PROCEDURES FOR APPROVAL OF INVESTMENT POLICY BY THE GOVERNMENT

Question: How is the investment policy approval by the Prime Minister obtained?

Gattaca Law attorney answers:

According to Clauses 1 and 2, Article 33 of the 2020 Investment Law, as guided by Article 31 of Decree 31/2021/ND-CP, effective from March 26, 2021, the application for investment policy approval includes two types of dossiers: those submitted by the investor and those prepared by the competent authority.

The dossier submitted by the investor includes:

• A written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;

• Documents regarding the legal status of the investor;

• Documents proving the financial capacity of the investor, including at least one of the following: the investor's financial statements for the past two years; a financial support commitment from the parent company; a financial support commitment from a financial institution; a guarantee of the investor's financial capacity; or other documents proving the investor's financial capacity;

• A project proposal including key details such as the investor or form of investor selection, investment objectives, investment scale, investment capital and capital raising plan, location, duration, implementation schedule, information on the current land use status at the project site, and a proposed land use plan (if applicable), labor needs, proposed investment incentives, the project's socio-economic impact, and a preliminary environmental impact assessment (if applicable) as prescribed by environmental protection laws;

• A copy of land use rights documents (if applicable);

• Explanation of the technology used (if applicable);

• BCC contract (if applicable);

• Other documents related to the investment project (if applicable).

The dossier prepared by the competent authority includes:

• A proposal for investment policy approval;

• A project proposal including key details such as investment objectives, investment scale, investment capital, location, duration, implementation schedule, the project's socio-economic impact, information on the current land use status at the project site, land recovery conditions for projects subject to land recovery, estimated land use needs (if applicable), a preliminary environmental impact assessment (if applicable) as prescribed by environmental protection laws, the proposed investor selection method and conditions for investors (if applicable), special mechanisms and policies (if any).

In cases where pre-feasibility reports are required under construction law, the competent authority may use such reports instead of the project proposal.

According to Article 36 of the 2020 Investment Law and Article 33 of Decree 31/2021/ND-CP, the procedures for obtaining the Prime Minister's approval for investment policy are as follows:

Step 1: Submit the application: The investor submits 08 sets of documents to the Ministry of Planning and Investment.

Step 2: Obtain appraisal opinions: Within 03 working days from receiving a complete application, the Ministry of Planning and Investment sends the documents to relevant ministries, sectors, and the provincial People's Committee where the project is expected to be implemented to request opinions on the project within their respective scope of state management. The ministries and sectors have 15 days to submit their appraisal opinions to the Ministry of Planning and Investment.

Step 3: Prepare the appraisal report: Within 40 days, the Ministry of Planning and Investment prepares an appraisal report to submit to the Prime Minister.

Step 4: Approve the investment policy: Within 07 working days, the Prime Minister reviews and approves the investment policy.

Step 5: Send the Decision on investment policy to relevant parties.

This process ensures that the project's appraisal is thorough and multidimensional, with the participation of several specialized agencies. It helps ensure the project's feasibility and effectiveness, as well as its alignment with legal regulations and the nation's socio-economic development orientation.

(Source: Vietnam Investment Guidebook)