On 8 April 2025, the Government issued Decree No. 85/2025/ND-CP (“Decree 85”), detailing implementation of a number of articles of Law on Public Investment adopted by the National Assembly on 29 November 2024 (“Public Investment Law 2024”). Decree 85 has been effective since its signing date and replaced Decree No. 40/2020/ND-CP dated 6 April 2020, detailing implementation of a number of articles of Public Investment Law adopted by the National Assembly on 13 June 2019, as amended by Decree No. 54/2021/ND-CP dated 21 May 2021 (“Decree 40”).
Based on the breakthroughs of the Public Investment Law 2024, including:
(a) Institutionalizing the pilot and specific mechanisms and policies that have been approved by the National Assembly: Allowing the separation of compensation, support, resettlement, and site clearance into independent projects for all project groups (including groups B and C’s projects); the competence of the Prime Minister to assign a provincial-level People’s Committee as the governing body to implement projects in the area of 02 or more provincial-level administrative units;
(b) Decentralizing the competence to adjust the plan of medium-term public investments funded by the central budget between Ministries, Central agencies and localities from the National Assembly’s Standing Committee to the Prime Minister; decentralizing the competence to decide on the use of the central budget’s general reserve, unallocated capital from the central budget in the plan of medium-term public investments from the National Assembly to the National Assembly’s Standing Committee;
(c) Allowing the use of regular expenditure sources and other legal capital sources to prepare for project investment; allowing State-owned enterprises to be the governing bodies for implementing public investment projects according to the Prime Minister’s decisions; allowing Project Management Boards and public non-business professional service units under Ministries, Central agencies and localities to prepare reports proposing investment policies for projects; allowing the assignment of tasks and annual capital plans to project investors that are not affiliated units;
(d) Simplifying the order and procedures for preparing medium-term or annual investment plans; stipulating that the list of projects the Government reports to the National Assembly for promulgation of medium-term public investment plans is a tentative list; etc.;
Decree 85 has specific provisions to guide a number of contents clearly stated in the Public Investment Law 2024, including the decentralization of competence, order of and procedures for (1) deciding on investment policies and (2) deciding on investment for programs and projects funded by capital from legal revenue sources of State agencies and public non-business professional service units for investment, and relevant contents.
Regarding programs and projects funded by capital from legal revenue sources, in comparison with Decree 40, Decree 85 has a number of notable new points as follows:
1. Decision on investment policy
(a) Competence
In line with the highlights of the Public Investment Law 2024 as mentioned above, Decree 85 has:
(i) added and clearly stipulated:
• For programs and projects of State agencies and public non-business professional service units managed by Ministries and Central agencies: the heads of Ministries and Central agencies may decentralize or delegate making decision on investment policies for group B and group C’ projects of State agencies under their management to the heads of such State agencies.
• For programs and projects of State agencies and public non-business professional service units managed by localities: Chairpersons of People’s Committees at all levels may decentralize or delegate making decision on investment policies for group B and group C’ projects of State agencies under their management to the heads of such State agencies.
• For projects funded by capital from legal revenue sources of State agencies and public non-business professional service units for investment with an implementation period of 2 consecutive medium-term public investment planning periods, the competent authority deciding on the project investment policy shall decide on the project investment policy and be responsible for its decision in accordance with the ability to balance public investment capital sources and the ability to mobilize other legal capital sources (if any); and
(ii) reduced the time limit for the public non-business professional service unit to send the decision approving the program or project investment policy to the Ministry, Central agency or People’s Committee at the management level for reporting from 10 days to 5 working days as from the time of approval for the program or project investment policy.
(b) Order, Procedures
Decree 85 additional include the provisions on the contents of pre-feasibility study reports for group A’s projects and investment proposal reports for group B and group C’ projects, which must include the intended capital structure.
The new Decree also includes provisions on the procedures for deciding on investment policies with respect to projects funded by local budget capital and implemented by Central agencies, and projects funded by district-level or communal-level budget capital and implemented by provincial-level or district-level agencies.
(c) Documents, contents and timing for assessment and appraisal of pre-feasibility study reports and investment proposal reports
Decree 85 has:
(i) amended the provisions on the submitting agency to submit to the Assessment and Appraisal Council or the agency in charge of assessing and appraising the asessement and appraisal dossier of the pre-feasibility study report; the report proposing the investment policy of the public investment program; groups A, B and C’ projects in electronic form; except for the dossier and documents containing State secrets according to the provisions of the laws on protection of State secrets (instead of 10 sets of dossier as prescribed in Decree 40);
(ii) added the possibility of capital recovery and debt repayment in case of using borrowed capital to the content of assessment and appraisal of investment policy of public investment program;
(iii) amended the content of assessment and appraisal of investment policy of group A, B and C’s public investment projects; accordingly, assessing and appraising the contents specified in Article 35 of the Public Investment Law 2024 (instead of “project, including objectives, scale, form of investment, scope, location, land area to be used, timing, progress of implementation, main technology selection plan, environmental protection solutions, capital sources and capital balancing ability; ability to recover capital and repay debt in case of using loan capital” according to Decree 40) for groups B and C’ projects;
(iv) added a provision that the agency assigned to assess and appraise capital sources and capital balancing capacity is responsible for sending assessment and appraisal opinions to the assessment and appraisal presiding agency. In the case where the agency in charge of assessing and appraising the pre-feasibility study report and the investment policy proposal report is also the agency assessing and appraising capital sources and capital balancing capacity as provided in Article 36 of the Public Investment Law 2024, the agency in charge of assessing and appraising the pre-feasibility study report and the investment policy proposal report shall self-organize the assessment and appraisal of capital sources and capital balancing capacity;
(v) amended the period of assessing and appraising pre-feasibility study reports and investment policy proposal reports for groups A, B and C’ public investment programs and projects from the date on which the Appraisal Council or the assessing and appraisal presiding agency receives a complete and valid dossier as follows: (a) National target programs: No more than 40 working days (instead of 60 days according to Decree 40); (b) Public investment programs (excluding national target programs): No more than 30 working days (instead of 45 days according to Decree 40); (c) Group A’s projects: No more than 30 working days (instead of 45 days according to Decree 40); (d) Groups B and C’ projects: No more than 20 working days (instead of 30 days according to Decree 40). In the case where the dossier is invalid or the contents of the pre-feasibility study report, the report proposing the investment policy for the program or project are not in accordance with the provisions of Articles 33, 34, 35 of the Public Investment Law 2024, within no more than 5 working days (instead of 10 days according to Decree 40) from the date of receipt of the dossier, the Appraisal Council or the assessment and appraisal presiding agency shall send written comments to the assessment and appraisal submission agency requesting to amend the dossier or complete the contents of the pre-feasibility study report, the report proposing the investment policy for the program or project.
(vi) no longer allowed extension of the period of assessing and appraising pre-feasibility study reports, the report proposing the investment policy for the program or project.
(d) Dossiers submitted to competent authorities and timing for deciding on investment policies
Decree 85 has:
(i) cancelled the provision of Decree 40 on the number of documents submitted to competent authorities to decide on investment policies for groups A, B and C’ public investment programs and projects, which comprised 5 sets of documents.
(ii) amended the timing for deciding on investment policies for programs and projects as from the date on which competent authorities receive complete and valid documents as follows:
• Public investment programs (excluding national target programs): No more than 10 working days (instead of 20 days according to Decree 40);
• Group A’s projects: No more than 7 working days (instead of 15 days according to Decree 40);
• Groups B and C’ projects: No more than 5 working days (instead of 10 days according to Decree 40);
• Within 3 working days (instead of 15 days according to Decree 40) as from the date on which the competent authority decides on the investment policy of the program or project: (a) Ministries, Central and local agencies managing programs and projects funded by central budget capital shall send to the Ministry of Finance the decision on the investment policy of the program or project approved by the competent authority; (b) Agencies managing programs and projects funded by the State budget capital at local levels shall send to the Department of Finance and specialized agencies managing investment at the same level the decision on the investment policy of the program or project approved by the competent authority.
(e) Classification of public investment projects
Decree 85 amends the Total investment capital of Groups A, B and C’s public investment projects classified according to Appendix I accompanying Decree 85. Specifically:
TT CLASSIFICATION OF PUBLIC INVESTMENT PROJECTS TOTAL INVESTMENT CAPITAL
A Group A
I Projects specified in Article 9.1.a of the Public Investment Law 2024. Regardless of the total investment (the provision of Decree 40 kept unchanged)
II Projects specified in Article 9.2.a of the Public Investment Law 2024. From VND 4,600 billion and above (increased from VND 2,300 billion according to Decree 40)
III Projects specified in Article 9.3.a of the Public Investment Law 2024. From VND 3,000 billion and above (increased from VND 1,500 billion according to Decree 40)
IV Projects specified in Article 9.4.a of the Public Investment Law 2024. From VND 2,000 billion and above (increased from VND 1,000 billion according to Decree 40)
V Projects specified in Article 9.5.a of the Law on Public Investment 2024. From VND 1,600 billion and above (increased from 800 billion VND according to Decree 40)
B Group B
I Projects in the fields specified in Section II, Part A above. From VND 240 billion to under VND 4,600 billion (increased from VND 120 billion to under VND 2,300 billion according to Decree 40)
II Projects in the fields specified in Section III, Part A above. From VND 160 billion to under VND 3,000 billion (increased from VND 80 billion to under VND 1,500 billion according to Decree 40)
III Projects in the fields specified in Section IV, Part A above. From VND 120 billion to under VND 2,000 billion (increased from VND 60 billion to under VND 1,000 billion according to Decree 40)
IV Projects in the fields specified in Section V, Part A above. From VND 90 billion to under VND 1,600 billion (increased from VND 45 billion to under VND 800 billion according to Decree 40)
C Group C
I Projects in the fields specified in Section II, Part A above . Under VND 240 billion (increased from under VND 120 billion according to Decree 40)
II Projects in the fields specified in Section III, Part A above. Under VND 160 billion (increased from under VND 80 billion according to Decree 40)
III Projects in the fields specified in Section IV, Part A above. Under VND 120 billion (increased from under VND 60 billion according to Decree 40)
IV Projects in the fields specified in Section V, Part A above. Under VND 90 billion (increased from under VND 45 billion according to Decree 40)
2. Making decision on investment
(a) Competence
In line with the highlights of the Public Investment Law 2024 as mentioned above, Decree 85 has added and clearly stipulated that:
(i) For projects of State agencies, public non-business professional service units managed by Ministries and Central agencies with construction components, the determination of investors shall be implemented in accordance with the provisions of the laws on construction; and
(ii) For programs and projects of State agencies and public non-business professional service units managed by localities:
• Chairperson of People’s Committees at all levels decide on investment in groups A, B and C’s programs and projects of State agencies under their management, and may decentralize or delegate making decision on investment in group B and C’s projects to heads of subordinate State agencies;
• Heads of public non-business professional service units decide on investment in groups A, B and C’ programs and projects under the management of their units;
• The above-mentioned public non-business professional service units are allowed to be investors in projects without construction components in which they decide to invest. For projects with construction components, the determination of investors shall be implemented in accordance with the provisions of the laws on construction.
(b) Assessment and appraisal dossier and contents
Decree 85 amends the provision that the assessment and appraisal submission agency shall send the Assessment and Appraisal Council or the assessment and appraisal presiding agency the assessment and appraisal dossier in electronic form, except for dossiers and documents containing State secrets as provided by the laws on protection of State secrets (instead of 10 sets of dossier as required by Decree 40).
(c) Assessment and appraisal timing
Decree 85 clearly stipulates that:
(i) the period of assessing and appraising public investment programs and projects without construction components shall be as follows from the date on which the assessment and appraisal presiding agency receives a complete and valid dossier: (i) National target programs: No more than 40 working days (instead of 60 days according to Decree 40); (ii) Public investment programs (excluding national target programs): No more than 30 working days (instead of 45 days according to Decree 40); (iii) Group A’s projects: No more than 30 working days (instead of 30 days according to Decree 40); (iv) Groups B and C’ projects: No more than 20 working days (instead of 30 days according to Decree 40); (v) In the case where the dossier is invalid or the contents of the program or project feasibility study report are not in accordance with the provisions of Article 47 of the Public Investment Law 2024, within no more than 3 working days (instead of 10 days according to Decree 40) from the date of receipt of the dossier, the Assessment and Appraisal Council or the assessment and appraisal presiding agency shall send written comments to the assessment and appraisal submission agency to amend the dossier or complete the contents of the program or project feasibility study report; and
(ii) the provisions on internal assessment and appraisal period and the assessment and appraisal extension period of programs and projects have been cancelled.
(d) Dossier submitted to competent authority for decision
Decree 85 has:
(i) cancelled the provision of Decree 40 on the number of dossier submitted to competent authority for decision on investment in public investment programs and projects, which was 5 sets of dossier; and
(ii) amended the provision requiring dossier submitted to competent authority for decision on investment in compensation, support, resettlement, and site clearance projects that are allowed to be separated into independent projects according to the provisions of the Public Investment Law 2024 regarding compensation, support, resettlement, and site clearance projects and the remaining projects that are separated from national important projects, and not only group A’s projects as stipulated in the previous Decree 40 but also groups B and C’s projects classified according to the project classification in the investment policy decision.
(e) Contents of and timing for making decision
Decree 85 amends the provisions on timing for making decision on investment in programs and projects as from the date on which the competent authority deciding on investment receives a complete and valid dossier as follows: (i) Public investment programs: No more than 10 working days (instead of 20 days according to Decree 40); (ii) Group A’s projects: No more than 7 working days (instead of 15 days according to Decree 40); (iii) Groups B and C’ projects: No more than 5 working days (instead of 10 days according to Decree 40); (iv) Within 5 working days (instead of 15 days according to Decree 40) as from the date on which the competent authority decides on investment in programs and projects: Ministries, Central agencies and localities managing programs and projects funded by central budget capital send to the Ministry of Finance; or the agency managing programs and projects funded by the State budget capital at local levels shall send the Department of Finance and the specialized agency managing investment at the same level the decision to invest in programs and projects approved by competent authorities.
3. Managing implementation of investment preparation tasks, planning tasks and public investment projects without construction components
Decree 85 has amended the provisions on:
(i) timing for assessment and appraisal of design and investment estimates by the competent unit assigned to the assessment and appraisal task as from the date of receipt of complete and valid dossiers as follows: (a) For group A’s projects: No more than 25 working days (instead of 40 days according to Decree 40); (b) For group B’s projects: No more than 20 working days (instead of 30 days according to Decree 40); (c) For group C’s projects: No more than 10 working days (instead of 20 days according to Decree 40); and
(ii) timing for approval of the design and project estimate by the competent authority approving the design and project estimates as from the date of receipt of complete and valid documents is as follows: (a) For group A’s projects: No more than 10 working days (instead of 15 days according to Decree 40); (b) For group B’s projects: No more than 7 working days (instead of 10 days according to Decree 40); (c) For group C’s projects: No more than 3 working days (instead of 5 days according to Decree 40).
4. Formulating, approving, assigning, implementing, monitoring, inspecting and evaluating public investment plans
Decree 85 has also:
(a) included provisions on the order of establishing, approving and assigning medium-term or annual public investment plans funded by the State budget capital, medium-term or annual investment plans funded by capital from legal sources of State agencies and public non-business professional service units for investment; timing for capital arrangement for project implementation;
(b) amended provisions on implementing public investment plans; reporting to competent authorities on the implementation of public investment plans; monitoring, inspecting and evaluating public investment plans; and
(c) cancelled provisions on advance payment of public investment plan capital, extending the implementation period and disbursement of annual State budget investment plans.
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