Regulations on classification of construction investment projects in Vietnam

Regulations on classification of construction investment projects in Vietnam (Internet image)

1. What is construction investment project?

Clause 15, Article 3 of the Law on Construction 2014 as amended by 2020 stipulates construction investment project as follows:

Construction investment project means a collection of proposals concerning use of funds for construction, repair or renovation of a construction work with a view to developing, maintaining and raising the quality of the work or product or service within a given duration at specified costs. 

At the stage of investment construction project preparation, the project shall be demonstrated through the construction investment pre-feasibility study report, the construction investment feasibility study report or construction investment economic-technical report.

2. Classification of construction investment projects in Vietnam

In Article 49 of the Law on Construction 2014 as amended by 2020, the classification of construction investment projects in Vietnam is as follows:

- Construction investment projects shall be classified by the size, importance, functions and characteristics of construction works, management purposes, funding sources and investment forms.

- Based on their sizes and importance, construction investment projects are classified as national important projects, group-A projects, group-B projects and group-C projects according to the criteria prescribed by the Law on public investment.

- Based on functions and characteristics of the construction works, and management purposes, construction investment projects are classified as follows:

(1) Investment projects on construction of civil works;

(2) Investment projects on construction of industrial works;

(3) Investment projects on construction of infrastructure works;

(4) Investment projects on construction of traffic works;

(5) Investment projects on construction of agricultural and rural development works;

(6) Investment projects on construction of national defense and security works;

(7) Housing and urban area construction investment projects, and other construction investment projects that have mixed functions.

- Based on funding sources and investment forms, construction investment projects are classified as follows:

(1) Projects using public investment funds;

(2) Projects using non-public investment state funds;

(3) PPP projects;

(4) Projects using other funds.

- A construction investment project may use one or more funding sources, and comprise a single or multiple works of different types and grades.

3. Requirements on construction investment projects in Vietnam

Article 51 of the Law on Construction 2014 as amended by 2020 stipulates that a construction investment project, respective of its funding sources, must satisfy the following requirements:

- Conform to national planning, regional planning, provincial planning, construction planning, land use plan and planning in the area where the investment project is executed.

- Having appropriate technological and construction designing plans.

- Ensuring quality and safety in construction, operation, exploitation and use of its works, fire and explosion prevention and fighting and environmental protection and response to climate change.

- Ensuring the adequate allocation of funds strictly according to its schedule, ensuring its financial efficiency and socio-economic efficiency.

- Complying with other relevant provisions of law.

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