Supervision report at the end of foreign investment projects 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 the project completion monitoring and evaluation report in accordance with the provisions of law. So how to report? The following article will provide you with some information about  the monitoring and evaluation report on the end of investment projects using foreign investment.

What is an investment project?

In terms of form: An investment project is a dossier that presents in detail and systematically the activities and costs according to a plan to achieve certain results and achieve certain goals in the future.

In terms of content, an investment project is a set of interrelated activities planned to achieve the set goals by producing concrete results in a certain time, through the use of defined resources.

From a management perspective, an investment project is a tool to manage the use of capital, materials and labor to produce financial, economic and social results over a long period of time. A project is a series of joint activities created to achieve certain results within a defined budget and time.

Legally, according to the Investment Law 2020, an investment project is an investment project that is a collection of proposals for medium-term or long-term capital expenditure to conduct business investment activities in specific areas, within a specified period of time.

Therefore, it can be understood that an investment project is a set of interrelated activities planned to help businesses achieve set goals by producing specific results in a certain time, through the use of defined resources. At the same time, investment projects are also the basis for competent state agencies to take measures to manage and license investment. The investment project is also the basis for investors to carry out investment activities and evaluate the effectiveness of the project. And it is especially important in persuading the investor to decide on investment and credit institutions to finance the project.

What is investment monitoring and evaluation?

According to the provisions of Decree 29/2021/ND-CP, investment supervision is investment monitoring and inspection activities. Investment supervision includes: supervision of investment programs and projects and overall supervision of investment. Investment project evaluation includes: initial assessment, mid-term or phase assessment, closing assessment, impact assessment and ad-hoc assessment.

For the assessment at the end of an investment project, this is understood as a planned periodic activity that takes place after the end of the project in order to determine the level of achievement according to specific objectives and indicators compared to investment decisions or assessment standards prescribed by the state.

What is a report on monitoring and evaluating the end of an investment project 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. Final assessment is an assessment conducted immediately after the end of project investment to review the achieved results and draw lessons learned.

A foreign-funded investment project is a type of project that uses other capital, which may include state capital (in the form of public-private partnership) or excluding state capital.

Contents of the report on supervision and assessment at the end of investment projects using foreign capital in Vietnam

The obligation to report on the end of each project is stipulated in Articles 55, 61, 68, 74, 80 of Decree 29/2021/ND – CP for group A  projects, PPP projects (subject being the National Assembly, the Prime Minister), projects using state capital other than public investment, investment projects using other capital sources subject to approval of investment policies (responsible entities being investors, economic organizations implementing projects) and responsibilities of investors in foreign investment projects.

Circular 05/2023/TT-BKHDT has stipulated 2 forms of closing reports:

• Report on supervision and evaluation of investment completion (Form No. 07) for public investment projects and projects using foreign state investment;
• Final assessment report (Form No. 16) for investment projects using other capital sources, including foreign capital.

Specifically, the main contents of the above reports include:

Information about the project

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

• 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;

Contents

The report focuses on the following:

Firstly, summarize the entire project implementation process: Briefly describe the project implementation process from the stage of preparation for investment implementation to the end of the investment.

Second, summarize the achievements of the project including:

• Results of implementation of approved contents: Clearly state the results and level of achievement of the approved contents: objectives, scale, total investment, implementation progress, quality,….
• Performance results on investment capital: Comparison between the total investment amount according to the investment decision with the total actual realized and disbursed value; major adjustments to the total investment amount of the project (if any); predisposing factors.
• Factors affecting project performance
• Preliminary state of the benefits brought by the project to the beneficiaries
• Impact and sustainability of the project: State the impact factors, ensure the sustainability and promote the effectiveness of the project.

Third, from the practice of organizing the implementation of the project and the responsibilities of relevant agencies, organizations and individuals, lessons are learned.

Petition

The report should outline recommendations to promote efficiency, sustainability or overcome project limitations.

Contents of reports on monitoring and evaluation of completion of public investment projects and projects using other capital foreign in Vietnam

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 foreign; operation duration, implementation schedule of the project; incentives,  investment support and applicable conditions (if any); Conditions for investors to implement the project (if any):

Contents

The report focuses on the following:

Firstly, the results of the goal include:

• The objectives of project construction, project creation, enterprise;
• Scale goals;
• Other goals.

Second, evaluating the results of resource mobilization (evaluating the results achieved compared to the original plan; stating difficulties and obstacles in the process of project implementation leading to the failure to achieve the original plan) includes:

• Financial resources (equity, borrowed and other mobilization,…);
• Source of raw materials;
• Land and other natural resources;
• Labor resources, technological brainpower;
• Technical infrastructure resources, such as electricity, water, transportation…
• Other resources.

Third, evaluate the implementation progress (evaluate the results achieved compared to the original plan; state difficulties and obstacles in the process of project implementation leading to the failure to achieve the original plan. Especially problems in administrative regimes, policies, procedures …; coordination between investors and management agencies,  coordination between state management agencies.). Concrete:

• Project preparation progress;
• Clearance progress;
• Construction progress;
• Progress of purchasing machinery and equipment, installation, commissioning;
• Capital raising progress.

Fourth, evaluate the benefits of the project (state the benefits brought by the project during the implementation process, estimate the benefits the project will bring in the course of business activities)

Petition

The report should propose competent state agencies on measures to support and handle difficulties of the project (if any).

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

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.

Some related questions

If the monitoring and evaluation report on the end of an investment project using foreign capital is not conducted, will it be sanctioned?

Clause 1, Article 10 of Decree 122/2021/ND-CP stipulates penalties for administrative violations in the field of planning and investment, according to which a fine from VND 30,000,000 to VND 50,000,000 is imposed for failure to make reports on investment activities, monitoring reports and evaluation of investment projects according to regulations.

Therefore, failure to report on supervision and evaluation at the end of investment projects using foreign investment capital will be administratively sanctioned from VND 30,000,000 to VND 50,000,000.

How many investment monitoring and evaluation activities are there?

Investment supervision and evaluation activities include 2 activities including: Monitoring and evaluating investment projects and monitoring and evaluating overall investment.

What is public investment project monitoring?

Public investment project means a project that uses all or part of public investment capital. Investment supervision is the activity of monitoring and examining investment. Investment supervision includes supervision of investment programs and projects and overall supervision of investment.

The above are the advice of Viet An Law on monitoring reports, evaluation at the end of investment projects using foreign investment, establishment of foreign-invested companies, dissolution of foreign-invested companies, please contact us for the best support!