Law on Public Investment, Law No. 39/2019/QH14

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 prescribes the state management of public investment; management and use of public investment funds; 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 funds.

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

1. The management and use of public investment funds 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 that treaty prevail.

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

4. The management and use of state investment funds at 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 shall be construed as follows:

1. Investment policy proposal report means a document presenting preliminary research contents on the necessity, feasibility, efficiency and capital source estimates and funding amounts of a public investment program, group-B or group-C project as a basis for competent authorities to decide on investment policy.

2. Prefeasibility study report means a document presenting initial research contents on the necessity, feasibility, efficiency and capital source estimates and funding amounts of an important national project or a group-A project as a basis for competent authorities to decide on investment policy.

3. Feasibility study report means a document presenting research contents on the necessity, feasibility, efficiency and capital source estimates and funding amounts of a public investment program or project as a basis for competent authorities to decide on investment. 

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

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

b/ Provincial-level People’s Committees;

c/ Other agencies or organizations that are assigned public investment plans.

5. Program owner means an agency or organization assigned to manage a public investment program.

6. Project owner means an agency or organization assigned to directly manage a public investment project.

7. Investment policy means a decision on principal contents of an investment program or project issued by a competent authority, serving as a basic for formulation, submission and approval of a decision on investment in such investment program or project or a decision on approval of a feasibility study report of a public investment project.

8. Public investment program means a combination of objectives, tasks and solutions to achieve socio-economic development objectives.

9. National target program means a public investment program aiming to achieve socio-economic objectives throughout the country in a given period.

10. Managing agency means a ministry, central agency or locality specified in Clause 4 of this Article that manages a program or project.

11. Specialized public investment management agency means a unit with the function of managing public investment under the Ministry of Planning and Investment; a unit assigned to manage public investment under a ministry, central agency or locality; or a division or section with the function of managing public investment of a district- or commune-level People’s Committee.

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

13. Public investment project means an investment project entirely or partially financed by public investment funds.

14. Emergency public investment project means a public investment project decided by a competent authority aiming to promptly prevent and overcome consequences of a natural disaster, a calamity or an epidemic; an urgent task to ensure national defense, security and foreign affairs;

15. Public investment means the State’s investment in programs, projects and other investment subjects in accordance with this Law;

16. Public investment activities include the formulation and appraisal of and decision on investment policy; formulation and appraisal of and decision on public investment programs and projects; formulation, appraisal, approval, assignment and implementation of public investment plans; management and use of public investment funds; pre-acceptance test and handover of programs and finalization of public investment plans; and monitoring, evaluation, examination and inspection of public investment plans, programs and projects.

17. Public investment plan means a combination of objectives, orientations and list of public investment programs and projects; balance of public investment funding sources; fund allocation plan; and resource mobilization and implementation solutions.

18. Investment preparation task means an activity carried out to formulate, appraise and decide on an investment policy and formulate, appraise and decide on project investment.

19. Planning task means an activity carried out to formulate, appraise and decide or approve, announce and adjust plans in accordance with the Planning Law.

20. Outstanding debts in capital construction means value of a tested and accepted work volume of a project under a public investment plan approved by a competent authority for which no funds have been allocated yet.

21. Delegation of powers for state management of public investment means the definition of powers and responsibilities of competent agencies, organizations and persons in public investment activities.

22. Public investment funds referred to in this Law include funds from the state budget and lawful revenues of state agencies and public non-business units for investment in accordance with law.

23. Central budget funds means funds disbursed for development investment from the central budget in accordance with the Law on the State Budget.

24. Local budget funds means funds disbursed for development investment from a local budget in accordance with the Law on the State Budget.

25. Target transfer from the central budget to local budget means funds from the central budget supplemented to a locality for investment in a public investment program or project according to a specific task decided by a competent authority.

Article 5. Public investment objects

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

In case of real necessity, the separation of compensation, support, resettlement and ground clearance into an independent project shall be considered and decided by the National Assembly for a national important project or by the Prime Minister or a provincial-level People’s Council for a group-A project. The separation of an independent project shall be carried out when a national important or group-A project investment policy is approved.

2. Investment to serve activities of state agencies, non-business units, political organizations and socio-political organizations.

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

4. State investment in projects to be implemented in the form of public-private partnership.

5. Investment to serve the formulation and appraisal of and decision on or approval, announcement and adjustment of master plans in accordance with the law on planning law.

6. Allocation of of preferential loan interest rate subsidies and management expenses; allocation of charter capital for policy banks and state off-budget financial funds; support of investment for other policy beneficiaries in accordance with the Prime Minister’s decisions.

The Government shall prescribe the order and procedures for making investment in the objects specified in this Clause.

Article 6. Classification of public investment projects

1. Depending on their characteristics, public investment projects shall be classified as follows:

a/ Projects with construction components are investment projects on construction of new projects, or renovation, upgrading or expansion of existing projects, including also the procurement of assets and equipment for projects;

b/ Projects without construction components are projects on asset procurement, acquisition of land use rights, purchase, repair or upgrading of equipment and machinery; and other projects not specified at Point a of this Clause.

2. Depending on their importance and size, public investment projects shall be classified into national important projects; group-A, group-B and group-C projects according to the criteria prescribed in Articles 7, 8, 9 and 10 of this Law.

Article 7. Classification criteria for national important projects

A national important project is an independent investment project or a complex of closely linked works which meets one of the following criteria:

1. Using a public investment fund of at least VND 10 trillion;

2. Exerting a great environmental impact or having a latent possibility of exerting a serious environmental impact, including:

a/ Nuclear power plants;

b/ Using land areas requiring the change of the land use purpose in a national park; a nature reserve; a landscape protection area; a scientific research and experiment forest of at least 50 hectares; a watershed protection forest of at least 50 hectares; a protection forest for shielding wind, sand, tide, sea encroachment or environmental protection of at least 500 hectares; a production forest of at least 1,000 hectares;

3. Using land areas requiring the change of the use purpose of land for wet rice cultivation with two or more crops of at least 500 hectares;

4. Relocating and resettling at least 20,000 residents in mountainous areas or at least 50,000 residents in other areas;

5. Projects that require the application of special mechanisms and policies subject to decision by the National Assembly.

Article 8. Classification criteria for group-A projects

Except national important projects specified in Article 7 of this Law, projects that meet one of following criteria shall be classified as group-A projects:

1. Regardless of their total investment, projects fall into one of the following cases:

a/ National defense or security projects involving top secrets;

b/ Hazardous substance or explosive-manufacturing projects;

c/ Industrial park, export processing zone or hi-tech zone infrastructure projects;

2. Projects with a total investment of at least VND 2,300 billion each in the following sectors:

a/ Transport, including bridges, seaports, river ports, airports, railways and national highways;

b/ Power industry;

c/ Oil and gas exploitation;

d/ Chemical, fertilizer and cement;

dd/ Mechanical engineering and metallurgy;

e/ Mineral mining and processing;

g/ Housing construction;

3. Projects with a total investment of at least VND 1,500 billion each in the following sectors:

a/ Transport, excluding those specified at Point a, Clause 2 of this Article;

b/ Irrigation;

c/ Water supply and drainage, waste disposal and other technical infrastructure facilities;

d/ Electrical engineering;

dd/ Communications and electronic device manufacturing;

e/ Pharmaceutical chemistry;

g/ Material production, excluding those specified at Point d, Clause 2 of this Article;

h/ Mechanical engineering facilities, excluding those specified at Point dd, Clause 2 of this Article;

i/ Post and telecommunications;

4. Projects with a total investment of at least VND 1,000 billion each in the following sectors:

a/ Agriculture, forestry and aquaculture;

b/ National parks and nature reserves;

c/ Technical infrastructure of new urban centers;

d/ Industries, excluding industrial projects specified in Clauses 1, 2 and 3 of this Article;

5. Projects with a total investment of at least VND 800 billion each in the following sectors:

a/ Health, culture and education;

b/ Scientific research, information technology, radio and television broadcasting;

c/ Warehousing;

d/ Tourism, physical training and sports;

dd/ Civil construction, excluding housing construction specified at Point g, Clause 2 of this Article.

e/ National defense or security projects other than projects specified in Clauses 1, 2, 3 and 4 of this Article.

Article 9. Classification criteria for group-B projects

1. Projects in the sectors specified in Clause 2, Article 8 of this Law, with a total investment of between VND 120 billion and under VND 2,300 billion each.

2. Projects in the sectors specified in Clause 3, Article 8 of this Law, with a total investment of between VND 80 billion and under VND 1,500 billion each.

3. Projects in the sectors specified in Clause 4, Article 8 of this Law, with a total investment of between VND 60 billion and under VND 1,000 billion each.

4. Projects in the sectors specified in Clause 5, Article 8 of this Law, with a total investment of between VND 45 billion and under VND 800 billion each.

Article 10. Classification criteria for group-C projects

1. Projects in the sectors specified in Clause 2, Article 8 of this Law, with a total investment of under VND 120 billion each.

2. Projects in the sectors specified in Clause 3, Article 8 of this Law, with a total investment of under VND 80 billion each.

3. Projects in the sectors specified in Clause 4, Article 8 of this Law, with a total investment of under VND 60 billion.

4. Projects in the sectors specified in Clause 5, Article 8 of this Law, with a total investment of under VND 45 billion each.

Article 11. Adjustment of classification criteria for public investment projects

1. The National Assembly shall decide on change of classification criteria for national important projects specified in Article 7 of this Law.

2. The Government shall submit to the National Assembly Standing Committee for decision the change of classification criteria for public investment projects specified in Articles 8, 9 and 10 of this Law and reporting to the National Assembly at the next session.

3. The change of classification criteria for public investment projects specified in Clauses 1 and 2 of this Article shall be made in case price indices see big fluctuations or the delegation of powers for public investment management is adjusted in relation to classification criteria for public investment projects or other important elements affecting classification criteria for public investment projects appear.

Article 12. Principles of public investment management

1. Compliance with the law on management and use of public investment funds.

2. Conformity with national socio-economic development strategies and five-year socio-economic development plans, and related master plans in accordance with the planning law.

3. Proper performance of responsibilities and powers of state management agencies, organizations and persons involved in the management and use of public investment funds.

4. Management of the use of public investment funds under regulations applicable to each funding source; assurance of concentrated, synchronous, quality, economical and efficient investment and resource balancing capability; avoidance of losses and waste.

5. Assurance of publicity and transparency in public investment activities.

Article 13. Contents of the state management of public investment

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

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

3. Monitoring, and providing information about, the management and use of public investment funds.

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

5. Handling violations, settling complaints and denunciations about public investment activities.

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

7. Undertaking international cooperation in public investment.

Article 14. Publicity and transparency in public investment

1. Contents to be made public and transparent in public investment include:

a/ Policies and laws on the management and use of public investment funds and the organization of implementation thereof;

b/ Principles, criteria and limits of allocation of public investment funds;

c/ Principles, criteria and bases for the determination of the list of projects in medium-term and annual public investment plans;

d/ Local public investment plans and programs; annual funds allocated for each public investment program and progress of implementation and fund disbursement for these programs;

dd/ List of projects in localities, including their size, total investments, schedules and locations; reports on assessment of projects’ overall impacts on localities where investment is made;

e/ Medium-term and annual plans for the allocation of funds for public investment activities, specifying funding sources, lists of projects and funding amounts allocated for projects;

g/ Actual mobilization of resources and other funding sources for the implementation of public investment projects;

h/ Progress and results of the implementation of plans, programs and projects;

i/ Progress of the implementation and disbursement of funds for projects;

k/ Results of the pre-acceptance test and evaluation of programs and projects;

l/ Finalization of public investment funds.

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

Article 15. Expenses for formulation, appraisal, monitoring, examination, evaluation and inspection of public investment plans, programs and projects

1. Expenses for the formulation and appraisal of investment policy proposal reports for public investment programs shall be covered by the sources of funds for current expenditures of agencies or units performing these tasks.

2. Expenses for the formulation and appraisal of prefeasibility study reports and investment policy proposal reports for projects shall be covered by investment preparation funds of projects.

3. Expenses for the formulation and appraisal of public investment plans shall be covered by the sources of funds for current expenditures of agencies or units formulating and appraising these plans.

4. Expenses for the monitoring, examination and evaluation of plans, programs and projects shall be covered by the sources of funds for current expenditures of agencies or units performing these tasks.

5. Expenses for inspection shall be current expenditures of inspection agencies or units.

6. For programs and projects financed by ODA loans or concessional loans of foreign donors, foreign donors are encouraged to provide financial assistance to pay expenses specified in this Article.

Article 16. Prohibited acts in public investment

1. Deciding on investment policy not in conformity with a strategy, master plan or plan; without determining funds and fund balancing capacity; or ultra vires and not according to the order and procedures prescribed by law.

2. Deciding on investment in programs or projects before the investment policy is decided by a competent authority or not in conformity with the objectives, scope and scale, or exceeding the total investment, of the investment policy decided by a competent authority. Deciding to adjust the total investment of a program or project in contravention of the law on public investment.

3. Abusing positions and powers for appropriation, self-seeking or corruption purposes in the management and use of public investment funds.

4. Program or project owners entering into collusion with consultancy organizations or contractors to make decisions on investment policy on or investment in programs or projects cause losses and waste of state funds and assets and national resources; harming or infringing upon lawful interests of citizens and community.

5. Giving or accepting bribes or acting as bribe brokers.

6. Requesting organizations or individuals to invest their own funds in programs or projects on which investment policy has not been decided or which have not been approved yet, which cause outstanding debts in capital construction.

7. Using public investment funds for improper purposes, for ineligible subjects or in excess of standards and norms prescribed by law.

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

9. Deliberately reporting on or providing inaccurate, untruthful and biased information affecting the formulation or appraisal of and decision on plans, programs or projects, and the monitoring, evaluation, examination, inspection, and handling of violations during the implementation of plans, programs or projects.

10. Deliberately destroying, deceiving, concealing or failing to store sufficient materials, documents and records related to the decision on investment policy, investment decision or implementation of programs or projects.

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

Chapter II

INVESTMENT POLICY AND DECISION ON PUBLIC INVESTMENT PROGRAMS AND PROJECTS

Section 1

FORMULATION AND APPRAISAL OF, AND DECISION ON, INVESTMENT POLICY

Article 17. Competence to decide on investment policy on programs and projects

1. The National Assembly may decide on investment policy on:

a/ National target programs;

b/ National important projects.

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

3. The Government shall prescribe the delegation of competence, order and procedures for deciding on investment policy on programs and projects using funds generated from lawful revenue sources of state agencies and public non-business units for appropriate investment in conformity with the regulations on financial autonomy of such agencies or units.

In case the programs and projects specified in this Clause are funded by the state budget, the competence, order and procedures must comply with the provisions of this Law applicable to state budget-funded programs and projects.

4. The Prime Minister may decide on investment policy on:

a/ The projects specified in Clause 1, Article 8 of this Law; and other group-A projects funded by the central budget and managed by ministries and central agencies;

b/ Investment programs and projects funded by ODA loans and concessional loans of foreign donors, except national target programs and public investment programs specified in Clauses 1 and 2 of this Article;

c/ Investment programs and projects funded by non-refundable ODA in the following cases: group-A and group-B programs and projects; programs and projects accompanied with a policy framework; programs and projects in the fields of national defense, security and religions; sector-approached programs; procurement of commodities requiring the Prime Minister’s permission; and Vietnam’s participation in regional programs and projects;

d/ Technical assistance projects funded by ODA loans and concessional loans of foreign donors in the stage of investment project preparation.

5. Ministers and heads of central agencies may decide on investment policy on group-B and group-C projects using public investment funds under their agencies and organizations’ management, except the projects specified in Clause 4 of this Article.

6. Provincial-level People’s Councils may decide on investment policy on group-A projects managed by their localities, except the projects specified in Clause 4 of this Article.

7. People’s Councils at all levels may decide on investment policy on group-B and group-C projects funded by local budgets, including target transfers from superior-level budgets and lawful sources of localities under their management, except the projects specified in Clause 4 of this Article.

In case of necessity, People’s Councils may assign same-level People’s Committees to decide on investment policy on projects specified in this Clause in conformity with local development objectives and orientations, financial capability and characteristics.

8. In cases of adjustment of investment policies on programs and projects, the competence to decide on investment policy on such programs and projects must comply with Clause 1, Article 34 of this Law.

Article 18. Conditions for decision on investment policy on programs and projects

1. Conforming to socio-economic development strategies and plans and related master plans in accordance with the planning law, which are decided or approved by competent authorities.

2. Not overlapping other programs or projects on which investment policy has been decided or investment decisions have been made.

3. Conforming to the capability of balancing public investment sources and capability of raising other funds, for programs or projects using different funding sources.

4. Conforming to the capability of borrowing and repaying public, government and municipal loans.

5. Ensuring socio-economic effectiveness, national defense and 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 under projects on which investment policy has been decided by competent authorities.

Article 19. Order and procedures for decision on investment policy on national target programs and national important projects

1. The agency assigned to prepare investment in a program or project shall:

a/ Assign an attached unit to make an investment policy proposal report, for a national target program, or a prefeasibility study report, for a national important project;

b/ Form a council to appraise the investment policy proposal report or prefeasibility study report;

c/ Finalize the investment policy proposal report or prefeasibility study report and submit it to the Prime Minister.

2. The Prime Minister shall establish the State Appraisal Council chaired by the Minister of Planning and Investment to appraise the investment policy proposal report of a national target program or the prefeasibility study report of a national important project.

3. The Government shall submit the investment policy on the national target program or national important project to the National Assembly for consideration and decision.

4. The National Assembly’s agencies shall verify the dossier of the national target program or national important project submitted by the Government.

5. The National Assembly shall consider and adopt a resolution on investment policy on the national target program or national important project. The principal contents of such resolution include objectives, size, total investment, main technology, location, implementation time, schedule and mechanisms, solutions and policies.

Article 20. Dossier of decision on investment policy on a national target program or national important project

1. The Government’s report.

2. The investment policy proposal report for a national target program, or the prefeasibility study report for a national important project.

3. Appraisal report of the State Appraisal Council.

4. Other relevant documents.

Article 21. Procedures for, and contents of, verification of investment policy on a national target program or national important project

1. Verification procedures are prescribed as follows:

a/ At least 60 days before the opening day of the National Assembly’s session, the Government shall send a dossier of decision on investment policy on the 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 persons to report on issues in contents of the national target program or national important project; and conduct field surveys on these issues;

c/ Agencies, organizations and persons shall fully provide information and documents to serve the verification at the request of the agency in charge of verification.

2. Contents of verification include:

a/ Satisfaction of the criteria for identifying a national target program or national important project;

b/ Necessity of investment in the program or project;

c/ Law compliance;

d/ Conformity with the socio-economic development strategy and plan and relevant master plan in accordance with the planning law;

dd/ Basic information about the program or project, including its objectives, size, investment form, scope, location, land area to be used, implementation time and schedule, main technology selection plan, environmental protection solution, funding sources and capability of investment recovery and loan repayment;

e/ Assessment of socio-economic effectiveness and assurance of national defense and security and sustainable development;

g/ Assessment of conformity with the land use master plan, plans on allocation and land zoning off of related master plans and other natural resource-related master plans, and population relocation, sedentary farming and resettlement, for national important projects to be implemented in the country;

h/ On-spot risk assessment, for offshore investment projects of national importance.

Article 22. Order and procedures for decision on investment policy on public investment programs under the Government’s competence

1. A program owner shall:

a/ Assign an attached unit to make an investment policy proposal report;

b/ Assign a unit with the appraisal function or form a council to appraise the investment policy proposal report;

c/ Finalize the investment policy proposal report and submit it to the Prime Minister.

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

3. A program owner shall finalize the investment policy proposal report based on appraisal opinions mentioned in Clause 2 of this Article and submit it to the Government.

4. The Government shall consider and decide on investment policy on the program, including its objectives, scope, size, total investment, and implementation time, schedule, solutions and policies.

Article 23. Order and procedures for decision on investment policy on group-A projects under the Prime Minister’s competence

1. A minister or the head of a central agency or locality shall:

a/ Assign an attached unit or a specialized agency to prepare the prefeasibility study report;

b/ Assign a unit or an agency with the appraisal function or form a council to appraise the prefeasibility study report;

c/ Direct the unit or agency mentioned at Point a of this Clause to finalize the prefeasibility study report for submission to the Prime Minister.

For group-A projects funded by ODA loans or concessional loans of foreign donors and projects specified in Clause 1, Article 8 of this Law, of which the prefeasibility study report is prepared by a provincial-level People’s Committee, such Committee shall submit the report to the same-level People’s Council for opinion before submitting it to the Prime Minister,

2. The Prime Minister shall decide to form an interdisciplinary appraisal council or assign an agency to take charge of the appraisal of the prefeasibility study report to serve a basis for deciding on investment policy on projects.

The interdisciplinary appraisal council or agency in charge of appraisal may invite an expertise or experienced organization or individual to participate in the appraisal of the prefeasibility study report, or request the project owner to select expertise or experienced organization or individual to do so.

3. The Ministry of Planning and Investment shall assume the prime responsibility for appraising the funding sources and fund balancing capability for submission to the interdisciplinary council for appraisal or agency in charge of the appraisal.

4. The interdisciplinary appraisal council or agency in charge of appraisal specified in Clause 2 of this Article shall send its appraisal opinions to the concerned ministry, central agency or locality for finalizing the prefeasibility study report for submission to the Prime Minister.

5. The Prime Minister may decide on the investment policy covering its objectives, scope, total investment, funding source structure, location, implementation time and schedule, and the draft fund allocation plan.

Article 24. Order and procedures for decision on investment policy on group-A projects under the competence of provincial-level People’s Councils

1. The chairperson of a provincial-level People’s Committee shall:

a/ Assign a specialized agency or district-level People’s Committee to prepare the prefeasibility study report;

b/ Form an appraisal council chaired by the chairperson or a vice chairperson of the provincial-level People’s Committee, with the provincial-level specialized agency in charge of public investment management acting as the standing body of the council and related agencies as members of the council in order to appraise the prefeasibility study report, funding sources and fund balancing capability;

c/ Direct the agency mentioned at Point a of this Clause to finalize the prefeasibility study report based on appraisal opinions.

2. A provincial-level People’s Committee shall submit to the same-level People’s Council for deciding on investment policy, covering objectives, scope, total investment, funding source structure, location, implementation time and schedule, and the draft fund allocation plan.

Article 25. Order and procedures for decision on investment policy on a program or project funded by ODA loans or concessional loans of foreign donors

1. Ministries, central agencies and localities shall make program or project proposals on use of ODA loans or foreign concessional loans for submission to the Ministry of Planning and Investment, Ministry of Finance and related agencies in accordance with law.

2. The Ministry of Finance shall assume the prime responsibility for determining preferential elements, assessing impacts of ODA loans or concessional loans of foreign donors on public debt safety criteria and determining domestic financial mechanisms in accordance with the Law on Public Debt Management.

3. The Ministry of Planning and Investment shall summarize opinions of related ministries, central agencies and localities, assess the necessity of the program or project, preliminarily assess the feasibility and socio-economic effectiveness of, and environmental impacts (if any) and impacts of the program or project on the medium-term public investment plan, and select appropriate program or project proposals for submission to the Prime Minister for consideration and decision.

4. The Prime Minister shall consider and approve the program or project proposals.

5. For a national target program or national important project, the order and procedures for deciding on investment policy must comply with Articles 19, 20 and 21 of this Law.

6. For a program under the investment policy decision-making competence of the Government, the order and procedures for deciding on investment policy must comply with Article 22 of this Law.

7. For a group-A project, the order and procedures for deciding on investment policy must comply with Article 23 of this Law.

8. For other programs or projects under the investment policy decision-making competence of the Prime Minister as provided at Points b, c and d, Clause 4, Article 17 of this Law, the order and procedures for deciding on investment policy are prescribed as follows:

a/ The managing agency shall send an investment policy proposal report to the Ministry of Planning and Investment;

b/ The Ministry of Planning and Investment shall assume the prime responsibility for appraising the investment policy proposal report, funding sources and fund balancing capability for submission to the Prime Minister;

c/ The Prime Minister shall consider and decide on investment policy.

9. For a program or project falling outside the investment policy decision-making competence of agencies, organizations or persons specified in Clauses 1, 2, 3 and 4, Article 17 of this Law, the order and procedures for deciding on investment policy are prescribed as follows:

a/ The managing agency shall seek opinions on the investment policy proposal report from the Ministry of Planning and Investment, Ministry of Finance and related agencies;

b/ Based on opinions of related agencies, the managing agency shall organize the appraisal and decide on investment policy.

10. Project proposals are not required for programs and projects funded by non-refundable ODA, which are not accompanied with loans.

Article 26. Order and procedures for decision on investment policy on a group-B or group-C project using public investment funds managed by a ministry or central agency

1. A minister or the head of a central agency shall:

a/ Assign an attached unit to prepare the investment policy proposal report;

b/ Establish an appraisal council or assign a functional unit to appraise the investment policy proposal report, funding sources and fund balancing capability;

c/ Direct the unit mentioned at Point a of this Clause to finalize the investment policy proposal report based on appraisal opinions.

2. Based on appraisal opinions mentioned in Clause 1 of this Article, the minister or head of the central agency shall issue a decision on investment policy, covering objectives, scope, total investment, funding source structure, location, implementation time and schedule, and the draft fund allocation plan.

Article 27. Order and procedures for decision on investment policy on a group-B or group-C project using public investment funds managed by localities

1. The chairperson of a People’s Committee shall:

a/ Assign a specialized agency or lower-level People’s Committee to prepare the investment policy proposal report;

b/ Establish an appraisal council or assign a functional unit to appraise the investment policy proposal report, funding sources and fund balancing capability, for a program or project using public investment funds under its management;

c/ Direct the unit mentioned at Point a of this Clause to finalize the investment policy proposal report based on appraisal opinions.

2. A People’s Committee shall submit an investment policy to same-level People’s Council for decision, which must state objectives, scope, total investment, funding source structure, location, implementation time and schedule, draft fund allocation plan, mechanisms and solutions, and implementation policies.

Article 28. Principles, competence, order and procedures for decision on investment policy on public investment projects in foreign countries and investment projects in the form of public-private partnership

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

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

Article 29. Contents of investment policy proposal reports for public investment programs

Principal contents of an investment policy proposal report for a public investment program include:

1. Necessity of the program to achieve strategic objectives, related socio-economic development plans and master plans in accordance with the planning law;

2. Objectives, scope and size of the program;

3. Estimated total investment and resource structure for the program implementation,  including the list of projects, capability of balancing public investment funds and mobilizing other funds and resources;

4. Tentative fund allocation plans and program implementation schedule that must take into account practical conditions and capability of mobilizing different resources in a reasonable order of priority to ensure concentrated and effective investment;

5. Determination of related expenses to be incurred during the program implementation and operation expenses after the completion of the program;

6. Preliminary analysis and assessment of environmental and social impacts and calculation of socio-economic benefits of the program;

7. Identification of component projects of the program in accordance with law;

8. Implementation solutions.

Article 30. Contents of prefeasibility study reports for national important projects and group-A projects

1. Contents of prefeasibility study reports for national important projects and group-A projects with construction components must comply with the construction law.

2. Principal contents of a prefeasibility study report for a national important project or group-A project without construction components include:

a/ Necessity of investment, conditions for investment and evaluation of conformity with relevant master plans in accordance with the regulations on investment master plans and plans;

b/ Forecast of demands and scope of service and proposed objectives, scope and form of investment;

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

d/ Preliminary analysis and selection of technologies, techniques and conditions for supplying materials, equipment, raw materials, energy, services and infrastructural facilities;

dd/ Preliminary analysis and selection of investment plans and sizes of investment items;

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

g/ Preliminary analysis and assessment of environmental and social impacts;

h/ Preliminary estimation of total investment, fundraising plans and funding source structure;

i/ Preliminary estimation of expenses for operation, maintenance and overhaul during the project operation;

k/ Tentative fund allocation plan and project implementation schedule and investment phasing;

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

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

n/ Implementation solutions.

Article 31. Contents of investment policy proposal reports for group-B and group-C projects

Principal contents of an investment policy proposal report for a group-B or group-C project include:

1. Necessity of investment, conditions for investment and evaluation of conformity with relevant master plans in accordance with the regulations on investment master plans and plans;

2. Objectives, scale, location and scope of investment;

3. Estimation of total investment, structure of funding sources, capability of balancing public investment funds, and raising of other funds and resources for the project implementation;

4. Schedule of investment implementation and fund allocation plan in conformity with practical conditions and capability of mobilizing resources in a rational order of priority to ensure concentrated and effective investment;

5. Preliminary estimation of relevant expenses during the implementation of the project and expenses for operation of the project after it is completed;

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

7. Division of component projects (if any);

8. Implementation solutions.

Article 32. Dossiers, contents and time for appraisal of, and investment policy decision on, programs and projects

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

Article 33. Delegation of powers for appraisal of funding sources and fund balancing capability for programs and projects

1. The appraisal of funding sources and fund balancing capability constitutes a content of the appraisal of investment policy.

2. The Ministry of Planning and Investment shall take charge of appraising funding sources and fund balancing capability for:

a/ National target programs;

b/ National important projects;

c/ Public investment programs on which investment policy is decided by the Government;

d/ Public investment programs and projects on which investment policy is decided by the Prime Minister.

3. Ministers or heads of central agencies shall assign a specialized public investment management agency to assume the prime responsibility for, and coordinate with related agencies in, conducting appraisal of funding sources and fund balancing capability of projects financed with public investment funds under management of their ministries or agencies within the total medium-term public investment funds notified by the Prime Minister for the following period and the total medium-term public investment funds decided by the National Assembly for ministries or central agencies in the ongoing period, except the projects defined in Clause 2 of this Article.

4. Chairpersons of People’s Committees at all levels shall assign a specialized public investment management agency to assume the prime responsibility for, and coordinate with related agencies in, conducting appraisal of funding sources and fund balancing capability of programs and projects financed with public investment funds under management of local administrations within the total medium-term public investment funds notified by the Prime Minister or competent authorities for the following period, total medium-term public investment funds decided by the National Assembly or People’s Councils at all levels for localities, and local budgets’ actual excessive revenues for development investment (if any), except the projects defined in Clause 2 of this Article.

Article 34. Adjustment of investment policies

1. The authorities that decide on investment policies for programs or projects are competent to decide on adjustment of the investment policies for such programs or projects, and shall take responsibility for their decision.

2. The order and procedures for deciding on adjustment of investment policies must comply with:

a/ Articles 19, 20, 21, 22, 25 and 27 of this Law, for public investment programs;

b/ Articles 19, 20, 21 and 25 of this Law, for national important projects;

c/ Articles 23, 24 and 25 of this Law, for group-A projects; or,

d/ Articles 25, 26 and 27 of this Law, for group-B and group-C projects.

3. Dossiers submitted to competent authorities for decision on adjustment of investment policies for programs or projects must comply with the Government’s regulations.

Section 2

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

Article 35. Competence to decide on investment in programs and projects

1. The Prime Minister has the competence to decide on investment in:

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

b/ Public investment programs on which investment policy has been decided by the Government;

c/ Programs and projects financed by ODA loans or concessional loans of foreign donors in the fields of security, national defense and religion, and other programs and projects in accordance with the Government’s regulations.

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

a/ Decide on investment in group-A, group-B and group-C projects financed by public investment funds under their management, except the projects prescribed at Point c, Clause 1 of this Article;

b/ Delegate or authorize their subordinate agencies to decide on investment in group-B and group-C projects prescribed at Point a of this Clause.

3. Chairpersons of provincial-level People’s Committees have the competence to decide on investment in:

a/ Public investment programs on which investment policy has been decided by provincial-level People’s Councils;

b/ Group-A, group-B and group-C projects under management of provincial-level local administrations, except the projects prescribed at Point c, Clause 1 of this Article.

4. Chairpersons of district- or commune-level People’s Committees have the competence to decide on investment in:

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

b/ Group-B and group-C projects under management of district- or commune-level local administrations, except the projects prescribed at Point c, Clause 1 of this Article.

5. In case of adjusting decisions on investment in programs or projects, the competence to decide on investment in programs or projects must comply with Clause 3, Article 43 of this Law.

6. The Government shall prescribe the delegation of competence, order and procedures for decision on investment in programs or projects financed by lawful revenues of state agencies or public non-business units for investment in accordance with regulations on financial autonomy of agencies or units.

7. Ministers, or heads of central agencies or local administrations who have the competence to decide on investment in programs or projects shall take responsibility for investment efficiency of the approved programs or projects.

Article 36. Bases for formulation and appraisal of, and investment decision on, a program or project

1. Socio-economic development strategy and plan.

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

3. Necessity of the program or project.

4. Objectives of the program or project.

5. Investment policy decided by a competent authority.

6. Capability of mobilizing and balancing public investment funds and other funding sources for implementation of the program or project.

Article 37. Order of formulation and appraisal of, and investment decision on, national target programs

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

2. The Prime Minister shall form a state council for appraisal of programs with the Minister of Planning and Investment acting as the council’s chairperson.

3. The State Appraisal Council shall appraise the contents prescribed in Clause 1, Article 44, and Clause 2, Article 45, of this Law.

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

Article 38. Order of formulation and appraisal of, and investment decision on, public investment programs on which investment policy is decided by the Government

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

2. The Ministry of Planning and Investment shall appraise the contents prescribed in Clause 1, Article 44, and Clause 2, Article 45, of this Law.

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

Article 39. Order of formulation and appraisal of, and investment decision on, public investment programs on which investment policy is decided by People’s Councils

1. Based on the investment policy decided by the People’s Councils, program owners shall make feasibility study reports for the programs and appraise the programs in accordance with law, and submit them to same-level People’s Committees.

2. People’s Committees shall appraise the contents prescribed in Clause 1, Article 44, and Clause 2, Article 45, of this Law.

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

Article 40. Order of formulation and appraisal of, and investment decision on, projects

1. The order of formulation and appraisal of, and investment decision on, national important projects is prescribed as follows:

a/ Based on the investment policy decided by the National Assembly, project owners shall make feasibility study reports for the projects and report them to the managing agencies for consideration and submission to the Prime Minister;

b/ The Ministry of Planning and Investment shall propose the Prime Minister to form a state council for appraisal of the projects;

c/ The State Appraisal Council shall appraise the contents prescribed in Clauses 2 and 3 of Article 44, and Clause 2 of Article 45, of this Law;

d/ Based on the appraisal opinions, project owners shall finalize feasibility study reports for the projects and report them to the managing agencies for approval, and send them to the State Appraisal Council;

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

2. The order of formulation and appraisal of, and investment decision on, projects which are not mentioned in Clause 1 of this Article and have no construction components is prescribed as follows:

a/ Based on the investment policy decided by competent authorities, project owners shall make feasibility study reports for the projects and submit them to competent authorities for investment decision;

b/ Ministers, heads of central agencies or chairpersons of People’s Committees at all levels shall form a council or assign a specialized public investment management agency to appraise the projects;

c/ The appraisal council or specialized public investment management agency shall appraise the contents prescribed in Clause 2, Article 44, and Clause 2, Article 45, of this Law;

d/ Based on the appraisal opinions, project owners shall finalize feasibility study reports for the projects for competent authorities to consider and decide on investment.

3. The order of formulation and appraisal of, and investment decision on, projects with construction components must comply with the construction law and other relevant laws, except national important projects.

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

5. The order of formulation, appraisal and approval of fund estimates for investment preparation and planning tasks is prescribed as follows:

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

b/ Ministers, heads of central agencies or chairpersons of People’s Committees at relevant levels shall form a council or assign a specialized public investment management agency to appraise fund estimates for investment preparation and planning tasks;

c/ The appraisal council or specialized public investment management agency shall appraise the fund estimates in accordance with the regulations on standards and norms of funds for investment preparation and planning tasks;

d/ Based on the appraisal opinions, project owners shall finalize fund estimates for investment preparation and planning tasks for ministers, heads of central agencies or chairpersons of People’s Committees at relevant levels for approval.

6. Principles, competence, contents, order and procedures for formulation, appraisal, and investment decision on, overseas public investment projects must comply with the Government’s regulations.

Article 41. Order of formulation and appraisal of, and investment decision on, programs and projects financed by ODA loans or concessional loans of foreign donors

1. After obtaining decisions on investment policy, the managing agencies shall issue decisions on project owners, and assign project owners to work with donors to make feasibility study reports for programs or projects, and submit them to competent authorities for decision on investment in the programs or projects.

2. For programs or projects on which investment policy is decided by the Prime Minister prescribed at Point c, Clause 1, Article 35 of this Law:

a/ The order of formulation and appraisal of, and investment decision on, national target programs and national important projects must comply with Article 37, and Clause 1, Article 40, of this Law;

b/ The Ministry of Planning and Investment shall appraise feasibility study reports for other programs or projects, and submit them to the Prime Minister for consideration and decision.

3. Heads of the managing agencies shall organize the appraisal of, and make investment decision on, programs and projects falling within their competence.

4. For programs or projects financed by ODA loans or concessional loans of foreign donors which are subject to the domestic financial mechanism in the form of on-lending, their formulation and appraisal must comply with this Law; at the same time, financial plans of the programs or projects and project owners’ financial capability shall be appraised in accordance with the law on public debt management and other relevant laws.

5. The agencies or units in charge of appraisal shall collect opinions of related agencies and consider the order, procedures and schedule of implementation of programs or projects and opinions of donors.

Article 42. Order and procedures for investment decision on emergency public investment projects

1. Ministers, heads of central agencies or chairpersons of People’s Committees at all levels have the competence to decide on, and shall take responsibility for the implementation of, emergency public investment projects under the management of their ministries, agencies or local administrations.

2. Ministers, heads of central agencies or chairpersons of People’s Committees at all levels shall decide on investment according to the following order and procedures:

a/ To assign a specialized agency or competent unit to conduct surveys and make project proposal reports;

b/ To assign a specialized public investment management agency or competent unit to appraise the projects;

c/ To direct agencies and units prescribed at Point a of this Clause to finalize the project proposal reports and submit them to competent authorities for consideration and decision in accordance with Article 35 of this Law.

3. Ministers or heads of central agencies shall report on the implementation of emergency public investment projects to the Government. Chairpersons of People’s Committees shall report on the implementation of emergency public investment projects to the same-level People’s Councils at the nearest session.

Article 43. Adjustment of programs and projects

1. A program shall be adjusted in the following cases:

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

b/ Upon adjustment or cessation of the investment policy under a competent authority’s decision;

c/ Upon changes in the investment objective or scope, or costs or time of the program implementation due to a force majeure event.

2. A project shall be adjusted in the following cases:

a/ Upon adjustment or cessation of the investment policy under a competent authority’s decision;

b/ Upon adjustment of the relevant master plan which directly impacts the project;

c/ Upon changes in the investment objective or scope, or costs and time of the project implementation due to a force majeure event;

d/ Due to a natural disaster, fire or another force majeure event after the project’s insurance period expires;

dd/ Upon occurrence of elements that are likely to bring about higher financial or socio-economic efficiency as a result of the project adjustment, as appraised by a competent agency;

e/ The price index during the project implementation period is higher than that used to calculate the inflation provision in the project’s total investment decided by a competent authority.

3. The authorities that decide on investment in programs or projects are competent to decide on the adjustment of such programs or projects, and shall take responsibility for their decision.

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

5. In case the adjustment of a project makes such project’s total investment exceed the total investment decided by a competent authority, such project must comply with the order and procedures for obtaining decision on adjustment of the investment policy before a competent authority decides on adjustment of the project.

6. Contents, order and procedures for formulation and appraisal of adjusted programs or projects must comply with the Government’s regulations. 

Article 44. Contents of feasibility study reports of programs and projects

1. A feasibility study report of a public investment program must include the following principal contents:

a/ Necessity of the investment;

b/ Assessment of current conditions of the sector or field relevant to the objectives and the scope of the program; urgent issues to be addressed in the program;

c/ General and specific objectives, outcomes and major targets in each stage;

d/ Scope and size of the program;

dd/ Component projects of the program that should be implemented in order to achieve the objectives of the program, order of priority and time for implementation of such projects;

e/ Estimated total fund for implementing the program, allocation of funds based the objectives, component projects and time for implementation; funding sources and fund raising plan;

g/ Proposed time and schedule of program implementation;

h/ Solutions for implementing the program; mechanisms and policies applicable to the program; possibility of integration of the program with other programs;

i/ Requirements for international cooperation (if any);

k/ Organization of the program implementation;

l/ Evaluation of overall socio-economic efficiency of the program.

2. A feasibility study report of a project without construction components must include the following principal contents:

a/ Necessity of the investment;

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

c/ Analysis and determination of objectives, tasks and outcomes of the project; analysis and selection of an appropriate scale for the project; investment phasing; selection of investment form;

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

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

e/ Environmental impact assessment and environmental protection solutions;

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

h/ Schedule of project implementation; major time points for investment;

i/ Total investment, structure of funding sources, and fund raising plan;

k/ Costs for operation, maintenance, overhaul in the stage of project operation;

l/ Organization of project management, covering determination of the project owner, analysis and selection of a form of project implementation management, relationships and responsibilities of entities involved in the project implementation, and organization of the management apparatus for the project operation;

m/ Analysis of investment efficiency, covering socio-economic, national defense and security efficiency and impacts; recoverability of invested funds (if any).

3. Contents of a feasibility study report of a project with construction components must comply with the construction law and other relevant laws.

Article 45. Dossiers, contents and time for appraisal of and decision on programs and projects

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

a/ A report for appraisal of the program or project;

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

c/ Other relevant documents.

2. A dossier for decision on a program or project, and contents and time for appraisal of and decision on a program or project must comply with the Government’s regulations.

Chapter III

FORMULATION, APPRAISAL, APPROVAL AND ASSIGNMENT OF PUBLIC INVESTMENT PLANS

Section 1

GENERAL PROVISIONS

Article 46. Classification of public investment plans

1. Public investment plans may be classified by planning period, including:

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

b/ Annual public investment plans, which serve the implementation of medium-term public investment plans in conformity with the objectives of annual socio-economic development plans and balancing of annual public investment funds.

2. Public investment plans may be classified by management authority, including:

a/ National public investment plans;

b/ Public investment plans of ministries and central agencies;

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

3. Public investment plans may be classified by funding source, including:

a/ Investment plans using central budget funds, including sector-based investment, public investment programs, and state investment in public-private partnership projects in accordance with the law on the state budget.

b/ Investment plans using local budget funds, including sector-based investment, public investment programs, and state investment in public-private partnership projects in accordance with the law on the state budget.

c/ Investment plans using lawful revenues of state agencies or public non-business units which are reserved for investment.

Article 47. Bases for formulation of medium-term or annual public investment plans

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

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

b/ The socio-economic development strategy; 5-year socio-economic development plans of the country, sector, field and locality; 5-year financial plan; 5-year plans on borrowing and payment of public debts; and priority investment objectives in the 5-year plans of the country, sector, field and locality;

c/ Relevant master plans in accordance with the planning law;

d/ Demands for, and forecast of the capability of raising, investment funding sources for socio-economic infrastructure construction, and capability of balancing funds from the state budget;

dd/ Forecast of the impacts of global and domestic conditions on the development and raising of investment funding sources;

e/ Mechanisms and policies to attract investment funds from different economic sectors for socio-economic infrastructure construction.

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

a/ The situation and results of implementation of the socio-economic development plans of the country, sector, field or locality; results of implementation of the previous year’s public investment plan;

b/ Annual socio-economic development plan;

c/ Medium-term public investment plan;

d/ Demands for and capability of balancing resources for socio-economic infrastructure construction in the planning year.

Article 48. Principles of formulation of annual and medium-term public investment plans

1. Conformity with the objectives of the relevant socio-economic development strategies, and 5-year and annual socio-economic development plans of the country, sectors, fields, localities and approved master plans, 5-year financial plans, and 5-year plans on borrowing and payment of public debts.

2. Conformity with the capability of balancing public investment funds and attracting funds from other economic sectors; assurance of macro-balance and priority of public debt safety.

3. The allocation of public investment funds must comply with the principles, criteria and norms in each stage as approved by competent authorities.

4. Funds shall be allocated with priority for the sectors, fields and territories according to the development objectives and orientations in each period.

5. Assurance of publicity, transparency and equality.

6. Assurance of centralized and consistent management in terms of objectives, mechanisms and policies; delegation of investment management powers to give more autonomy to the ministries, central agencies and localities in accordance with law with a view to raising investment efficiency.

7. Annual public investment plans must conform to approved medium-term public investment plans.

Article 49. Contents of a medium-term public investment plan report submitted to a competent authority for approval

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

2. Socio-economic development objectives; sector-based objectives and orientations for medium-term investment structure. Sector-based classification must comply with the Law on the State Budget.

3. Capability of mobilizing and balancing funding sources; estimated total investment for achieving the objectives and performing the tasks of socio-economic development and development of sectors and fields in the medium term, including funds for performance of planning and investment preparation tasks, implementation of projects, repayment of advanced amounts, and payment of other loans borrowed by local budgets for investment purpose.

4. Total state budget funds for medium-term public investment plans, including the central budget and local budgets; total central budget funds for each sector, field, estimated fund amount allocated for each ministry or central agency, and target transfers from the central budget to local budgets, for reports submitted to the National Assembly; or total investment for each agency or organization that is assigned an public investment fund plan financed by local budget funds for each sector and field, and target transfers to lower-level local budgets, for reports submitted to People’s Councils at relevant levels.

5. Principles of and criteria for allocation of funds under medium-term public investment plans.

6. Order of priority, selection of the list of projects and fund amount allocated for each project in the medium term in conformity with the capability of balancing public investment funds and raising funds from other sources for achieving the objectives and performing the tasks and the orientations under the relevant 5-year socio-economic development plan.

7. Implementation solutions and expected results.

Article 50. Contents of an annual public investment plan report submitted to a competent authority for approval

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

2. Public investment orientations in the planning year.

3. Capability of raising and balancing funding sources in the planning year.

4. Selection of the list of projects and fund amount allocated for each project on such list under the medium-term public investment plan and the capability of balancing funding sources under the annual plan.

5. Management and implementation solutions and expected results.

Article 51. Principles of allocation of funds under medium-term or annual public investment plans for programs and projects

1. To achieve and follow the development objectives and orientations set out in the approved socio-economic development strategies and plans and relevant master plans.

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

3. To allocate public investment funds in a centralized manner for completing and speeding up the implementation of national target programs, national important projects, and key programs and projects of great significance to the socio-economic development of the country, local administrations of different levels, and sectors.

4. In each sector or field, funds shall be allocated in the following order of priority:

a/ Projects that have been completed, handed over and put into use but have not yet received sufficient funds;

b/ Counterpart funds for projects financed by ODA loans and concessional loans of foreign donors;

c/ The State’s investments in public-private partnership projects;

d/ Projects in the transitional stage which are carried out according to approved schedules;

dd/ Projects expected to be completed in the planning period;

e/ New projects which satisfy the requirements prescribed in Clause 5 of this Article.

5. The allocation of funds planned for new programs and projects shall satisfy the following requirements:

a/ The programs or projects are necessary and eligible to be allocated funds as planned in accordance with Articles 52 and 53 of this Law;

b/ Funds have been allocated to pay outstanding debts in capital construction in accordance with Clause 4, Article 101 of this Law;

c/ Sufficient funds shall be allocated for completing the programs or projects according to the approved investment schedules.

6. The National Assembly shall decide on levels, use and time of use of the central budget’s contingencies under national medium-term public investment plans. People’s Councils at relevant levels shall decide on levels, use and time of use of contingencies of budgets of authorities under their management under medium-term public investment plans.

Article 52. Conditions for other public investment programs, projects, tasks and objects to be included in medium-term public investment plans

To be included in medium-term public investment plans, other public investment programs, projects, tasks and objects must comply with regulations on principles and criteria for the allocation of public investment funds and meet one of the following conditions:

1. Being projects in the transitional stage which are on the list under the previous period’s medium-term public investment plan;

2. Being programs or projects on which investment policies have been decided by competent authorities; for new projects, the time limit for allocating funds is 6 years, for group-A projects, 4 years, for group-B projects, or 3 years, for group-C projects.

In case of non-satisfaction of the above-mentioned time limit, the Prime Minister shall decide on the time limit for allocating funds for projects financed by the central budget, and provincial-level People’s Councils shall decide on the time limit for allocating funds for projects financed by local budgets;

3. Being tasks or projects prescribed in Clause 6, Article 18 of this Law;

4. Being the objects prescribed in Clauses 4 and 6, Article 5 of this Law.

Article 53. Conditions for other public investment programs, projects, tasks and objects to be included in annual public investment plans

1. Other public investment programs, projects, tasks or objects are included in medium-term public investment plans, except emergency public investment projects.

2. Other public investment programs, projects, tasks or objects have been decided by competent authorities.

Article 54. Funds for investment preparation, funds for implementation of planning tasks and funds for implementation of projects under medium-term or annual public investment plans

1. Funds for investment preparation shall be allocated for formulation and appraisal of, and decision on investment policies for, projects; or for formulation, appraisal and decision on investment in projects.

2. Funds for implementation of planning tasks shall be allocated for formulation, appraisal, decision or approval, publicization and adjustment of master plans in accordance with the planning law.

3. Funds for project implementation shall be allocated for ground clearance, making of technical designs, construction drawing designs and cost estimates for projects or items of projects, and construction of projects, and other jobs under decisions on approval of projects.

Article 55. Order of formulation and appraisal of medium-term public investment plans

1. Before June 30 of the fourth year of the current period’s medium-term public investment plan, the Ministry of Planning and Investment shall formulate and submit orientations and criteria for the allocation of estimated medium-term public investment funds for ministries, central agencies and localities.

2. Before July 31 of the fourth year of the current period’s medium-term public investment plan, the Prime Minister shall promulgate a directive on the formulation of a medium-term public investment plan for the next period with the estimated total public investment fund equal to the total public investment fund under the current period’s medium-term public investment plan, and notify the estimated total public investment funds allocated for ministries, central agencies and localities as a basis for deciding on investment policy for programs and projects in the next period.

3. Before August 15 of the fourth year of the current period’s medium-term public investment plan, the Ministry of Planning and Investment shall guide ministries, central agencies and localities on objectives, requirements, contents, time and schedule for formulating medium-term public investment plans.

4. Based on the Prime Minister’s regulations and the Ministry of Planning and Investment’s guidance, ministries and central agencies shall:

a/ Assign their specialized public investment management agencies to guide the formulation of medium-term public investment plans;

b/ Assign attached agencies or units that use public investment funds to formulate medium-term public investment plans for the next period within the ambit of their assigned tasks, and report them to superior agencies for consideration according to schedule under the Prime Minister’s regulations and the Ministry of Planning and Investment’s guidance;

c/ Assign their specialized public investment management agencies to appraise medium-term public investment plans for the next period according to schedule under the Prime Minister’s regulations and the Ministry of Planning and Investment’s guidance;

d/ Assign their specialized public investment management agencies to formulate medium-term public investment plans and submit them to competent authorities for consideration and finalization and send them to the Ministry of Planning and Investment and Ministry of Finance according to schedule under the Prime Minister’s regulations and the Ministry of Planning and Investment’s guidance.

5. Based on the Prime Minister’s regulations and the Ministry of Planning and Investment’s guidance, provincial-level People’s Committees shall:

a/ Guide local agencies and units to formulate medium-term public investment plans for the next period;

b/ Assign agencies and units that use public investment funds to organize the formulation and appraisal of medium-term public investment plans for the next period within the assigned tasks and funding sources under their management and report them to superior agencies for consideration and send them to provincial-level specialized public investment management agencies;

c/ Organize the appraisal of, or assign provincial-level specialized public investment management agencies to appraise, medium-term public investment plans of provincial-level departments and sectors;

d/ Assign provincial-level specialized public investment management agencies to formulate provincial-level medium-term public investment plans for the next period and submit them to provincial-level People’s Committees for consideration;

dd/ Submit medium-term public investment plans for the next period to provincial-level People’s Councils for opinion;

e/ Finalize medium-term public investment plans for the next period and send them to the Ministry of Planning and Investment and Ministry of Finance.

6. District- and commune-level People’s Committees shall formulate and appraise, or assign specialized public investment management agencies to formulate and appraise their respective medium-term public investment plans for the next period, and submit them to same-level People’s Councils for opinion and send them to higher-level People’s Committees as prescribed at Point a, Clause 5 of this Article.

7. Before January 31 of the fifth year of the current period’s medium-term public investment plan, the Government shall anticipate the capability of balancing state budget funds for development investment for the next period.

8. From February 1 to April 30 of the fifth year of the current period’s medium-term public investment plan, the Ministry of Planning and Investment shall assume the prime responsibility for appraising ministries’, central agencies’ or localities’ plans and schemes on allocation of central budget funds under medium-term public investment plans.

9. After obtaining appraisal opinions of the Ministry of Planning and Investment, ministries and central agencies shall finalize medium-term public investment plans for the next period and send them to the Ministry of Planning and Investment and Ministry of Finance before June 30 of the fifth year of the current period’s medium-term public investment plan.

10. After obtaining the appraisal opinions of the Ministry of Planning and Investment, provincial-level People’s Committees shall:

 a/ Assign district- and commune-level People’s Committees to finalize their respective medium-term public investment plans, report them to the same-level People’s Council for opinion and send them to provincial-level People’s Committees before May 31 of the fifth year of the current period’s medium-term public investment plan;

b/ Assign provincial-level specialized public investment management agencies to finalize their medium-term public investment plans, report them to provincial-level People’s Committees for submission to same-level People’s Councils before June 15 of the fifth year of current period’s medium-term public investment plan;

c/ Finalize medium-term public investment plans for the next period and send them to the Ministry of Planning and Investment and Ministry of Finance before June 30 of the fifth year of the current period’s medium-term public investment plan.

11. Before July 31 of the fifth year of the current period’s medium-term public investment plan, the Ministry of Planning and Investment shall summarize national medium-term public investment plan and report it to the Government.

Article 56. Order of formulation and appraisal of annual public investment plans

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

2. Before June 15 every year, the Ministry of Planning and Investment shall provide ministries, central agencies and localities with guidance on the socio-economic development plan and objectives, requirements, contents, time and schedule for the formulation of the next-year public investment plan.

3. Before June 30 every year, ministries, central agencies and localities shall guide lower-level agencies and units to formulate the next-year public investment plan.

4. Before July 20 every year, specialized public investment management agencies shall formulate, appraise and summarize the next-year public investment plan within their assigned tasks and funding sources under their management, and report them to same-level People’s Committees.

5. Before July 25 every year, People’s Committees of a level shall report the draft public investment plan for the next year to the same-level People’s Councils for approval.

6. Before July 31 every year, ministries, central agencies and localities shall finalize the draft public investment plan for the next year and send it to the Ministry of Planning and Investment and Ministry of Finance.

7. Before August 15 every year, the Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, estimating state budget revenues and expenditures and development investment expenses from the state budget for the next-year plan. The Ministry of Planning and Investment shall notify the central budget’s development investment funds to be allocated to ministries, central agencies and localities for the next-year plan.

8. Before August 25 every year, ministries, central agencies and localities shall finalize the draft public investment plan for the next year and send it to the Ministry of Planning and Investment and Ministry of Finance.

9. Before August 31 every year, the Ministry of Planning and Investment shall summarize the national next-year public investment plan and report it to the Government.

Section 2

FORMULATION, APPRAISAL, APPROVAL AND ASSIGNMENT OF PUBLIC INVESTMENT PLANS

Article 57. Principles of selection of lists of projects and estimation of state budget funds allocated for projects under medium-term and annual public investment plans

1. Complying with Articles 51, 52, 53 and 54 of this Law.

2. Conforming to the capability of balancing state budget funds in medium-term and annual public investment plans and capability of mobilizing other sources of investment funds for projects financed by various funding sources.

3. Being included in approved programs or tasks funded by the state budget for development investment.

4. Conforming to the principles, criteria and norms for allocation of state budget funds for development investment in the planning period.

5. The fund amount allocated for each program or project must not exceed the approved total fund for such program or project.

Article 58. Principles of selection of lists of projects and estimation of local budget funds allocated for projects under medium-term and annual public investment plans

1. Complying with Articles 51, 52, 53 and 54, and Clauses 4 and 5 of Article 57, of this Law.

2. Conforming to the capability of balancing local budget revenues and expenditures, medium-term and annual public investment plans, and the capability of mobilizing other sources of investment funds for projects financed by different funding sources.

3. Being included in the approved programs or tasks financed by local budgets for development investment.

Article 59. Formulation, appraisal, approval and assignment of plans on medium-term and annual funds from lawful revenue sources for investment purposes of state agencies and public non-business units

1. State agencies and public non-business units using funds from lawful revenue sources for investment purposes shall formulate medium-term and annual investment plans and submit them to ministries, central agencies or People’s Committees directly managing them.

2. Ministries, central agencies and People’s Committees at all levels shall appraise, approve and assign annual funding plans and approve adjustments of annual plans on funds from lawful revenue sources for investment purposes of state agencies and public non-business units as suitable to their capability for development investment in accordance with relevant laws.

3. Medium-term and annual investment plans financed by funds from lawful revenue sources for investment purposes of state agencies and public non-business units shall be not included in medium-term and annual public investment plans financed by the state budget.

4. Ministries, central agencies and provincial-level People’s Committees shall summarize medium-term and annual investment plans financed by lawful revenue sources for investment purposes of state agencies and public non-business units, 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.

Article 60. Submission, approval and assignment of medium-term public investment plans financed by the state budget

1. At the year-end session of the fifth year of the National Assembly’s term, the Government shall submit the medium-term public investment plan for the next period to the National Assembly for the latter to give opinions on the contents prescribed in Article 49 of this Law; particularly for the public investment plan for the first year of the next period, the Government shall submit it to the National Assembly for consideration and decision at this session, based on state budget expenditure estimates for development investment of the first year of the next period.

2. Based on the opinions of the National Assembly of the previous term, the Government shall submit the contents prescribed in Article 49 of this Law to the National Assembly of the current term at its first session. The National Assembly shall consider and decide on the medium-term public investment plan, which must have the following contents:

a/ Objectives and orientations for the country’s medium-term public investment financed by the state budget;

b/ Total fund of the medium-term public investment plan financed by the state budget, including the central budget and budgets of each locality;

c/ Total fund of the medium-term public investment plan financed by the central budget for each sector and field, funds to be allocated to each ministry and central agency, and target transfers from the central budget to each local budget;

d/ Lists of and funds allocated to national important projects and national target programs;

dd/ Main solutions and policies to implement the medium-term public investment plan.

3. The Prime Minister shall assign medium-term public investment plans, including the total funds and structure of state budget funds allocated to ministries, central agencies and localities; lists and funds of public investment programs and projects, funds for planning tasks, investment preparation tasks and other public investment objects financed by the central budget.

Article 61. Submission, approval and assignment of annual public investment plans financed by the state budget

1. Before September 20 every year, the Government shall submit the annual public investment plan financed by the state budget to the National Assembly Standing Committee for opinion.

2. Before October 20 every year, the Government shall submit the next-year public investment plan financed by the state budget to the National Assembly.

3. Before November 15 every year, the National Assembly shall decide on the next-year public investment plan financed by the state budget.

4. Before November 30 every year, the Prime Minister shall assign the next-year public investment plan financed by the state budget based on the National Assembly-decided total funds and structure of funding sources to ministries, central agencies and localities.

5. Before December 31 every year, ministries, central agencies and localities shall allocate specific fund amounts from the central budget for the next-year public investment plan, lists of projects and fund amount allocated to each project to attached agencies and units and lower-level People’s Committees, and send fund allocation plans to the Ministry of Planning and Investment for summarization and reporting to the Government and monitoring of the implementation.

Article 62. Submission, approval and assignment of medium-term public investment plans financed by local budgets

1. Before December 5 of the fifth year of the current period’s medium-term public investment plan, People’s Committees of a level shall submit such plan to the same-level People’s Council for the latter to give opinions about the contents prescribed in Article 49 of this Law; particularly for the public investment plan of the first year of the next period, People’s Committees shall submit it to the same-level People’s Councils for consideration and decision based on local budget expenditure estimates for development investment.

2. Based on the National Assembly’s resolution on medium-term public investment plan of the next period and provincial-level People’s Councils’ resolutions on 5-year socio-economic development plans, provincial-level People’s Councils shall decide on medium-term public investment plans of their localities, covering the total funds, lists of projects and fund amount allocated for each project financed by provincial-level budgets and target transfers to lower-level budgets, and send reports thereon to the Ministry of Planning and Investment and Ministry of Finance for summarization and reporting to the Government.

3. Based on provincial-level People’s Councils’ resolutions on medium-term public investment plans, district-level People’s Councils shall decide on their medium-term public investment plans, covering the total funds, lists of projects and local budget fund amount allocated for each project and target transfers to lower-level budgets.

4. Based on district-level People’s Councils’ resolutions on medium-term public investment plans, commune-level People’s Councils shall decide on their medium-term public investment plans, covering the total funds, lists of projects and local budget fund amount allocated for each project.

5. Within 30 days after People’s Councils of a level promulgate their resolutions on medium-term public investment plans, the same-level People’s Committees shall assign medium-term public investment plans to related units for implementation, covering the total funds, lists of programs and projects and fund amount allocated for each project.

Article 63. Submission, approval and assignment of annual pubic investment plans financed by local budgets

1. Before December 5 every year, People’s Committees of a level shall submit to the same-level People’s Councils next-year public investment plans, covering the lists of projects and fund amount allocated for each project.

2. Before December 10 every year, provincial-level People’s Councils shall decide on their next-year public investment plans, covering the lists of projects and fund amount allocated for each project.

3. Before December 20 every year, district- and commune-level People’s Councils shall decide on their respective next-year public investment plans, covering the lists of projects and fund amount allocated for each project.

4. Before December 31 every year, People’s Committees of all levels shall assign next-year public investment plans to related units for implementation.

Chapter IV

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

Section 1

IMPLEMENTATION OF PUBLIC INVESTMENT PLANS

Article 64. Organization of implementation of public investment plans

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

2. Pursuant to the National Assembly’s resolution, 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 funds shall decide on solutions for organizing the implementation of public investment plans financed by funding sources under their management.

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

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 borrowed by local budgets for investment purposes, without changing the objectives of programs and projects.

Article 65. 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 funds;

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

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

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

Article 66. 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 funds 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 financed by funds under public investment plans decided by competent authorities.

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

dd/ Balance funding sources to pay outstanding debts in capital construction prescribed in Clause 4, Article 101 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, examine and assess the implementation of public investment plans.

2. The Ministry of Planning and Investment shall guide, monitor, examine 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 sufficient allocation of central budget funds according to public investment plans decided by competent authorities.

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

Article 67. Adjustment of public investment plans

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

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

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

2. The National Assembly Standing Committee shall decide on the adjustment of medium-term and annual investment plans financed by the central budget among ministries, central agencies and localities in case there is no change in the total funds decided by the National Assembly for medium-term and annual investment plans.

3. The Prime Minister shall, based on the practical situation of the planning period, decide to adjust the central budget-financed medium-term public investment plans assigned to ministries, central agencies and localities under Clause 3, Article 60 of this Law within the total funds decided by the National Assembly for each ministry, central agency and locality;

4. The Ministry of Planning and Investment shall:

a/ Assume the prime responsibility for the appraisal of schemes to adjust medium-term public investment plans financed by the central budget among ministries, central agencies and localities, and report them to the Government for submission to the National Assembly Standing Committee for consideration and decision; 

b/ Assume the prime responsibility for the appraisal of schemes to adjust medium-term investment plans financed by the central budget within the ministry and among sectors, fields and programs of ministries, central agencies and localities, and report them to the Prime Minister for consideration and decision.

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

a/ To adjust annual public investment plans financed by the central budget among projects on the lists decided by competent authorities provided that the adjusted funds do not exceed the total funds assigned by competent authorities;

b/ To send reports to the Ministry of Planning and Investment and Ministry of Finance for summarization and monitoring, for central budget funds.

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

a/ To adjust annual public investment plans financed by target transfers from the central budget under their management provided that the adjusted funds do not exceed the total funds assigned by competent authorities;

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

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

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

b/ Upon unexpected change in the balance of local budget revenues or the local capability of mobilizing funding sources;

c/ Upon change in local agencies’ and units’ use demands or capability of using annual plans’ funds.

8. People’s Committees of a level shall decide on the adjustment of medium-term and annual public investment plans financed by local budgets for investment purposes among and within sectors, fields and programs of units using these funding sources, and report it to the same-level People’s Councils at the nearest session.

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

Article 68. Duration of implementation and disbursement of funds of medium-term and annual public investment plans

1. The duration of implementation and disbursement of funds of the current period’s medium-term public investment plan may last through January 31 of the first year of the medium-term public investment plan of the next period;

2. The duration of implementation and disbursement of funds of annual public investment plans may last through January 31 of the following year. In force majeure events, such duration may be extended but must not be later than January 31 of the following year as decided by the Prime Minister, for central budget funds, or by provincial-level People’s Councils, for local budget funds.

3. For programs and projects financed by non-refundable ODA for which no estimate is made or which have funds exceeding the assigned estimates, the Government shall report them to the National Assembly Standing Committee for opinion before implementation and to the National Assembly at its nearest session.

Section 2

MONITORING, EXAMINATION, EVALUATION, INSPECTION AND SUPERVISION OF PUBLIC INVESTMENT PLANS, PROGRAMS AND PROJECTS

Article 69. Monitoring and examination of public investment plans

1. Specialized public investment management agencies shall monitor and examine public investment plans of agencies and units under their management.

2. Contents of monitoring and examination of a public investment plan:

a/ Implementation of the law on public investment;

b/ Formulation, appraisal, approval and assignment of the public investment plan;

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

d/ Implementation of the public investment plan;

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

Article 70. 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 plan approved by a competent authority;

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 and reasons therefor, and solutions.

Article 71. Monitoring and examination of programs and projects

1. Managing agencies, program or project owners and persons with competence to decide on investment in programs or projects and state management agencies in charge of public investment shall monitor and examine the entire investment process of programs and projects against the approved contents and targets so as to ensure investment objectives and efficiency.

2. Programs and projects shall be examined as follows:

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

b/ Managing agencies and persons with investment-deciding competence shall examine at least once programs and projects that are the implemented in a duration longer than 12 months; 

c/ Managing agencies and persons with investment-deciding competence shall conduct examination in case the adjustment of a program or project results in a change in its location, objectives or size and an increase in the total investment, and in other cases when necessary;

d/ State management agencies in charge of public investment shall decide to conduct planned or unexpected examination of programs and projects.

Article 72. Evaluation of programs and projects

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

2. Public investment programs are subject to mid-term or periodical 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 make evaluation in other forms as prescribed in Clause 1 of this Article.

Article 73. Contents of evaluation of programs and projects

1. Contents of initial evaluation:

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

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

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

2. Contents of mid-term evaluation or periodical evaluation:

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

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

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

3. Contents of final evaluation:

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

b/ Lessons drawn from the program or project implementation and necessary recommendations; responsibilities of consultancy organizations, managing agencies, program or project owner, persons with investment policy- and investment-deciding competence and related agencies, organizations and individuals.

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

a/ Actual economic-technical operation;

b/ Socio-economic impacts;

c/ Environmental and ecological impacts;

d/ Sustainability of the program or project;

dd/ Lessons drawn from the investment policy and investment decision, program or project implementation and operation; responsibilities of consultancy organizations, managing agencies, program or project owner, persons with investment policy- and investment-deciding competence and related agencies, organizations and individuals.

5. Contents of unexpected evaluation:

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

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

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

d/ Effects and the extent of effects of arising problems on the program or project implementation and the possibility to achieve the program’s or project’s objectives;

dd/ Proposed necessary measures.

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

Article 74. Investment monitoring by the community

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, give explanations to, and assimilate opinions of, residential communities in localities where projects are carried out with regard to investment decisions on national important projects, group-A projects, projects requiring large-scale population relocation,  sedentary farming and resettlement, projects likely to exert high impacts on the environment, and projects with direct impacts on the socio-economic life of residential communities in localities where they are implemented in terms of investment policy, construction, land, waste treatment and environmental protection, compensation, ground clearance, and sedentary farming and resettlement plans in accordance with law.

3. Contents of investment monitoring by the community:

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 by financial 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 14 of this Law;

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

Article 75. Order, procedures and process of investment monitoring by the community

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

a/ Making community-based investment monitoring plans for annual programs and projects in localities, based on the contents prescribed in Clause 3, Article 74 of this Law;

b/ Setting up a community-based investment monitoring board for each program or project;

c/ Informing program or project owners and management units of monitoring plans and members of the community investment monitoring board at least 45 days before the monitoring.

2. Program or project owners and management units shall:

a/ Provide in a sufficient, truthful and timely manner documents related to the implementation of programs or projects specified in Clause 2, Article 74 of this Law to the community investment monitoring boards;

b/ Facilitate the monitoring by the community-based investment monitoring boards in accordance with law;

c/ Assimilate monitoring opinions and increase project implementation measures.

Article 76. Organization of monitoring, examination and evaluation of plans, programs and projects

1. Program or project owners shall organize the monitoring and examination and conduct 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 monitoring and examination and conduct impact evaluation and unexpected evaluation of programs and projects assigned to them for management.

3. Organizations and agencies conducting evaluation may conduct evaluation by themselves or hire capable and qualified consultants or consultancy organizations to do so.

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

Article 77. Public investment inspection

1. Inspection of the management and use of public investment funds must comply with this Law and other relevant laws.

2. Inspection of public investment activities shall be associated with agencies and organizations’ performance of inspection functions and tasks and must follow the inspection order and procedures prescribed by the inspection law.

3. Inspection conclusions on public investment activities shall be made public in accordance with law. If detecting violations of the law on public investment, inspection agencies shall handle them according to their competence or transfer the dossiers of violations to competent state agencies for handling.

Chapter V

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

Article 78. Tasks and powers of the National Assembly

1. To promulgate laws and resolutions on public investment.

2. To decide on investment policies for national target programs and national important projects financed with public investment funds.

3. To decide on, and adjust 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 79. 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.

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

5. To decide on investment policies for public investment programs prescribed in Clause 2, Article 17 of this Law.

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

7. To organize the implementation of medium-term and annual public investment plans.

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

9. 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 financed by the central budget or other lawful revenues reserved for investment purposes of state agencies and public non-business units; to examine the performance of public investment objectives and policies in localities.

Article 80. Tasks and powers of the Ministry of Planning and Investment

The Ministry of Planning and Investment shall act as a focal 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, principles, criteria and norms for the allocation and use of public investment funds;

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 nation’s development investment for each sector and field to be included in medium-term and annual public investment plans;

3. To summarize and submit the nation’s medium-term and annual public investment plans to the Government and Prime Minister;

4. To summarize and submit to the Government and the Prime Minister for consideration and reporting to the National Assembly and National Assembly Standing Committee the adjustment of the nation’s medium-term and annual public investment plans;

5. To assume the prime responsibility for, and coordinate with related agencies in, appraising funding sources and the capability of balancing funds as prescribed in Article 33 of this Law;

6. To take responsibility before the Government for the performance of the unified state management of national target programs;

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

Article 81. Tasks and powers of the Ministry of Finance

1. To coordinate with the Ministry of Planning and Investment in formulating medium-term and annual investment plans.

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

3. To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, guiding local finance agencies how to balance regular funds to pay for the formulation and appraisal of, decision on investment policies, and approval of investment decisions for programs, and maintenance and operation of projects that have been put into operation.

4. To assume the prime responsibility for submitting to competent authorities for promulgation, or promulgating according to its competence, regulations on management, payment and finalization of projects financed with public investment funds.

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

Article 82. Tasks and powers of ministries and central agencies

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

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

3. To assume the prime responsibility for, and coordinate with related agencies in, appraising funding sources and the capability of balancing funds for projects under Article 33 of this Law.

4. To decide on investment policies for projects under Clause 5, Article 17 of this Law and decide on investment in projects under Clause 2, Article 35 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 situation and outcomes of implementation of plans, programs and projects.

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

Article 83. Tasks and powers of People’s Councils at all levels

1. To decide on investment policies for programs and projects under Clauses 6 and 7, Article 17 of this Law.

2. To consider and give opinions on local medium-term and annual public investment plans, covering the list of projects, and fund amount for each project financed by target transfers from the central budget to local budgets.

3. To decide on local medium-term and annual public investment plans, covering the whole list of projects and fund amount for each project financed by local budgets.

4. To supervise projects financed with public investment funds assigned to localities for management, including funds from the central budget, local budgets, and other lawful revenues of state agencies and public non-business units reserved for investment purposes under the management of localities.

Article 84. 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 submit to provincial-level People’s Councils:

a/ Decisions on investment policies for public investment programs and projects financed by local budgets.

b/ Investment policies for consideration and opinion for projects whose investment policies are decided by the Prime Minister under Clause 4, Article 17 of this Law;

c/ Medium-term and annual investment plans for consideration and decision, based on the list of projects and fund amount for each project under the management of localities.

3. Chairpersons of provincial-level People’s Committees may authorize their vice-chairpersons or heads of specialized agencies to decide on investment for group-B and group-C projects under the management of provincial-level administrations, except the projects prescribed at Point c, Clause 1, Article 35 of this Law.

4. To organize the implementation and monitoring and evaluation of public investment plans financed with public investment funds under their management.

5. To coordinate with ministries and central agencies in implementing, monitoring, examining and evaluating programs and projects in the localities.

Article 85. Tasks and powers of district- and commune-level People’s Committees

1. To formulate medium-term and annual public investment plans under their respective management.

2. To appraise programs and projects under their respective management.

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

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

b/ To give opinions on investment policies for projects whose investment policies are decided by the Prime Minister under Clause 4, Article 17 of this Law or by higher-level People’s Councils;

c/ To decide on medium-term and annual investment plans financed by local budgets under their management for decision.

4. Chairpersons of district- and commune-level People’s Committees shall decide on investment for programs and projects under Clause 4, Article 35 of this Law.

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 them for management.

6. To coordinate with related agencies and organizations in implementing, monitoring, examining and evaluating programs and projects in localities.

Article 86. Tasks and powers of the State Audit Office of Vietnam

1. To decide on annual audit plans for plans, programs and projects and report them to the National Assembly before implementation of such plans.

2. To implement annual audit plans, conduct specialized audits, and audit plans, programs and projects at the request of the National Assembly, National Assembly Standing Committee, President, Government, and Prime Minister.

3. To report to the National Assembly and National Assembly Standing Committee on annual audit and specialized audit results and results of implementation of audit proposals with regard to plans, programs and projects.

4. To announce and publicize audit reports on plans, programs and projects in accordance with law.

Article 87. Tasks and powers of the Vietnam Fatherland Front

1. To assume the prime responsibility for organizing investment monitoring by the community and social criticism for programs and projects in accordance with Clauses 1 and 3, Article 74 of this Law and other relevant laws.

2. To gather the community’s opinions on investment policies for programs and projects in localities in accordance with Clause 2, Article 74 of this Law and the law on the exercise of democracy in communes, wards and townships.

Article 88. Rights and responsibilities of agencies, organizations and individuals in proposing investment policies

1. To propose programs and projects in line with socio-economic development strategies and plans, and relevant master plans for each period in accordance with the planning law.

2. To ensure the mobilization and balancing of resources for completing programs and projects on schedule.

3. To propose investment policies to competent authorities for consideration and decision for programs that have no overlaps with other programs and regular tasks according to their assigned functions and tasks.

4. To take responsibility for information and data related to the proposed programs and projects.

Article 89. Rights and responsibilities of agencies, organizations and individuals involved in decision on investment policies

1. Agencies, organizations, individuals and heads of organizations shall decide on investment policies for programs and projects that satisfy the conditions specified in Article 18 of this Law.

2. An agency, organization or individual or the head of an organization deciding on investment policies for programs and projects of a ministry, central agency or locality, which are implemented within 2 consecutive periods of a medium-term public investment plan, shall ensure the total investment value of the programs and projects to be implemented in the second period must not be 20% higher than the total fund of the programs and projects in the first period for such ministry, agency or locality.

Article 90. Rights and responsibilities of program and 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 supply necessary documents to program and project appraisal and verification agencies.

3. To propose solutions for mobilizing funding sources for implementation of programs and projects according to prescribed schedule.

4. To take responsibility before law for the formulation of programs and projects.

Article 91. 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 investment policies decided by competent authorities and the capability of balancing funds from funding sources under their management and in conformity with standards and regulations on investment and based on appraisal results.

2. To appraise programs and projects before approving them, covering the appraisal of funding sources and the fund balancing capability.

3. To balance funds to pay for the formulation and appraisal of programs and projects under their management.

4. To instruct program and 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 monitor, examine and evaluate programs and projects and activities of program and 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 or project owners.

Article 92. 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 or project owners to provide information and documents related to the design of programs or projects.

2. To design programs and projects in accordance with regulations, standards, norms and technical solutions to ensure their quality; not to design programs and projects in excess of regulations, standards and prescribed norms.

3. To take responsibility for program and project design results.

Article 93. Rights and responsibilities of agencies, organizations and individuals involved in appraisal of plans, programs and projects

1. Agencies, organizations and individuals involved in the appraisal of plans, 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 94. Rights and responsibilities of program and project owners in program and project management and implementation

1. To organize the management and implementation of programs and projects, ensuring their objectives, schedule, quality and efficiency.

2. To report on 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 95. Rights and responsibilities of program and project management units

1. To propose plans and solutions and organize the management and implementation of programs or projects to ensure their objectives, schedule and quality as authorized by program or project owners.

2. To report to program or project owners on the implementation of programs or projects.

Article 96. Rights and responsibilities of agencies, organizations and individuals engaged in plan, program and project monitoring, evaluation and examination

1. Ministers, heads of central and local agencies, chairpersons of district- and commune-level People’s Committees, and program and project owners shall take responsibility for consequences caused by their failure to monitor, evaluate and examine plans, programs and projects or make reports under regulations.

2. Agencies, organizations or individuals assigned to monitor, examine and evaluate plans, programs and projects shall take responsibility for the contents of their reports.

3. Program or project owners shall take responsibility for the contents of their reports and take responsibility before law for their inaccurate reports and information on the situation of investment within the scope of their management.

Article 97. The national information system and database on public investment

1. The national information system and database on public investment shall be uniformly developed and operated nationwide to serve state management of public investment, including 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 are prescribed as follows:

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.

Article 98.  Handling of violations

Agencies, organizations or individuals that violate the provisions of this Law shall, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liability; if causing damage, they shall pay compensations therefor in accordance with law.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 99. To amend Point a, Clause 2, Article 25 of Law No. 55/2014/QH13 on Environment Protection, which had a number of articles amended and supplemented under Law No. 35/2018/QH14

To amend Point a, Clause 2, Article 25 of the Law on Environmental Protection as follows:

“a/ Decide on investment policies of projects specified in Article 18 of this Law in case these projects are subject to investment policy decision in accordance with law;

For public investment projects, competent authorities shall decide on investment policies based on preliminary evaluation of environmental impacts; and decide on investment for projects prescribed in Article 18 of this Law based on environmental impact evaluation. The Government shall prescribe in detail objects and contents of the preliminary evaluation of environmental impacts;”.

Article 100. Effect

1. This Law takes effect on January 1, 2020.

2. Law No. 49/2014/QH13 on Public Investment which had a number of articles amended and supplemented under Law No. 28/2018/QH14 ceases to be effective on the effective date of this Law, except Clauses 3 and 5, Article 101 of this Law.

Article 101. Transitional provisions

1. For programs and projects for which funds are included in investment plans and the investment in which is decided by competent authorities before January 1, 2015, but for which funds have not yet been included in medium-term public investment plans during 2016-2020, the adjustment of investment decisions for such programs and projects must comply with this Law.

2. For programs and projects for which investment policy decisions or investment decisions have been made under Law No. 49/2014/QH13 on Public Investment which had a number of articles amended and supplemented under Law No. 28/2018/QH14, without being included in investment plans decided by competent authorities, the adjustment of investment policy decisions or investment decisions for such programs and projects must comply with this Law.

3. For programs and projects for which the formulation and appraisal procedures are completed before the effective date of this Law, they shall continue to be submitted to competent authorities for consideration and decision under Law No. 49/2014/QH13 on Public Investment which had a number of articles amended and supplemented under Law No. 28/2018/QH14 and detailing and guiding documents.

4. Funds under public investment plans shall only be allocated to pay outstanding debts in capital construction arising before January 1, 2015.

5. For public investment plans of 2019 and 2020, ministries, central agencies and localities may implement them and disburse funds under Law No. 49/2014/QH13 on Public Investment which had a number of articles amended and supplemented under Law No. 28/2018/QH14 and detailing and guiding documents.

This Law was passed on June 13, 2019, by the XIV^th National Assembly of the Socialist Republic of Vietnam at its 7^th session.-

Chairwoman of the National Assembly
NGUYEN THI KIM NGAN