FDI News

Competence to approve investment policies

VGP – The amended Law on Investment project (the "LOI 2020") dated June 17, 2020 comprises seven chapters, 77 articles and four attached appendices. The law took effect on January 1, 2021 and stipulates competence to approve investment policies.

Question: What are competence of the PM and the provincial People's Committees on investment policies?

Answer:  

* For the approval of the Prime Minister's investment policy, the LOI 2020 supplements some of the following projects:

+ New construction investment projects: airports; runways of airports and airfields; passenger terminal international airport; passenger terminals of international airports; cargo terminals of airports with an annual capacity of 1 million tons or more. 

+ Investment projects to build new ports and harbors belonging to special seaports; investment in the construction of new ports and wharves with investment capital of VND 2,300 billion (US$ 109 million) or more belonging to class-I seaports. 

+ Residential construction projects (for sale, lease, lease-purchase), urban areas with land use scale of 50 ha or more or less than 50 ha but with a population of 15,000 or more therein; or having a land use scale of 100 ha or more or less than 100 ha but having a population of 10,000 or more in a nonurban area; or investment projects irrespective of the size of land surface and population within the protection scope of any relics recognized by competent authorities as national or special national heritage. 

+ Projects with investment capital of VND 10,000 billion (US$ 750 million) or more. 

+ Investment projects concurrently under the authority to approve investment policies by two or more provincial People's Committees.

* For the approval of investment policy of the provincial People's Committee, the LOI 2020 supplements some of the following projects: 

+Investment projects that require the State to allocate, lease land and permit any change of land use purpose; except for land allocation, land lease, change of land use purpose of households and individuals not subject to approval of provincial-level People's Committees in accordance with the land law. 

+ Investment projects in construction of houses (for sale, for lease, for lease-purchase), urban areas with a land use scale of under 50 hectares and a population of less than 15,000 people therein; or having a land use scale of less than 100 ha and a population of less than 10,000 people in areas outside urban areas; or irrespective of the size of land area and population but in a restricted development area or historic inner city (defined in the planning projects) of the special grade urban area. 

+ Investment project in construction and business of golf courses. 

+ Investment projects of foreign investors and foreign-invested economic organizations carried out in coastal, border islands, communes, wards, towns and other areas affecting national defense and security.