Law on Public Investment No. 58/2024/QH15

LAW ON PUBLIC INVESTMENT^[1]

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Public Investment.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Law provides the state management of public investment; management and use of public investment capital; and rights, obligations and responsibilities of agencies, units, organizations and individuals related to public investment activities.

Article 2. Subjects of application

This Law applies to agencies, units, organizations and individuals engaged in or related to public investment activities, and management and use of public investment capital.

Article 3. Application of the Law on Public Investment, treaties and international agreements

1. The management and use of public investment capital, and public investment activities must comply with this Law and other relevant laws.

2. In case a treaty to which the Socialist Republic of Vietnam is a contracting party contains provisions different from those of this Law, the provisions of such treaty shall prevail.

3. The implementation of public investment programs and projects in foreign countries must comply with treaties to which the Socialist Republic of Vietnam is a contracting party and international agreements between Vietnamese partners and foreign partners.

4. The management and use of the State’s investment capital in enterprises must comply with the law on management and use of state capital invested in production and business at enterprises.

Article 4. Interpretation of terms

In this Law, the terms below are construed as follows:

1. Investment policy proposal report means a document presenting preliminary study contents on necessity, feasibility, efficiency, expected capital sources and capital level of a public investment program or a group-B or group-C project for use as a basis for a competent authority to decide on investment policy.

2. Prefeasibility study report means a document presenting the preliminary study contents on the necessity, feasibility, efficiency, total investment, expected capital sources and capital level of a national important project or group-A project for use as a basis for a competent authority to decide on investment policy.

3. Feasibility study report means a document presenting the study contents on necessity, feasibility, efficiency, capital sources and capital level of a public investment program/project for use as a basis for a competent authority to decide on investment.

4. Ministries, central agencies and localities means agencies and organizations that are assigned public investment plans by the Prime Minister, including:

a/ Central agencies of political organizations, the Supreme People’s Procuracy, the Supreme People’s Court, the State Audit Office of Vietnam, the Office of the Party Central Committee, the Office of the President, the Office of the National Assembly, ministries, ministerial-level agencies, government-attached agencies, and central agencies of the Vietnam Fatherland Front and of socio-political organizations (below referred to as ministries and central agencies);

b/ Provincial-level People’s Committees;

c/ State enterprises, and other agencies, organizations and enterprises that are assigned in writing by competent state agencies to perform public investment tasks and projects.

5. ODA/foreign concessional loan-funded public investment programs and projects include public investment programs, investment projects and technical assistance projects for the preparation of ODA/foreign concessional loan-funded investment projects.

6. Program owner means an agency/organization that is assigned to take charge of a public investment program.

7. Project owner means an agency/organization that is assigned to directly manage a public investment project.

8. Investment policy means a competent authority’s decision on principal contents of an investment program/project which serves as a basis for formulation, submission and approval of the decision on investment in such investment program/project, or the decision on approval of the feasibility study report of a public investment project.

9. Public investment program means a set of objectives, tasks and solutions aiming to realize socio-economic development objectives.

10. National target program means a public investment program aiming to realize socio-economic objectives in each specific period nationwide.

11. Managing agencies means ministries, central agencies and localities specified in Clause 4 of this Article that manage programs and projects.

12. Specialized agency in charge of public investment management means a unit with the public investment management function under the Ministry of Planning and Investment; or a unit assigned to manage public investment of a ministry, central agency, locality or public non-business unit.

13. State management agencies in charge of public investment include the Government, the Ministry of Planning and Investment and People’s Committees at all levels.

14. Public investment project means a project that is wholly or partly funded by public investment capital.

15. Urgent public investment project means a public investment project decided by a competent authority in order to promptly prevent, combat, and remediate consequences of, disasters, catastrophes and epidemics, and perform emergency tasks to ensure national defense, security, external relations and political tasks of the country.

16. Public investment means the State’s investment in programs, tasks, projects and other objects of public investment in accordance with this Law.

17. ODA/foreign concessional loan-funded program/project proposal means a written report explaining the necessity of investment in the program/project, the program/project’s conformity with the orientations for attraction, management and use of ODA/foreign concessional loans in each period, the expected structure of capital sources, donors and domestic financial mechanisms for use as a basis for program/project approval by a competent authority.

18. Public investment activities include formulation and appraisal of, and decision on investment policy for or decision on investment in, public investment programs, tasks and projects; formulation, appraisal, approval, assignment and implementation of public investment plans; management and use of public investment capital; acceptance testing results and handover of public investment programs, and account-finalization of public investment projects; monitoring and evaluation, examination and inspection of public investment plans, programs, tasks and projects.

19. Public investment plan means a set of objectives, orientations and lists of public investment programs and projects; balancing of public investment capital sources, capital allocation options, and solutions to mobilize resources and implement the plan.

20. Investment preparation tasks means activities aiming to formulate project proposals for ODA/foreign concessional loan-funded projects; formulation and appraisal of, and decision on investment policy for, projects; and formulation and appraisal of, and decision on investment in, projects.

21. Planning tasks means activities carried out to formulate and publicize master plans, formulate and adjust master plans and publicize adjusted master plans in accordance with the Planning Law.

22. Outstanding debts in capital construction means the value of the job volume of a program/task/project that has undergone acceptance testing but for which the competent authority has not yet assigned a medium-term public investment plan, not applicable to urgent public investment projects.

23. Decentralization for state management of public investment means the identification of powers and responsibilities of competent agencies, organizations and individuals in public investment activities.

24. Public investment capital includes state budget funds for public investment; and capital from lawful revenues of state agencies and public non-business units that are reserved for investment in accordance with law.

25. Central budget funds means the central budget’s funds for public investment in accordance with the Law on the State Budget.

26. Local budget funds means local budgets’ funds for public investment in accordance with the Law on the State Budget.

27. Target transfers from the central budget to local budgets means the central budget’s funds additionally allocated to local budgets for investment in public investment programs, tasks and projects and other objects of public investment according to specific tasks decided by competent authorities.

Article 5. Objects of public investment

1. Investment in socio-economic infrastructure programs and projects.

2. Investment serving the operation of state agencies, public non-business units, political organizations and socio-political organizations.

3. Investment in and support for the provision of public-utility and social welfare products and services.

4. The State’s investment in the implementation of projects in the form of public-private partnership (PPP projects) in accordance with the law on investment in the form of public-private partnership; compensation for and premature termination of PPP project contracts as decided by competent authorities; payment for the decreased revenue amounts of PPP projects falling under the State’s responsibility; and cash payment under contracts of work construction investment projects implemented in the form of build-transfer (BT).

5. Investment in the performance of planning tasks.

6. Provision of preferential loan interest rate and management fee subsidies; allocation of charter capital to policy banks and non-budget state financial funds; provision of investment support for other beneficiaries under decisions of the Government or the Prime Minister.

The Government shall specify the order and procedures for making investment mentioned in this Clause.

7. Allocation of local budget funds for the implementation of preferential credit policies through provincial-level branches of the Vietnam Bank for Social Policies.

The Government shall specify conditions, criteria and principles for allocation of capital to entrust the implementation of preferential credit policies through the Vietnam Bank for Social Policies.

Provincial-level People’s Councils shall decide on specific mechanisms and policies and allocate local budget funds for the implementation of this policy. Provincial-level People’s Committees shall entrust local budget funds for the implementation of preferential policies under decisions of provincial-level People’s Councils.

8. Other objects of public investment as specified by relevant laws.

Article 6. Classification of public investment projects

1. By their nature, public investment projects shall be classified as follows:

a/ Projects with construction components which are projects using public investment capital to invest in new projects or renovate, upgrade or expand existing projects, covering also the purchase of assets and equipment of such projects;

b/ Projects without construction components which are projects using public investment capital to purchase assets, acquire land use rights through transfer, purchase, repair or upgrade equipment or machinery, or projects other than those specified at Point a of this Clause;

c/ The use of capital not under public investment plans to implement the tasks and projects specified at Points a and b of this Clause must comply with the law on the state budget and other relevant laws.

2. By their importance and scale, public investment projects shall be classified as follows:

a/ National important projects, group-A projects, group-B projects, and group-C projects, based on the criteria specified in Articles 8, 9, 10 and 11 of this Law;

b/ When approving investment policy for a national important project, group-A project, group-B project or group-C project, a competent authority may decide on the separation or non-separation of the contents on compensation, support, resettlement and ground clearance into an independent component project.

The duration of implementation of an independent component project on compensation, support, resettlement and ground clearance shall be included in the total duration for allocation of capital for project implementation specified in Article 57 of this Law;

c/ For public investment projects related to different sectors and fields, the grouping of projects by sector/field shall be based on the ratio of investment capital by sector/field to the total investment in a project;

d/ Projects not involving the criteria specified in Articles 8, 9, 10 and 11 of this Law shall be classified on the basis of the total investment criterion specified in Clause 5, Article 9; Clause 4, Article 10; and Clause 4, Article 11, of this Law;

dd/ The Government shall provide in detail the classification of public investment projects specified in Articles 9, 10 and 11 of this Law.

Article 7. Sectors and fields using public investment capital

1. Sectors and fields using public investment capital include:

a/ National defense;

b/ Security, and social order and safety;

c/ Education, training and vocational education;

d/ Science and technology;

dd/ Health, population and family;

e/ Culture and information;

g/ Radio, television and news agency;

h/ Physical training and sports;

i/ Environmental protection;

k/ Economic activities;

l/ Activities of state agencies, public non-business units, political organizations and socio-political organizations;

m/ Social assurance;

n/ Other sectors and fields as provided by law.

2. The Government shall detail this Article.

Article 8. Criteria for classification of national important projects

National important projects mean independent investment projects or complexes of closely linked works, which involve one of the following criteria:

1. Projects each using public investment capital of VND 30 trillion or more;

2. Projects greatly affecting the environment or being likely to seriously affect the environment, including:

a/ Nuclear power plants;

b/ Projects requiring land repurposing of 50 hectares or more of special-use forests; land repurposing of 50 hectares or more of watershed protection forests or border protection forests; land repurposing of 500 hectares or more of protection forests as windbreaks, sand shelters, wave breakers or sea reclamation works; or land repurposing of 1,000 hectares or more of production forests;

3. Projects requiring repurposing of 500 hectares or more of wet rice land under two or more crops;

4. Projects requiring population relocation for resettlement for 20,000 or more people in mountainous areas, or for 50,000 or more people in other areas;

5. Projects requiring the application of special mechanisms and policies subject to the National Assembly’s decision.

Article 9. Criteria for classification of group-A projects

Except the national important projects specified in Article 8 of this Law, projects satisfying one of the following criteria shall be classified as group-A projects:

1. Projects that, regardless of their total investment, fall into one of the following cases:

a/ Projects on production of hazardous substances and explosives, except projects on production of hazardous substances and explosives in the field of national defense and security;

b/ Projects on infrastructure of industrial parks, export processing zones and hi-tech parks;

2. Projects each having a total investment of VND 4.6 trillion or more in the following fields:

a/ Traffic, including bridges, seaports, river ports, aerodromes, railways and national highways;

b/ Electricity industry;

c/ Oil and gas extraction;

d/ Chemicals, fertilizers, cement;

dd/ Machinery manufacturing and metallurgy;

e/ Mineral exploitation and processing;

g/ Construction of housing complexes;

3. Projects each having a total investment of VND 3 trillion or more in the following fields:

a/ Traffic, except the projects specified at Point a, Clause 2 of this Article;

b/ Hydraulic work and disaster preparedness;

c/ Water supply and drainage, waste treatment and other technical infrastructure works;

d/ Electrical engineering;

dd/ Manufacturing of information and electronic equipment;

e/ Pharmaceutical chemistry;

g/ Production of materials, except the projects specified at Point d, Clause 2 of this Article;

h/ Mechanical works, except the projects specified at Point dd, Clause 2 of this Article;

i/ Post and telecommunications;

4. Projects each having a total investment of VND 2 trillion or more in the following fields:

a/ Agricultural production, forestry, salt making, and aquaculture;

b/ National parks and nature reserves;

c/ Technical infrastructure of new urban areas;

d/ Industry, except the projects in the industrial sector specified in Clauses 1, 2 and 3 of this Article;

5. Projects each having a total investment of VND 1.6 trillion or more in the following fields:

a/ Health, culture, social affairs, information and education;

b/ Scientific research, environment, information technology, radio, television, finance and banking;

c/ Warehouses;

d/ Tourism, physical training, and sports;

dd/ Civil construction, except the construction of housing complexes specified at Point g, Clause 2 of this Article;

e/ Projects in the field of national defense and security, except those specified in Clauses 1, 2, 3 and 4 of this Article.

Article 10. Criteria for classification of group-B projects

1. Projects in the fields specified in Clause 2, Article 9 of this Law, each having a total investment of between VND 240 billion and under VND 4.6 trillion.

2. Projects in the fields specified in Clause 3, Article 9 of this Law, each having a total investment of between VND 160 billion and under VND 3 trillion.

3. Projects in the fields specified in Clause 4, Article 9 of this Law, each having a total investment of between VND 120 billion and under VND 2 trillion.

4. Projects in the fields specified in Clause 5, Article 9 of this Law, each having a total investment of between VND 90 billion and under VND 1.6 trillion.

Article 11. Criteria for classification of group-C projects

1. Projects in the fields specified in Clause 2, Article 9 of this Law, each having a total investment of under VND 240 billion.

2. Projects in the fields specified in Clause 3, Article 9 of this Law, each having a total investment of under VND 160 billion.

3. Projects in the fields specified in Clause 4, Article 9 of this Law, each having a total investment of under VND 120 billion.

4. Projects in the fields specified in Clause 5, Article 9 of this Law, each having a total investment of under VND 90 billion.

Article 12. Adjustment of criteria for classification of public investment projects

1. The National Assembly shall decide to adjust the criteria for classification of national important projects specified in Article 8 of this Law.

2. The Government shall propose the National Assembly Standing Committee to decide to adjust the criteria for classification of public investment projects specified in Articles 9, 10 and 11 of this Law and report thereon to the National Assembly at its coming session.

3. The adjustment of the criteria for classification of public investment projects specified in Clauses 1 and 2 of this Article shall be made in case the price index sees great fluctuations or there are major adjustments concerning the decentralization of powers for public investment management related to the criteria for classification of public investment projects or other important factors occur, affecting the criteria for classification of public investment projects.

Article 13. Principles of public investment management

1. Ensuring compliance with the law on public investment.

2. Ensuring conformity with socio-economic development strategies, 5-year socio-economic development plans of the country and relevant master plans in accordance with the planning law.

3. Ensuring performance of the responsibilities and exercise of the powers of state management agencies, organizations and individuals related to public investment.

4. Ensuring management of the use of public investment capital in accordance with regulations for each capital source; ensuring concentration, synchrony, quality, thrift and efficiency of, and the capacity to balance, resources; not causing loss or waste.

5. Ensuring publicity and transparency in public investment activities.

Article 14. Contents of state management of public investment

1. Promulgating, and organizing the implementation of, legal documents on public investment.

2. Formulating, and organizing the implementation of, public investment strategies, programs, plans, solutions and policies.

3. Monitoring, and providing information on, the management and use of public investment capital.

4. Evaluating the efficiency of public investment; examining, inspecting and supervising the implementation of the law on public investment and the compliance with public investment plans.

5. Handling violations committed, and settling complaints and denunciations filed, by organizations and individuals, that are related to public investment activities.

6. Commending agencies, organizations, units and individuals that record achievements in public investment activities.

7. Carrying out international cooperation on public investment.

Article 15. Publicity and transparency in public investment

1. Contents of publicity and transparency in public investment include:

a/ Policies and laws and organization of the implementation of policies and laws in the management and use of public investment capital;

b/ Principles, criteria and norms for allocation of public investment capital;

c/ Principles, criteria and bases for drawing up lists of projects in medium-term and annual public investment plans;

d/ Public investment plans and programs in localities; capital allocated for each program by year, and progress of implementation of, and disbursement of capital for, public investment programs;

dd/ Lists of projects in localities, including information on scale, total investment, implementation duration and location; reports on assessment of projects’ overall impacts on investment-covered areas;

e/ Plans on allocation of medium-term and annual public investment capital, including lists of projects and level of public investment capital to be allocated to each project;

g/ Mobilization of resources and other capital sources for the implementation of public investment projects;

h/ Situation and results of implementation of plans, programs and projects;

i/ Progress of implementation of, and disbursement for, projects;

k/ Results of the acceptance testing and evaluation of programs and projects;

l/ Account-finalization of public investment capital.

2. Heads of agencies, organizations and units shall publicize public investment contents in accordance with law.

Article 16. Expenses for formulation, appraisal, monitoring, inspection and evaluation of public investment plans, programs, tasks and projects

1. Expenses for formulation and appraisal of investment policy proposal reports for public investment programs using sources for recurrent expenditures of agencies and units performing these tasks.

2. Expenses for performance of investment preparation tasks covered by public investment capital, state budget funds for recurrent expenditures, and other lawful capital sources, and account-finalization of total investment of projects.

In case the competent authority does not decide on investment policy for or does not decide on investment in a project, expenses for the performance of the project’s investment preparation tasks shall be accounted and account-finalized under the Government’s regulations.

3. Expenses for formulation and appraisal of public investment plans using sources for recurrent expenditures of agencies and units formulating and appraising the plans.

4. Expenses for monitoring, inspection and evaluation of plans, programs and projects using sources for recurrent expenditures of agencies and units performing these tasks.

5. For ODA/foreign concessional loan-funded programs and projects, donors are encouraged to provide financial support for payment of the expenses specified in this Article.

Article 17. Prohibited acts in public investment

1. Deciding on investment policy or deciding on adjustment of investment policy in contravention of strategies, master plans or plans; failing to identify capital sources and capital-balancing capacity; failing to comply with regulations on competence, order and procedures.

2. Deciding on investment in programs and projects while not yet obtaining the competent authority’s investment policy decision; deciding on investment or deciding on adjustment of programs or projects ultra vires, or in contravention of the contents on objectives and locations, or deciding on investment with capital exceeding the level of public investment capital or exceeding the level of public investment capital allocated by the higher-level budget or exceeding the total investment level in the investment policy decided by the competent authority; or deciding to adjust the total investment capital of programs or total investment level of projects in contravention of law.

3. Abusing positions and powers for appropriating, or seeking personal gain or practicing corruption in the management and use of, public investment capital.

4. Program/project owners colluding with consultancy organizations or contractors in deciding on investment policy for or deciding on investment in programs/projects, thus causing loss or waste of capital and assets of the State or resources of the country; or harming and infringing upon lawful interests of citizens and the community.

5. Giving, receiving or brokering bribes.

6. Requesting organizations and individuals to invest their own capital while investment policy has not yet been decided or investment decision not yet approved for programs/projects; implementing projects while not yet assigned public investment plans, thus causing outstanding debts in capital construction.

7. Using public investment capital for improper purposes or improper subjects, or in excess of the law-specified standards and norms.

8. Forging or falsifying information, dossiers and documents related to investment policy decision or investment decision for, or implementation of, programs, tasks and projects.

9. Intentionally reporting or providing untrue, untruthful or non-objective information, thus affecting the formulation and appraisal of and decision on plans, programs and projects, or the monitoring, evaluation, examination, inspection, and handling of violations in the implementation of plans, programs, tasks and projects.

10. Intentionally destroying, deceiving or concealing or insufficiently retaining documents and dossiers related to investment policy decision or investment decision for, or implementation of, programs, tasks and projects.

11. Obstructing the detection of violations of the law on public investment.

Chapter II

INVESTMENT POLICY AND INVESTMENT DECISION FOR PUBLIC INVESTMENT PROGRAMS AND PROJECTS

Section 1

FORMULATION AND APPRAISAL OF AND DECISION ON INVESTMENT POLICY

Article 18. Competence to decide on investment policy for programs and projects

1. The National Assembly shall decide on investment policy for:

a/ National target programs; and,

b/ National important projects.

2. The Government shall decide on investment policy for public investment programs funded by the central budget, except the programs specified at Point a, Clause 1 of this Article.

3. The Prime Minister shall decide on investment policy for:

a/ The projects specified at Point a, Clause 1, Article 9 of this Law; and,

b/ Group-A projects managed by ministries or central agencies, each having a total investment of VND 10 trillion or more.

4. Ministers and heads of central agencies shall decide on investment policy for group-A, group-B and group-C projects managed by their ministries and agencies, except the projects specified in Clause 3 of this Article.

5. Provincial-level People’s Councils shall decide on investment policy for:

a/ Public investment programs funded by local budgets, including also target transfers from the central budget, and lawful capital sources of localities under their management; and,

b/ Group-A projects funded by local budgets at all levels, including also target transfers from the central budget, and lawful capital sources of localities in the provincial-level localities; and group-A projects each implemented in 2 or more provincial-level administrative units and with the provincial-level People’s Committee acting as the managing agency under the Prime Minister’s decision, except the projects specified in Clause 3 of this Article.

6. District-level People’s Councils shall decide on investment policy for public investment programs funded by local budgets, including also target transfers from higher-level budgets, and lawful capital sources of localities under their management.

7. Provincial-level People’s Committees shall decide on investment policy for:

a/ Group-B and group-C projects funded by local budgets, including also target transfers from higher-level budgets, and lawful capital sources of localities under their management;

b/ Group-B and group-C projects each implemented in 2 or more provincial-level administrative units and with the provincial-level People’s Committee acting as the managing agency under the Prime Minister’s decision; and,

c/ Group-B and group-C projects funded by ODA/foreign concessional loans.

8. District-level People’s Committees shall decide on investment policy for:

a/ Group-B and group-C projects funded by local budgets, including also target transfers from higher-level budgets, and lawful capital sources of localities under their management;

b/ Group-B and group-C projects each implemented in 2 or more district-level administrative units for which district-level People’s Committees are assigned by chairpersons of provincial-level People’s Committees to act as managing agencies; and group-B and group-C projects each implemented in 2 or more commune-level administrative units; and,

c/ The projects specified in Clause 9 of this Article, at the request of commune-level People’s Committees.

9. Commune-level People’s Committees shall decide on investment policy for group-B and group-C projects funded by local budgets, including also target transfers from higher-level budgets, and lawful capital sources of localities under their management. If unqualified for project management and implementation, commune-level People’s Committees shall report thereon to district-level People’s Committees for the latter to decide on investment policy for group-B and group-C projects under their management.

10. Members’ Councils or Company Presidents or Boards of Directors of state enterprises shall decide on investment policy for group-A, group-B and group-C projects assigned to them for investment under the Prime Minister’s decisions, except the projects specified in Clause 3 of this Article.

11. In case of adjustment of investment policy for programs/projects, the competence to decide on adjustment of investment policy for programs/projects must comply with Clause 1, Article 37 of this Law.

12. The Government shall provide the following contents:

a/ The decentralization of competence, and order and procedures for deciding on investment policy for programs/projects using lawful revenues of state agencies and public non-business units that are reserved for investment under regulations on financial autonomy of agencies and units.

In case a program/project specified in this Clause is funded by the state budget, the competence, order and procedures for implementation must comply with this Law’s provisions applicable to programs/projects funded by the state budget;

b/ Order and procedures for deciding on investment policy for projects funded by local budgets and implemented by central agencies, and projects funded by district- or commune-level budgets and implemented by provincial- or district-level agencies;

c/ Dossiers, contents and time for appraisal of and decision on investment policy for programs and projects.

Article 19. Conditions for deciding on investment policy for a program/project

1. The program/project conforms with the competent authority-decided/approved relevant socio-economic development strategy, orientations and plan as well as relevant master plan in accordance with the planning law.

2. The program/project is not identical to the program/project for which investment policy or investment has been decided.

3. The program/project conforms with the capacity to balance public investment capital sources and the capacity to mobilize other capital sources, for programs/projects using multiple funding sources.

4. The program/project conforms with the capacity to borrow and repay public debts, government debts and municipal debts.

5. The program/project is likely to ensure socio-economic efficiency, national defense, security and sustainable development.

6. Tasks and projects not subject to investment policy decision include:

a/ Investment preparation tasks;

b/ Planning tasks;

c/ Urgent public investment projects;

d/ Projects under national target programs;

dd/ Component projects of projects for which investment policy has been decided by competent authorities;

e/ Investment projects funded by non-refundable ODA and technical assistance projects funded by non-refundable ODA for the preparation of investment projects.

Article 20. Order and procedures for deciding on investment policy for national target programs and national important projects

1. Agencies assigned to make investment preparations for programs/projects have the following responsibilities:

a/ To assign their attached units to prepare investment policy proposal reports for national target programs or prepare prefeasibility study reports for national important projects;

b/ To establish councils for appraising investment policy proposal reports or prefeasibility study reports;

c/ To complete investment policy proposal reports or prefeasibility study reports for submission to the Prime Minister.

2. The Prime Minister shall establish the State Appraisal Council with the Minister of Planning and Investment acting as its Chairperson to appraise investment policy proposal reports for national target programs or prefeasibility study reports for national important projects.

3. The Government shall propose the National Assembly to consider and decide on investment policy for national target programs and national important projects.

4. The National Assembly’s agencies shall verify dossiers of national target programs and national important projects submitted by the Government.

5. The National Assembly shall consider and adopt resolutions on investment policy for national target programs and national important projects with the following principal contents:

a/ Objectives, scope, total investment capital, location and duration of implementation, and mechanisms, solutions and policies for implementation, for national target programs.

b/ Objectives, scale, total investment, main technologies (if any), location and duration of implementation, and mechanisms, solutions and policies for implementation, for national important projects.

Article 21. Dossiers for deciding on investment policy for a national target program or national important project

1. The Government’s request.

2. Investment policy proposal report, for national target programs, or prefeasibility study report, for national important projects.

3. The State Appraisal Council’s appraisal report.

4. Other relevant documents.

Article 22. Procedures for and contents of verification of investment policy for national target programs and national important projects

1. Verification procedures are as follows:

a/ At least 60 days before the opening date of a session of the National Assembly, the Government shall send a dossier of investment policy decision for a national target program or national important project to the agency in charge of verification;

b/ The agency in charge of verification may request the Government and related agencies, organizations and individuals to report on issues concerning the contents of the national target program or national important project; and organize a field survey on such issues;

c/ Agencies, organizations and individuals requested by the agency in charge of verification shall provide sufficient information and documents to serve the verification.

2. Verification contents include:

a/ The program/project’s satisfaction of the criteria for identifying a national target program or national important project;

b/ Necessity of investment in the program/project;

c/ The program/project’s compliance with law;

d/ The program/project’s conformity with the relevant socio-economic development strategy, orientations and plan as well as relevant master plan in accordance with the planning law;

dd/ The program/project’s basic parameters, including objectives, scale, form of investment, scope, location, land area to be used, implementation duration and schedule, plan on selection of main technologies, environmental protection solutions, capital sources, and capacity to recover capital and repay loans;

e/ Evaluation of socio-economic efficiency, national defense and security assurance, and sustainable development;

g/ Evaluation of level of risks in the host country, for national important projects invested in foreign countries.

Article 23. Order and procedures for deciding on investment policy for public investment programs falling within the Government’s competence

1. Program owners have the following responsibilities:

a/ To assign their attached units to prepare investment policy proposal reports;

b/ To assign functional units or establish councils to appraise investment policy proposal reports;

c/ To complete investment policy proposal reports for submission to the Prime Minister.

2. The Prime Minister shall establish interdisciplinary councils to appraise, or assign the Ministry of Planning and Investment to assume the prime responsibility for, and coordinate with related agencies in, appraising, investment policy proposal reports.

3. Program owners shall complete investment policy proposal reports based on the appraisal opinions specified in Clause 2 of this Article and submit them to the Government.

4. The Government shall consider and decide on investment policy for a program, covering objectives, scope, total investment capital, implementation duration, mechanisms, solutions and policies.

Article 24. Order and procedures for deciding on investment policy for group-A projects falling within the Prime Minister’s competence

1. Ministers, and heads of central agencies and localities have the following responsibilities:

a/ To assign their specialized agencies or attached units, including also attached public non-business units, to prepare prefeasibility study reports;

b/ To assign functional units or agencies or establish councils to appraise prefeasibility study reports;

c/ To direct the units and agencies specified at Point a of this Clause in completing prefeasibility study reports for submission to the Prime Minister.

2. The Prime Minister shall decide to establish an interdisciplinary appraisal council or assign an in-charge agency to appraise the prefeasibility study report for use as a basis for deciding on investment policy for a project.

The interdisciplinary appraisal council or the agency in charge of appraisal may invite organizations and individuals with expertise and experience to participate in the appraisal of the prefeasibility study report or request the project owner to select organizations and individuals with expertise and experience to participate in the appraisal of the prefeasibility study report.

3. The Ministry of Planning and Investment shall assume the prime responsibility for appraising capital sources and capital-balancing capacity and send a report thereon to the interdisciplinary appraisal council or the agency in charge of appraisal.

4. The interdisciplinary appraisal council or the agency in charge of appraisal specified in Clause 2 of this Article shall send appraisal opinions for the concerned ministries, central agencies and localities to complete the prefeasibility study report for submission to the Prime Minister.

5. The Prime Minister shall decide on investment policy, including objectives, scale, total investment, structure of capital sources, and implementation location and duration.

Article 25. Order and procedures for deciding on investment policy for group-A projects falling within the competence of provincial-level People’s Councils

1. Chairpersons of provincial-level People’s Committees have the following responsibilities:

a/ To assign their attached units, including also attached public non-business units or district-level People’s Committees, to prepare prefeasibility study reports;

b/ To establish appraisal councils, each with the chairperson or a vice chairperson of the provincial-level People’s Committee acting as the council’s chairperson, the provincial-level specialized agency in charge of public investment management acting as the council’s standing body, and related agencies acting as the council’s members, to appraise the prefeasibility study report, capital sources and capital-balancing capacity;

c/ To direct the units specified at Point a of this Clause in completing prefeasibility study reports based on appraisal opinions.

2. Provincial-level People’s Committees shall propose same-level People’s Councils to decide on investment policy for projects under their management, which covers objectives, scale, total investment, structure of capital sources, implementation location and duration, and tentative plan on capital allocation.

Article 26. Order and procedures for deciding on investment policy for group-A, group-B and group-C projects falling within the competence of ministers or heads of central agencies

1. Ministers and heads of central agencies have the following responsibilities:

a/ To assign their attached units, including also attached public non-business units, to prepare prefeasibility study reports or investment policy proposal reports;

b/ To establish appraisal councils or assign functional units to appraise prefeasibility study reports or investment policy proposal reports, capital sources and capital-balancing capacity;

c/ To direct the units specified at Point a of this Clause in completing prefeasibility study reports or investment policy proposal reports based on appraisal opinions.

2. Ministers and heads of central agencies shall decide on investment policy, including objectives, scale, total investment, structure of capital sources, implementation location and duration, and tentative plan on capital allocation.

Article 27. Order and procedures for deciding on investment policy for locally managed public investment programs

1. Chairpersons of People’s Committees at all levels have the following responsibilities:

a/ To assign their attached units, including also attached public non-business units or subordinate People’s Committees, to prepare investment policy proposal reports;

b/ To establish appraisal councils or assign functional units to appraise investment policy proposal reports, capital sources and capital-balancing capacity for public investment programs under their management;

c/ To direct the units specified at Point a of this Clause in completing investment policy proposal reports based on appraisal opinions.

2. The People’s Committee at a level shall propose the People’s Council at the same level to decide on investment policy for a public investment program, including objectives, scope, scale, total investment capital, structure of capital sources, implementation location and duration, tentative capital allocation plan, and implementation mechanisms, solutions and policies.

Article 28. Order and procedures for deciding on investment policy for group-B and group-C projects falling within the competence of People’s Committees at all levels

1. Chairpersons of People’s Committees at all levels have the following responsibilities:

a/ To assign their attached units, including also their attached public non-business units (if any) or subordinate People’s Committees, to prepare investment policy proposal reports;

b/ To establish appraisal councils or assign functional units to appraise investment policy proposal reports for projects under their management;

c/ To direct the units specified at Point a of this Clause in completing investment policy proposal reports based on appraisal opinions.

2. People’s Committees at all levels shall decide on investment policy for projects under their management, including objectives, scale, total investment, structure of capital sources, and implementation location and duration.

Article 29. Order and procedures for deciding on investment policy for group-A, group-B, and group-C projects using public investment capital and managed by state enterprises

1. Based on the Prime Minister’s document assigning a state enterprise to act as the managing agency for project implementation, the Members’ Council or Company President or Board of Directors of such state enterprise has the following responsibilities:

a/ To assign its/his/her attached unit to prepare a prefeasibility study report or an investment policy proposal report;

b/ To establish an appraisal council or assign a functional unit to appraise the prefeasibility study report or investment policy proposal report;

c/ To direct the unit specified at Point a of this Clause in completing the prefeasibility study report or investment policy proposal report based on appraisal opinions.

2. The Members’ Council or Company President or Board of Directors of a state enterprise shall decide on investment policy, including objectives, scale, total investment, structure of capital sources, and implementation location and duration.

Article 30. Order and procedures for deciding on investment policy for a project implemented in 2 or more provincial-level administrative units

1. In case a project is implemented in 2 or more provincial-level administrative units for which a provincial-level People’s Committee may act as the managing agency, the related provincial-level People’s Committees shall agree to assign one of them to act as the managing agency for project implementation, and report such assignment to the provincial-level People’s Council for approval.

Based on the resolution of the provincial-level People’s Council, the provincial-level People’s Committee proposed to act as the managing agency for project implementation shall report such proposal to the Prime Minister for the latter to consider and decide to assign the former to act as the managing agency for project implementation.

2. Based on the Prime Minister’s decision, the provincial-level People’s Committee assigned to act as the managing agency for project implementation shall:

a/ Propose the provincial-level People’s Council to decide on investment policy for group-A projects according to the order and procedures specified in Article 25 of this Law; or,

b/ Decide on investment policy for group-B and group-C projects according to the order and procedures specified in Article 28 of this Law.

Article 31. Order and procedures for deciding on investment policy for a project implemented in 2 or more district- or commune-level administrative units

1. In case a project is implemented in 2 or more district-level administrative units for which a district-level People’s Committee may act as the managing agency, the related district-level People’s Committees shall agree to assign one of them to act as the managing agency for project implementation, and report such assignment to the district-level People’s Council for approval.

Based on the resolution of the district-level People’s Council, the district-level People’s Committee proposed to act as the managing agency for project implementation shall report such proposal to the chairperson of the provincial-level People’s Committee for the latter to consider and decide to assign the former to act as the managing agency for project implementation.

2. Based on the decision of the chairperson of the provincial-level People’s Committee, the district-level People’s Committee assigned to act as the managing agency for project implementation shall organize the formulation and appraisal of, and decide on investment policy for, the project under Article 28 of this Law.

3. In case a project is implemented in 2 or more commune-level administrative units, the district-level People’s Committee shall decide on investment policy for the project according to the order and procedures specified in Article 28 of this Law and organize the implementation thereof in accordance with relevant laws.

Article 32. Principles, competence, order and procedures for deciding on investment policy for public investment projects implemented in foreign countries, PPP projects, and investment projects on construction of official residences

1. Principles, competence, order and procedures for deciding on investment policy for group-A, group-B and group-C public investment projects implemented in foreign countries must comply with the Government’s regulations.

2. Principles, competence, order and procedures for deciding on investment policy for PPP projects must comply with the law on investment in the form of public-private partnership.

3. The decision on investment policy for, decision on investment in, and decision on owners of, investment projects on construction of official residences; and purchase and rent of commercial houses for use as official residences must comply with the housing law.

Article 33. Contents of investment policy proposal reports for public investment programs

The principal contents of the investment policy proposal report for a public investment program include:

1. The program’s necessity for the implementation of strategic objectives, socio-economic development plans and relevant master plans in accordance with the planning law;

2. Objectives and scope of the program;

3. Estimated total capital amount and structure of resources for implementation of the program, capacity to balance public investment capital sources and mobilize other capital sources and resources;

4. List of component projects (if any), for national target programs and other public investment programs;

5. Tentative plan on capital allocation and program implementation schedule as suitable to practical conditions and the capacity to mobilize resources in a reasonable order of priority, ensuring concentrated and efficient investment;

6. Determination of related costs in the course of implementation and costs for operation of the program after it is completed;

7. Analysis and preliminary evaluation of environmental and social effects and impacts of the program, and calculation of socio-economic investment efficiency of the program;

8. Solutions to organize the implementation of the program.

Article 34. Contents of prefeasibility study reports for national important projects and group-A projects

1. The contents of the prefeasibility study report for a national important project or group-A project with construction component must comply with the construction law.

2. The principal contents of the prefeasibility study report for a national important project or group-A project without construction component include:

a/ Necessity of investment, conditions for investment, assessment of the project’s conformity with the relevant master plan in accordance with the planning law;

b/ Forecast of the demand and scope of service, and expected investment objectives, scale and form;

c/ Investment area and location, estimated land use demand and demand for use of other natural resources;

d/ Preliminary analysis and selection of technologies and techniques, and conditions for supply of supplies, equipment, materials, energy, services and infrastructure;

dd/ Preliminary analysis and selection of investment options and scale of investment items;

e/ Overall plan on compensation, ground clearance and resettlement, and environmental protection measures;

g/ Preliminary analysis and assessment of social impacts; preliminary assessment of environmental impacts (if any) in accordance with the law on environmental protection;

h/ Preliminary determination of the total investment, capital mobilization plan and structure of capital sources;

i/ Preliminary determination of related expenses in the course of implementation and expenses for operation of the project after it is completed;

k/ Tentative plan on capital allocation, project implementation schedule, and investment phasing;

l/ Preliminary determination of socio-economic investment efficiency of the project;

m/ Division of component projects or mini-projects (if any);

n/ Solutions to organize the implementation of the project.

Article 35. Contents of investment policy proposal reports for group-B and group-C projects

The principal contents of the investment policy proposal report for a group-B or group-C project include:

1. Necessity of investment, conditions for investment, assessment of the project’s conformity with the relevant master plan in accordance with the planning law;

2. Investment objectives, scale, location and scope;

3. Expected total investment and structure of investment capital sources, capacity to balance public investment capital sources, and mobilization of other capital sources and resources for project implementation;

4. Investment schedule, tentative plan on capital allocation  as suitable to practical conditions and the capacity to mobilize resources in a reasonable order of priority, ensuring concentrated and efficient investment;

5. Preliminary determination of related expenses in the course of implementation and expenses for operation of the project after it is completed;

6. Preliminary analysis and assessment of environmental and social impacts; preliminary determination of socio-economic investment efficiency;

7. Division of component projects (if any);

8. Solutions to organize the implementation of the project.

Article 36. Decentralization of powers for appraisal of capital sources and capital-balancing capacity of programs and projects

1. The appraisal of capital sources and capital-balancing capacity constitutes one of the contents of the appraisal of investment policy.

2. The Ministry of Planning and Investment shall assume the prime responsibility for appraising capital sources and capital-balancing capacity for:

a/ National target programs;

b/ National important projects;

c/ Public investment programs subject to the Government’s investment policy decision; and,

d/ Public investment programs and projects subject to the Prime Minister’s investment policy decision.

3. Ministers and heads of central agencies shall assign specialized agencies in charge of public investment management to assume the prime responsibility for, and coordinate with related agencies in, appraising capital sources and capital-balancing capacity for projects using public investment capital under their management within the total capital amount of the current medium-term public investment plan and the estimated total capital level of the subsequent period’s medium-term public investment plan as notified by the Prime Minister and other lawful capital sources notified by competent authorities, including also the capital amounts specified in Clauses 2 and 3, Article 93 of this Law, except the projects specified in Clause 2 of this Article.

4. Chairpersons of People’s Committees at all levels shall assign specialized agencies in charge of public investment management to assume the prime responsibility for, and coordinate with related agencies in, appraising capital sources and capital-balancing capacity for programs and projects using public investment capital under their management within the total amount of medium-term public investment capital notified by the Prime Minister or a competent authority for the subsequent period, the total current level of medium-term public investment capital decided by the National Assembly or People’s Councils at all levels for localities and actual excessive revenues of local budgets (if any) reserved for development investment, other lawful capital sources, and the capital amounts specified in Clauses 2 and 3, Article 93 of this Law.

5. For ODA/foreign concessional loans, the competent agencies specified in Clauses 2, 3 and 4 of this Article shall base themselves on the Prime Minister’s decisions approving program or project proposals for ODA/foreign concessional loans, letters of expression of interest or written commitments of foreign donors for non-refundable ODA to appraise capital sources and capital-balancing capacity within the total capital amount of the existing medium-term public investment plan. In case a project is implemented in the period of 2 consecutive medium-term public investment plans, it must comply with Clauses 2 and 3, Article 93 of this Law.

Article 37. Adjustment or suspension of investment policy

1. The authority that has decided on investment policy for a program/project is competent to decide on the adjustment or suspension of investment policy for such program/project and shall take responsibility for its decision.

2. The adjustment of investment policy for a program/project shall be made in case the program/project sees a change in objectives or location, excess of the level of public investment capital, excess of the level of public investment capital allocated by the higher-level budget, or excess of the total investment of the program/project as compared to those stated in investment policy for the program/project.

3. The order and procedures for deciding on adjustment of investment policy must comply with:

a/ Articles 20, 23 and 27 of this Law, for public investment programs;

b/ Article 20 of this Law, for national important projects;

c/ Articles 24, 25, 26, 28 and 29 of this Law, for group-A, group-B and group-C projects;

d/ Article 30 of this Law, for projects each implemented in 2 or more provincial-level administrative units and with the provincial-level People’s Committee acting as the managing agency; or

dd/ Article 31 of this Law, for projects each implemented in 2 or more district- or commune-level administrative units and with the district-level People’s Committee acting as the managing agency.

4. The Government shall specify dossiers, order, procedures and contents of adjustment of investment policy for programs and projects; and cases of suspension of investment policy for programs and projects and order and procedures for implementation thereof.

Section 2

FORMULATION AND APPRAISAL OF, AND DECISION ON INVESTMENT IN, PUBLIC INVESTMENT PROGRAMS AND PROJECTS

Article 38. Competence to decide on investment in programs and projects

1. The Prime Minister shall decide on investment in:

a/ National target programs and national important projects for which investment policy has been decided by the National Assembly; and,

b/ Public investment programs for which investment policy has been decided by the Government.

2. Ministers and heads of central agencies have the following competence:

a/ To decide on investment in group-A, group-B and group-C projects under their management;

b/ To delegate or authorize their attached agencies and units to decide on investment for the group-B and group-C projects specified at Point a of this Clause;

c/ Based on the specific conditions of a project, to assign the specialized construction investment project management unit or the regional construction investment project management unit to act as the project owner. In case no project management unit is available or the project management unit is available but is unqualified to act as the project owner, the concerned minister or central agency’s head may assign an agency/organization with management experience and capacity to act as the project owner and take responsibility for its decision.

3. Chairpersons of provincial-level People’s Committees shall decide on investment in:

a/ Public investment programs and group-A projects for which investment policy has been decided by provincial-level People’s Councils;

b/ Group-B and group-C projects managed by provincial-level authorities; and,

c/ Group-B and Group-C projects funded by ODA/foreign concessional loans; and projects funded by non-refundable ODA.

4. Chairpersons of district- and commune-level People’s Committees shall decide on investment in:

a/ Public investment programs for which investment policy has been decided by same-level People’s Councils; and,

b/ Group-B and group-C projects under their management.

5. Chief Executive Officers of state enterprises shall decide on investment in group-A, group-B and group-C projects for which investment policy has been decided by the Members’ Councils or Company Presidents or Boards of Directors.

6. In case of adjustment of investment decision for programs or projects, the competence to adjust investment decision for programs or projects must comply with Clause 3, Article 46 of this Law.

7. The Government shall provide the decentralization of the competence, and the order and procedures for deciding on investment for programs and projects funded by lawful revenues of state agencies and public non-business units that are reserved for investment under regulations on financial autonomy of agencies and units.

8. Ministers, and heads of central agencies and localities that decide on investment in programs and projects shall take responsibility for the investment efficiency of approved programs and projects.

Article 39. Bases for formulation and appraisal of, and decision on investment in, programs and projects

1. Socio-economic development strategies and plans.

2. Relevant master plans in accordance with the planning law.

3. Necessity of programs and projects.

4. Objectives of programs and projects.

5. Investment policy as decided by a competent authority.

6. Capacity to mobilize and balance public investment capital sources and other capital sources for the implementation of programs and projects.

Article 40. Procedures for formulation and appraisal of, and decision on investment in, national target programs

1. Based on investment policy decided by the National Assembly, program owners shall prepare feasibility study reports for the programs and submit them to the Prime Minister.

2. The Prime Minister shall establish a State Appraisal Council, with the Minister of Planning and Investment acting as its Chairperson, to appraise the programs.

3. The State Appraisal Council shall appraise the contents specified in Clause 1, Article 47 of this Law.

4. Based on appraisal opinions of the State Appraisal Council, program owners shall complete feasibility study reports of the programs and draft decisions on program investment and send them to the State Appraisal Council for submission to the Prime Minister for consideration and decision.

Article 41. Procedures for formulation and appraisal of, and decision on investment in, public investment programs subject to the Government’s investment policy decision

1. Based on investment policy decided by the Government, program owners shall prepare feasibility study reports for the programs and organize the appraisal thereof in accordance with law and submit them to the Prime Minister.

2. The Ministry of Planning and Investment shall organize the appraisal of the contents specified in Clause 1, Article 47 of this Law.

3. Based on appraisal opinions of the Ministry of Planning and Investment, program owners shall complete feasibility study reports for the programs and draft decisions on program investment and send them to the Ministry of Planning and Investment for submission to the Prime Minister for consideration and decision.

Article 42. Procedures for formulation and appraisal of, and decision on investment in, public investment programs subject to investment policy decision by People’s Councils

1. Based on investment policy decided by People’s Councils at a level, program owners shall prepare feasibility study reports for the programs and organize the appraisal thereof in accordance with law and submit them to chairpersons of People’s Committees at the same level.

2. Chairpersons of People’s Committees shall assign specialized agencies to organize the appraisal of the contents specified in Clause 1, Article 47 of this Law.

3. Based on appraisal opinions, program owners shall complete feasibility study reports of the programs and draft decisions on program investment and submit them to chairpersons of People’s Committees for consideration and decision.

Article 43. Procedures for formulation and appraisal of, and decision on investment in, projects

1. Procedures for formulation and appraisal of, and decision on investment in, a national important project:

a/ Based on investment policy decided by the National Assembly, the project owner shall prepare a feasibility study report for the project and send it to the managing agency for consideration and submission to the Prime Minister;

b/ The Ministry of Planning and Investment shall report to the Prime Minister on the establishment of a State Appraisal Council to appraise the project;

c/ The State Appraisal Council shall appraise the contents specified in Clauses 2 and 3, Article 47 of this Law;

d/ Based on the appraisal opinions, the project owner shall complete the project’s feasibility study report and send it to the managing agency for approval, then send it to the State Appraisal Council;

dd/ The State Appraisal Council shall propose the Prime Minister to consider and decide on investment in the project.

2. Procedures for formulation and appraisal of, and decision on investment in, a project other than that specified in Clause 1 of this Article and having no construction component:

a/ Based on investment policy decided by a competent authority, the project owner shall prepare a feasibility study report for the project and submit it to the competent authority for decision on investment in the project;

b/ The concerned minister or the head of the concerned ministry or the chairperson of the People’s Committee of a level shall establish an Appraisal Council to appraise, or assign a specialized agency to organize the appraisal of, the project;

c/ The Appraisal Council or specialized agency shall appraise the contents specified in Clause 2, Article 47 of this Law;

d/ Based on appraisal opinions, the project owner shall complete the project’s feasibility study report and submit it to the competent authority for consideration and decision on investment in the project.

3. Procedures for formulation and appraisal of, and decision on investment in, projects with construction component must comply with the construction law and other relevant laws, except national important projects.

4. Principles, competence, contents, order and procedures for formulation and appraisal of, and decision on feasibility study reports for, PPP projects must comply with the law on investment in the form of public-private partnership.

5. Principles, competence, contents, order and procedures for formulation and appraisal of, and decision on investment in, public investment projects to be implemented in foreign countries must comply with the Government’s regulations.

Article 44. Procedures for formulation, appraisal and approval of project preparation expenses, estimates of investment preparation tasks and expense estimates of planning tasks

1. Procedures for formulation, appraisal and approval of project preparation expenses or expense estimates of investment preparation tasks of projects with construction component must comply with the construction law.

2. Procedures for formulation, appraisal and approval of expense estimates for investment preparation tasks of projects without construction component and planning tasks:

a/ Based on investment preparation tasks and planning tasks decided by competent authorities, agencies and organizations assigned investment preparation tasks and planning tasks shall make expense estimates of investment preparation tasks and planning tasks and submit them to ministers or heads of central agencies or chairpersons of People’s Committees at all levels for decision;

b/ Ministers or heads of central agencies or chairpersons of People’s Committees at all levels shall establish Appraisal Councils or assign specialized agencies to appraise expense estimates of investment preparation tasks and planning tasks;

c/ Appraisal Councils or specialized agencies shall appraise expense estimates in accordance with law;

d/ Based on appraisal opinions, project owners shall complete expense estimates of investment preparation tasks and planning tasks and submit them to ministers or heads of central agencies or chairpersons of People’s Committees at all levels for approval;

dd/ Ministers or heads of central agencies or chairpersons of People’s Committees at all levels may delegate powers to heads of their attached agencies, units and public non-business units to formulate, appraise and approve expense estimates of planning tasks and expense estimates of investment preparation tasks.

Article 45. Order and procedures for deciding on investment in urgent public investment projects

1. Ministers, heads of central agencies and chairpersons of People’s Committees at all levels are competent to decide on, and take responsibility for the implementation of, urgent public investment projects under their management.

2. Ministers, heads of central agencies and chairpersons of People’s Committees at all levels shall organize the preparation and appraisal of feasibility study reports and techno-economic reports and decide on investment in projects.

3. Project owners may themselves decide on all jobs in investment activities in order to organize the implementation of projects to ensure progress and quality and take responsibility for their decisions.

4. Ministers and heads of central agencies shall report to the Government on the implementation of urgent public investment projects. Chairpersons of People’s Committees at a level shall report to People’s Councils at the same level on the implementation of urgent public investment projects at the latter’s coming meetings.

Article 46. Adjustment of programs and projects

1. The adjustment of a program shall be made in the following cases:

a/ Upon adjustment of objectives and change in conditions for implementation of the program in the relevant socio-economic development strategy and plan as well as relevant master plans in accordance with the planning law;

b/ Upon adjustment or suspension of the program’s investment policy by a competent authority;

c/ Due to force majeure events that change objectives, scope, costs and duration of implementation of the program.

2. The adjustment of a project shall be made in the following cases:

a/ Upon adjustment or suspension of the project’s investment policy by a competent authority;

b/ Upon adjustment of the relevant master plan that directly affects the project;

c/ Due to force majeure events that change objectives, investment scale, costs and duration of implementation of the project;

d/ Due to impacts of disasters, fires or other force majeure events when the project’s insurance period has expired;

dd/ There appear factors resulting from the project adjustment that help bring higher financial and socio-economic efficiency as appraised by competent agencies;

e/ When the price index in the course of project implementation is greater than the price index used to calculate the inflation provision in the project’s total investment decided by the competent authority.

3. The authority that has decided on investment in a program/project is competent to decide on the adjustment of such program/project and shall take responsibility for its decision.

4. Competent authorities may adjust programs and projects only after such programs and projects have undergone appraisal, inspection and evaluation in accordance with this Law.

5. In case there is a change in one of the following contents: objectives, location, excess of the level of public investment capital, excess of the level of public investment capital allocated by the higher-level budget, or excess of the project’s total investment compared to the total investment stated in the competent authority’s investment policy decision, the concerned program/project must undergo the procedures for decision on investment policy adjustment before the competent authority decides on adjustment of the program/project.

6. The Government shall specify contents, order and procedures for formulation, appraisal and adjustment of programs and projects.

Article 47. Contents of feasibility study reports for programs and projects

1. The feasibility study report for a public investment program must have the following principal contents:

a/ Necessity of investment;

b/ Evaluation of the current situation of the sector(s)/field(s) covered by the program’s objectives and scope; urgent issues that need to be solved in the course of program implementation;

c/ General objectives, specific objectives, outcomes and main indicators in each period;

d/ Scope of the program;

dd/ Component projects (if any), for a national target program; or list of component projects, for another public investment program (if any);

e/ Estimated total capital level for implementation of the program, allocation of capital by objectives, component projects and implementation duration, capital sources and capital mobilization plan;

g/ Expected implementation duration and schedule of the program;

h/ Solutions to implement the program; mechanisms and policies applicable to the program; possibility to integrate and coordinate the program with other programs;

i/ International cooperation requirements (if any);

k/ Organization of implementation of the program;

l/ Assessment of the program’s overall socio-economic efficiency.

2. The feasibility study report for a project without construction component must have the following principal contents:

a/ Necessity of investment;

b/ Assessment of the project’s conformity with the relevant master plan in accordance with the planning law;

c/ Analysis and identification of the objectives, tasks and outcomes of the project; analysis and selection of a reasonable scale; investment phasing; selection of form of investment;

d/ Analysis of natural conditions and techno-economic conditions, and selection of investment location;

dd/ Plan on organization of management, exploitation and use of the project;

e/ Environmental impact assessment and environmental protection solutions;

g/ Overall plan on compensation, ground clearance and resettlement;

h/ Project implementation schedule; main timelines of making investment;

i/ Determination of total investment, structure of capital sources, and capital mobilization plan;

k/ Determination of related expenses in the course of project implementation and expenses for project operation;

l/ Project management organization, covering identification of the project owner, analysis and selection of the form of project implementation management organization, relationship and responsibilities of stakeholders in the process of project implementation, and organization of the project operation management apparatus;

m/ Analysis of investment efficiency, including socio-economic efficiency and impacts, national defense and security, and capital recoverability (if any).

3. Contents of feasibility study reports for projects with construction components must comply with the construction law and other relevant laws.

Article 48. Dossiers, contents and time for appraisal of and decision on programs and projects

1. A dossier for appraisal of a program/project must comprise:

a/ A written request for appraisal of the program/project;

b/ A feasibility study report of the program/project;

c/ Other relevant documents.

2. The Government shall specify dossiers for decision on programs and projects, and contents and time limits for appraisal of and decision on programs and projects.

Chapter III

FORMULATION, APPRAISAL, APPROVAL AND ASSIGNMENT OF PUBLIC INVESTMENT PLANS

Article 49. Classification of public investment plans

1. By their period, public investment plans shall be classified into:

a/ Medium-term public investment plans, which shall be formulated for a 5-year period in conformity with 5-year socio-economic development plans; and,

b/ Annual public investment plans to implement medium-term public investment plans in line with objectives of annual socio-economic development plans and capacity for balancing of annual public investment capital.

2. By management authority, public investment plans shall be classified into:

a/ Public investment plans of the country;

b/ Public investment plans of ministries and central agencies; and,

c/ Public investment plans of local administrations at all levels.

3. By investment capital source, public investment plans shall be classified into:

a/ Central budget-funded investment plans, including sector-based investment, public investment programs, and the State’s investment capital amounts in PPP projects;

b/ Local budget-funded investment plans, including sector-based investment, public investment programs, and the State’s investment capital amounts in PPP projects; and,

c/ Investment plans funded by lawful revenues of state agencies and public non-business units that are reserved for investment.

Article 50. Bases for formulation of medium-term and annual public investment plans

1. Bases for formulation of a medium-term public investment plan:

a/ Situation and results of the implementation of the 5-year socio-economic development plan and medium-term public investment plan of the previous period;

b/ Socio-economic development strategy; 5-year socio-economic development orientations or plans of the country, sectors, fields and locality; 5-year financial plan; 5-year plan on public debt borrowing and repayment; and investment priority objectives in 5-year plans of the country, sectors, fields and locality;

c/ Relevant master plan as specified in the planning law;

d/ Demand for, and forecast of the capacity to mobilize, investment capital sources for socio-economic infrastructure construction, and capacity to balance state budget funds;

dd/ Forecast of impacts of the global and domestic situation on development and capacity to mobilize investment capital sources;

e/ Mechanisms and policies to attract investment capital sources of economic sectors for socio-economic infrastructure construction.

2. Bases for formulation of an annual public investment plan:

a/ Situation and results of the implementation of socio-economic development plans of the country, sectors, fields and locality; results of the implementation of the previous year’s public investment plan;

b/ Annual socio-economic development plan;

c/ Medium-term public investment plan;

d/ Demand for, and capacity to balance, resources for investment in socio-economic infrastructure construction in the plan year.

Article 51. Principles for formulation of medium-term and annual public investment plans

1. Ensuring the conformity with the development objectives stated in socio-economic development strategies, and 5-year and annual socio-economic development orientations or plans of the country, sectors, fields and localities, approved master plans, 5-year financial plans, and 5-year plans for foreign debt borrowing and repayment.

2. Ensuring the conformity with the capacity to balance public investment capital sources and attract investment capital sources of other economic sectors; ensuring the macro-balance, and prioritizing the public debt safety.

3. Ensuring the compliance of the allocation of public investment capital with the set principles, criteria and norms for allocation of public investment capital in each period as approved by competent authorities.

4. Prioritizing the allocation of capital for sectors, fields and territories based on development objectives and orientations for each period.

5. Ensuring publicity, transparency and fairness.

6. Ensuring the centralized and uniform management in terms of objectives, mechanisms and policies; carrying out power decentralization in investment management, giving autonomy to ministries, central agencies and localities in accordance with law in order to improve investment efficiency.

7. Ensuring the consistency of annual public investment plans with approved medium-term public investment plans, except first-year public investment plans.

Article 52. Contents of a report on a medium-term public investment plan to be submitted to the competent authority for approval

1. Situation and expected results of the implementation of the previous period’s medium-term public investment plan.

2. Socio-economic development orientations or plans; objectives and orientations of sector-based investment structure and medium-term public investment program. The sector-based classification must comply with this Law.

3. Capacity to mobilize and balance capital sources; estimated total investment capital amount for implementation of socio-economic and sectoral development orientations, objectives and tasks in the medium term, including capital allocated for planning tasks, investment preparation tasks, programs and projects, reimbursement of advanced amounts and reimbursement of other loans from the local budget for investment.

4. Total capital of the medium-term public investment plan from the state budget, including the central and local budgets; total central budget capital amount detailed by sector, estimated capital amount allocated to each ministry or central agency, and target transfer from the central budget to the local budget, for reports to be submitted to the National Assembly; and total capital level for each agency, unit or organization that is assigned the public investment capital plan covered by the local budget at a level, detailed by sector, and target transfer from the higher-level budget to the subordinate budget, for reports to be submitted to People’s Councils.

5. Principles, criteria and norms for allocation of medium-term public investment capital.

6. Order of priority, selection of the tentative list of projects, and capital level allocated for each program, task or project in the medium-term public investment plan as suitable to the capacity to balance public investment capital and the capacity to mobilize other capital sources for the realization of 5-year socio-economic development objectives, tasks and orientations or plans.

7. Implementation solutions and expected results.

Article 53. Contents of a report on an annual public investment plan to be submitted to the competent authority for approval

1. Implementation of the previous year’s public investment plan.

2. Public investment orientations in the plan year.

3. Capacity to mobilize and balance capital sources for implementation in the plan year.

4. Selection of the tentative list of projects and capital level allocated for each program, task or project in conformity with the list of projects in the medium-term public investment plan and the capacity to balance annual public investment capital.

5. Solutions for implementation administration and organization and expected results.

Article 54. Principles for allocation of capital in medium-term and annual public investment plans for programs and projects

1. To achieve development objectives and orientations in the approved socio-economic development strategies, orientations or plans and master plans.

2. To comply with the principles, criteria and norms for capital allocation as decided by competent authorities.

3. To concentrate on allocating public investment capital to complete and accelerate the progress of national target programs, national important projects, key programs and projects that are greatly significant for socio-economic development, and key projects on national defense and security industry.

4. Order of priority for allocation of public investment capital:

a/ Urgent public investment projects;

b/ National target programs and national important projects;

c/ Reimbursement of advanced capital amounts;

d/ Projects already completed and handed over for use but not yet allocated sufficient capital;

dd/ Programs and projects funded with ODA/foreign concessional loans, including also counterpart funds;

e/ The State’s investment in PPP projects in accordance with the law on investment in the form of public-private partnership; compensation for and premature termination of PPP project contracts as decided by competent authorities, payment for decreased revenues of PPP projects that falls under the State’s responsibility, and cash payment under BT project contracts;

g/ Transitional projects completed in the plan period;

h/ Transitional projects implemented according to the approved schedule;

i/ Planning tasks and investment preparation tasks;

k/ Payment of outstanding debts in capital construction that arose before January 1, 2015 (if any);

l/ Provision of subsidies for preferential credit interest rates and management fees; provision of charter capital to policy banks and non-budget state financial funds; provision of investment support for other subjects under decisions of the Governments or the Prime Minister;

m/ Allocation of local budget funds for implementation of preferential credit policies through the Vietnam Bank for Social Policies under resolutions of provincial-level People’s Councils;

n/ Newly commenced projects satisfying the requirements specified in Clause 5 of this Article.

5. The allocation of planned capital for a new program/project must meet the following requirements:

a/ The program/project is deemed necessary and fully satisfies the conditions for allocation of planned capital as specified in Articles 55 and 56 of this Law;

b/ To comply with the order of priority specified in Clause 4 of this Article and ensure the allocation of sufficient capital to complete the program/project according to the approved investment schedule.

6. On the basis of the mid-term assessment of the implementation of a medium-term public investment plan, the National Assembly shall consider and decide on the use of contingencies for the medium-term public investment plan funded by the central budget.

Pursuant to the National Assembly’s resolution, the National Assembly Standing Committee shall consider and decide on the allocation of contingencies for the medium-term public investment plan funded by the central budget to ministries, central agencies and localities for the implementation of programs, projects, tasks and other objects of public investment when capital sources are sufficient and report such to the National Assembly at its coming session.

7. People’s Councils at all levels shall decide on the allocation of contingencies for medium-term public investment plans using budgets under their management when capital sources are sufficient.

Article 55. Conditions for programs, projects, tasks and other objects of public investment to be included in medium-term public investment plans

To be included in a medium-term public investment plan, a program, project, task or another object of public investment must comply with the regulations on principles and criteria for allocation of public investment capital and satisfy one of the following conditions:

1. Being a transitional project on the list of the medium-term public investment plan of the previous period;

2. Being a program/project for which investment policy has been decided by the competent authority;

3. Being a task or project specified in Clause 6, Article 19 of this Law;

4. Being an object specified in Clause 4, 6 or 7, Article 5 of this Law;

5. Being an object specified in Clause 8, Article 5 of this Law in case it satisfies the conditions specified by relevant laws.

Article 56. Conditions for programs, projects, tasks and other objects of public investment to be allocated capital under annual public investment plans

1. Programs, projects, tasks and other objects of public investment are included in medium-term public investment plans, except urgent public investment projects and investment projects funded by non-refundable ODA.

2. Programs, projects, tasks and other objects of public investment have been decided by competent authorities in accordance with law.

3. Investment preparation tasks and planning tasks have had their expense estimates approved by competent authorities.

Article 57. Time limit for allocation of capital for project implementation

1. The time limit for allocating capital for implementation of a project shall be calculated continuously, from the plan for the first year the project is allocated capital to the year the project has undergone acceptance testing, been completed and handed over for use, excluding the time for allocating capital for the performance of investment preparation tasks and account-finalization for the project.

2. The time limit for allocating capital for implementation of a project:

a/ Must comply with the National Assembly’s resolution, for national target programs and national important projects;

b/ Is 6 years, for group-A projects;

c/ Is 4 years, for group-B projects; or,

d/ Is 3 years, for group-C projects.

3. In case the time limit for capital allocation specified in Clause 2 of this Article cannot be observed, it may be extended according to the following provisions:

a/ For national target programs and national important projects, the Government shall report the extension to the National Assembly for consideration and decision;

b/ For projects funded by the central budget, the authorities competent to decide on investment policy for the projects shall decide to extend the time limit for capital allocation for up to 1 year, for group-A, group-B and group-C projects, or for up to 2 years particularly for group-A projects each having a total investment of between VND 10 trillion and under VND 30 trillion;

c/ For projects funded by local budgets, chairpersons of People’s Committees at all levels shall decide to extend the time limit for capital allocation for up to 1 year, for group-A, group-B and group-C projects, or for up to 2 years particularly for group-A projects each having a total investment of between VND 10 trillion and under VND 30 trillion;

d/ In case the time limit for allocating capital for a project has been extended under Point b or c of this Clause but has to be further extended, the project-managing agency shall review responsibilities of related units and individuals and report thereon to the Prime Minister for consideration and decision on extension of the time limit for capital allocation, for projects funded by the central budget; People’s Committees at a level shall review responsibilities of related units and individuals and report thereon to the People’s Councils at the same level for the latter to consider and decide on extension of the time limit for capital allocation, for projects funded by local budgets.

dd/ For projects not subject to investment policy decision under Clause 6, Article 19 of this Law, the authorities deciding on investment in the projects shall decide to extend the time limit for allocating capital for project implementation under Point b or c of this Clause.

4. For projects funded by lawful revenues of state agencies and public non-business units that are reserved for investment, the time limit for allocating capital for project implementation must comply with Clause 2 of this Article. In case it is required to extend the time limit for allocating capital for implementation of a project, the authority deciding on investment policy for the project shall decide to extend such time limit and take responsibility for its decision.

5. The Government shall detail this Article.

Article 58. Capital for performance of investment preparation tasks and planning tasks and capital for project implementation

1. Capital for the performance of investment preparation tasks shall be allocated for the formulation of proposals for ODA/foreign concessional loan-funded programs and projects; formulation and appraisal of, and decision on investment policy for, projects; and formulation and appraisal of, and decision on investment in, projects.

2. Capital for the performance of planning tasks shall be allocated for the formulation and announcement of master plans, and formulation and announcement of adjusted master plans in accordance with the Planning Law.

3. Capital for the implementation of a project shall be allocated for ground clearance, making of technical designs, working-drawing designs and expense estimates of the project or project items, and for construction and other jobs according to the project approval decision.

Article 59. Procedures for formulation, approval and assignment of medium-term public investment plans funded by the state budget

1. Before June 30 of the fourth year of a medium-term public investment plan, the Prime Minister shall promulgate a directive on formulation of the medium-term public investment plan for the subsequent period.

2. Before July 31 of the fourth year of a medium-term public investment plan, the Government shall submit to the National Assembly Standing Committee for approval the principles, criteria and norms for allocation of medium-term public investment capital for the subsequent period. 

3. Before September 30 of the fourth year of a medium-term public investment plan, the Prime Minister shall notify the total public investment capital, which is estimated to be equal to the total public investment capital of the previous period’s medium-term public investment plan, to ministries, central agencies and localities for use as a basis for deciding on investment policy for programs and projects for the subsequent period.

4. Before December 31 of the fourth year of a medium-term public investment plan, the Government shall project the capacity to balance state budget funds reserved for development investment expenditures in the subsequent period to each ministry, central agency or locality, and the Prime Minister shall notify the total public investment capital for the subsequent period to ministries, central agencies and localities.

5. Before January 31 of the fifth year of the previous period’s medium-term public investment plan, the provincial-level People’s Committee shall propose the same-level People’s Council to give opinions on the contents specified in Article 52 of this Law and send them to the Ministry of Planning and Investment and Ministry of Finance for summarization and reporting to competent authorities.

6. At the year-end session of the fifth year of the National Assembly’s tenure, the Government shall submit to the National Assembly a tentative medium-term public investment plan for the subsequent period for the National Assembly to give opinions on the contents specified in Article 52 of this Law.

7. Based on opinions of the National Assembly of the previous tenure, the Government shall submit to the National Assembly of the new tenure at the latter’s first session the contents specified in Article 52 of this Law. The National Assembly shall consider and decide on a medium-term public investment plan, covering the following contents:

a/ Objectives and orientations for medium-term public investment funded by the state budget of the whole country;

b/ Total capital of the medium-term public investment plan funded by the state budget, including central budget and local budget funds;

c/ Total capital of the medium-term public investment plan funded by the central budget, detailed by sector and field, amount expected to be allocated to each ministry or central agency and target transfer from the central budget to the budget of each locality.

For the unallocated capital amount of the medium-term public investment plan funded by the central budget, the Government shall report such to the National Assembly Standing Committee for the latter’s consideration and decision, and report such to the National Assembly at the coming session;

d/ List of and capital level for national important projects and national target programs;

dd/ Major solutions and policies for implementation of the medium-term public investment plan.

8. The Prime Minister shall assign medium-term public investment plans, each including the total amount and structure of capital from the central budget, to ministries, central agencies and localities; list of and capital levels for public investment programs and projects, total capital for planning tasks, total capital for investment preparation tasks, and other objects of public investment funded by the central budget.

9. The assignment of medium-term public investment plans funded by local budgets is as follows:

a/ Based on the National Assembly’s resolution on the medium-term public investment plan for the new period and the resolution of the provincial-level People’s Council on the 5-year socio-economic development plan, the provincial-level People’s Council shall decide on the medium-term public investment plan of the locality, including the total capital of the plan, list of projects and capital level for each project, total capital amount for planning tasks, total capital amount for investment preparation tasks and other objects of public investment funded by provincial budgets and amount of target transfer for the subordinate budget, and send reports thereon to the Ministry of Planning and Investment and Ministry of Finance for summarization and reporting to the Government;

b/ Based on the resolution of the provincial-level People’s Council on the medium-term public investment plan, the concerned district-level People’s Council shall decide on the district-level medium-term public investment plan, including the total capital of the plan, list of projects and level of capital from the local budget allocated for each project, total capital for planning tasks, total capital for investment preparation tasks and other objects of public investment, and target transfer for subordinate budgets;

c/ Based on the resolution of the district-level People’s Council on the medium-term public investment plan, the concerned commune-level People’s Council shall decide on the commune-level medium-term public investment plan, including the total capital of the plan, list of projects and level of capital from the local budget allocated for each project, total capital for planning tasks, total capital for investment preparation tasks and other objects of public investment;

d/ Within 30 days after the People’s Council at a level promulgates the resolution on the medium-term public investment plan, the People’s Committee at the same level shall assign the medium-term public investment plan to the concerned units for implementation, stating information on total capital, list of programs and projects and level of capital allocated for each program/project.

10. The Government shall detail this Article.

Article 60. Procedures for formulation, approval and assignment of annual public investment plans funded by the state budget

1. Before May 15 every year, the Prime Minister shall promulgate regulations on the formulation of socio-economic development plans and state budget estimates for the next year, stating major objectives and orientations and assignment of tasks for the formulation of public investment plan for the next year.

2. Before August 15 every year, the Government shall project the capacity to balance state budget funds reserved for development investment expenditures for the next year for each ministry, central agency or locality.

3. At the year-end meeting of the People’s Council, the People’s Committee at a level shall submit to the People’s Council at the same level the next year’s public investment plan, including the list of projects and level of capital allocated for each project.

4. At the year-end session of the National Assembly, the Government shall submit to the National Assembly the tentative public investment plan for the next year for the National Assembly to decide on the next year’s public investment plan funded by the state budget.

For the remaining capital amount not yet allocated in detail, the Government shall allocate and assign detailed expense estimates, ensuring timeliness, thrift, efficiency, and law compliance, and send quarterly reports thereon to the National Assembly Standing Committee, and report such to the National Assembly at its coming session.

5. Before November 30 every year, the Prime Minister shall assign the next year’s public investment plan funded by the state budget, based on the total level and structure of capital already decided by the National Assembly, to ministries, central agencies and localities.

6. Before December 31 every year, ministries, central agencies and localities shall allocate in detail the level of capital for the next year’s investment plan funded by the central budget, list of tasks and projects and level of capital allocated for each task or project, and send the detailed plan on capital allocation to the Ministry of Planning and Investment and Ministry of Finance for summarization and reporting to the Government and monitor the implementation thereof.

7. The assignment of annual public investment plans funded by local budgets is as follows:

a/ At its year-end meeting, the provincial-level People’s Council shall decide on the next year’s provincial-level public investment plan, including the list of projects and level of capital allocated for each project;

b/ At its year-end meeting, the district- or commune-level People’s Council shall decide on the next year’s district- or commune-level public investment plan, including the list of projects and level of capital allocated for each project;

c/ Before December 31 every year, People’s Committees at all levels shall assign the next year’s public investment plans to their attached units for implementation.

8. Particularly for the public investment plan of the first year of the subsequent period, based on estimates of state budget expenditures for development investment for the first year, the Government shall submit such to the National Assembly for consideration and decision at the year-end session of the fifth year of the National Assembly’s tenure. For the local budget-funded public investment plan for the first year of the subsequent period, based on estimates of local budget expenditures for development investment, the People’s Committee at a level shall submit such to the People’s Council at the same level for consideration and decision.

9. The Government shall detail this Article.

Article 61. Principles for selection of lists of projects and estimation of level of capital allocated for each of programs, tasks and projects in medium-term and annual public investment plans funded by the state budget

1. To comply with Articles 54 thru 58 of this Law.

2. To conform with the capacity to balance state budget funds in medium-term and annual public investment plans, and projected capacity to mobilize other investment capital sources for projects funded by multiple investment capital sources. For projects funded by ODA/foreign concessional loans, they must conform with the capacity and progress of completing investment procedures, and negotiating and signing treaties and loan agreements.

3. To be programs or tasks covered by the state budget funds reserved for development investment expenditures as approved.

4. To conform with the principles, criteria and norms for allocation of development investment capital from the state budget in the plan period.

5. The level of capital allocated for each program or project must not exceed the approved total capital level of the program or project.

6. For those funded by local budgets, in addition to the abovementioned principles, programs and tasks must conform with the capacity to balance local budget revenues and expenditures, medium-term and annual public investment plans, and capacity to mobilize other investment capital sources for projects funded by multiple investment capital sources, and must be programs and tasks covered by local budget funds reserved for development investment expenditures as approved.

Article 62. Formulation, appraisal, approval and assignment of medium-term and annual capital plans from lawful revenues of state agencies and public non-business units that are reserved for investment

1. State agencies and public non-business units using lawful revenues reserved for investment shall formulate medium-term and annual investment plans and report them to their managing agencies for submission to ministries, central agencies and People’s Committees at all levels.

2. Ministries, central agencies and People’s Committees at all levels shall appraise, approve and assign annual capital plans, approve adjustments to annual plans using lawful revenues of state agencies and public non-business units that are reserved for investment in conformity with the actual capacity for development investment in accordance with relevant laws.

3. Medium-term and annual investment plans using lawful revenues of state agencies and public non-business units that are reserved for investment may not be included in medium-term and annual public investment plans funded by the state budget.

4. Ministries, central agencies and provincial-level People’s Committees shall summarize medium-term and annual plans using lawful revenues of state agencies and public non-business units that are reserved for investment and send them to the Ministry of Planning and Investment and Ministry of Finance for summarization and reporting to the Government and National Assembly.

5. The Government shall detail this Article.

Chapter IV

FORMULATION AND APPRAISAL OF, AND DECISION ON INVESTMENT POLICY FOR, OR DECISION ON INVESTMENT IN, ODA/FOREIGN CONCESSIONAL LOAN-FUNDED PUBLIC INVESTMENT PROGRAMS AND PROJECTS, MANAGEMENT OF INVESTMENT CAPITAL PLANS FUNDED BY ODA/FOREIGN CONCESSIONAL LOANS

Article 63. Proposals of ODA/foreign concessional loan-funded public investment programs and projects

1. Proposals of ODA/foreign concessional loan-funded programs and projects apply to:

a/ ODA/foreign concessional loan-funded public investment programs and projects;

b/ Investment projects funded by non-refundable ODA in the fields of national defense, security and religion;

c/ Public investment programs funded by non-refundable ODA.

2. Project proposals are not required for investment projects funded by non-refundable ODA other than those specified at Point b, Clause 1 of this Article.

3. Order and procedures for formulation and approval of proposals of ODA/foreign concessional loan-funded public investment programs and projects:

a/ Ministries, central agencies and localities shall organize the formulation of proposals of public investment programs or project proposals and send them to the Ministry of Planning and Investment and Ministry of Finance.

In case state enterprises or enterprises under state enterprises are assigned by the Prime Minister to implement public investment projects, the formulation of proposals of ODA/foreign concessional loan-funded public investment programs and projects must comply with the Government’s regulations;

b/ The Ministry of Finance shall assume the prime responsibility for identifying grant elements and evaluating impacts of ODA/foreign concessional loans on public debt safety indicators, and determining domestic financial mechanisms, and report thereon to the Prime Minister in accordance with the Law on Public Debt Management;

c/ The Ministry of Planning and Investment shall summarize opinions of related ministries, central agencies and localities and evaluate the necessity of public investment programs and projects to ensure their conformity with the orientations for attraction, management and use of ODA and foreign concessional loans in each period, socio-economic development strategies and plans, and relevant master plans; preliminarily evaluate the feasibility, socio-economic efficiency, and environmental impacts (if any), and select appropriate proposals of public investment programs and projects and submit them to the Prime Minister for consideration and decision;

d/ Based on reports of the Ministry of Finance and Ministry of Planning and Investment, the Prime Minister shall consider and approve proposals of ODA/foreign concessional loan-funded public investment programs and projects; such a proposal must have the following main contents: name of the public investment program or project; donor; objectives; expected total amount of ODA/foreign concessional loans; domestic financial mechanism (whole allocation of funds, whole on-lending of loans, partial allocation of funds or partial on-lending of loans); and list of projects, for ODA/foreign concessional loan-funded public investment programs (if any).

4. The adjustment of proposals of ODA/foreign concessional loan-funded public investment programs and projects shall be made in the following cases:

a/ There are changes in the main contents approved by the Prime Minister, such as: name of the project, donor, objectives, and financial mechanism of the program/project;

b/ There is an increase in the total amount of ODA/foreign concessional loans (in original currency) of the program/project.

5. The Government shall specify dossiers, contents, criteria for selection of project proposals for approval; and order and procedures for adjustment of proposals of ODA/foreign concessional loan-funded programs and projects.

Article 64. Investment policy for ODA/foreign concessional loan-funded public investment programs and projects

1. The competence to decide on investment policy for programs and projects must comply with Article 18 of this Law.

2. Conditions for deciding on investment policy for a program/project:

a/ The program/project satisfies the conditions specified in Clauses 1, 2, 3, 4 and 5, Article 19 of this Law;

b/ The program/project conforms with orientations for attraction, management and use of ODA/foreign concessional loans in each period;

c/ The program/project conforms with the Prime Minister’s decision approving program/project proposals;

d/ The program/project conforms with the capacity to mobilize ODA/foreign concessional loans stated in the letter of expression of interest or the written commitment to financing of development partner(s); and regulations of foreign donors.

3. The order and procedures for deciding on investment policy for programs and projects must comply with Articles 20, 23, 24, 25, 26, 27, 28, 29 and 30 of this Law.

4. A prefeasibility study report or investment policy proposal report for an ODA/foreign concessional loan-funded public investment program/project must have the following contents:

a/ The contents specified in Articles 33, 34 and 35 of this Law;

b/ The capacity of the program/project to mobilize ODA/foreign concessional loans;

c/ Domestic financial mechanism (whole allocation of funds, whole on-lending of loans, partial allocation of funds or partial on-lending of loans).

5. Funding sources and fund-balancing capacity:

a/ For ODA/foreign concessional loans, competent authorities shall decide on investment policy for programs or projects based on appraisal opinions on funding sources and fund-balancing capacity specified in Clause 5, Article 36 of this Law;

b/ For counterpart funds, Article 36 and Clause 4, Article 54 of this Law shall apply.

6. Dossiers, contents and time limit for appraisal of, and decision on investment policy for, projects must comply with the Government’s regulations.

7. Adjustment of investment policy for ODA/foreign concessional loan-funded programs and projects:

a/ To comply with Article 37 of this Law;

b/ In case the adjustment of investment policy for a project results in the adjustment of the project proposal specified in Clause 4, Article 63 of this Law, to carry out the order and procedures for adjustment of the project proposal before proposing the competent authority to approve the adjustment of investment policy for the project under regulations.

8. Competence to approve technical assistance projects to prepare investment projects and participate in regional or global cooperation projects:

a/ Ministers and heads of central agencies shall approve technical assistance projects funded by ODA/foreign concessional loans to prepare investment projects under management by ministries and agencies;

b/ Provincial-level People’s Committees shall approve technical assistance projects funded by ODA/foreign concessional loans to prepare investment projects under local management;

c/ The decision on the policy to participate in regional or global cooperation projects must comply with the Government’s regulations.

Article 65. Decision on investment in ODA/foreign concessional loan-funded programs and projects

1. The competence to decide on investment in programs and projects must comply with Article 38 of this Law.

2. Bases for formulation and appraisal of, and decision on investment in programs and projects:

a/ The contents specified in Article 39 of this Law

b/ Project proposals and investment policy decided by competent authorities;

c/ Capacity to mobilize ODA/foreign concessional loans based on letters of expression of interest or written commitments of foreign donors.

3. Order and procedures for deciding on investment in programs and projects:

a/ To comply with Articles 40, 41, 42 and 43 of this Law;

b/ To comply with Article 45 of this Law, for urgent projects and investment projects funded by non-refundable ODA.

4. A feasibility study report for a program/project must have the following contents:

a/ The contents of a feasibility study report for a program/project specified in Article 47 of this Law;

b/ Capacity to mobilize ODA/foreign concessional loans;

c/ Domestic financial mechanism.

5. Dossiers for decision on projects, contents, time limit for appraisal of, and decision on, programs and projects must comply with the Government’s regulations.

6. The adjustment of ODA/foreign concessional loan-funded programs and projects must comply with Article 46 of this Law.

Article 66. Order and procedures for discontinuation of use of ODA/foreign concessional loans

1. Order and procedures for discontinuation of use of ODA/foreign concessional loans when a program/project is not yet implemented:

a/ For a program/project for which the program/project proposal has been approved but investment policy has not been approved, the managing agency shall report thereon to the Prime Minister for decision on cancellation of the program/project proposal;

b/ For a program/project for which investment policy has been approved but investment decision has not been approved, the authority competent to decide on investment policy for the program/project shall decide on the discontinuation of the program/project and be held responsible for its decision and report thereon to the Prime Minister;

c/ For a program/project for which investment decision has been approved, the authority competent to decide on investment in the program/project may decide on discontinuation of the program/project and be held responsible for its decision, and report thereon to the authority competent to decide on investment policy and the Prime Minister;

d/ For national important projects funded by ODA/foreign concessional loans for which the National Assembly has decided on investment policy, the Government shall report thereon to the National Assembly for consideration and decision on discontinuation of projects.

2. Order and procedures for discontinuation of use of ODA/foreign concessional loans during project implementation:

a/ The managing agency shall send to the Prime Minister a report on the discontinuation of use of ODA/foreign concessional loans, which must have the following contents: reasons, responsibilities for arising costs, capacity to arrange other lawful funding sources, and other contents (if any);

b/ The Prime Minister shall consider and decide on the discontinuation of use of ODA/foreign concessional loans;

c/ Based on the Prime Minister’s decision, the Ministry of Finance shall carry out the procedures for the discontinuation of use of ODA/foreign concessional loans for foreign donors;

d/ The managing agency shall carry out the acceptance testing of the value of the completed volume from ODA/foreign concessional loans and use the remaining amounts of ODA/foreign concessional loans (if any), state budget funds or other lawful funding sources for payment and account-finalization;

dd/ In case the managing agency re-approves a project funded by domestic funds to implement not-yet-performed investment items of an ODA/foreign concessional loan-funded project without having to satisfy the binding conditions of donors in treaties and loan agreements for not-yet-performed investment items, the order and procedures for formulation and appraisal of, and approval of investment policy for or decision on investment in, projects must comply this Law, for projects funded by domestic funds;

e/ In case the managing agency approves the adjustment of an ODA/foreign concessional loan-funded project, or adjustment of the structure of domestic and foreign funding sources to implement not-yet-performed investment items of the project, the order and procedures for formulation and appraisal of, and approval of investment policy for, or decision on investment in, projects must comply this Law.

3. Dossiers, contents, and time limit for decision on discontinuation of use of ODA/foreign concessional loans must comply with the Government’s regulations.

Article 67. Principles, conditions, order and procedures for formulation, appraisal, approval and assignment of public investment plans; duration for arrangement of funding plans; and methods of disbursement for ODA/foreign concessional loan-funded programs and projects

1. Principles, conditions, order and procedures for formulation, appraisal, approval and assignment of public investment plans must comply with Chapter III of this Law.

2. The duration for arrangement of foreign partners’ and counterpart funding plans for ODA/foreign concessional loan-funded projects, excluding the period of investment preparation and the period of account-finalization for a project, must not exceed the duration for disbursement specified in treaties, agreements on ODA/foreign concessional loans and regulations on the duration for disbursement for foreign donors, including also cases of adjustment or extension.

3. Foreign partners’ funding plans for ODA/foreign concessional loan-funded programs and projects allocated by the central budget and on-lent amounts of local budgets shall be disbursed based on the annual state budget estimates, regardless of the allocation and on-lending rates.

The Government shall detail this Clause.

Chapter V

IMPLEMENTATION, AND SURVEILLANCE, INSPECTION, EVALUATION AND MONITORING OF PUBLIC INVESTMENT PLANS, PROGRAMS AND PROJECTS

Section 1

IMPLEMENTATION OF PUBLIC INVESTMENT PLANS

Article 68. Organization of implementation of public investment plans

1. Pursuant to the National Assembly’s resolutions on medium-term and annual public investment plans, the Government shall provide solutions for organization and implementation of such plans.

2. Pursuant to the National Assembly’s resolutions, competent authorities’ plan assignment decisions, and resolutions of People’s Councils at all levels on medium-term and annual public investment plans, ministries, central agencies and localities, district- and commune-level People’s Committees, and agencies and units using public investment capital shall decide on solutions to organize the implementation of public investment plans using funding sources under their management.

3. The Prime Minister shall coordinate and integrate funding sources for implementing the state budget-funded investment programs of ministries, central agencies and localities, and agencies and units using public investment capital, without changing the objectives of programs.

4. Chairpersons of provincial-level People’s Committees shall decide on the coordination and integration of funding sources for implementing programs and projects using local budget funds and loans of local budgets for investment purposes, without changing the objectives of programs and projects.

Article 69. Compliance with public investment plans

1. Ministries, central agencies and localities, and district- and commune-level People’s Committees shall:

a/ Notify or decide to assign public investment plans to agencies and units using public investment capital;

b/ Report to competent authorities on the assignment of public investment plans.

2. Agencies and units using public investment capital shall report to competent authorities on the implementation of public investment plans under the Government’s regulations.

3. The Ministry of Planning and Investment and specialized agencies in charge of public investment management shall inspect and urge related units to ensure the assignment of and compliance with public investment plans under competent authorities’ decisions.

Article 70. Implementation of public investment plans

1. Ministries, central agencies and localities, district- and commune-level People’s Committees, and agencies and units using public investment capital shall:

a/ Organize the implementation of public investment plans in line with the objectives decided by competent authorities;

b/ Implement projects according to schedule and funding plans decided by competent authorities;

c/ Formulate bidding plans and organize the selection of contractors for bidding packages of projects to be funded under public investment plans decided by competent authorities.

d/ Organize the acceptance testing, payment and account-finalization under contracts for completed bidding packages that have been handed over and put into operation;

dd/ Balance funding sources to pay outstanding debts in capital construction as specified in Clause 6, Article 103 of this Law;

e/ Ensure that the investment scope and scale of each project comply with the approved objectives, fields and programs and the assigned funding plans;

g/ Monitor, inspect and evaluate the implementation of public investment plans.

2. The Ministry of Planning and Investment shall guide, monitor and inspect the implementation of medium-term and annual public investment plans of ministries, central agencies and provincial-level People’s Committees.

3. The Ministry of Finance shall ensure the allocation of sufficient capital from the central budget according to public investment plans decided by competent authorities.

4. The Government shall provide in detail the implementation of public investment plans.

Article 71. Adjustment of public investment plans

1. The National Assembly shall decide on the overall adjustment of medium-term and annual public investment plans funded by the state budget in the following cases:

a/ Upon adjustment of objectives of socio-economic development strategies or plans of the country;

b/ Upon unexpected change in the state budget balance or the capacity of mobilizing funding sources.

2. The National Assembly Standing Committee shall decide on the adjustment of annual investment plans funded by the central budget among ministries, central agencies and localities in case such adjustment does not change the total capital amounts decided by the National Assembly for annual investment plans.

3. The Prime Minister shall decide on the adjustment of medium-term investment plans funded by the central budget in the following cases:

a/ Adjustment of medium-term investment plans funded by the central budget among ministries, central agencies and localities in case such adjustment does not change the total capital amounts decided by the National Assembly for medium-term investment plans, ensuring capital use efficiency, and shall be reported to the National Assembly at the coming session;

b/ Adjustment of medium-term investment plans funded by the central budget within and among sectors, fields and programs of ministries, central agencies and localities within the total capital amounts for medium-term investment plans decided by the National Assembly for ministries, central agencies and localities.

4. The Ministry of Planning and Investment shall:

a/ Report to the Government for the latter to propose the National Assembly Standing Committee to consider and decide on the adjustment of annual investment plans funded by the central budget among ministries, central agencies and localities;

b/ Report to the Prime Minister for consideration and decision the adjustment of medium-term investment plans funded by the central budget among ministries, central agencies and localities; and adjustment of medium-term investment plans funded by the central budget within and among sectors, fields and programs of ministries, central agencies and localities.

5. Ministers and heads of central agencies have the following competence and responsibilities:

a/ To adjust annual public investment plans funded by the central budget among projects on the lists of medium-term public investment plans decided by competent authorities provided that such adjustment does not result in the excess of the total capital amounts assigned by competent authorities;

b/ To send reports to the Ministry of Planning and Investment and Ministry of Finance for summarization and monitoring, for public investment plans funded by the central budget.

6. Provincial-level People’s Committees have the following competence and responsibilities:

a/ To adjust annual public investment plans funded by target transfers from the central budget under their management provided that such adjustment does not result in the excess of the total capital amounts assigned by competent authorities for medium-term public investment plans, and report thereon to provincial-level People’s Councils at the coming session;

b/ To send reports to the Ministry of Planning and Investment and Ministry of Finance for summarization and monitoring, for public investment plans funded by target transfers from the central budget.

7. People’s Councils at all levels shall adjust medium-term and annual public investment plans funded by local budgets in the following cases:

a/ Upon adjustment of objectives of local socio-economic development plans;

b/ Upon an unexpected change in the balance of local budget revenues or the local capacity to mobilize funding sources;

c/ Upon a change in use demands or capacity of implementing annual plans’ funds of local agencies and units.

8. People’s Committees at all levels have the following competence and responsibilities:

a/ To adjust medium-term public investment plans funded by local budget among agencies and units assigned funding plans under their management in case such adjustment does not result in the excess of the total capital amounts for medium-term public investment plans decided by the same-level People’s Councils, and report thereon to same-level People’s Councils at the coming session;

b/ To adjust medium-term and annual public investment plans funded by local budgets among tasks and projects within agencies and units assigned funding plans under their management within the total capital amounts decided by same-level People’s Councils.

9. The Government shall provide in detail the order and procedures for adjustment of medium-term and annual public investment plans funded by the state budget.

Article 72. Time for implementation of and disbursement for annual public investment plans

1. The time for implementation of and disbursement for public investment plans of a year may last through January 31 of the subsequent year. In case competent authorities allocate additional funds for ministries, central agencies and localities after September 30 of the plan year to implement tasks, programs and projects, the time for implementation of and disbursement for the plans with additionally allocated funds may last through December 31 of the subsequent year.

2. The Prime Minister shall decide, for public investment plans using central budget funds, or chairpersons of People’s Committees at all levels shall decide, for public investment plans using local budget funds under their management, to permit the prolongation of the time for implementation of and disbursement for annual public investment plans, which, however, must not be later than December 31 of the subsequent year for:

a/ National important projects;

b/ Projects on compensation, support, resettlement and ground clearance;

c/ Projects that are planned to be funded for completion and use in the plan year but not planned to be funded in the subsequent year;

d/ Projects that are delayed as a result of disasters, catastrophes or epidemics or unforeseeable objective reasons while it is impossible to remediate their consequences;

dd/ Projects of overseas Vietnamese representative missions and other agencies;

e/ Ministries, central agencies or localities each having only 1 project in the plan year or are unable to adjust plans;

g/ Other necessary and urgent cases as decided by the Prime Minister.

3. Heads of public non-business units that cover recurrent expenditures and investment expenditures by themselves shall decide on the prolongation of the time for implementation of and disbursement of funds from lawful revenue sources reserved for investment under their units’ management, and report thereon to the managing agencies.

4. Ministers, heads of central agencies, and chairpersons of People’s Committees at all levels shall decide on the prolongation of the time for implementation of and disbursement of funds from lawful revenue sources reserved for investment of state agencies and non-business units under management by their ministers, agencies or People’s Committees, except the public non-business units specified in Clause 3 of this Article.

Section 2

SURVEILLANCE, INSPECTION, EVALUATION AND MONITORING OF PUBLIC INVESTMENT PLANS, PROGRAMS AND PROJECTS

Article 73. Surveillance and inspection of public investment plans

1. Specialized agencies in charge of public investment management shall organize surveillance and inspection of public investment plans of agencies and units under their management.

2. Contents of surveillance and inspection of public investment plans:

a/ Implementation of the law on public investment;

b/ Formulation, approval and assignment of public investment plans;

c/ Formulation, appraisal, approval and implementation of programs and projects included in public investment plans;

d/ Implementation of public investment plans;

dd/ Outstanding debts in capital construction, waste and losses in public investment.

Article 74. Evaluation of public investment plans

1. Medium-term public investment plans shall be evaluated on a mid-term basis and upon their completion.

2. Annual public investment plans shall be evaluated on a quarterly and annual basis.

3. Contents of evaluation of a public investment plan:

a/ Level of satisfaction of requirements against the competent authority-approved plan;

b/ Impacts of the public investment plan on attraction of other funding sources and socio-economic development results;

c/ Feasibility of the public investment plan;

d/ Public investment management;

dd/ Shortcomings and limitations in the implementation of the public investment plan; reasons and solutions.

e/ In the mid-term evaluation report of the medium-term public investment plan, it is required to evaluate state budget revenues, expenditures and balance to implement the public investment plan and propose a plan to use the central budget’s contingencies under the medium-term public investment plan.

Article 75. Surveillance and inspection of programs and projects

1. Managing agencies, program owners and project owners, persons competent to decide on investment in programs or projects, and state management agencies in charge of public investment shall carry out surveillance and inspection of the entire investment process of programs and projects based on the approved contents and indicators so as to ensure investment objectives and efficiency.

2. Inspection of programs and projects:

a/ Program owners or project owners shall inspect the programs or projects assigned to them for management;

b/ Managing agencies and persons with investment-deciding competence shall carry out at least one inspection of programs and projects to be implemented in a duration longer than 12 months; 

c/ Managing agencies and persons with investment-deciding competence shall carry out inspection in case the adjustment of a program/project results in a change in its location, objectives or structure of funding sources or an increase in the total investment, and in other cases deemed necessary;

d/ State management agencies in charge of public investment shall decide to carry out scheduled or unscheduled inspection of programs and projects.

Article 76. Evaluation of programs and projects

1. Evaluations of programs and projects include initial evaluation, mid-term or periodic evaluation, final evaluation, impact evaluation and unscheduled evaluation.

2. Public investment programs are subject to mid-term or periodic evaluation, final evaluation and impact evaluation.

3. National important projects and group-A projects are subject to initial evaluation, mid-term evaluation, final evaluation and impact evaluation.

4. Group-B and group-C projects are subject to final evaluation and impact evaluation.

5. Apart from the forms of evaluation mentioned in Clauses 2, 3 and 4 of this Article, when necessary, managing agencies, persons with investment-deciding competence and state management agencies in charge of public investment may decide to carry out evaluation in other forms specified in Clause 1 of this Article.

Article 77. Contents of evaluation of programs and projects

1. Contents of initial evaluation of a program/project:

a/ Preparation, organization and mobilization of resources to implement the program/project, ensuring compliance with the approved objectives and schedule;

b/ Problems arising since the time of approval of the program/project;

c/ Proposed solutions to arising problems as suitable to practical conditions.

2. Contents of mid-term evaluation or periodic evaluation of a program/project:

a/ Conformity of the program/project’s outcomes with investment objectives;

b/ Level of job performance by the time of evaluation against the approved plan;

c/ Proposed necessary solutions, even adjustment of the program/project.

3. Contents of final evaluation of a program/project:

a/ Process of program/project implementation: program/project implementation management; outcomes of the program/project’s objectives, mobilized resources; benefits brought about by the program/project to beneficiaries; impacts and sustainability of the program/project.

b/ Lessons drawn from the implementation of the program/project and recommendations; responsibilities of the consultancy organization, managing agency, program/project owner, person competent to decide on investment policy or decide on investment and related agencies, organizations and individuals.

4. Contents of impact evaluation of a program/project:

a/ Techno-economic status of operation of the program/project;

b/ Socio-economic impacts of the program/project;

c/ Environmental and ecological impacts of the program/project;

d/ Sustainability of the program/project;

dd/ Lessons drawn from investment policy and investment decision, and program or project implementation and operation; responsibilities of the consultancy organization, managing agency, program/project owner, persons competent to decide on investment policy or decide on investment and related agencies, organizations and individuals.

5. Contents of unscheduled evaluation of a program/project:

a/ Conformity of the program/project’s outcomes by the time of evaluation with investment objectives;

b/ Level of job performance by the time of evaluation against the approved plan;

c/ Identification of arising problems (if any) and causes thereof, and responsibilities of related agencies, organizations and individuals;

d/ Impacts and extent of impacts of arising problems on the implementation of the program/project and the capacity to achieve objectives of the program/project;

dd/ Proposed necessary measures.

6. The Government shall specify the methods and criteria for evaluation of the efficiency of public investment programs and projects.

Article 78. Community-based investment monitoring

1. Programs and projects are subject to community-based monitoring. Vietnam Fatherland Front Committees at all levels shall organize community-based investment monitoring and social criticism.

2. Managing agencies shall consult, make replies, and give explanations to replies, to opinions of, residential communities in localities where projects are implemented with regard to decision on investment in national important projects, group-A projects, projects requiring large-scale population resettlement and sedentary farming, projects likely to exert great impacts on the environment, and projects directly impacting the socio-economic life of residential communities in localities where they are implemented in terms of guidelines and policies on investment, construction, land, waste treatment and environmental protection, compensation, ground clearance, and sedentary farming and resettlement plans in accordance with law.

3. Contents of community-based investment monitoring:

a/ Observance of the laws on investment, construction, land, waste treatment, and environmental protection;

b/ Compensation and ground clearance work and sedentary farming and resettlement plans to guarantee the people’s interests;

c/ Programs and projects partly funded with contributions of residents;

d/ Situation and progress of implementation of programs and projects;

dd/ Assurance of publicity and transparency in public investment in accordance with Article 15 of this Law;

e/ Detection of acts harming the community interests; the projects’ negative impacts on the community’s living environment during the process of project investment and operation; and acts causing waste or loss of the projects’ capital and assets.

Article 79. Order, procedures and process of community-based investment monitoring

1. The Vietnam Fatherland Front shall assume the prime responsibility for, and coordinate with socio-political organizations and related agencies in:

a/ Formulating community-based investment monitoring plans for annual programs and projects in localities according to the contents specified in Clause 3, Article 78 of this Law;

b/ Establishing a community-based investment monitoring board for each program/project;

c/ Notifying program/project owners and program/project management units of monitoring plans and members of the community-based investment monitoring boards at least 45 days before the monitoring is carried out.

2. Program/project owners and program/project management units shall:

a/ Provide in a sufficient, truthful and timely manner the documents related to the implementation of programs or projects as specified in Clause 2, Article 78 of this Law to the community-based investment monitoring boards;

b/ Create favorable conditions for the community-based investment monitoring boards to carry out the monitoring in accordance with law;

c/ Receive monitoring opinions and intensify the application of project implementation measures.

Article 80. Organization of surveillance, inspection and evaluation of plans, programs and projects

1. Program/project owners shall organize the surveillance and inspection and carry out initial, mid-term and final evaluations of their programs or projects.

2. Managing agencies, investment deciders and state management agencies in charge of public investment shall organize the surveillance and inspection and conduct impact evaluation and unscheduled evaluation of programs and projects assigned to them for management.

3. Agencies and organizations in charge of evaluation may carry out evaluation by themselves or hire capable and qualified consultants or consultancy organizations to do so.

4. The Government shall provide in detail the surveillance, inspection and evaluation of plans, programs and projects and the community-based investment monitoring.

Chapter VI

TASKS, POWERS AND RESPONSIBILITIES OF AGENCIES, ORGANIZATIONS AND INDIVIDUALS IN PUBLIC INVESTMENT ACTIVITIES

Article 81. Tasks and powers of the National Assembly

1. To promulgate laws and resolutions on public investment.

2. To decide on investment policy for national target programs and national important projects using public investment capital.

3. To decide on, and make overall adjustment of, medium-term and annual public investment plans.

4. To adjust criteria for the classification of national important projects.

5. To supervise the implementation of public investment plans, national target programs and national important projects; to supervise the implementation of the law on public investment.

Article 82. Tasks and powers of the National Assembly Standing Committee

1. To promulgate principles, criteria and norms for allocation of state budget funds reserved for public investment.

2. To decide on the adjustment of criteria for classification of public investment projects specified in Articles 9, 10 and 11 of this Law.

3. To decide on the adjustment of annual public investment plans funded by the central budget among ministries, central agencies and localities provided that such adjustment does not result in a change in the total annual capital amounts decided by the National Assembly.

4. To decide on the addition of state budget estimates and allocate central budget funds’ increased revenue sources and expenditure savings for annual public investment plans to ministries, central agencies and localities.

5. To decide on the allocation of the unallocated amounts of central budget funds for medium-term public investment plans.

6. To decide on allocation of the central budget’s contingencies for medium-term public investment plans for tasks, projects and other objects of public investment when funds are available. 

Article 83. Tasks and powers of the Government

1. To perform the unified state management of public investment.

2. To submit laws and resolutions to the National Assembly for promulgation; to submit ordinances and resolutions on public investment to the National Assembly Standing Committee for promulgation.

3. To promulgate legal documents on public investment management according to its competence.

4. To provide the management of performance of investment preparation tasks and planning tasks and public investment projects without construction components; to provide the management of implementation of ODA/foreign concessional loan-funded public investment programs and projects.

5. To submit investment policy for national target programs and national important projects to the National Assembly for decision.

6. To decide on investment policy of public investment programs according to its competence specified in this Law.

7. To formulate, and submit to the National Assembly for decision or overall adjustment, medium-term and annual public investment plans.

8. To formulate, and submit to the National Assembly Standing Committee for decision or adjustment, annual public investment plans provided that such decision or adjustment does not result in a change in the total annual capital amounts decided by the National Assembly.

9. To organize the implementation of medium-term and annual public investment plans; to decide on the allocation and assignment of detailed estimates of the remaining amounts not yet allocated in detail from the central budget for annual public investment plans.

10. To report to the National Assembly on the implementation of medium-term and annual public investment plans, national target programs and national important projects.

11. To organize the examination and inspection of the implementation of medium-term and annual public investment plans; to examine the implementation of programs and projects funded with the central budget or other lawful revenues reserved for investment of state agencies and public non-business units; to examine the performance of public investment objectives and policies in localities.

Article 84. Tasks and powers of the Prime Minister

1. To decide on investment policy for or decide on investment in projects according to the competence specified in this Law.

2. To assign medium-term and annual public investment plans using state budget funds, and assign state budget estimates and central budget funds’ increased revenue sources and expenditure savings for public investment plans to ministries, central agencies and localities.

3. To decide to assign one provincial-level People’s Committee to act as the managing agency for implementation of a project located in two or more provincial-level administrative units.

4. To decide on the adjustment of medium-term public investment plans funded by the central budget among ministries, central agencies and localities provided that such adjustment does not result in the excess of the total amounts of medium-term funds decided by the National Assembly.

5. To decide on the adjustment of medium-term public investment plans funded by the central budget within, and among sectors, fields and programs of, ministries, central agencies and localities within the total amount of medium-term funds of each ministry, central agency and locality decided by the National Assembly. 

Article 85. Tasks and powers of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall act as the focal-point agency to assist the Government in performing the state management of public investment and has the following tasks and powers:

1. To promulgate or submit to competent authorities for promulgation legal documents on public investment, and principles, criteria and norms for the allocation and use of public investment capital;

2. To assume the prime responsibility for, and coordinate with the Ministry of Finance in, reporting to the Government on the identification of state budget funds for the country’s development investment for sectors and fields to be included in medium-term and annual public investment plans;

3. To summarize and submit the country’s medium-term and annual public investment plans to the Government and Prime Minister; to submit to the Government and Prime Minister for assignment of public investment plans funded with the state budget;

4. To summarize, and submit to the Prime Minister the adjustment of, the country’s medium-term public investment plans; to submit to the Government and Prime Minister for consideration and reporting to the National Assembly and National Assembly Standing Committee the adjustment of the country’s medium-term and annual public investment plans according to its competence as specified in Article 71 of this Law;

5. To assume the prime responsibility for, and coordinate with related agencies in, appraising funding sources and the fund-balancing capacity as specified in Article 36 of this Law;

6. To submit to competent authorities for promulgation general regulations on the management of national target programs; to summarize and submit to competent authorities for decision on and assignment of medium-term and annual public investment objectives, tasks and plans of national target programs funded with the central budget;

7. To organize the implementation, surveillance, examination, monitoring, evaluation and inspection of plans, programs and projects, and perform other tasks of state management of public investment.

Article 86. Tasks and powers of the Ministry of Finance

1. To coordinate with the Ministry of Planning and Investment in performing the tasks and exercising the powers specified in Article 85 of this Law.

2.  To coordinate with the Ministry of Planning and Investment in reporting to the Government on the identification of state budget funds for the country’s public investment for sectors and fields to be included in medium-term and annual public investment plans.

3. To assume the prime responsibility for submitting to competent authorities for promulgation, or promulgate according to its competence, regulations on management, payment and account-finalization of projects using public investment capital.

5. To report to the Government on the disbursement and account-finalization of funds for programs and projects.

Article 87. Tasks and powers of ministries and central agencies

1. To perform the function of state management of public investment in accordance with law.

2. To promulgate, and guide, examine and supervise the implementation of, standards, technical regulations and techno-economic norms.

3. To assume the prime responsibility for, and coordinate with related agencies in, appraising funding sources and the fund-balancing capacity for projects as specified in Article 36 of this Law.

4. To decide on investment policy for projects specified in Clause 4, Article 18 of this Law and decide on investment in projects specified in Clause 2, Article 38 of this Law.

5. To organize the formulation of public investment plans.

6. To monitor, evaluate, supervise, examine and inspect the implementation of plans, programs and projects under their management.

7. To report on the progress and outcomes of the implementation of plans, programs and projects.

8. To coordinate with other ministries and central agencies and localities in implementing plans, programs and projects according to their assigned functions and tasks.

Article 88. Tasks and powers of People’s Councils at all levels

1. To decide on investment policy for programs and projects according to their competence specified in this Law.

2. To consider, and give opinions on, tentative medium-term and annual public investment plans of localities, covering lists of projects, and capital amount to be allocated for each project using target transfer from the central budget.

3. To decide on local medium-term and annual public investment plans, covering lists of projects and capital amount for each project funded by local budgets.

4. To supervise projects using public investment capital that are assigned to localities for management, including central budget funds, local budget funds, and other lawful revenues reserved for investment of state agencies and public non-business units under the management of localities.

Article 89. Tasks and powers of provincial-level People’s Committees

1. To perform the state management of public investment in localities in accordance with law.

2. To propose provincial-level People’s Councils:

a/ To decide on investment policy for programs and projects according to their competence specified in this Law;

b/ To consider, and give opinions on, investment policy for projects subject to the Prime Minister’s investment policy decision in accordance with this Law;

c/ To consider medium-term and annual investment plans, based on the list of projects and capital amount for each project under the management of localities.

3. To decide on investment policy for projects under their management in accordance with this Law, and report thereon to provincial-level People’s Councils at the coming meeting.

4. To adjust medium-term public investment plans with regard to local budget funds among agencies and units assigned funding plans under their management provided that such adjustment does not result in the excess of the total amounts of medium-term funds decided by the same-level People’s Councils, and report thereon to the same-level People’s Councils at the coming meeting.

5. To adjust medium-term and annual public investment plans with regard to local budget funds among tasks and projects within agencies and units assigned funding plans under their management within the total amounts of medium-term funds decided by the same-level People’s Councils.

6. To organize, monitor, evaluate, supervise, examine and inspect the implementation of plans, programs and projects under their management; to coordinate with ministries and central agencies in organizing, monitoring, examining and evaluating the implementation of programs and projects in localities.

7. Chairpersons of provincial-level People’s Committees have the following tasks and powers:

a/ To decide on investment in projects according to their competence specified in this Law;

b/ To authorize their vice-chairpersons, chairpersons of district-level People’s Committees or heads of specialized agencies to decide on investment for group-B and group-C projects under the management of provincial-level authorities;

c/ To assign one district-level People’s Committee to act as the managing agency for implementation of a project located in two or more district-level administrative units.

Article 90. Tasks and powers of district- and commune-level People’s Committees

1. To organize the formulation of medium-term and annual public investment plans under their management.

2. To organize the appraisal of programs and projects under their management.

3. To propose the same-level People’s Councils:

a/ To decide on investment policy for public investment programs and projects funded by local budgets, including also target transfers from higher-level budgets;

b/ To decide on medium-term and annual public investment plans funded by local budgets under their management.

4. To decide on investment policy for projects under their management in accordance with this Law, and report thereon to the same-level People’s Councils at the coming meeting.

5. To organize the implementation, monitoring, evaluation, examination and inspection of plans, programs and projects and perform other tasks of state management of public investment as delegated; to coordinate with related agencies and organizations in implementing, monitoring, examining and evaluating programs and projects in the localities.

6. Chairpersons of district- and commune-level People’s Committees shall decide on investment in projects according to their competence specified in this Law.

Article 91. Tasks and powers of the Vietnam Fatherland Front

1. To assume the prime responsibility for organizing the community-based investment monitoring and social criticism for programs and projects in accordance with this Law, the Law on the Vietnam Fatherland Front, and other relevant laws.

2. To gather the community’s opinions on investment policy for programs and projects in the localities in accordance with this Law and the law on the implementation of grassroots democracy.

Article 92. Rights and responsibilities of agencies, organizations and individuals in proposing investment policy

1. To propose programs and projects in line with socio-economic development strategies and plans, and relevant master plans in accordance with the planning law in each period.

2. To ensure the mobilization and balancing of resources for implementing programs and projects as scheduled.

3. To propose competent authorities to consider and decide on investment policy for programs that have no overlaps with other programs and with regular tasks according to their assigned functions and tasks.

4. To take responsibility for information and data related to proposed programs and projects.

Article 93. Rights and responsibilities of agencies, organizations and individuals involved in investment policy decision

1. Agencies, organizations, individuals and heads of organizations that decide on investment policy for programs and projects must satisfy the conditions specified in this Law.

2. In case a program/project is implemented in the period of 2 consecutive medium-term public investment plans, in addition to the responsibility specified in Clause 1 of this Article, the agency, organization or individual or the head of the organization that decides on investment policy for such program/project has the following responsibilities:

a/ To decide on investment policy for the program/project, ensuring that the total investment value of the programs and projects to be implemented in the second public investment plan does not exceed 20% of the total capital amount of the first medium-term public investment plan, detailed for central budget funds and local budget funds, except national target programs, national important projects, ODA/foreign concessional loan-funded projects, and projects funded with lawful revenues reserved for investment of state agencies and public non-business units;

b/ For national target programs and national important projects, the National Assembly’s resolutions shall apply. The Government shall propose the National Assembly to consider and decide on investment policy for national target programs and national important projects based on the fund-balancing capacity, evaluation of impacts on state budget deficits, and assurance of public debt safety;

c/ For projects funded with lawful revenues of state agencies and public non-business units, the Government’s regulations shall apply;

d/ For an ODA/foreign concessional loan-funded program/project, the authority competent to decide on investment policy for such program/ project must ensure that the value of the program/project to be implemented in the second medium-term public investment plan does not exceed 20% of the total capital of foreign partners of the first medium-term public investment plan of the country.

3. In case the value of the programs/projects implemented in the period of 2 consecutive medium-term public investment plans as specified at Points a and d, Clause 2 of this Article exceeds the abovementioned rate of 20%, the authorities competent to decide on investment policy for the programs/projects shall report such to the Prime Minister, for those funded by the central budget, or to the People’s Councils at all levels, for those funded by local budgets under their management, for approval, which, however, must not exceed 50% of the level specified at Point a or d, Clause 2 of this Article. 

Article 94. Rights and responsibilities of program/project owners related to program and project formulation

1. To take responsibility before law for the contents of dossiers submitted to competent authorities for appraisal, verification and decision.

2. To provide necessary documents to program and project appraisal and verification agencies.

3. To propose solutions for mobilizing funding sources to implement programs and projects according to the law-specified schedules.

4. To take responsibility before law for the formulation of programs and projects.

Article 95. Rights and responsibilities of agencies, organizations and individuals deciding on investment in programs and projects

1. To decide on investment in programs and projects in conformity with the objectives, locations, structure of funding sources, and total investment amounts in investment policy decided by competent authorities, except tasks and projects not subject to investment policy decision; and in conformity with the capacity of balancing funds from funding sources under their management, applicable standards and technical regulations on investment, and appraisal results.

2. To organize the appraisal of programs and projects before approving them, covering the appraisal of funding sources and the fund-balancing capacity.

3. To balance funds to pay for the formulation and appraisal of programs and projects under their management.

4. To direct program/project owners to implement programs and projects on schedule and ensure their quality under approved investment plans.

5. To decide on the adjustment, suspension or cancellation of programs and projects.

6. To organize the monitoring, examination and evaluation of programs and projects and activities of program/project owners during the process of program or project implementation.

7. To take responsibility before law for violations of regulations on competence during the process of selection of program/project owners.

Article 96. Rights and responsibilities of agencies, organizations and individuals involved in program and project design consultancy

1. Design consultancy organizations have the right to request program/project owners to provide information and documents related to the design of programs or projects.

2. To design programs and projects in conformity with technical regulations, applicable standards, norms and technical solutions to ensure their quality; to refrain from designing programs and projects in excess of applicable standards, technical regulations and norms.

3. To take responsibility for program and project design results.

Article 97. Rights and responsibilities of agencies, organizations and individuals involved in appraisal programs and projects

1. Agencies, organizations and individuals involved in the appraisal of programs and projects shall conduct appraisal in accordance with law and take responsibility for appraisal results and their proposals.

2. The appraisal must ensure independence, truthfulness and objectivity and comply with this Law and other relevant laws.

Article 98. Rights and responsibilities of program/project owners in program and project management and implementation

1. To organize the management and implementation of programs and projects, ensuring compliance with their objectives, schedule, quality and efficiency.

2. To report and provide information on program and project implementation to management agencies and the Vietnam Fatherland Front Committees at all levels in accordance with this Law and other relevant laws.

Article 99. Rights and responsibilities of program/project management units

1. To propose plans and solutions and organize the management and implementation of programs and projects to ensure compliance with their objectives, schedule and quality as authorized by program/project owners.

2. To report to program/project owners on the implementation of programs or projects.

Article 100. Rights and responsibilities of agencies, organizations and individuals engaged in plan, program and project monitoring, evaluation and examination

1. Ministers, heads of central agencies, chairpersons of district- and commune-level People’s Committees, and program/project owners shall take responsibility for consequences caused by their failure to monitor, evaluate and examine plans, programs and projects or failure to report under regulations.

2. Agencies, organizations and individuals assigned to monitor, examine and evaluate plans, programs and projects shall take responsibility for the contents of their reports.

3. Program/project owners shall take responsibility for the contents of their reports and take responsibility in accordance with law for their inaccurate reports and information on the situation of investment within the scope of their management.

Article 101. The national information system and database on public investment

1. The national information system and database on public investment shall be uniformly established and operated nationwide to serve the state management of public investment, covering the summarization, reporting, assignment and adjustment of medium-term and annual public investment plans; monitoring and evaluation of public investment programs and projects; and data management, storage and disclosure under regulations.

2. Responsibilities for formulation, management, operation and application of the national information system and database on public investment:

a/ The Ministry of Planning and Investment shall organize the formulation, management and operation of the national information system and database on public investment;

b/ Ministries, central agencies and localities shall, within the scope of their management, organize the application of the national information system and database on public investment.

3. Information and data of the national information system and database on public investment are original information and data of public investment programs, projects and plans.

4. The Government shall detail this Article.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 102. Effect

1. This Law takes effect on January 1, 2025.

2. Law No. 39/2019/QH14 on Public Investment, which is amended and supplemented under Law No. 64/2020/QH14, Law No. 72/2020/QH14, Law No. 03/2022/QH15, Law No. 27/2023/QH15 and Law No. 38/2024/QH15 (below referred to as Law No. 39/2019/QH14 on Public Investment), ceases to be effective on the effective date of this Law, except the cases specified in Clauses 2 and 3, Article 103 of this Law.

3. Localities implementing on a pilot basis a number of particular mechanisms and policies or applying the urban administration model shall comply with this Law and relevant resolutions of the National Assembly. In case there are different provisions between this Law and a resolution of the National Assembly on the same issue, the provincial-level People’s Councils shall decide on which provisions to be applied.

4. To amend and supplement Point a, Clause 4, Article 67 of Land Law No. 31/2024/QH15, which has a number of articles amended and supplemented under Law No. 43/2024/QH15, as follows:

“a/ It has obtained an investment decision in accordance with the law on public investment, in case it is subject to investment policy decision by the National Assembly, Prime Minister, ministers, or heads of central agencies, provincial-level People’s Councils or provincial-level People’s Committees;”.

5. To amend and supplement a number of articles of Law No. 77/2015/QH13 on Organization of Local Administration, which has a number of articles amended and supplemented under Law No. 21/2017/QH14, Law No. 47/2019/QH14, Law No. 31/2024/QH15, Law No. 34/2024/QH15, and Law No. 43/2024/QH15, as follows:

a/ To add Clause 9 below Clause 8, Article 21 as follows:

“9. To decide on investment policy for projects in accordance with the law on public investment.”;

b/ To add Clause 7 below Clause 6, Article 28 as follows:

“7. To decide on investment policy for projects in accordance with the law on public investment.”;

c/ To add Clause 4 below Clause 3, Article 35 as follows:

“4. To decide on investment policy for projects in accordance with the law on public investment.”;

d/ To add Clause 6 below Clause 5, Article 49 as follows:

“6. To decide on investment policy for projects in accordance with the law on public investment.”;

dd/ To add Clause 4 below Clause 3, Article 63 as follows:

“4. To decide on investment policy for projects in accordance with the law on public investment.”;

e/ To add Clause 4 below Clause 3, Article 70 as follows:

“4. To decide on investment policy for projects in accordance with the law on public investment.”.

6. To amend and supplement a number of articles of Law No. 39/2024/QH15 on the Capital as follows:

a/ To amend Point b, Clause 2, Article 37 as follows:

“b/ Public investment projects and PPP projects, regardless of total investment amount, except those specified at Point a of this Clause; projects having great impacts on the environment or likely to seriously impact the environment that are subject to investment policy decision by the National Assembly; projects on manufacture of hazardous substances and explosives that are subject to investment policy decision by the Prime Minister; and projects subject to investment policy decision by the People’s Committee of the City in accordance with the law on public investment and the law on investment in the form of public-private partnership.”;

b/ To annul the phrase “and Point d” at Point a, Clause 1, Article 12;

c/ To annul Point b, Clause 5, Article 9; and Point d, Clause 3, Article 11.

Article 103. Transitional provisions

1. Public investment programs and projects for which investment has been decided by competent authorities before January 1, 2015, and for which capital has been allocated but have not been completed, may continue to be implemented. In case of project adjustment, the adjustment must comply with this Law without being required to undergo procedures for investment policy decision or adjustment before project adjustment.

For investment projects funded with non-refundable ODA for which investment policy has been decided by competent authorities before the effective date of this Law, in case of project adjustment, ministers or heads of central agencies or provincial-level People’s Committees have the right to adjust, and shall take responsibility for adjustment of, investment decision without being required to adjust investment policy.

2. For projects for which investment policy or investment has been decided before the effective date of this Law, their classification must comply with Law No. 39/2019/QH14 on Public Investment.

3. Programs and projects which have preparation and appraisal procedures completed and have been submitted to competent authorities for deciding on investment policy or deciding on investment before the effective date of this Law shall be considered and decided by competent authorities in accordance with Law No. 39/2019/QH14 on Public Investment.

4. In case of adjusting investment policy for projects that have their investment policy decided before the effective date of this Law, authorities competent to decide on investment policy as delegated under this Law shall decide on the adjustment of investment policy for the projects and take responsibility for their decision. For important national projects for which investment policy has been decided by the National Assembly, the National Assembly shall decide on adjustment of their investment policy.

5. Projects that have their capital allocation period for project implementation extended by the Prime Minister or provincial-level People’s Councils before the effective date of this Law but need further extension must comply with Point d, Clause 3, Article 57 of this Law.

6. Capital for public investment plans may only be allocated to pay for outstanding debts in capital construction arising before January 1, 2015.

The Government shall review outstanding debts in capital construction under Law No. 39/2019/QH14 on Public Investment, and report thereon to the National Assembly for consideration and decision.

This Law was passed on November 29, 2024, by the 15^th National Assembly of the Socialist Republic of Vietnam, at its 8^th session.-

Chairman of the National Assembly
TRAN THANH MAN