Five amended laws to untie investment knots

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Construction on the Hanoi Ring Road 4 project. Illustrative photo: Internet

Ensuring consistency and synchronicity with other laws

Speaking at a press conference regarding the drafting of the Law on Public Investment (amended) and the Law amending and supplementing several articles of the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Bidding, Deputy Minister Phuong stated that the Ministry of Planning and Investment is spearheading the drafting process for both laws. One key requirement for this amendment is to swiftly identify and address existing bottlenecks and obstacles within legal regulations, streamlining future implementation. The broader objective is to unlock resources, as these amended laws primarily concern investment, finance, and budget, directly impacting the nation's economic resources.

Providing further details on the draft Law on Public Investment (amended), Tran Thanh Long, Deputy Director of the Department of National Economic Synthesis (Ministry of Planning and Investment), explained that it comprises 7 chapters and 116 articles (53 amendments, 22 additions, and 7 removals compared to the 2019 Law on Public Investment). This draft aims to concretize five major policy groups:

First, institutionalizing pilot and specific mechanisms and policies previously approved by the National Assembly.

Second, promoting further decentralization and devolution of power. Notably, this group proposes increasing the public investment capital threshold for national key projects to VND 30,000 billion or more (currently VND 10,000 billion). Group A, Group B, and Group C projects are also proposed to have their investment capital doubled from current levels.

The Ministry representative explained that the VND 10,000 billion benchmark is no longer aligned with current realities, as the 2024 GDP is projected to be 2.1 times larger than that of 2014. Additionally, the implementation of the 2024 Land Law may lead to increased project investment due to rising site clearance costs, compounded by inflationary factors.

Third, enhancing investment preparation quality and maximizing resource utilization and capacity for public investment projects undertaken by localities and state-owned enterprises.

Fourth, promoting the implementation and disbursement of ODA capital plans and concessional loans from foreign donors (foreign capital). The Ministry proposes adding regulations clarifying the procedures for project proposal approvals, outlining the responsibilities of the Ministry of Planning and Investment and the Ministry of Finance in implementing stipulations within the Law on Public Investment and the Law on Public Debt Management. This includes streamlining the Prime Minister's project proposal approval process and reducing adjustment requirements (exempting adjustments for foreign capital increases below 20%). These measures are expected to expedite foreign capital plan implementation and disbursement.

Fifth, simplifying procedures and processes, clarifying concepts, terms, and regulations, and ensuring consistency and harmony within the legal system.

Simplification as a catalyst for resource mobilization

Dang Xuan Quang, Deputy Director of the Department of Legal Affairs (Ministry of Planning and Investment), provided insights into the Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Bidding (Law amending four Laws). He emphasized that this draft focuses on amending and supplementing contradictory or problematic provisions within existing laws that hinder investment, production, and business activities. Proposed amendments and additions must be clearly defined in content, method, and impact assessment, ensuring their independence, stability, consistency, and inheritability when applied comprehensively.

Deputy Minister Phuong highlighted that the Ministry of Planning and Investment has adopted a progressive and innovative approach when drafting these two laws, emphasizing decentralization, devolution, and fostering development rather than imposing restrictions. He stated, “These two draft laws are designed to be transformative, immediately addressing existing bottlenecks and unleashing resources for growth.”

A representative from Vietnam Electricity (EVN) expressed support for the increased decentralization of authority regarding investment policy decisions and adjustments to medium-term and annual public investment plans funded by the central budget. This decentralization is expected to accelerate project progress significantly. To further streamline administrative procedures for businesses, EVN proposed that the Ministry of Planning and Investment consider aligning procedures for ODA loans with the Law on Public Investment for initial capital while treating subsequent project implementation as commercial loans subject to specialized regulations.