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Official Gazette

Saturday, August 13, 2022

Changes to the public investment legislation under the Law amending nine laws

Updated: 11:15’ - 07/07/2022
The Law on Public Investment has its Articles 17, 25, 82 and 83 revised under the Law Amending a Number of Articles of the Law on Public Investment, Law on Investment in the Form of Public-Private Partnership, Law on Investment, Housing Law, Bidding Law, Electricity Law, Law on Enterprises, Law on Excise Tax, and Law on Enforcement of Civil Judgments (the Law amending nine laws).

Under the Law amending nine laws, which was passed this January at the first extraordinary session of the 15th National Assembly and came into force on March this year, the amendments focus on the competence to decide on investment policy for programs and investment projects.

Competence of the Prime Minister

According to revised Points b and c, Clause 4, Article 17 of the Law on Public Investment, the Prime Minister may decide on investment policy for programs and group-A investment projects funded with ODA loans or concessional loans of foreign donors, except the national target programs and public investment programs specified in Clauses 1 and 2 of Article 17.

The Prime Minister also has the authority to decide on investment policy for programs and investment projects funded with non-refundable ODA, namely programs and group-A projects; programs and projects accompanied with a policy framework; programs and projects in the fields of national defense, security and religion; sector-wide approach programs; procurement of commodities subject to the Prime Minister’s permission; and Vietnam’s participation in regional programs and projects.

For other programs and projects subject to the Prime Minister’s investment policy decision as mentioned above, amended Article 25.8 of the Law on Public Investment provides the order and procedures for making investment policy decision as follows: Managing agencies will send investment policy proposal reports to the Ministry of Planning and Investment for appraisal together with appraisal of funding sources and fund-balancing capacity before submitting such programs or projects to the Prime Minister for investment policy decision.

Meanwhile, the Law amending nine laws annuls Article 17.4.d of the Law on Public Investment, that means, technical assistance projects funded by ODA loans or concessional loans of foreign donors for preparation of investment projects are no longer subject to the Prime Minister’s investment policy decision but now fall under the jurisdiction of provincial-level People’s Councils.

Competence of provincial-level People’s Councils, ministers and heads of central agencies

Under Clause 5a which is added to Article 17.5 of the Law on Public Investment, provincial-level People’s Councils, and ministers and heads of central agencies may decide on investment policy for group-B and group-C investment projects funded with ODA or concessional loans of foreign donors. They may also decide to approve technical assistance projects funded with ODA or concessional loans of foreign donors for preparation of investment projects under their localities’, ministries’ or agencies’ management, except the projects specified in Article 17.4.

The Government will have to specify the order and procedures for deciding on investment policy for investment projects and deciding on approval of technical assistance projects mentioned in Clause 5a.

Particularly, for group-B and group-C public investment projects funded with ODA or concessional loans of foreign donors for which project formulation and appraisal procedures are completed and appraisal documents are issued as a basis for making investment policy decision or investment policy adjustment under Articles 25 and 34 of the Law on Public Investment, which had a number of articles revised under Law 64/2020/QH14 and Law 72/2020/QH14, before  March 1 this year, it is required to proceed with procedures for submitting such projects to the Prime Minister for consideration and decision in accordance with the Law on Public Investment.

For group-B and group-C public investment projects funded with ODA or concessional loans of foreign donors for which the Prime Minister decides on investment policy before March 1 this year and the projects mentioned above, agencies or persons competent to decide on investment policy defined in Article 1 of the Law revising nine laws may adjust their investment policy.-
 

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