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What is an investment policy decision and the Competent authorities for approval?
Currently, investment project approval is not too difficult for investors, but not all projects can apply for investment policy decisions from competent authorities. In the article below, Siglaw will guide you through what is an investment policy decision? And the procedures for requesting approval of investment project policies at competent approval authorities.
What is an investment policy decision?
An investment policy decision is a decision by a competent authority on the main content of an investment program or project and serves as the basis for the preparation, submission and approval of investment decisions related to that investment program or project.
Who has the authority to approve investment policies?
Depending on the level, scale and type of project, the authority to approve investment policies is divided into three ascending levels as follows:
The authority to decide on investment policies of the Provincial People’s Committee
- a) Projects requiring the Government to allocate land, lease land, but not through auction, bidding, transfer; projects requiring permission to change land use purposes, except for land allocation, land lease, permission to change land use purposes of households and individuals that do not have to request written approval from the Provincial People’s Committee according to the provisions of the Land Law:
- b) Investment projects to build houses (for sale, lease, lease-purchase), urban areas with a land use scale of less than 300 hectares, population scale of less than 50,000 people.
- c) Investment projects to build and operate golf courses.
- d) Investment projects of foreign investors, economic organizations with foreign investment capital in districts, island towns, border areas, coastal areas, districts, cities, and other places that affect national defense and security.
- e) Particularly for investment projects specified in items a, b, and d above that are implemented in industrial parks, export processing zones, high-tech zones, and economic zones according to planning approved by competent authorities, the management board of the industrial park, export processing zone, high-tech zone, and economic zone shall approve the investment policy.
The Prime Minister’s authority to decide on investment policies
Investment projects regardless of capital sources fall into one of the following cases:
- Investment projects requiring resettlement of 10,000 or more people in mountainous areas, 20,000 or more people in other areas;
- New construction investment projects: airports; runways of airports; passenger terminals of international airports; cargo terminals of airports with a capacity of 01 million tons/year or more;
- New investment projects for air passenger transport business;
- New construction investment projects: ports, port areas of special seaports; ports, port areas with an investment capital of VND 2,300 billion or more belonging to type I seaports;
- Oil and gas processing investment projects;
- Investment projects involving betting and casino business, except for electronic games with prizes for foreigners;
- Investment projects for the construction of houses (for sale, lease, lease-purchase), urban areas with a land use scale of 300 hectares or more or a population scale of 50,000 people or more;
- Investment projects for the construction and business of infrastructure of industrial parks and export processing zones;
- Investment projects of foreign investors in the fields of telecommunications services with network infrastructure, afforestation, publishing, and press;
- Investment projects that are simultaneously under the investment policy approval authority of 02 or more provincial People’s Committees;
- Other investment projects under the investment policy approval authority or investment decision of the Prime Minister according to the provisions of law.
The National Assembly’s authority to decide on investment policies
Projects with major impacts on the environment or with the potential to seriously impact the environment, including:
- Nuclear power plants;
- Investment projects requiring the conversion of land use purposes of special-use forests, upstream protection forests, border protection forests of 50 hectares or more; windbreak, sand-blocking and wave-blocking protection forests, and sea encroachment protection forests of 500 hectares or more; production forests of 1,000 hectares or more;
- Investment projects requiring the conversion of land use purposes of wet rice cultivation of 02 crops or more with a scale of 500 hectares or more;
- Investment projects requiring the resettlement of 20,000 or more people in mountainous areas, and 50,000 or more people in other areas;
- Investment projects requiring the application of special mechanisms and policies that need to be decided by the National Assembly.
Procedures for requesting investment policy decision
Step 1: Prepare documents for investment policy approval
- 01 Submission on investment decision of program, project and feasibility study report completed according to appraisal opinion
- 01 Decision on investment policy of program, project
- 01 Appraisal report (Feasibility study report)
- Other related documents
The total number of documents is 05 sets, each set includes 01 copy of the above documents.
Step 2: Submit application for investment policy approval
You will need to submit the application to the Investment Registration Authority, which can be the Department of Planning and Investment or the Management Board of industrial parks, export processing zones, high-tech zones, and economic zones.
Step 3: Receive results
Within 35 days from the date of receiving the investment project documents, the competent authority will notify the results of the decision to approve the investment policy or not.
Major projects in Vietnam have applied for investment policy decisions
- Tam Dao Golf Resort project with a scale of 7,200 square meters
- Chi Linh Star Golf project with a scale of 325 hectares
- Kings Island Golf project in Dong Mo, Son Tay, Hanoi with an area of 350 hectares
- Vinataba Company’s cigarette business project in Hanoi.
- And many other large and small projects as prescribed by Vietnamese law
Through this article, Siglaw Law Firm has shared details about the documents and procedures for applying for investment policy decisions at competent authorities. If you have any questions, please contact:
Phone: (+84) 961 366 238
Email:
Headquarters: No.44/A32-NV13, Gleximco A, Le Trong Tan street, An Khanh, Hoai Duc, Ha Noi, Vietnam.
Southern branch: A9.05 BLOCK A, SkyCenter Building, 5B Pho Quang Street, Ward 2, Tan Binh District, Ho Chi Minh City, Vietnam.
Central branch: 177 Trung Nu Vuong, Hai Chau District, Da Nang City
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