Process for implementing investment projects using land: Detailed instructions

The process of implementing investment projects using land is an important part in implementing economic and infrastructure development projects. Understanding the necessary steps and procedures helps businesses minimize legal risks, save time, and optimize costs. Compliance with regulations not only ensures transparency, but also improves investment efficiency, contributing to sustainable development.

Overview of the process of implementing investment projects using land

The process of implementing investment projects using land is clearly specified in Article 9 of Decree 115/2024/ND-CP, with specific steps depending on the type of project and bidding method.

1. For projects applying open bidding (one stage, one envelope), the process includes steps: announcing the project, preparing for bidding, organizing bidding, and evaluating bids, approving the results and signing the contract.
2. Projects requiring architectural works will apply a one-stage, two-envelope method, with additional steps such as evaluating the contractor’s technical and financial records.
3. Projects with specific economic and social development requirements of the industry, region or locality can apply the two-stage, one-envelope bidding method, helping to identify potential investors in the first stage and conduct a detailed assessment in the following phase.
4. The project needs to determine the number of interested investors requiring an invitation to show interest step before continuing with investor selection procedures.

This process ensures that each investment project using land is carried out openly, transparently, and meets the sustainable development requirements of localities.

Approval of investment policy and approval authority

Pursuant to Clause 1, Article 3 of the Law on Investment 2020, investment policy approval is the competent state agency’s approval of the project’s objectives, location, scale, progress, and duration; investor or form of investor selection and special mechanisms and policies (if any) to implement investment projects.

Regarding the authority to approve investment policies, based on Articles 30 to 32 of the Law on Investment 2020, the authority to approve investment policies belongs to the National Assembly, the Prime Minister, and the Provincial People’s Committee.

Choose the form and investor to implement the project

According to Article 21, Clause 1, Article 29 of the Law on Investment 2020, the forms of selecting investors to implement projects and the forms of implementing investment projects are:

The form of selecting investors to implement investment projects is:

1. Auction of land use rights according to the provisions of land law;

2. Bidding to select investors according to the provisions of law on bidding;

3. Approve the investor in case the auction of land use rights fails according to the provisions of the Land Law; or there is only one investor who meets the conditions for inviting interest in cases where the law governing the industry or field stipulates the determination of the number of interested investors when carrying out investor selection procedures;

4. Investor approval in the following cases:

• Investors have the right to use land, except in cases where the State recovers land for defense and security purposes, or recovers land for socio-economic development for national and public benefits according to the provisions of land law;
• Investors who transfer, receive capital contributions, or lease agricultural land use rights to carry out non-agricultural production and business investment projects are not subject to land recovery by the State according to the provisions of land law;
• Investors implementing investment projects in industrial parks and high-tech parks;
• Other cases not subject to auction or bidding according to the provisions of law.

The form of choosing the form of investment project implementation is:

1. Investing in establishing economic organizations.

2. Invest capital, buy shares, buy capital contributions.

3. Implement investment projects.

4. Investment in the form of a BCC contract.

5. New forms of investment and types of economic organizations according to Government regulations.

Process of implementing investment projects using land 

Documents need to be prepared

Documents to implement investment projects using land are specified in Clause 1, Article 6 of Circular 15/2024/TT-BKHDT, specifically including:

1. Notice of invitation for interest and documents for invitation of interest shall be prepared according to the form specified in Appendix VIII attached to this Circular;

2. Bidding documents are prepared according to the form specified in Appendix IX attached to this Circular. For projects applying open bidding, limited bidding according to the one-phase, one-envelope method;

3. Bidding documents are prepared according to the form specified in Appendix X attached to this Circular. For projects applying open bidding according to the one-phase, two-envelope method;

4. For investment projects to build energy projects, the bidding document form shall comply with the guidance of the Ministry of Industry and Trade as prescribed in Point c, Clause 2, Article 74 of Decree No. 115/2024/ND-CP.

Implementation process

Open bidding process according to the method of one stage, one envelope of documents, one stage, two envelopes of documents:

1. For projects subject to investment policy approval (Table No. 1, Section I, Appendix I, Decree 115/2024/ND-CP)

Step 1: Announce investment projects using land and invite interested contractors

Step 2: Prepare bidding to select investors

Step 3: Organize bidding to select investors

Step 4: Evaluate bid documents

Step 5: Submit, appraise, approve and publicize investor selection results

Step 6: Negotiate, finalize and sign contracts

2. For projects not subject to investment policy approval (Table No. 2, Section I, Appendix I, Decree 115/2024/ND-CP), the general implementation steps are similar to projects subject to investment policy approval, but the difference is that in the project implementation process, the investor is a participant right from the first step, that is, they submit the project proposal to the Department of Planning and Investment. Then, in the following steps, the investor participates in addition to the state agency.

Open bidding process according to the two-stage, one-envelope method (section II, Appendix I, Decree 115/2024/ND-CP):

Step 1: Announce investment projects using land and invite interested contractors. The steps to carry out the announcement are the same as for projects subject to investment policy approval and not subject to investment policy approval mentioned above.

Step 2: Preparing for bidding to select investors in phase 1.

Step 3: Organize bidding phase 1.

Step 4: Prepare and organize phase 2 bidding.

Step 5: Evaluate bid documents.

Step 6: Submit, appraise, approve and publicize investor selection results.

Step 7: Negotiate, finalize and sign contracts.

Investment consulting services for projects using land in Long Phan

To effectively implement investment projects, understanding the process and steps of implementing land use projects is indispensable. Once you master this process, you will be able to minimize risks, save time, and achieve sustainable success. Understanding this, Long Phan provides investment consulting services for projects using land with the goal of helping you implement projects on schedule, save costs and achieve optimal efficiency.

Long Phan’s services include:

• Advice on land projects: Assist you in understanding regulations related to land use for investment projects, including procedures for transferring land use rights, site clearance, and necessary licenses.
• Prepare an environmental impact assessment report (EIA): Help you carry out procedures related to environmental impact assessment, ensuring the project complies with environmental protection regulations.
• Registering land use rights: Advise and support you in completing procedures for registering land use rights at the competent authority.
• Project planning and design: Providing overall project planning services, architectural and infrastructure design to ensure feasibility and sustainability.
• Resolving land issues: Assisting you in resolving land disputes, supporting compensation and site clearance procedures.
• Construction permit procedures: Advise and guide you on procedures to obtain a construction permit for the project.
• Consulting and support in calling for investment capital: Supporting you in accessing investment capital sources for projects, from banks to institutional investors.
• Support services for applying for land and construction related licenses: Including environmental, construction, resource exploitation licenses, and other licenses depending on project requirements.

We understand that each project has its own requirements and challenges, so Long Phan’s team of experts always accompanies you, providing the most effective and appropriate solutions. For detailed advice and quick support, please contact the hotline: 0906735386.