Duties, powers and responsibilities of entities and persons involved in public investment activities in Vietnam

Vietnam Law has regulations on duties, powers and responsibilities of entities and persons involved in public investment activities. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what are duties and powers of the National Assembly involved in public investment activities in Vietnam? What are duties and powers of the Ministry of Planning and Investment? Thanks for answering my questions!”

Legal grounds

• 2019 Vietnam Law on Public Investment

Duties and powers of the National Assembly

– Promulgate laws and resolutions regarding public investment.

– Issue decisions on policies for investment in national target programs and public investment projects of national significance using public investment capital.

– Make decisions and adjustments regarding midterm and annual public investment plans.

– Adjust criteria for classification of public investment projects of national significance.

– Supervise the implementation of public investment plans, national target programs, and public investment projects of national significance; supervise compliance with law on public investment.

Duties and powers of the Government

– Carry out the consistent state management of public investment.

– Petition the National Assembly to promulgate laws and resolutions; petition the National Assembly Standing Committee to promulgate ordinances and resolutions regarding public investment.

– Promulgate legislative documents on management of public investment.

– Recommend the National Assembly to grant decisions on policies for investment in national target programs and public investment projects of national significance.

– Make decisions on policies for investment in public investment programs as prescribed in clause 2 of Article 17 herein.

– Prepare midterm and annual public investment plans for submission to the National Assembly to seek its decision or approval of modification.

– Preside over implementation of midterm and annual public investment plans.

– Submit review reports to the National Assembly on implementation of midterm and annual public investment plans, national target programs and public investment projects of national significance.

– Take charge of carrying out the inspection and audit of implementation of midterm and annual public investment plans; inspect implementation of public investment programs and projects using the central budget’s capital, legitimate revenues that state regulatory authorities, public service units retain for investment purposes, and the inspection of implementation of objectives and public investment policies at localities.

Duties and powers of the Ministry of Planning and Investment

Ministry of Planning and Investment shall act as a presiding body assisting the Government in carrying out the state management of public investment, and shall have the following responsibilities and powers:

– Promulgate or petition competent authorities to promulgate legislative documents related to public investment, distribution and use principles, criteria and norms of public investment capital;

– Preside over and cooperate with the Ministry of Finance in reporting to the Government on determination of the state budget’s capital expenditures for national investment and development activities in the specific sectors and industries which are defined in midterm and annual public investment plans;

– Prepare the national midterm and annual public investment plan for submission to the Government and the Prime Minister;

– Prepare the national midterm and annual public investment plan for submission to the Government and the Prime Minister so that the plan is considered before being submitted to the National Assembly or the National Assembly Standing Committee to seek its approval of any modification;

– Preside over and cooperate with entities involved in carrying out the evaluation of funding sources and capital balancing capability in accordance with Article 33 herein;

– Bear responsibility to the Government for the consistent state management of national target programs;

– Take charge of carrying out, monitoring, inspecting, assessing and auditing public investment plans, programs and projects and other tasks of state management related to public investment.

Duties and powers of the Ministry of Finance

– Cooperate with the Ministry of Planning and Investment in designing midterm and annual public investment plans.

– Cooperate with the Ministry of Planning and Investment in reporting to the Government on determination of the state budget’s capital expenditures for the national investment and development activities in the specific sectors and industries which are defined in midterm and annual public investment plans.

– Preside over and cooperate with the Ministry of Planning and Investment in instructing financial local authorities to balance regular expenditures on payment of costs of formulation, evaluation of and decision on investment policies, approval of decisions on investment in public investment programs, repair and operation of public investment projects already brought into operation.

– Preside over recommending competent authorities to adopt or adopt, within its jurisdiction, regulations on managing, paying and making final accounts of costs incurred from projects using public investment capital.

– Report to the Government on disbursement of capital to, and final accounts of costs incurred from, public investment plans, programs and projects.

Duties and powers of Ministries and central regulatory authorities

– Perform the function of state management of public investment in accordance with law.

– Adopt, provide instructions about, inspect and supervise implementation of technical standards, regulations and socio-economic norms.

– Preside over and cooperate with entities involved in carrying out the evaluation of funding sources and capital balancing capability of public investment projects as provided in Article 33 herein.

– Grant decisions on policies for investment in projects as per clause 5 of Article 17 herein and decisions on investment in projects as per clause 2 of Article 35 herein.

– Take charge of preparing public investment plans.

– Carry out the monitoring, assessment, supervision, inspection and audit of implementation of public investment plans, programs and projects under their respective jurisdiction.

– Report on implementation and outcomes of public investment plans, programs and projects.

– Cooperate with Ministries, central and local regulatory authorities in carrying out public investment plans, programs and projects within their assigned duties and under their delegated powers.

Duties and powers of People’s Councils at all levels

– Make decisions on policies for investment in public investment programs and projects as prescribed in clause 6 and 7 of Article 17 herein.

– Review and give opinions on midterm and annual public investment plans of localities, including investment portfolios and funds allocated to specific projects using the central budget’s target transfers.

– Make decisions on investment in midterm and annual public investment plans of localities, including entire investment portfolios and funds allocated to specific projects using the local budget’s capital.

– Supervise public investment projects using public investment capital assigned to be put under the control of localities, including the central budget’s capital, the local budget’s capital, legitimate revenues that state regulatory authorities and public service units retain for investment purposes under the management of these localities.

Duties and powers of provincial-level People’s Committees

– Perform the function of state management of public investment made at localities falling within their remit in accordance with law.

– Petition provincial-level People’s Councils to:

+ Make decisions on policies for investment in public investment programs and projects using the local budget’s capital;

+ Consider giving opinions on investment policies for projects under the authority to grant decisions on investment policies delegated to the Prime Minister as provided in clause 4 of Article 17 herein;

+ Consider granting decisions on midterm and annual public investment plans based on investment portfolios and capital allocated to specific projects falling within their remit.

– Chairman/Chairwoman of the provincial-level People’s Committee may authorize his/her deputies or heads of specialized agencies to make decision on investment in group-B and group-C public investment projects under the provincial-level authority, except those projects specified in point c of clause 1 of Article 35 herein.

– Take charge of carrying out, monitoring and assessing public investment plans using public investment capital that fall within their respective remit.

– Cooperate with Ministries and central regulatory authorities in carrying out, monitoring, inspecting and assessing public investment programs and projects falling within their

Duties and powers of district- or commune-level People’s Committees

– Take charge of preparing midterm and annual public investment plans falling within their remit.

– Take charge of carrying out the evaluation of public investment programs and projects falling within their remit.

– Petition same-level People’s Councils to:

+ Issue decisions on policies for investment in public investment programs and project using the local budget’s capital, including target transfers from the senior-level budget;

+ Contribute opinions on investment policies for projects under the authority to grant decisions on investment policies delegated to the Prime Minister as provided in clause 4 of Article 17 herein and superior-level People’s Councils;

+ Make decisions on midterm and annual public investment plans using the local budget’s capital that fall within their remit.

– District-level and commune-level People’s Committees shall issue decisions on investment in public investment programs and projects specified in clause 4 of Article 35 herein.

– Take charge of carrying out, monitoring, inspecting, assessing and auditing public investment plans, programs and projects and other tasks of state management related to public investment that fall within their remit.

– Cooperate with regulatory authorities and entities involved in carrying out, monitoring, inspecting and assessing public investment programs and projects falling within their remit.

Duties and powers of the State Audit

– Make decisions on annual audit plans in terms of public investment plans, programs and projects and give prior notice to the National Assembly before carrying out audit.

– Take charge of the annual audit plan, specialized audit and carry out the audit of public investment plans, programs and projects upon the request of the National Assembly, the National Assembly Standing Committee, the State President, the Government and the Prime Minister.

– Report to the National Assembly and National Assembly Standing Committee on results of the annual audit, the specialized audit and results of implementation of auditors’ recommendations about public investment plans, programs and projects.

– Take charge of publicly disclosing and announcing audit reports on public investment plans, programs and projects under law.

Duties and powers of Vietnam Fatherland Front Committee

– Preside over public supervision and criticism of public investment activities with respect to public investment programs and projects specified in clause 1 and clause 3 of Article 74 herein and other provisions of relevant soft law.

– Conduct public opinion surveys on investment policies for public investment programs and projects at localities falling within their remit in accordance with clause 2 of Article 74 herein and law on implementation of democracy at communes, wards and towns.

Rights and responsibilities of entities and persons regarding recommendation on investment policies

– Recommend public investment programs and projects in line with related socio-economic development strategies, plans and planning schemes as provided in law on planning over periods of time.

– Mobilize and balance resources to ensure public investment programs and projects are carried out on schedule and by the deadlines in accordance with regulations in force.

– Petition competent authorities to consider granting decisions on investment policies when proving that public investment programs are not the same as others and regular tasks under their delegated powers and within the scope of their assigned duties.

– Take responsibility for information and data related to recommended public investment programs and projects.

Rights and responsibilities of entities and persons concerning investment policy decisions

– Entities, persons and heads of organizations shall make decisions on policies for investment in public investment programs and projects in conformance to regulations laid down in Article 18 herein.

– Entities, persons and heads of organizations making investment policy decisions for public investment programs and projects that are carried out for 2 consecutive terms of midterm public investment plans must ensure that total value of the gross investment in public investment programs and projects to be implemented during the midterm public investment plan for the subsequent period does not exceed 20% of total capital defined in the midterm public investment plan for the previous period of these entities and regulatory authorities.

Rights and responsibilities of program/project owners regarding design of public investment programs and projects

– Assume legal liability for contents of documentation submitted to competent authorities to request their evaluation, inspection and grant of decisions.

– Provide necessary documents for bodies carrying out evaluation and inspection of public investment programs and projects.

– Recommend measures to mobilize funds to ensure public investment programs and projects are carried out on schedule and by the deadlines as provided in regulations in force.

Rights and responsibilities of entities and persons concerning decisions on investment in public investment programs and projects

– Make decisions on investment in public investment programs and projects according to investment policies already decided by competent authorities provided that such decisions meet capabilities of balancing funds falling within their respective remit, conform to standards and standard regulations on investment and are consistent with evaluation results.

– Carry out the evaluation of public investment programs and projects prior to approval, including the evaluation of funding sources and capital balancing capabilities.

– Balance funds for payment of costs incurred from design and evaluation of public investment programs and projects falling within their remit.

– Command program/project owners to carry out public investment programs and projects on schedule, and ensure that quality of these programs and projects falls within the quality standards defined in the approved public investment plan.

– Make decisions on termination, temporary suspension or cancellation of public investment programs and projects.

– Carry out the monitoring, inspection and assessment of public investment programs and projects and activities of program/project owners performed during the period of implementation of these programs and projects.

– Assume legal liability for any violation against regulations on authority in the process of selection of program/project owners.

Rights and responsibilities of entities and persons concerning design consultancy services for public investment programs and projects

– Design consultancy service providers may request program/project owners to provide information and documents related to design of public investment programs and projects.

– Design public investment programs and projects according to standards, standard regulations and norms and engineering solutions to ensure they meet quality requirements; avoid producing designs beyond standard regulations, prescribed standards and norms.

– Take responsibility for results of design of public investment programs and projects.

Rights and responsibilities of entities and persons concerning evaluation of public investment plans, programs and projects

– Entities and persons involved in the evaluation of public investment plans, programs and projects shall carry out the evaluation under law and shall take responsibility for evaluation results and their own recommendations.

– The evaluation must ensure independence, integrity, objectivity and compliance with 2019 Law on Public Investment and other provisions of relevant law.

Rights and responsibilities of program/project owners regarding management and implementation of public investment programs and projects

– Take charge of the management and implementation of public investment programs and projects, and ensure that these programs and projects are carried out according to defined targets, on schedule, meet quality and efficiency requirements.

– Report to and provide information for supervisory authorities and affiliates of Vietnam Fatherland Front Committees at all levels on implementation of public investment programs and projects under 2019 Law on Public Investment and other provisions of relevant law.

Rights and responsibilities of Management Units in charge of public investment programs and projects

– Recommend plans and measures regarding and conduct the management and implementation of public investment programs and projects to ensure that these programs and projects are carried out according to defined targets, on schedule, meet quality requirements under the mandate from program/project owners.

– Report to program/project owners on the progress in implementation of public investment programs and projects.

Rights and responsibilities of entities and persons for monitoring, inspection and assessment of public investment plans, programs and projects

– Ministers, Heads of central and local regulatory authorities, Chairmen/Chairwomen of district-level and commune-level People’s Committees and program/project owners shall be responsible for any consequence resulting from failure to monitor, assess and inspect public investment plans, programs and projects or make reports in accordance with regulations in force.

– Entities and persons authorized to monitor, inspect and assess public investment plans, programs and projects shall be responsible for contents of their reports.

– Program/project owners shall be responsible for contents of their reports and shall assume responsibility before law if they make and provide incorrect reports and information about investments falling within their remit.

Communication system and national database regarding public investment activities

– Communication system and national database regarding public investment activities must be built and applied consistently on a nationwide scale to state management of public investment, including compiling, reporting on, assigning and adjusting midterm and annual public investment plans; monitoring and assessing public investment programs and projects; managing, storing and publicly disclosing data in accordance with regulations in force.

– Responsibilities for building, managing, using and applying the communication system and national database of public investment shall be regulated as follows:

+ Ministry of Planning and Investment shall take charge of building, managing and operating the communication system and national database of public investment;

+ Ministries, central and local regulatory authorities shall apply the communication system and national database of public investment to activities under their jurisdiction.

– Data and information included in the communication system and national database of public investment must be original data and information of or related to public investment programs, projects and plans.

– The Government shall set out specific provisions of this Article.

Regulations on Disciplinary actions

Entities and persons committing violations against 2019 Law on Public Investment shall be disciplined or subject to administrative penalties or criminal prosecution, depending on the nature and extent of their violation; in case where any loss or damage occurs, compensation must be paid under law.

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