Public investment management principles in Vietnam

Public investment management principles in Vietnam (Internet image) 

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

1. Public investment management principles in Vietnam

- 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.

(Article 12 of the Law on Public Investment 2019)

2. Tasks involved in state management of public investment in Vietnam

- 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)

3. Transparency and public disclosure of public investment activities in Vietnam

- Public investment information that must be made publicly available and transparent, including:

+ Regulatory framework, laws and conduct of implementation of laws and policies during the period of management and use of public investment capital;

+ Principles, criteria for distribution of public investment capital and limits of distributed investment funds;

+ Principles, criteria and bases for compiling the portfolio of investment projects in the mid-term and annual public investment plan;

+ Public investment plans and programs to be developed at localities; funding for each program in specific years and progress of implementation and disbursement of funds for public investment programs;

+ Portfolio of investment projects to be developed at localities, including scale, gross investment, time and location; report on assessment of overall impacts of each investment project on receiving localities;

+ Plan for distribution of mid-term and annual public investment capital, including the portfolio and public investment capital amounts allocated to specific investment projects;

+ Current situations of mobilization of resources and other funding sources used as capital participation in implementation of public investment projects;

+ Current situations and results of implementation of public investment plans, programs and projects;

+ Implementation and fund disbursement progress;

+ Results of acceptance testing and assessment of public investment programs and projects;

+ Final accounts of public investment capital.

- Heads of regulatory authorities, organizations and affiliates thereof must make a public disclosure of such public investment information in accordance with laws.

(Article 14 of the Law on Public Investment 2019)

4. Prohibited acts of public investment in Vietnam

- Issuing decisions on investment policies that are not conformable to public investment strategies, plans and programs; in which funding sources and capital balancing capability are not defined; ultra vires or in breach of legally required processes and procedures.

- Issuing decisions on investment in public investment programs or projects without obtaining the competent authority’s decisions on investment policies or in breach of requirements concerning objectives, scope, scale or in excess of total investment specified in investment policies decided by competent authorities. Issuing decisions on adjustment in the gross investment in public investment programs or projects in violation of regulations enshrined in law on public investment.

- Abusing assigned titles and powers to appropriate, make personal gain from and commit corrupt acts while managing and using public investment capital.

- Program or project owners collude with consulting organizations and contractors in issuing decisions on investment policies and decisions on public investment programs or projects that result in any loss or waste of state capital, property and national resources, and harms or infringement on legitimate interests of single citizens and the public.

- Giving, taking bribes and acting as kickback brokers.

- Requesting entities and persons to put investment at their own expense when public investment programs or projects have not yet obtained decisions on investment policies, approval or incur debts accruing from capital construction activities.

- Using public investment capital for wrongful purposes, to serve incorrect beneficiaries, in excess of standards and limits prescribed in law.

- Counterfeiting and falsifying information and documents related to decisions on investment policies, investment decisions and implementation of public investment programs or projects.

- Deliberately reporting and providing incorrect, untrue and impartial information that may affect formulation, evaluation of and decision on public investment plans, programs and projects, and monitoring, assessing, examining, inspecting and imposing sanctions for any violation arising from implementation of public investment plans, programs and projects.

- Deliberately damaging, lying about, concealing or storing an inadequate number of documents and evidences relating to decisions on investment policies, investment decisions and implementation of public investment programs and projects.

- Hindering discovery of any violation against law on public investment.

(Article 16 of the Law on Public Investment 2019)

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