Report on monitoring and evaluation before adjustment of investment projects using foreign capital in Vietnam

Investment supervision and assessment activities are management activities of state agencies for investment activities. When conducting investment supervision and assessment activities, it is necessary to carry out monitoring and evaluation reports before adjusting investment projects using foreign capital. So how to report? The following article will provide you with some information about  investment monitoring and evaluation reports that need to be carried out before adjusting investment projects using foreign capital.

Legal basis

• Investment Law 2020;
• Law on Construction 2014, amended and supplemented in 2020.
• Decree 29/2021/ND-CP stipulating the order and procedures for appraisal of nationally important projects and investment supervision and evaluation;
• Circular 05/2023/TT-BKHDT stipulating the form of investment monitoring and evaluation report; online reporting regime and operation management of the information system on supervision and evaluation of investment in state-funded investment programs and projects.

What is a report on monitoring and evaluation before adjusting investment projects before using foreign capital?

The laws of our country promulgate legal documents regulating the supervision and evaluation of investment projects for the purpose of understanding the situation and progress of investment projects. An investment project pre-adjustment monitoring and evaluation report is a document containing information, data and evaluation related to the adjustment of an investment project. The monitoring and evaluation report before adjusting an investment project is used to inform, persuade and provide information to stakeholders, including investors, management agencies, investors, and parties with the right to decide on project adjustments.

Sample contents of monitoring and assessment reports before adjustment of investment projects using foreign capital in Vietnam

Pursuant to Circular 05/2023/TT-BKHDT, the form of monitoring and evaluation report before adjusting investment projects using foreign capital is prescribed in two cases: supervision and evaluation before adjustment of investment projects using foreign capital and monitoring reports, Assessment before adjusting investment projects using other capital sources, specifically:

Investment projects using foreign capital for public investment

Information about the project

First, the report should clearly state information about the project including:

• Project name;
• Investor;
• Project planning consultancy organization;
• Objectives of the project;
• Scale, capacity;
• Main investment contents/main investment items;
• Project location;
• Land use area;
• Form of project management;
• Project timelines;
• Number and date of approval of investment decisions;
• Project duration: Start time and end time;
• Total investment;
• Investment capital;

Project implementation status

Detailed report on the entire project implementation process up to the time of applying for project adjustment (in terms of volume, implementation value, disbursement of each investment item…).

Content and reasons for adjustment

The report should focus on the following:

• Legal bases governing the project;
• Clearly state the main contents of the adjustment of the project, the components of the adjusted project;
• Clearly state the reasons, causes and responsibilities of stakeholders leading to the adjustment of the project (in the stages of planning, appraisal, approval and organization of project implementation).

After clearly stating the contents and reasons for adjustment, the report should re-evaluate the effectiveness of the adjustment project and then make recommendations.

Petition

Proposing competent persons to decide on investment or competent agencies on measures to support and handle difficulties of the project (if any).

The subject submitting the report, where the report is submitted

Subjects submitting reports: investors, economic organizations submitting reports.

Place of submission: Department of Planning and Investment where the investor’s head office is located.

Investment projects using other capital sources (including foreign capital)

Information about the project

First, the report should specify information about the project including the following data:

• Investor information: Name; head office address, phone number, email address; amount of contributed capital and percentage of contributed capital
• Economic organization: Name of the enterprise; information for transactions (business address, phone number, email address…); business registration (number, date, place of issue); information about the legal representative; Charter capital; legal capital (if any)
• Investment project: project name: implementation location; written approval of investment policy/Investment registration certificate (if any); area of land used; objectives, scale; total investment capital, capital sources; operation duration, implementation schedule of the project; incentives,  investment support and applicable conditions (if any); conditions for investors to implement the project (if any).

Project implementation status

Detailed reports on the entire project implementation process up to the time of applying for project adjustment in terms of volume, implementation value, disbursement of each investment item….

Content and reasons for adjustment

The report should focus on the following:

• Legal bases governing the project;
• Clearly state the main contents of the adjustment of the project, the components of the adjusted project;
• Clearly state the reasons, causes and responsibilities of stakeholders leading to the adjustment of the project in the stages of formulation, appraisal, approval and organization of project implementation.

After clearly stating the contents and reasons for adjustment, the report should re-evaluate the effectiveness of the adjustment project and then make recommendations.

Petition

Proposing competent persons to decide on investment or competent agencies on measures to support and handle difficulties of the project (if any).

The subject submitting the report, where the report is submitted

Subjects submitting reports: investors, economic organizations submitting reports.

Place of submission: Department of Planning and Investment where the investor’s head office is located.

Obligation to report on monitoring and evaluation before adjusting investment projects in Vietnam

Article 100 of Decree 29/2021/ND – CP stipulates that the subjects include: Program owners, investors of public investment programs and projects; Investors in projects using foreign capital for public investment; Investors implementing PPP projects; Investors of projects using other capital sources; Investors of outward investment projects must prepare monitoring and evaluation reports before adjusting investment projects.

Time limit for submitting reports, where to submit reports and subjects submitting reports in Vietnam

According to the provisions of Article 100 of Decree No. 29/2021/ND-CP, the deadline for submitting a report is:

• Submit a report 6 months before July 10 of the reporting year;
• Submit annual reports by February 10 of the following year;
• Submit a report before the project program adjuster.

The report will be submitted by investors and economic organizations in the regime of monitoring and evaluating investment reports and submitting reports.

Place of submission: Ministry of Planning and Investment.

Components of dossiers for appraisal and adjustment of investment projects in Vietnam

Pursuant  to the provisions of Article 39 of Decree 29/2021/ND-CP, the process and documents related to the appraisal and adjustment of specific investment projects are as follows:

Firstly, the investor’s dossier of submission for appraisal and adjustment of the investment project includes:

• Submission for appraisal of adjustment of investment project: This is a document explaining the reasons and grounds for adjusting the investment project, it is necessary to clearly state information about the original project, the factors that need to be adjusted, and the objectives of the adjustment.
• Adjustment Feasibility Study Report: This report will contain information on changes in the project, the impact of adjustments on the project’s ability to implement and effectiveness, as well as an assessment of the feasibility of implementing adjustments.
• Monitoring and evaluation report on adjustment of investment projects: This report will focus on monitoring the process of adjusting the project, evaluating the progress and results of the implementation of adjustments.
• Other relevant documents: In case of other documents related to the adjustment of the project, such as legal, financial, managerial documents, will be attached to the file.

Secondly, the dossier of submission for appraisal of adjustment of investment projects by managing agencies:

• Submission to the Prime Minister: This is a written request of the managing agency to the Prime Minister on the adjustment of the investment project, including the reasons and grounds for the adjustment.
• Submission for appraisal of adjustment of investment project: This is a document of the managing agency explaining the changes in the project and their impacts, as well as control and management measures in the process of implementing the adjustment.
• Adjusted feasibility study report: Similar to the investor’s report, this report will evaluate the implementability and effectiveness of the adjustment.
• Monitoring and evaluation report on adjustment of investment projects: Similarly, this report will focus on monitoring the progress and results of adjustments.

Third, the dossier shall be submitted to the Prime Minister by the State Appraisal Council:

• Submission to the Prime Minister: The managing agency will send all dossiers submitted for appraisal and adjustment of the project to the Prime Minister for consideration and decision.
• Investment project adjustment appraisal submission: Like in previous agencies, this submission will also clearly state the adjustment points and their impacts.
• Adjustment Feasibility Study Report: An assessment of the implementability and effectiveness of the adjustment.
• Monitoring and evaluation reports on adjustment of investment projects: Reports on monitoring and evaluating the progress and results of adjustment implementation.

The process of appraisal of adjustment of investment projects will include steps of preparing dossiers, submitting dossiers to competent state agencies, conducting appraisal at the State Appraisal Council, and finally the Prime Minister will consider and decide on the adjustment of the project.

Above are the advice of Viet An Law on monitoring and evaluation reports before adjusting investment projects using foreign capital, if you have such as, please contact us for the best support!