What is an investment project? Characteristics and classification of investment projects in Vietnam
Today, perhaps no one is too unfamiliar with investment activities. So what is an investment project; So, what are the basic characteristics and classification of investment projects? In this regard, Lawyer X received the following question:
“Hello Lawyer X. I am Nguyen Thi T. Dear Lawyer, I currently have a small capital. Friends advised me to use capital to invest. But I don’t know what is an investment, and is an investment? What types of investments are there? I hope to receive an answer from the lawyer so that I can choose the most effective type of investment. Thank you, Lawyer”.
To know more about investment projects, please refer to the following article by Lawyer X
Legal grounds:
Law on Investment 2020
Investment project concept
There are many different interpretations of this issue, depending on the interpretation and perspective. Specifically:
From the perspective of the law, according to the provisions of Clause 4, Article 3 of the Law on Investment 2020:
An investment project is a set of proposals to invest medium-term or long-term capital to carry out investment and business activities in a specific area, within a defined period.
In terms of form: Is a set of documents presenting in detail and systematically the activities and costs according to a plan to achieve results and achieve certain objectives in the project. future.
Besides, in terms of content: A set of interrelated activities planned to achieve specified goals by producing specific results within a certain period with the use of use specified resources.
If based on a project management perspective: Is a tool to manage the use of capital, materials, and labor to create financial, economic, and social results for a long time.
Please read for reference: Process and procedures for setting up an investment project.
Features of investment projects
Investment projects usually have the following three characteristics:
First, always have a clear goal: There can be economic, social, and financial benefits. They are always clearly expressed in the investment project proposal.
Second, has a finite lifetime. An investment project is fixed for a specific implementation period.
Third, there is the participation of many parties such as investors, contractors, state management agencies, investment consulting service providers, and project sponsors.
Classification of investment projects
Classification of investment projects by investment capital source:
Investment projects with public investment capital
An investment project using one of the following capital sources:
– State budget capital
– National bond capital
– Besides, capital of local government bonds
– Official Development Assistance (ODA)
– Moreover, preferential loans from foreign donors
– State development investment credit capital
– Capital from revenue for investment but not yet included in the state budget
– Other loans from the local budget.
Investment projects with other capital sources
– Commercial loan
– Joint venture capital
– Foreign direct investment capital
– Capital mobilized on financial markets (domestic and international)
Classification of investment projects according to their importance and scale
According to this criterion, investment projects include 4 groups of projects:
– Projects of national importance: An independent investment project or a cluster of works closely linked together.
– Group A project
– BE group project
– Group project C
Please read for more reference: Classification of projects in groups A B C
Classification of investment projects by nature of investment
– An investment project has a construction component. Are investment projects such as new construction; renovating, upgrading, and expanding, ng projects already built,…
– Then, the investment project does not have a construction component. Are investment projects such as property purchase projects; receive the transfer of land use rights; purchase, repair, upgrade equipment, machinery,…
Classification of investment projects by investment fields
– Investment projects in the field of transportation.
– Then, investment project in the field of agriculture, forestry, fishery and salt production
– Particularly, investment projects in the industrial sector
– Investment projects in the construction field
Classification of investment projects by territory
Based on the location of the project, the project can be divided into:
– By province, city: Hanoi, Ho Chi Minh City, Da Nang,…
– By territory: Northeast, Northwest, Mekong River Delta,…
Frequently asked questions
Resources of an investment project include material, financial and human resources for project implementation.
– Using public investment capital of 10,000 billion VND or more;
– Besides, major environmental impact or potential for serious environmental impact;
– Land use requiring a change of land use purpose for wet rice cultivation from two or more with an area of 500 hectares or more;
– Then, migrants resettled from 20,000 people or more in mountainous areas, from 50,000 people or more in other regions;
– The project requires the application of special mechanisms and policies that need to be decided by the National Assembly
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