Reference situation:

A German investor is going to invest in a packaging manufacturing factory in an industrial park in Vietnam. The investor knows that there are some investment projects subject to the prior decision on the investment policy of competent authority in some cases. The investor would like to consult lawyers if his intended project subject to the prior in-principle decision.

Our legal advice:

Under Law on Investment 2014, the following investment projects shall be subject to a decision on the investment policy of competent authorities:

“Article 30 Authority of the National Assembly to make the decision on investment policy
Except for the projects subject to the authority of the National Assembly to make the decision on the investment policy in accordance with the law on public investment, the National Assembly shall make the decision on the investment policy in respect of the following projects:
1. Projects with a great effect on the environment or with a potentially serious effect on the environment, including:
(a) Nuclear power plants;

(b) Conversion of the land use purpose of a national park, natural conservation zone, landscape protection zone, forest for scientific research or experiment of 50 hectares or more; upstream protective forest of 50 hectares or more; protective forest as windbreaker, shelter from flying sand or breakwater or for reclamation from the sea or for environmental protection with an area of 500 hectares or more; and forests for production with an area of 1,000 hectares or more;

2. Land use with a requirement for conversion of the land use purpose for wet rice cultivation on two harvests in an area of 500 hectares or more;
3. Relocation and resettlement of 20,000 people or more in mountainous areas or 50,000 people or more in other areas;
4. Projects which require the application of a special mechanism or policy which should be decided by the National Assembly.”

“Article 31 Authority of the Prime Minister of the Government to make a decision on investment policy
Except for the projects subject to the authority of the Prime Minister of the Government to make the decision on the investment policy in accordance with the law on public investment and the projects prescribed in article 30 of this Law, the Prime Minister of the Government shall make the decision on the investment policy in respect of the following projects:
1. Projects regardless of sources of capital in one of the following cases:
(a) Relocation and settlement of 10,000 people or more in mountainous areas and 20,000 people in other areas;
(b) Construction and commercial operation of airports; and air transportation;
(c) Construction and commercial operation of national seaports;
(d) Exploration, production, and processing of petroleum;
(dd) Business of betting and casinos;
(e) Production of cigarettes;
(g) Development of infrastructure in industrial zones, export processing zones and functional areas in economic zones;
(h) Construction and commercial operation of golf courses.
2. Projects which are not in the cases prescribed in clause 1 of this article and have a scale of
investment capital from 5,000 billion Dong or more.
3. Projects of foreign investors in the following sectors: business of sea transportation; business of telecommunications services with network infrastructure; afforestation; publication, press; and establishment of a scientific and technological organization or a scientific and technological enterprise with one hundred (100) percent foreign-owned capital.

4. Other projects subject to the authority of the Prime Minister of the Government to make the decision on the investment policy or to make an investment decision as stipulated by law.”

“Article 32 Authority of provincial people’s committees to make a decision on investment policy
1. Except for the projects subject to the authority of provincial people’s committees to make the decision on the investment policy in accordance with the law on public investment and the projects prescribed in articles 30 and 31 of this Law, provincial people’s committees shall make the decision on the investment policy in respect of the following projects:
(a) Projects to which the State allocates or leases out land without auction, tendering or transfer; and projects with a requirement for conversion of the land use purpose;
(b) Projects using technology in the list of technologies the transfer of which is restricted in accordance with the law on technology transfer.

2. The investment projects which are prescribed in clause 1(a) of this article and implemented in an industrial zone, export processing zone, high-tech zone or economic zone in conformity with the master plan approved by the authority shall not be required to be submitted to the provincial people’s committee for its decision on the investment policy.”

Please click here to explore more about the procedures for the issuance of Investment Registration Certificate of which the investment project is not subject to a decision on the investment policy