PROCEDURES FOR APPROVAL OF INVESTMENT POLICY BY THE NATIONAL ASSEMBLY  

Question: How is the National Assembly approval for investment policy 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 34 of the 2020 Investment Law, after receiving the investor's application, the National Assembly's investment policy approval procedures proceed as follows:

Step 1: Submit the application: The investor submits 20 sets of documents to the Ministry of Planning and Investment.

Step 2: Establish a State Appraisal Council. Within 15 days from the date of receiving the complete application (as specified in Step 1), the Ministry of Planning and Investment reports to the Prime Minister to establish a State Appraisal Council.

Step 3: Appraise the application and prepare an appraisal report. Within 90 days from the establishment, the State Appraisal Council organizes the appraisal of the application for National Assembly investment policy approval and prepares an appraisal report to submit to the Government.

Step 4: The Government prepares the application for investment policy approval. At least 60 days before the opening of the National Assembly session, the Government prepares and submits the application for investment policy approval to the National Assembly’s reviewing agency.

The application for investment policy approval includes:

• The Government’s proposal.

• The investor’s application for National Assembly approval.

• The appraisal report of the State Appraisal Council.

• Other related documents.

Step 6: Review the investment policy proposal. The National Assembly’s reviewing agency will assess the proposal for investment policy based on the following content:

• Whether the project meets the criteria for National Assembly approval.

• The necessity of the investment project.

• The alignment of the project with national, regional, provincial, urban, and special administrative-economic unit planning (if applicable).

• The project's objectives, scale, location, duration, implementation schedule, land use needs, land clearance plan, resettlement plan, key technology selection, and environmental protection measures.

• Total investment capital and funding sources.

• Assessment of the project's socio-economic effectiveness, national defense and security assurance, and sustainable development.

• Special mechanisms, policies, incentives, investment support, and applicable conditions (if any).

During the review process, the Government, relevant agencies, organizations, and individuals must provide complete information and documents to support the review and clarify issues related to the investment project when requested by the National Assembly's reviewing agency.

Step 7: The National Assembly passes a resolution on the investment policy. The National Assembly reviews and passes a resolution on investment policy, which includes the following content:

• Project objectives, location, scale, schedule, and duration.

• The investor or form of investor selection, and special mechanisms and policies (if applicable) for implementing the investment project.

(Source: Vietnam Investment Guidebook)