Investment registration procedures for PPP projects in Vietnam

by QuynhHuong

The form of public-private partnership investment or commonly known as PPP is a fairly popular form of investment in many countries around the world; especially in developing countries like Vietnam. However, PPP differs from other investment methods; with one party to the contract is the State, which creates a few changes to the registration procedure. Therefore, in this article, LSX will give you a look at the “Investment registration procedures for PPP projects in Vietnam”.

  • 2020 Investment Law
  • 2020 Public-private partnership investment Law
  • Circular 06/2016/TT-BKHDT

What is PPP project?

Hence the Circular 06/2016/TT-BKHDT, a PPP project is a collection of proposals related to investment to provide public products or services through the implementation of one or more of the following activities:

  • Construction, operation and business of infrastructure works and systems
  • Renovating, upgrading, expanding, modernizing, operating and trading existing infrastructure works and systems
  • Operating and trading existing works and infrastructure systems

Authorities competent to issue investment registration certificates

Firstly, the Ministry of Planning and Investment shall circulate the certificates in the following projects:

  • National important projects
  • Projects for which a ministry, branch or an authorized agency of a ministry or branch is a state agency competent to sign project contracts
  • Projects implemented in the area of ​​02 provinces or centrally-run cities or more.

Other than that, Provincial People’s Committees are responsible for granting investment registration certificates in the form of PPP.

Procedure for investment registration in the form of PPP

Accordingly, the procedure will include 2 steps in total, executing as follow:

Step 1: Prepare the dossires

Thus the regulation in Circular 06/2016/TT-BKHDT, the investors must prepare 5 dossiers for investment registration; which includes:

  • Request for an Investment Registration Certificate
  • Investment agreement, draft project contract, draft contract related to project implementation (if any)
  • Project approval decision, feasibility study report (notarized copy)
  • Approval of the policy of using the State’s investment capital to participate in the project implementation
  • Joint venture contract between investors
  • Charter of the project enterprise (if any)
  • Document approving the results of investor selection for project contract negotiation by a competent person.

Step 2: Submit application to the competent agency

Projects under the authority of the Ministry of Planning and Investment

Initially, after receiving the application, the Ministry of Planning and Investment will consider the validity. In case the dossier needs to be amended or supplemented, within 02 days from the date of receipt of the dossier there will be a request and the reason.

In case the application is valid, within 03 days from the date of receipt, the Ministry of Planning and Investment will collect comments in writing to the relevant ministries, agencies.

After that, the relevant ministries and agencies will give their feedback to the Ministry of Planning and Investment within 07 working days. Then, they will verify and issue an Investment Registration Certificate.

Projects under the authority of the People’s Committee of the province

Accordingly, after receiving the application, the Department of Planning and Investment will consider the validity. In fact, if the dossier needs to be amended or supplemented, within 02 days from the date of receipt of the dossier, there will be a request and the reason.

In the event that the dossier is valid within 03 days from the date of receipt of the dossier, the Department of Planning and Investment will collect opinions in writing from the relevant ministries, agencies.

Lastly, the Department of Planning and Investment reports to the Provincial People’s Committee and the Provincial People’s Committee will issue the Investment Registration Certificate.

Above are the Investment registration procedures for PPP projects in Vietnam. Hope this article could help you solve your problem. If you have any questions, please contact Lawyer X for quick and best legal services: 0833102102.

What is the definition of foreign investment?

Foreign investment means that organizations and individuals of one country bring capital in different forms into another country to conduct business activities for profit. Foreign investment is made in the form of direct investment or indirect investment.

Are investors under the PPP contract entitled to any incentives?

Yes, they are. The incentives will be based on the provisions of Article 3 of Decree 30/2015/ND-CP.

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