevance of the projects to related planning schemes prescribed in the host country's laws;

+ Objectives, scale and location of investment;

+ Total estimated investment;

+ Anticipated investment schedule and phasing;

+ Factors related to security and environment; preliminary determination of socio-economic effectiveness;

+ Division of the project into constituent projects (if any);

+ Implementation measures.

- Subject matters of the assessment of investment policies for public investment projects, including:

+ Necessity of investment in the public investment project;

+ Compliance with the domestic laws of the host country and the Socialist Republic of Vietnam;

+ Relevance of the public investment project to the related planning scheme provided in the host country’s laws;

+ Objectives, scale, location and schedule of implementation of the investment project; factors related to security and environment;

+ Socio-economic effectiveness.

2. Procedures for design, formulation, assessment and grant of decisions on group-A, B and C foreign public investment projects in Vietnam

Procedures for design, formulation, assessment and grant of decisions on group-A, B and C foreign public investment projects in Vietnam according to Article 16 of Decree 40/2020/ND-CP are as follows:

- Foreign public investment projects under the control of ministries or central regulatory bodies:

+ Based on investment policies already approved by competent authorities, Ministers or Heads of central regulatory bodies shall authorize project owners to prepare feasibility study reports; establish Assessment Councils or mandate competent units to carrying out assessment of these feasibility study reports;

+ In such case, project owners may consult assessment opinions to complete feasibility study reports before submitting them to Ministers or Heads of central regulatory authorities to seek their decisions on investment in these projects.

- Public investment projects under the control of local governments:

+ Based on investment policies already approved by competent authorities, Presidents of People's Committees at any relevant level shall authorize project owners to prepare feasibility study reports for these projects;

Establish Assessment Councils or mandate competent units to carrying out assessment of these feasibility study reports;

+ In such case, project owners may consult assessment opinions to complete feasibility study reports for these projects before submitting them to Presidents of People's Committees at any relevant level to seek their approval decisions on investment in these projects.

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