On April 8, 2025, on behalf of the Government, the Deputy Prime Minister signed and issued Decree No. 85/2025/ND-CP detailing the implementation of a number of articles of the Public Investment Law. The Decree clarifies the provisions on investment procedures; classification of public investment projects; sectors and fields using public investment capital and other regulations related to public investment management. In the article below, Viet An Law will provide customers with general legal advice on highlights of Public Investment Law guidance in Vietnam 2025.
Table of contents
Decree 85/2025/ND-CP details some articles of the Public Investment Law on the following contents:
The Decree stipulates 13 sectors and fields that are allowed to use public investment capital. Accordingly, public investment capital is allocated to public investment subjects according to the provisions of the Public Investment Law and is classified by sectors and fields: National defense, security; education, health, science and technology; culture, sports, radio and television; environment, resources; agriculture, industry, transport, trade, telecommunications, information technology; activities of state agencies and socio-political organizations (tasks, programs, investment projects to build, renovate, upgrade infrastructure, facilities, purchase equipment for nursing facilities, rehabilitation facilities, and care for people with meritorious services; support for employment; construction, renovation, and upgrading of facilities for caring for the elderly, orphans with no place to rely on; construction of worker accommodation in industrial zones; care and health care for workers, prevention of occupational diseases; facilities to support activities of youth, women, and farmers; construction, renovation, upgrading, and expansion of works honoring martyrs; drug rehabilitation and other social assistance facilities; accommodation for workers); social security sector and specific tasks and policies according to decisions of the Government or the Prime Minister. The Decree emphasizes focused and effective investment, prioritizing essential projects that serve socio-economic development, national defense, security, and social security. The regulation of specific sectors and fields that can use public investment capital will create a legal basis for effective implementation and application.
Decree 85/2025/ND-CP clearly defines the authority to decide on investment policies among levels:
This is a new point compared to the previous Decree 40/2020/ND-CP, when decentralizing the authority to decide on investment projects of groups A, B, C managed by localities to the People’s Committees at all levels, transferring the authority of the People’s Councils at all levels to the People’s Committees at all levels. Previously, the authority to decide on investment policies for groups of projects was under the authority of the Provincial People’s Council. However, according to the provisions of the new Law on Public Investment, the Provincial People’s Council only decides on investment policies for public investment programs and group A projects, while the remaining group B, C projects are under the authority of the Provincial People’s Committee. This is a very big change demonstrating the promotion of decentralization and the delegation of power in law-making.
The Decree stipulates the time for appraisal of public investment programs and projects without construction components from the date the appraisal authority receives complete and valid dossiers as follows:
The appraisal of time for public investment programs and projects not only ensures feasibility and progress but also ensures the effectiveness and success of these projects. In order to increase the effectiveness of the appraisal process, Decree 85/2025/ND-CP has shortened the time compared to Decree 40/2020/ND-CP.
During the implementation of an investment project, investors have the right to adjust the objectives, transfer part or all of the investment project, merge projects or divide or separate a project into multiple projects, use land use rights and assets on land belonging to the investment project to contribute capital to establish an enterprise, cooperate in business or other contents and must comply with the provisions of law. Decree 85/2025/ND-CP details the order and procedures for adjusting public investment programs and projects, including:
Clearly defining the order and procedures for adjusting public investment programs and projects as above will create a legal basis for implementation and application in practice.
The Decree devotes Chapter IV (Articles 26 to 36) to detail the procedures for establishing, appraising, deciding and managing public investment projects without a construction component, such as purchasing equipment, technology, and training transfer. A project without a construction component is a project using public investment capital to purchase assets, receive land use rights transfers, purchase, repair, upgrade equipment, machinery and other projects not specified. The specific provisions of Decree 85/2025/ND-CP on the above content help to distinguish it from projects with a construction component and ensure that the implementation process is appropriate to the specific characteristics of each type of project.
In addition, Decree 85/2025/ND-CP also details the conditions, criteria, and principles for allocating local budget capital to entrust the implementation of preferential credit policies through the Social Policy Bank branches in provinces and centrally run cities; the authority to decide on investment policies for programs and projects using capital from legal revenue sources of state agencies and public service units for investment; the order and procedures for deciding on investment policies for programs and projects using capital from legal revenue sources of state agencies and public service units for investment, etc.
Above is an analysis of highlights of Public Investment Law guidance in Vietnam 2025. If you have any related questions or need advice on legal regulations, please contact Viet An Law for the best support!
