With a view to further attracting investment from Vietnamese and foreign investors in public projects, the Government on March 17 issued a Decree detailing a number of articles of the Bidding Law on investor selection.
Decree No. 30/2015/ND-CP applies to public-private partnership projects and projects using land of high commercial value specified in the lists approved for construction in urban and new urban centers, commercial housing construction and multipurpose complexes which are not under PPP projects.
Decree No. 30/2015/ND-CP is expected to help Vietnam improve its legal framework for selecting investors of PPP and land-using projects__Photo: VNA
Accordingly, investors in PPP projects and land-using projects must be selected by open international bidding, except for open domestic bidding or investor appointment under Clause 4, Article 22 of the 2013 Law on Investment. Specifically, subject to open domestic bidding are the sectors in which foreign investment is restricted by the Vietnamese law or international treaties to which Vietnam is a member state; cases where foreign investors do not participate in or fail the international pre-qualification; PPP projects (group-C projects) as prescribed by the law on public investment; and land-using projects in which the initial total investment is under VND 120 billion.
Under the new regulation, investors having made feasibility study reports for any C-group PPP projects may join in bidding for such projects, provided they are legally and financially independent from other parties, except for contractors providing consultancy on the elaboration of feasibility study reports. However, there will be no certainty for them to be appointed to implement such projects without having to compete with other investors.
The Decree, which will take effect on May 5, is expected to improve the country’s legal framework for selecting investors of PPP projects and land-using projects, help address limitations of current regulations, and promptly guide the implementation of the Bidding Law.-