Report on supervision and evaluation of investment projects with foreign capital

In recent years, construction investment projects using foreign capital in Vietnam have increasingly grown in both quantity and quality. To meet the requirements of the law on construction investment and public investment management, on June 30, 2023, the Ministry of Planning and Investment issued Circular 05/2023/TT-BKHDT guiding notification forms of the report on supervision and evaluation of investment projects with foreign capital. The Circular takes effect from September 2023. In the following article, Viet An Law will summarize the content related to the above topic.

Legal basis

• Law on Construction 2014, as amended and supplemented in 2020.
• Decree 29/2021/ND-CP regulates the order and procedures for appraisal of important national projects and investment supervision and evaluation;
• Decree 122/2021/ND-CP on regulations on sanctions for administrative violations in the field of planning and investment.
• Circular 05/2023/TT-BKHDT regulates investment supervision and evaluation report forms; online reporting regime and operational management of the information system for supervision and evaluating investment in investment programs and projects using state capital.

What is investment supervision and evaluation?

According to the provisions of Decree 29/2021/ND-CP, investment supervision is the activity of supervision and evaluation of investment. Investment supervision includes supervision of investment programs and projects and overall investment supervision.

Investment project evaluation is understood as a planned or unscheduled periodic activity to determine the level of achievement of specific goals and targets compared to investment decisions or regulatory evaluation standards determined by the state at a certain time. Investment project evaluation includes initial evaluation, mid-term or phase evaluation, final evaluation, impact evaluation, and unexpected evaluation.

Regulations on supervision reports and investment evaluation of foreign capital projects

Supervising and evaluating investment projects is a procedure set out to manage the implementation of investment projects according to the provisions of the Construction Law. Specifically, Article 8.1 of the Law stipulates:

“Article 8. Supervision and evaluation of construction investment projects

1. Construction investment projects shall be supervised and evaluated as suitable to each type of funding source as follows:

a/ For projects using state funds, competent state agencies shall conduct the supervision and evaluation in accordance with the law on public investment and law on construction according to the approved evaluation contents and criteria;

b/ For projects using other funding sources, competent state agencies shall conduct the supervision and evaluation of objectives, conformity with relevant master plans, land use, construction investment schedule, and environmental protection.

2. Infrastructure construction investment projects using state funds or community-contributed funds and financial assistance of domestic organizations and individuals are subject to community supervision.”

Thus, for each type of capital source (state capital, foreign capital, community capital), different project investment supervision and evaluation reporting obligations are imposed on investors and state agencies country and community, to serve state management.

Sample report on supervision and evaluation of investment projects with foreign capital

Article 4 of Circular 05/2023/TT-BKHDT stipulates 19 report forms to guide procedures for supervision and evaluating construction investment projects. Accordingly, report templates are divided according to each type of capital used in investment projects, including:

• Public investment projects and projects using state capital other than public investment;
• Investment projects using the public-private partnership method;
• Investment projects using other capital sources.

In addition, there is also a sample report for supervision and evaluating overall investment for the whole year and a sample report for supervision of community investment in the case of infrastructure construction investment projects using state capital or community capital contributions and organizational funding.

The content of 19 report forms mentioned in the appendix of Circular 05/2023/TT-BKHDT is as follows:

Note:

• Sample Report on supervision and evaluation before adjustment, final evaluation, and impact evaluation of investment projects implemented in the public-private partnership method shall be carried out according to the corresponding sample form for public and private investment projects using state capital other than public investment;
• In case the project uses multiple sources of capital, including state capital, the forms and reporting regime comply with regulations for public investment projects and projects using state capital. Particularly for investment projects using the public-private partnership method that uses state capital, the prescribed forms must be maintained.

Obligation to update information and reports of project developers, component project developers

Annually report overall investment supervision and evaluation data on the Professional Information System, including:

• Consolidate information from programs and projects under their management available on the Professional information system;
• Review and supplement reporting information;
• Submit data reports.

Article 5 of Circular 05/2023/TT-BKHDT, sets out the obligation to update program and project information for investors and component project owners according to each stage of investment project implementation in Vietnam. participation of state capital.

• At the beginning of the project: update information to the Investment Supervision and Evaluation Information System according to the Investment Policy Decision and Investment Decision on the System within 07 working days from the date of issuance of the above decision.
• In the implementation process:
• When there are adjustments or issues: update changed information to the System no later than 07 working days.
• Periodically on the 25th of every month, update information on the value of volume implemented at the scene and disbursement value; photos or films of the current construction status at the site for projects with construction components.
• At the end of the program or project: update project settlement information according to the Decision approving settlement within 07 working days from the date of approval of settlement.
• Post documents as required in Article 5.4 of Circular 05/2023/TT-BKHDT on the System within 07 working days from the date of approval, promulgation, and release by competent authorities.

Supervision and evaluation reports posted to the Professional Information System after being stamped or digitally signed for specialized use by the Government include:

• Periodic supervision and evaluation report: 6-monthly, yearly. Supervision and evaluation report of investment of project developers and component project developers according to Schedule No. 9 shall be consolidated from information available on the Professional information system from contracts of the projects;
• Supervision and evaluation reports for adjusting investment projects;
• Final investment supervision and evaluation report;
• Annual supervision and evaluation summary report of investment programs and projects under their management.

Time limit for investment supervision and evaluation reports

Deadline for submitting reports of program owners, investors, and investors as prescribed in Point a, Clause 11, Article 100 of Decree 29/2021/ND-CP:

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

Above is the consulting content of Viet An Law on the report on supervision and evaluation of investment projects with foreign capital. Customers who need advice in the field of investment law or administrative law, please contact Viet An Law for the most effective support.