Amend regulations on “Public-Private Partnership” (PPP) and “Build Transfer” (BT) investment: Fully calculating to avoid loss of state assets

VCN - In the project "1 law amending 4 laws" related to investment, on investment under the public-private partnership (PPP) method, the majority of National Assembly deputies agreed with the Government's proposal to allow an increase in the state capital ratio for some specific cases.
Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting. Photo: National Assembly
Vice Chairman of the National Assembly Nguyen Duc Hai chaired the meeting. Photo: National Assembly

State capital participating in PPP projects is of a “supportive” nature

According to the program of the 8th Session, in the afternoon session of November 6, 2024, the National Assembly discussed in the hall the Draft Law amending and supplementing a number of articles of the Law on Planning, the Law on Bidding, the Law on Investment, the Law on Investment under the public-private partnership (PPP) method (1 law amending 4 laws).

Participating in the discussion related to the PPP investment method, delegate Thach Phuoc Binh (Tra Vinh delegation) said that expanding all investment fields of PPP projects can increase opportunities for the private sector to participate more, reducing the burden on the state budget.

The delegate expressed agreement with the proposal to increase the state capital ratio from 50% to a maximum of 70% in special cases, but the delegate suggested adding more clarity on the basis and criteria for application to avoid cases where high ratios are easily abused.

At the same time, it is proposed to expand the authority to decide on state capital participation in larger projects to other competent agencies besides the Prime Minister and provincial People's Councils to ensure consistency in authority.

Delegate Thach Phuoc Binh (Tra Vinh delegation). Photo: National Assembly
Delegate Thach Phuoc Binh (Tra Vinh delegation). Photo: National Assembly

Also relating to the state capital in PPP projects, according to delegate Tran Van Tuan (Bac Giang delegation), in reality, to encourage and mobilize social resources for investment in the form of PPP, the State's support policy is very important.

However, the 2020 PPP Law only stipulates state capital to support construction, in order to increase the financial efficiency of the project, and there are no regulations on supporting project revenue that has decreased due to no fault of the investors.

Therefore, delegate Tran Van Tuan proposed to study and add to the draft Law regulations on cases requiring additional state capital support for PPP projects signed contracts before the effective date of this law.

At the same time, the Government is assigned to specify in detail the procedures, subjects of application, and risk sharing mechanism of the investor and the lending party when implementing in this case.

However, regarding this issue, in a recent explanatory report sent to National Assembly deputies, the Ministry of Planning and Investment (MPI) said that the regulation of state capital limits aims to support the state budget to attract private investors, but still ensures specific conditions to avoid widespread application, which does not meet investment efficiency.

However, according to the MPI, the state capital participating in PPP projects is of the nature of "supporting" investors and enterprises to increase the financial feasibility of the project, not of the nature of "contributing capital" to share profits.

Delegate Pham Van Hoa (Dong Thap delegation). Photo: National Assembly
Delegate Pham Van Hoa (Dong Thap delegation). Photo: National Assembly

It is necessary to clearly identify benefits and limitations before legalization

Also in the discussion section, regarding the regulations on investment under BT (build-transfer) contracts, some National Assembly deputies said that the BT contract type in some localities has not been fully summarized, so it is necessary to more clearly identify the benefits and limitations before legalization.

Moreover, delegate Pham Van Hoa (Dong Thap delegation) also raised concerns that the transfer to investors in cash or real estate, if not fully calculated, will result in loss of state assets or investors will be disadvantaged.

Minister of Planning and Investment Nguyen Chi Dung. Photo: National Assembly
Minister of Planning and Investment Nguyen Chi Dung. Photo: National Assembly

Explaining some opinions raised by National Assembly deputies at the meeting, Minister of Planning and Investment Nguyen Chi Dung said that restoring the investment form under BT contracts would have a new, stricter management method.

The Minister of Planning and Investment said that if the problems related to investment under BT contracts are resolved, it will unlock huge resources for development investment, contribute immediately to budget revenue and economic growth, help many businesses remove obstacles, and create many jobs.

Thereby increasing transparency, ensuring that the interests of the State and investors are not lost.

Therefore, the authorities will have to determine the land price, bid, and have a mechanism for equal compensation. If the land price increases, the price will be re-evaluated. If it is not enough, the investor must pay the full amount equal to the actual land price at that time. If it is lower, the State will pay back in cash, etc.

Regarding the issue of BT transfer, the Minister commented that this is a very complicated issue. Because there are currently 160 projects worth about 59,000 billion VND listed, but in reality there may be more in the localities.

Therefore, the Government has established a Steering Committee, including the Permanent Deputy Prime Minister as Head of the Committee and including the police, courts, and prosecutors, along with the participation of all internal affairs agencies.

Minister Nguyen Chi Dung said that tomorrow afternoon (November 7, 2024) there would be a meeting to announce the decision to establish the Steering Committee, then a review would be conducted nationwide and a solution would be found for each group of issues.

By Hương Dịu/Phuong Linh

Related News

Nghe An Customs surpasses challenges, achieves revenue target ahead of schedule

Nghe An Customs surpasses challenges, achieves revenue target ahead of schedule

VCN - In 2024, the Nghe An Customs Department tackled state revenue collection amid significant socio-economic challenges. Despite these hurdles, the department reached 111.07% of its assigned revenue target within the first 10 months, achieving its annual goal well ahead of time.
Slow disbursement of public investment capital due to obstacles from policies

Slow disbursement of public investment capital due to obstacles from policies

VCN - Disbursement of public investment capital still has faced many obstacles, mainly focusing on mechanisms and policies related to specialized ministries.
Policy on tax payment extension and land rent reduction are going to be issued in June

Policy on tax payment extension and land rent reduction are going to be issued in June

VCN - Deputy Prime Minister Tran Hong Ha said that the Government has promoted policies to support people and businesses to improve people's health, restore trust, and promote investment in production and business. In particular, the Government is issuing a Decree on extending the tax payment deadline this June.
Numerous factors behind the non-allocation of over VND 17.6 trillion in public investment capital

Numerous factors behind the non-allocation of over VND 17.6 trillion in public investment capital

VCN - According to the Ministry of Finance, the failure to allocate a relatively large amount of more than VND 17.614 trillion has affected the disbursement rate of public investment capital from the state budget in the early months of 2024.

Latest News

Tax authorities and Police join forces to crack down on e-invoice fraud

Tax authorities and Police join forces to crack down on e-invoice fraud

VCN - As invoice trading crimes surge, the General Department of Taxation is rolling out a new e-invoice alert system designed to support tax authorities and law enforcement in swiftly identifying and halting fraudulent activities tied to electronic invoices.
State revenue collection poised to surpass annual target

State revenue collection poised to surpass annual target

VCN - With ten months of 2024 behind us, Vietnam’s state budget revenue is on track to exceed the year’s target. The Ministry of Finance is pushing hard to achieve results that go beyond initial projections as the year draws to a close.
Amending regulations for proactive, responsible tax officials

Amending regulations for proactive, responsible tax officials

VCN - Dr. Phan Hoai Nam, CEO of W&A Consulting, Member of the Association of Chartered Certified Accountants (ACCA), CPA Australia, and the Chartered Institute of Taxation (CIOT), discusses tax refund issues with Customs Magazine.
Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference

Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference

The Ministry of Planning and Investment is working with other ministries, sectors and localities to take drastic measures to complete this year's target of disbursing 95% of allocated public investment, its Deputy Minister Tran Quoc Phuong told the Government’s regular press conference on November 9.

More News

Revising policies to adapt to two-way impact of FTAs

Revising policies to adapt to two-way impact of FTAs

VCN - One of the most obvious positive impacts of Free Trade Agreements (FTAs) is to promote export growth, thereby contributing to increasing state budget revenue. However, the implementation of FTAs ​​also has a negative impact on state budget revenue under commitments on tariff reduction and elimination.
Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

Deputy Prime Minister, Minister of Finance: Budget management to be more decentralized

VCN - Deputy Prime Minister, Minister of Finance Ho Duc Phoc indicated that the revision of the State Budget Law (SBL), as part of the "One Law Amending Seven Laws" scheme, focuses on removing short-term bottlenecks and obstacles. He also announced that future amendments will increase decentralization and delegation of authority in budget management.
Public investment disbursement reaches 52.2% in ten months

Public investment disbursement reaches 52.2% in ten months

Public investment disbursement was estimated at 355.61 trillion VND (14 billion USD) in the first 10 months of this year, fulfilling 52.2% of the annual target, according to the Ministry of Finance (MoF).
State budget revenue for 2024 nears target

State budget revenue for 2024 nears target

VCN - Data from the Ministry of Finance reveals that by the end of October 2024, state revenue is on the brink of reaching the annual target. Cumulative budget revenue for the first 10 months of 2024 is estimated at VND 1,654.2 trillion, amounting to 97.2% of the current appropriation, an impressive 17.3% surge compared to the same period in 2023.
Public investment spending up 1.8% in first 10 months of 2024

Public investment spending up 1.8% in first 10 months of 2024

VCN - Public investment from Vietnam’s state budget saw steady growth in the first ten months of 2024, reaching 64.3% of the annual target—an increase of 1.8% compared to the same period last year.
Propose many solutions to shorten tax refund time

Propose many solutions to shorten tax refund time

VCN - Fully defining the duties and responsibilities of tax officials and having a mechanism to protect tax officials in tax refunds are breakthrough solutions being proposed to remove bottlenecks and barriers, speeding up the tax refund process in the coming time.
Finance sector exceeds revenue target in 4 years thanks to comprehensive reform of collection method

Finance sector exceeds revenue target in 4 years thanks to comprehensive reform of collection method

VCN – The revenue collection method of the Customs and Tax sectors has been comprehensively reformed, contributing to exceeding the revenue target of about VND1 quadrillion over the past four years, Deputy Prime Minister and Minister of Finance Ho Duc Phoc said.
3 priority pillars of Japanese ODA capital flow in Vietnam

3 priority pillars of Japanese ODA capital flow in Vietnam

VCN - Mr. Sugano Yuichi, Chief Representative of the Vietnam Office of the Japan International Cooperation Agency (JICA), shared about the outstanding results in more than 30 years of implementing ODA projects in Vietnam and plans for the coming time.
Removing legal hurdles in regular spending for capital assets

Removing legal hurdles in regular spending for capital assets

VCN - Mr. Bui Anh Binh, Deputy Director of the Department of Public Administration (Ministry of Finance) emphasized that the issuance of Decree No. 138/2024/ND-CP has created an important legal corridor, promptly removed obstacles, and created conditions for ministries, branches, and localities to proactively use regular expenditures to carry out tasks and projects outside the approved medium-term public investment plan, and to be proactive in performing assigned tasks.
Read More

Your care

Latest Most read
Tax authorities and Police join forces to crack down on e-invoice fraud

Tax authorities and Police join forces to crack down on e-invoice fraud

As invoice trading crimes surge, the General Department of Taxation is rolling out a new e-invoice alert system designed to support tax authorities and law enforcement in swiftly identifying and halting fraudulent activities tied to electronic invoices.
State revenue collection poised to surpass annual target

State revenue collection poised to surpass annual target

With ten months of 2024 behind us, Vietnam’s state budget revenue is on track to exceed the year’s target.
Amending regulations for proactive, responsible tax officials

Amending regulations for proactive, responsible tax officials

Dr. Phan Hoai Nam, CEO of W&A Consulting, discusses tax refund issues with Customs Magazine.
Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference

Drastic actions taken to complete 95% public investment disbursement goal: Gov’t press conference

The Ministry of Planning and Investment is working with other ministries, sectors and localities to take drastic measures to complete this year's target of disbursing 95% of allocated public investment, its Deputy Minister Tran Quoc Phuong told the Government’s regular press conference on November 9.
Revising policies to adapt to two-way impact of FTAs

Revising policies to adapt to two-way impact of FTAs

VCN - One of the most obvious positive impacts of Free Trade Agreements (FTAs) is to promote export growth, thereby contributing to increasing state budget revenue. However, the implementation of FTAs ​​also has a negative impact on state budget revenue u
Mobile Version