Competence to grant decisions on adjustment of investment policies in Vietnam

Investors whose investment projects have been approved for investment policies must carry out procedures for approval for adjustment of investment policies if they fall into one of the following cases:

• Change the target specified in the written approval of the investment policy; supplementing targets subject to approval of investment policies;
• Change the size of land used over 10% or over 30 ha, change investment location;
• Changing the total investment capital by 20% or more changes the scale of the investment project;
• Prolonging the implementation schedule of an investment project where the total project investment time exceeds 12 months compared to the implementation schedule of the investment project specified in the written approval of the first investment policy;
• Adjustment of the operation term of the investment project;
• Technology changes have been appraised and consulted in the process of approving investment policies;
• Change of investor of an investment project approved for investment policies concurrently with investor approval before the project exploits, operates or changes in conditions for investors (if any).

Competence to approve investment policies of the National Assembly

• The National Assembly shall approve investment policies for the following investment projects:
• Investment projects that greatly affect the environment or have the potential to seriously affect the environment, including:
• Nuclear power plants;
• Investment projects requiring change of land use purposes of special-use forests, watershed protection forests and border protection forests of 50 hectares or more; protection forests against windbreaks, flying sand barriers and protection forests against waves and encroachment of 500 hectares or more; productive forests of 1,000 hectares or more;
• Investment projects requiring change of land use purpose for wet rice cultivation from 02 crops or more with a scale of 500 hectares or more;
• Investment projects requiring migration and resettlement of 20,000 people or more in mountainous areas, 50,000 people or more in other regions;
• Investment projects requiring the application of special mechanisms and policies need to be decided by the National Assembly.

Competence to approve investment policies of the Government

The Prime Minister shall approve investment policies for the following investment projects:

• Investment projects irrespective of capital sources fall into one of the following cases:
• Investment projects requiring migration and resettlement of 10,000 people or more in mountainous areas, 20,000 people or more in other regions;
• New construction investment projects: airports, airports; take-off and landing paths of airports and airports; the passenger terminal of the international airport; cargo terminals of airports and airports with a capacity of 01 million tons/year or more;
• New investment project in air passenger transportation;
• New construction investment projects: harbors, port areas belonging to special seaports; ports and port areas with an investment capital of VND 2,300 billion or more belonging to class I seaports;
• Oil and gas processing investment projects;
• Investment projects dealing in betting and casino, except for electronic games with prizes for foreigners;
• Housing construction investment projects (for sale, lease, lease for purchase), urban areas in the following cases: investment projects with a land use scale of 50 hectares or more or less than 50 hectares but a population of 15,000 people or more in urban areas; investment projects with a land use scale of 100 hectares or more or less than 100 hectares but a population of 10,000 people or more in non-urban areas; investment projects irrespective of the size of land area and population under protection of relics recognized by competent authorities as national relics or special national relics;
• Investment projects on construction and business of infrastructure of industrial parks and export processing zones;
• Investment projects of foreign investors in the field of telecommunications service business with network infrastructure, afforestation, publishing and press;
• The investment project is concurrently under the competence to approve investment policies of 02 or more provincial People’s Committees;
• Other investment projects subject to the competence to approve investment policies or investment decisions of the Prime Minister in accordance with law.

Competence to approve investment policies of provincial-level People’s Committees

• Provincial-level People’s Committees shall approve investment policies for the following investment projects:
• Investment projects that request the State to allocate or lease land without auction, bidding or receiving transfer, investment projects that request permission to change land use purposes, except for the case of land allocation, land lease, permission to change land use purposes of households, etc individuals who are not subject to written approval from provincial-level People’s Committees in accordance with the law on land;
• Investment projects on housing construction (for sale, lease, lease for purchase), urban areas in the following cases: investment projects with a land use scale of less than 50 hectares and a population of less than 15,000 people in urban areas; investment projects with a land use scale of less than 100 hectares and a population of less than 10,000 people in non-urban areas; investment projects irrespective of the size of land area, population in restricted development areas or historic inner cities (defined in urban planning plans) of special type urban areas;
• Investment projects on construction and business of golf courses (golf);
• Investment projects of foreign investors and foreign capital economic organizations implemented in islands and border communes, wards and towns; coastal communes, wards and townships; other areas that affect national defense and security.
• For investment projects specified at Points 1, 2 and 4 above implemented in industrial parks, export processing zones, hi-tech parks or economic zones in accordance with the planning approved by competent authorities, the Management Board of industrial parks, export processing zones, hi-tech parks, etc The economic zone approves the investment policy.

If you need advice on investment policy approval procedures, please contact Viet An Law Firm for the best support!