Which projects require approval for investment guidelines?

Seeking approval for investment guidelines is a crucial stage in preparing for the implementation of an investment project. However, not all projects are required to seek approval for investment guidelines. So, which projects fall into the category that necessitates seeking approval for investment guidelines, as outlined in the legal regulations? Let’s explore this further through the following article provided by VKI.

Based on legal basis:

• The Law on Investment 2020;
• The Law on amendments to certain articles of the Law on Public Investment, the Law Public-Private Partnership Investment, the Law on Investment, the Law on Housing, the Law on Procurement, the Law on Electricity, the Law on Enterprises, the Law on Special Excise Duties and the Law on Civil Judgment Enforcement 2022.

What is approval for investment guidelines?

Approval for investment guidelines means a competent authority approving the objectives, location, scale, schedule and duration of a project; investor or form of selection of investor and special mechanisms or special policies (if any) to execute an investment project.

Why is it necessary to seek approval for investment guidelines?

According to the current legal regulations, not all projects require approval for investment guidelines; it only applies to certain specific types of projects. The requirement to seek approval for investment guidelines for these projects serves the following purposes:

• Ensuring a balanced and economically appropriate development direction for the country.
• The investors themselves and the authorities responsible for developing these projects need to conduct thorough surveys and research, which can be costly and time-consuming. Therefore, the regulation for seeking approval for investment guidelines for these projects aims to minimize potential risks after conducting surveys and research that may not be accepted by the competent state authority.

Which projects require approval for investment guidelines?

The approval for these projects must be granted by the competent state authority. Depending on the sector and scale of the investment project, different types of projects have different authorities responsible for approving investment guidelines.

1. Projects falling under the authority of the National Assembly for approval of investment guidelines

The National Assembly shall grant approval for investment guidelines of the following investment projects:

1.1. Investment projects that exert great effects or potentially serious effects on the environment, including:   

a) Nuclear power plants;

b) Projects that require repurposing of land of special-use forests, headwater protection forests or border protection forest of at least 50 hectares; of sand-fixing and windbreak coastal forests or protection forests for wave prevention of at least 500 hectares; of production forests of at least 1,000 hectares;

1.2. Investment projects that require repurposing of land meant for wet rice cultivation during with 02 or more crops of at least 500 hectares;

1.3. Investment projects that require relocation of 20,000 people or more in mountainous areas or 50,000 people or more in other areas;

1.4. Investment projects that require application of a special mechanism or policy that needs to be decided by the National Assembly.

2. Projects falling under the authority of The Prime Minister for approval of investment guidelines

Except for the investment projects falling under the authority of the National Assembly for approval of investment guidelines, the Prime Minister shall grant approval for investment guidelines of the following investment projects:

2.1. Investment projects regardless of capital sources in any one of the following cases:

a) Investment projects that require relocation of 10,000 people or more in mountainous areas or 20,000 people or more in other areas;

b) Investment projects on construction of: airports and aerodromes; runways of airports and aerodromes; international passenger terminals; cargo terminals of airports and aerodromes with a capacity of at least 1 million tonnes per year;

c) New investment projects on passenger air transport business;

d) Investment projects on construction of ports and wharves of special seaports; ports and wharves in which investment is at least VND 2,300 billion within the category of Class I seaports;

đ) Investment projects on petroleum processing;

e) Investment projects which involve betting and casino services, excluding business in prize-winning electronic games for foreigners;

g) Investment projects for the construction of residential buildings (for sale, rent, lease-purchase), urban areas with land use scales of 300 hectares or more, or populations of 50,000 people or more;

g1) Investment projects that comply with the legal provisions on cultural heritage, regardless of land area or population size, within the protected area I of nationally recognized cultural heritage, nationally recognized special cultural heritage; or within the protected area II of nationally recognized special cultural heritage listed in the World Heritage List;

h) Investment projects on construction and operation of infrastructure in industrial zones and export processing zones.

2.2. Foreign investors’ investment projects in the following fields: provision of telecommunications services with network infrastructure; afforestation; publication, press;

2.3. Investment projects which at the same time fall within the power of at least two provincial People’s Committees to grant approval for investment guidelines;

2.4. Other investment projects subject to approval for their investment guidelines or subject to investment decision by the Prime Minister as prescribed by law.

3. Projects falling under the authority of provincial People’s Committees for approval of investment guidelines

Except for the investment projects falling under the authority of the National Assembly, The Prime Minister for approval of investment guidelines, the provincial People’s Committees shall grant approval for investment guidelines of the following investment projects:

3.1. Investment projects that request the State to allocate or lease out land without auction or bidding for or receipt of land use rights, and investment projects that request permission to repurpose land, except for cases of allocation, lease or permission for repurposing of land of households or individuals not subject to the written approval by the provincial People’s Committee in accordance with regulations of law on land;

3.2. Investment projects for the construction of residential buildings (for sale, rent, lease-purchase), urban areas with land use scales below 300 hectares, and populations below 50,000 people;

3.3. Investment projects that comply with the legal provisions on cultural heritage, regardless of land area or population size, within the protected area II of nationally recognized cultural heritage, nationally recognized special cultural heritage, except for nationally recognized special cultural heritage listed in the World Heritage List; investment projects that do not differentiate by land area or population size in restricted development areas or historic inner-city areas (as determined in urban planning documents) of special-type cities;

3.4. Projects on investment in golf course construction and business;

3.5. Investment projects of foreign investors and foreign-invested business organizations executed on islands or in border or coastal communes; in other areas affecting national defense and security.

4. Projects falling under the authority of The industrial parks, export-processing zones, hi-tech zones and economic zones management boards for approval of investment guidelines

The industrial park, export-processing zone, high-tech park, and economic zone management board has the authority to approve the investment guidelines for projects 3.1, 3.2, and 3.5 if these projects are implemented within industrial parks, export-processing zones, high-tech parks, and economic zones in accordance with the planning approved by the competent authority at the provincial People’s Committee level.

If there are any issues or questions regarding cases that require approval for investment guidelines, investors can contact VKI for the best possible support. VKI is always ready to address any inquiries from investors.