What is public investment plan? Classification of public investment plans in Vietnam

What is public investment plan? Classification of public investment plans in Vietnam (Internet image)

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

1. What is public investment plan?

According to Clause 17, Article 4 of the Law on Public Investment 2019, public investment plan refers to a collection of objectives, guidelines and lists of public investment programs and projects; balancing of public investment capital sources, alternatives for fund disbursement, methods of channeling resources and implementation thereof.

2. What are the regulations on classification of public investment plans in Vietnam?

According to Article 46 of the Law on Public Investment 2019, the classification of public investment plans is as follows:

(1) Public investment plans shall be classified by the planned time limits, including:

- Mid-term public investment plan that must be valid for the period of 05 years and must be in line with the 5-year socio-economic development plan;

- Annual public investment plan that must be made to support the implementation of the mid-term public investment plan and must fit into objectives of the annual socio-economic development plan and the annual public investment budget balance.

(2) Public investment plans shall be classified by levels of regulatory authority, including:

- National public investment plan;

- Public investment plans of Ministries and central regulatory authorities;

- Public investment plans of local authorities at any level.

(3) Public investment plans shall be classified by funding sources, including:

- Plan for investment of the central budget funds, including investments specific to sectors, industries, public investment programs and portions of state capital participation in projects in the public-private partnership form, subject to law on state budget;

- Plan for investment of the local budget’s funds, including investments specific to sectors, industries, public investment programs and portions of state capital participation in projects in the public-private partnership form, subject to law on state budget;

- Plan for investment of legitimate revenues that state regulatory authorities and public service units retain for investment purposes.

3. What are prohibited acts of public investment in Vietnam?

Individuals and organizations are strictly prohibited from performing the following acts in public investment:

- 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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