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VietNamNews

Investment Law decree coming soon

Update: December, 09/2014 - 09:20

HA NOI (VNS) — The first decree of the Law on Public Investment will soon be issued, Minister of Planning and Investment Bui Quang Vinh said during last week's Viet Nam Development Partnership Forum (VDBF).

Vinh told listeners that the decree would create favorable conditions for participants in public-private partnership (PPP) projects.

The Government was focusing on gradually shifting investment from the State-run sector to private businesses, he said, stressing that the State budget would directly contribute to construction of major infrastructure facilities by the private sector.

Last September, the Prime Minister approved the development of a PPP decree consolidating Decree 108 and Decision 71.

Viet Nam has set several regulations over co-operation between the State and private sector in the past, including 2009's Decree 108/2009/ND-CP on build-operate-transfer, build-transfer-operate and build-transfer contracts and 2010's Decision 71/2010/QD-TTg on pilot PPP investment.

In the last two years, the Ministry has received guidance from other Vietnamese ministries as well as technical support from development partners such as Asia Development Bank and the World Bank, in addition to international organisations and countries including Japan, South Korea and the United Kingdom.

During the forum, NGOs urged the Government to ensure that the law provided a level playing field and would involve NGOs and associations in the provision of public services.

The ministry would continue to improve the decree to create a fair and transparent environment for non-government organisations and associations engaged in providing PPP services in Viet Nam, Vinh said.

Ministries and agencies at both central and local levels are now identifying financing sources before approving investments, according to a Government report presented at the forum.

With regards to investment using the State budget or proceeds from Government bonds, relevant agencies have compiled a regulation on identifying financing sources before making decisions.

The report also stated that allocation of investment funds was a priority and a considerable amount of funding was earmarked for annual counterpart contributions and clearing the backlog of capital investment.

As a result, the number of new projects decreased in comparison with previous years. Spending was more focused, project implementation was accelerated and projects produced results in a shorter time.

Funds were allocated for a medium-term period of 3-5 years to allow more flexibility for ministries and agencies to use them effectively. — VNS

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