Procedures on investment policy approval according to the Law on Investment 2020

Investment policy approval is a legal procedure under the Law on Investment 2020 for state agencies to review and approve project proposals of investors. This process applies to business investment projects, urban areas, and commercial housing that require approval from competent authorities. This article will guide customers in detail about the investment policy approval procedure.

Authority of investment policy approval

According to the Law on Investment 2020, 03 entities have the authority to approve investment policies: the National Assembly, the Prime Minister and the Provincial People’s Committee. Specifically:

Projects under the authority of the National Assembly:

• Investment projects that greatly affect the environment or have the potential to seriously affect the environment;
• Investment projects requiring change of land use purpose for wet rice cultivation of 02 or more crops with a scale of 500 hectares or more;
• Investment projects requiring resettlement of 20,000 people or more in mountainous areas, or 50,000 people or more in other regions;
• Investment projects requiring the application of special mechanisms and policies need to be decided by the National Assembly.

Projects under the authority of the Prime Minister:

• Investment projects regardless of capital source fall into one of the cases prescribed by law;
• Investment projects of foreign investors in the field of telecommunications services with network infrastructure, afforestation, publishing, and journalism;
• Investment projects are simultaneously under the investment policy approval authority of 02 or more provincial-level People’s Committees;
• Other investment projects fall under the authority of the Prime Minister’s investment policy approval or investment decision.

Projects under the jurisdiction of the Provincial People’s Committee:

• Investment projects that request the State to allocate or lease land without auction, bidding or transfer, investment projects that request permission to change land use purposes, except in cases of land allocation, leasing land, allowing change of land use purpose for households and individuals who are not required to have written approval from the Provincial People’s Committee according to the provisions of land law;
• Investment projects to build houses and urban areas with a land use scale of less than 300 hectares and a population of less than 50,000 people;
• Golf course construction and business investment project;
• Investment projects of foreign investors and foreign-invested economic organizations implemented in islands and border communes, wards and towns; coastal communes, wards and towns; other areas affecting national defense and security;
• For investment projects under the investment policy approval authority of the Provincial People’s Committee but implemented in industrial parks, export processing zones, high-tech zones, and economic zones, the Management Board of industrial parks and processing zones export, high-tech zones, and economic zones approved investment policies.

Thus, the authority to approve investment policies is decentralized to different state agencies depending on the scale, nature and location of the project.

Legal basis: Article 30, Article 31, Article 32 of the Law on Investment 2020.

Process of implementing investment policy approval procedures

Documents need to be prepared

Dossier requesting investment policy approval for an investment project proposed by the investor includes:

1. Written request to implement the investment project, including a commitment to bear all costs and risks if the project is not approved;
2. Documents on the investor’s legal status;
3. Documents proving the investor’s financial capacity;
4. Proposed investment project includes contents according to regulations.

In cases where the law on construction stipulates the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal;

1. In case the investment project does not request the State to allocate land, lease land, or allow change of land use purpose, submit a copy of land use rights documents or other documents determining the right to use the location for implementation. current investment project;
2. Content explaining the technology used in investment projects for projects subject to appraisal and consultation on technology according to the provisions of law on technology transfer;
3. BCC contract for investment projects in the form of BCC contract;
4. Other documents related to the investment project, conditions and capacity requirements of the investor according to the provisions of law (if any).

Legal basis: Article 33 of the Law on Investment 2020.

Implementation order and procedures

The order and procedures for investment policy approval by the National Assembly include:

1. Documents specified in Clause 1 and Clause 2, Article 33 of this Law shall be sent to the Ministry of Planning and Investment;
2. Within 15 days from the date of receiving complete documents, the Ministry of Planning and Investment reports to the Prime Minister to establish the State Appraisal Council;
3. Within 90 days from the date of establishment, the State Appraisal Council shall organize the appraisal of documents and prepare an appraisal report including appraisal contents specified in Article 33 of this Law to submit to the Government;
4. No later than 60 days before the opening day of the National Assembly session, the Government shall prepare and send a dossier requesting approval of the investment policy to the inspection agency of the National Assembly;
5. The National Assembly considers and passes a resolution approving investment policies including the contents specified in Clause 1, Article 3 of this Law;

The order and procedures for investment policy approval of the Prime Minister include:

1. Within 03 working days from the date of receipt of complete dossier, the Ministry of Planning and Investment shall send the dossier to seek appraisal opinions from state agencies related to the appraisal content specified in Article 33 of this Law. ;
2. Within 15 days from the date of receipt of the dossier, the consulted agency shall have an appraisal opinion on the content within the scope of its state management and send it to the Ministry of Planning and Investment;
3. Within 40 days from the date of receipt of the dossier, the Ministry of Planning and Investment shall organize the appraisal of the dossier and prepare an appraisal report including the appraisal contents specified in Article 33 of this Law, and submit it to the Prime Minister. Government approves investment policy;
4. The Prime Minister reviews and approves investment policies including the contents specified in Clause 1, Article 3 of this Law;
5. For investment projects specified in Clause 3, Article 31 of this Law, the Prime Minister shall appoint the investment registration agency of a province or centrally run city to issue Investment Registration Certificates to all project;

The order and procedures for investment policy approval of the Provincial People’s Committee include:

1. The documents specified in Clause 1 and Clause 2, Article 33 of this Law are sent to the investment registration agency. Within 35 days from the date of receipt of the dossier, the investment registration agency must notify the investor of the results;
2. Within 03 working days from the date of receipt of complete dossier, the investment registration agency shall send the dossier to seek appraisal opinions from state agencies related to the appraisal content specified in Article 33 of this Law. ;
3. Within 15 days from the date of receipt of the dossier, the consulted agency shall have an appraisal opinion on the content within the scope of its state management and send it to the investment registration agency;
4. Within 25 days from the date of receipt of the dossier, the investment registration agency shall prepare an appraisal report including the appraisal contents specified in Article 33 of this Law, and submit it to the Provincial People’s Committee;
5. Within 07 working days from the date of receiving the dossier and appraisal report, the Provincial People’s Committee approves the investment policy. In case of refusal, it must be notified in writing and clearly state the reason;
6. The Provincial People’s Committee considers and approves the investment policy including the contents specified in Clause 1, Article 3 of this Law.

Legal basis: Article 34, Article 35, Article 36 of the Law on  Investment 2020.

Consulting services on investment policy approval procedures in Long Phan

During the process of implementing an investment project, obtaining investment policy approval is an important step to help businesses ensure that their project is recognized and supported by law. At Long Phan, we provide comprehensive consulting services on investment policy approval procedures to help businesses implement projects quickly and effectively.

• Evaluate the feasibility of investment projects;
• Consulting on planning and related legal regulations;
• Support in preparing documents to request investment policy approval;
• Investor representatives work with competent state agencies, monitor and urge the application processing process;
• Consulting on further procedures after investment policy approval.

The procedure for applying for investment policy approval is a rather complicated administrative procedure, governed by many relevant legal regulations. Long Phan is a place that provides consulting services on investment policy approval quickly and at the most reasonable cost. If you have any questions related to the above issue, please contact us via Hotline number 1900.63.63.89 for detailed advice. Thank you customers for trusting and using the service at Long Phan.