As prescribed by laws, approval of investment policy is the approval of the project implementation’s objectives, location, scale, schedule and duration by a competent state agency; investor or investor selection form and special mechanisms and policies (if any) to implement investment projects. Investment projects specified in Article 32 of Law on Investment, amended and supplemented by Article 3.2 of Law amending Law on Public Investment, Law on Investment in the form of public-private partnership, Law on Investment, Law on Housing, Law on Bidding, Law on Electricity, Law on Enterprises, Law on Special Consumption Tax and Law on Civil Judgment Enforcement must follow the procedures for approval of investment policy by provincial People’s Committees.
File requesting approval of investment policy
According to the legal provisions of law on investment, a file requesting approval of investment policies proposed by investors includes:
- Written application for implementation of the investment project, including a commitment to bear all expenses and risks if the project is not approved;
- Documents on the legal status of the investor;
- Documents proving the investor’s financial capacity include at least one of the following documents: the investor’s financial statements for the last 02 years; undertaking of the parent company to provide financial support; undertaking of a financial institution to provide financial support; guarantee for the financial capacity of the investor; other documents proving the financial capacity of the investor;
- The investment project proposal includes the following main contents: investor or method of investor selection, investment objectives, investment scale, investment capital and plan for raising capital, location, duration, implementation schedule, information about the current status of land use at the location for implementation of the project and proposal for a need for land use (if any), need for labour, proposal for investment incentives, impacts and socio-economic efficiency of the project, preliminary environmental impact assessment (if any) in accordance with the law on environmental protection.
In case the law on construction requires formulation of a pre-feasibility study reports, the investor may submit pre-feasibility study reports instead of investment project proposals.
- In case the investment project does not require the State to allocate land, lease land or allow the change of land use purpose, a copy of the land use right document or other document determining the right to use the location for the implementation of the investment project shall be submitted;
- Contents of explanatory statement on technologies to be used in investment projects for projects subject to appraisal and collection of opinions on technologies in accordance with the law on technology transfer;
- Business cooperation contract (“BCC”) for investment projects on the basis of BCC;
- Other documents relating to investment projects, requirements on eligibility and capability of investors as prescribed by law (if any).
Sequence and procedures for approval of investment policy by provincial People’s Committees
Article 36 of Law on Investment and Article 33 of Decree 31/2021/ND-CP stipulates the procedures for approval of investment policy by provincial People’s Committees as follows:
- Submission of dossiers: Investors or competent state agencies shall submit 04 files requesting the approval of investment policies as prescribed to the investment registration agency (“IRA”);
- Collecting appraisal opinions: Within 03 working days from the date of receipt of a valid file, the IRA shall forward the file to collect appraisal opinions of the departments and People’s Committees of the district where the project is expected to be implemented and relevant agencies on the contents under their scope of state management;
Within 15 days from the date of receipt of the file, the agency which is asked for the opinion shall provide its appraisal opinion on the contents under its scope of state management to the IRA;
- Preparation of appraisal report: Within 25 days from the date of receipt of a valid file, the IRA shall prepare an appraisal report and submit it to the provincial People’s Committee.
- Considering the investment policy approval. Within 07 working days from the date of receipt of the file and appraisal report, the provincial People’s Committee shall consider the approval of investment policy, and must provide a written notice specifying the reasons in case of refusal,.
- Sending the Decision on approving the investment policy: The decision on approving the investment policy shall be sent to the investor or the competent state agency which lodged the file, the agency assigned to hold the auction (in case of selecting the investor to implement the project via auction of land use right), the agency organising the tendering to announce the project list in accordance with the law on tendering, the law on socialisation, specialised laws (in case of selecting investors to implement the project via tendering), the IRA, departments and agencies involved in the implementation of investment projects.
In addition, investors also need to research and evaluate information about supporting policies of government, legal provisions relating to licenses and projects as well as contracts related to investment projects. All information will support investors in carrying out the procedures for approval of investment policy by provincial People’s Committees. Furthermore, in order to ensure that the form and contents of the file relating to the procedures for approval of investment policy by the provincial People’s Committee are complete and compliant with the law, the investors need the advice and assistance of law firms with a team of lawyers specialising in investment.
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