Report on the exploitation and operation periodic monitoring and evaluation of investment projects in Vietnam

Investment supervision and assessment activities are management activities of state agencies for investment activities. In particular, in addition to ad hoc reports, there are also requirements for periodic reports during the project implementation to ensure that the project takes place on schedule and effectively. The following article will provide you with some information about  the monitoring report, periodic evaluation of the exploitation and operation phase of the investment project.

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 the concept of periodic monitoring and evaluation reports in the phase of exploitation and operation of investment projects?

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.

In particular, the periodic monitoring and evaluation report on the exploitation and operation of investment projects aims to provide a comprehensive view of the exploitation and operation of the project, results of business investment activities, information on labor, payment to the state budget, etc  investment in research and development, financial situation of enterprises and specialized indicators by field of activity.

What is a report on periodic monitoring and evaluation of the phase of exploitation and operation of an investment project?

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. Periodic monitoring and evaluation report for the exploitation and operation of an investment project is a document containing information, data and assessment related to the exploitation and operation of an investment project.

Sample contents of periodic monitoring and evaluation reports in the phase of exploitation and operation of investment projects in Vietnam

Circular 05/2023/TT-BKHDT stipulates 03 forms of monitoring and evaluation reports before adjusting investment projects using foreign state capital in three cases of different types of projects, specifically:

• Public investment projects and projects using foreign state investment;
• Investment projects using other capital sources;
• Investment projects in the form of public-private partnership.

Public investment projects and projects using state capital other than 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;

Situation of project exploitation and operation

The report presenting the exploitation and operation of the project includes:

Firstly, the economic-technical and operational status of the project (clearly stating the economic-technical and operational status of the project and comparing it with the approved indicators in the investment implementation phase).

Second, sustainability; the existence, difficulties and obstacles of the project (if any).

Third, production and business situation (for investment projects for business purposes):

• Employment situation (quantity, qualification structure) up to the time of reporting.
• Performance of obligations to employees (salary, insurance, allowances, social welfare…).
• Situation of fulfillment of obligations to the Budget (number implemented in the reporting period, accumulated number up to the time of reporting, number still payable, clearly stating the reasons for not submitted).
• Profit situation (number realized in the reporting period, accumulated number up to the reporting time).

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

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).

Situation of project operation

The production and business situation includes:

• Situation of employment in terms of quantity and qualification structure up to the time of reporting.
• The situation of fulfilling obligations to employees such as salary, insurance, allowances, social welfare….
• The situation of fulfillment of obligations to the Budget on the number implemented in the reporting period, the accumulated amount up to the time of reporting, the amount still to be submitted, clearly stating the reasons for not submitted.
• Profit situation: the number realized in the reporting period, the accumulated number up to the reporting time.
• Preliminary financial situation of the enterprise: short-term debt, long-term debt,…, analysis and assessment compared to the preceding reporting period.

The implementation of regulations on relevant matters in Vietnam includes:

• On the use of land and other resources:
• Regarding requirements for environmental protection and fire prevention:
• The satisfaction of business investment conditions for projects in conditional business lines and lines:
• The satisfaction of the provisions of the written decision on investment policies and the Investment Registration Certificate (if any).

If investment incentives are implemented, they must also be presented on the implementation of investment incentives. At the same time, the project has difficulties and obstacles, it should be clearly stated in the report.

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 in the form of public-private partnership

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 decision: number, date, name of the approving agency.
• Structure of investment capital in which: State capital participating in the project; Total investment capital (equity, borrowed capital);
• Financial plan;
• Information about the project enterprise: Business name; Certificate of business registration (number, date of issue, name of issuing agency); Charter capital; Legal representative.

Situation of project operation

Firstly, the economic-technical and operational status of the project (clearly stating the economic-technical and operational status of the project and comparing it with the approved indicators in the investment implementation phase).

Second, the production and business situation of the project enterprise:

• Employment situation (quantity, qualification structure) up to the time of reporting.
• Performance of obligations to employees (salary, insurance, allowances, social welfare…).
• Situation of fulfillment of obligations to the Budget (number implemented in the reporting period, accumulated number up to the time of reporting, number still payable, clearly stating the reasons for not submitted).
• Impacts of the project on socio-economic development.
• Annual revenue, accumulated revenue up to the time of reporting, repayment of equity, borrowed capital,… compare with the financial plan in the signed contract.
• Profit situation (number realized in the reporting period, accumulated number up to the reporting time).
• Preliminary financial situation of enterprises (short-term debt, long-term debt,…, analysis and assessment compared to the preceding reporting period)

If the project has difficulties and obstacles, it should be clearly stated in the report.

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

According to the provisions of Article 100 of Decree No. 29/2021/ND-CP and Circular 50/2022/TT-BGTVT:

• Entity submitting the report: investor.
• Place of submission: Ministry of Transport

Deadline for 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.

Above are the advice of Viet An Law on monitoring reports, periodic assessment of the exploitation phase, operation of investment projects, if you have needs, please contact us for the best support!