Order and procedures for approval of investment policy

Investors can submit the order and procedures for approval of investment policy by the National Assembly before project implementation depending on scale, industry, and type of investment. Accordingly, how to make the order and procedures for approval of investment policy by the National Assembly?

Investors can submit the order and procedures for approval of investment policy by the National Assembly before project implementation depending on scale, industry, and type of investment. Accordingly, how to make the order and procedures for approval of investment policy by the National Assembly?

According to the Article 34 of the Law on Investment and the Section 3, Chapter IV, order and procedures for approval of investment policy by the National Assembly shall be submitted as follows:

Step 1: The investor/competent authority shall submit 20 sets of documents to the Ministry of Planning and Investment.

1.1. Investor submitted to apply for appraisal:

In accordance with Clause 1, Article 33 of the Law on Investment. dossier of request for approval of investment policy for an investment project proposed by an investor must comprise:

- A written request for implementation of the investment project, including also the investor’s commitments to bear all expenses and risks in case the project is not approved;

- Copies of ID cards or passports for investors being individuals; copies of Business   Establishment Certificate or relevant documents on the legal status of the investor being organizations;

- Documents explaining the investor’s financial capacity, including at least one of the following documents: the investor’s financial statements of the last 2 years; financial support commitment of the parent company; financial support commitment of a financial institution; guarantee for the investor’s financial capacity; and another document proving the investor’s financial capacity;

-  The investment project proposal, covers the following principal contents:  the investor or form of investor selection; investment objectives and scope, investment capital, and capital raising plan, and project implementation site, duration, and schedule; information on the actual state of use of land in the project implementation site and proposals for land use demand (if any), labor demand, investment incentives, the project’s socio-economic impacts, and benefits; and preliminary assessment of environmental impacts (if any) in accordance with the law on environmental protection.

In case the construction law requires the formulation of a prefeasibility study report, the investor may submit a prefeasibility study report as a replacement for the investment project proposal;

- In case the investor does not request the State to allocate or lease land or to permit change of land use purposes, the investor shall submit a copy of the paper on land use rights or another document certifying that the investor has the right to use the project implementation site;

- Explanations about the technology used in the investment project, for projects subject to an appraisal of, or solicitation of opinions on, technologies in accordance with the law on technology transfer;

- The BCC, for investment projects in the form of BCC;

- Other documents related to the investment project, requirements on conditions, and capacity of the investor in accordance with law (if any). 

1.2. State agencies have the authority to apply for appraisal of investment approval

In accordance with Clause 2, Article 33 of the Law on Investment, the dossier for investment approval must comprise:

- A written request for investment policy approval of the project;

- The investment project proposal, covers the following principal contents: Investment objectives and scope, investment capital, project implementation site, duration and schedule, and the project’s socio-economic impacts and benefits; information on the actual state of use of land in the project implementation site, land recovery conditions, for projects requiring land recovery, and projected land use demand (if any); preliminary assessment of environmental impacts (if any) in accordance with the law on environmental protection; the tentative form of investor selection and conditions applicable to investors (if any); and special mechanisms and policies (if any).

In case the construction law requires the formulation of a prefeasibility study report, competent state agencies may use a prefeasibility study report as a replacement for the investment project proposal.

Step 2: Establish the State Appraisal Council

Within 15 days after receiving a complete dossier, the Ministry of Planning and Investment shall report to the Prime Minister on the establishment of a State Appraisal Council. 

Step 3: Dossier appraisal, make appraisal reports

Within 90 days from the establishment date, the State Appraisal Council shall have a request for approval of the investment policy. Including:

- Assessment of the investment project’s conformity with national-level master plans, regional master plans, provincial master plans, urban master plans, and master plans of special administrative-economic units (if any);

- Assessment of land use demand;

- Preliminary assessment of the investment project’s socio-economic benefits; preliminary assessment of environmental impacts (if any) in accordance with the law on environmental protection;

- Assessment of investment incentives and conditions for enjoying investment incentives (if any);

- Assessment of the technology to be used in the investment project if the project requires appraisal and collection of opinions on the technology in accordance with the Law on Technology Transfer;

- Assessment of conformity of the investment project with the objectives and orientation for urban development, and residential housing development programs and plans; preliminary plan for phasing of investment with a view to synchronism assurance; preliminary structure of residential housing products and provision of land for social residential housing development; preliminary plan for investment in construction and management of urban infrastructure inside and outside the project in the case of a project on construction of residential houses and urban areas.

Step 4: Make a dossier of requests for approval of the investment policy

At least 60 days before the date of a National Assembly session, the Government shall compile and send the dossier of request for approval of investment policy to the National Assembly’s agency in charge of verification.

- An application form prepared by the Government;

- The dossier in Step 1;

- An appraisal report prepared by the Council;

- Other relevant documents.

Step 5: Appraisal of requests for approval of investment policy

Contents of appraisal include:

- Satisfaction of criteria for determination of projects subject to approval for their investment guidelines by the National Assembly;

- The necessity for project implementation;

- Conformity of the investment project with national planning, regional planning, provincial planning, urban planning, and special economic - administrative unit planning (if any);

- Project implementation objectives, scope, size, duration and schedule, land use demand, plan on ground clearance, relocation, and resettlement, plan on the selection of major technologies and environmental protection solutions;

- Total investment capital and capital sources;

- Assessment of socio-economic benefits, assurance of national defense and security, and sustainable development of the project;

- Special policies and mechanisms; investment incentives, investment assistance, and conditions for application thereof (if any).

Step 6: Consider the approval for investment guidelines

The National Assembly shall consider and pass the Resolution on investment approval.