Vietnam – New Law On Public Investment.

Furthermore, pursuant to the New Law on Public Investment, the feasibility study reports related to important national PPP projects shall not be governed by the PPP laws.

2. (ii)  Exemption from in-principle investment decision

   The New Law on Public Investment clarifies that emergency projects, investment preparation missions, planning missions, projects in the national objectives program, and component projects of projects that have been granted the in-principle investment decision are exempted from obtaining an in-principle investment decision, whereas the Current Law on Public Investment remains silent on this issue.

3. (iii)  Adjustment of in-principle investment decision

   The New Law on Public Investment introduces a legal framework for adjustment of the in-principle investment decision, while the Current Law on Public Investment does not provide the same. The procedures and authority for adjusting the in-principle investment decision shall be similar to those for obtaining the initial in-principle decision.

4. (iv)  Increasing decentralisation

   The New Law on Public Investment provides a more favourable framework for ministries, central authorities, and local authorities in public investment activities than that of the Current Law on Public Investment.

   To be specific, under the New Law on Public Investment, the MPI, other ministries, central authorities, and local authorities are able to appraise capital source and capital balance capacity of the investment projects and programs which fall under their authority. As of now, only the MPI and MOF are currently responsible for conducting such appraisals according to the Current Law on Public Investment.

   Further, pursuant to the New Law on Public Investment, the local people’s committees, if assigned by the local people’s council, may grant in-principle investment decisions for a number of types of group-B and group-C projects which are currently exclusively reserved matters for the local people’s councils.

5. (v)  Time schedule for implementation and disbursement of capital in public investment plans

   Under the New Law on Public Investment, the capital provided in public investment plans for a medium-term period must be implemented and disbursed no later than 31 January of the first year of the immediately preceding period, which is 12-month earlier than that of the current Law on Public Investment.

6. (vi)  Amendment to the Law on Environmental Protection

   For public investment projects, the New Law on Public Investment provides that the issuance of in-principle investment decision shall be based on a preliminary environment impact assessment, instead of a full environmental impact assessment report as currently stipulated in the Law on Environmental Protection. The Government will give further guidance on the preliminary environment impact assessment.