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Public investment plays a key role in building a solid foundation for the economy, while attracting private investment, opening up great opportunities for comprehensive growth. These investments not only create jobs, but also improve quality of life, promote sustainable development and reduce inequality. The article below will analyze in detail public investment and investment opportunities in the Vietnamese market.
Clause 15, Article 4 of the Law on Public Investment 2019 defines public investment as the State’s investment activities in public programs and projects. This activity is carried out through state budget capital. Public investment plays a key role in national infrastructure development.
Public investment activities include capital construction investment projects, equipment procurement and fixed assets. Public investment capital is formed from the state budget, government bonds, and other legal capital sources. Public investment projects must comply with a strict appraisal process and be approved by competent authorities.
Objects of public investment are specified in Article 5 of the Law on Public Investment 2019. The scope of objects includes socio-economic infrastructure programs and projects. Projects serving the activities of state agencies and public service units.
Public investment focuses on the following areas:
In addition, public investment also includes providing charter capital to policy banks, state financial funds and investment support for policy beneficiaries according to the Prime Minister’s decision.
According to Article 12 of the Law on Public Investment 2019, public investment management must comply with basic principles. Ensure openness and transparency during the implementation process. The use of public investment capital must be for the right purpose and effective.
The main principles include:
The public investment management process is closely monitored by authorities. Violations in public investment management will be strictly handled in accordance with the law.
Public investment creates many opportunities for investors to participate in infrastructure development projects. Investors can participate through public-private partnerships (PPP). The Law on Public Investment 2019 clearly stipulates the rights and obligations of the parties.
Opportunities for investors to participate in public investment activities include:
Firstly, participate in bidding for public projects: Businesses can participate in bidding for public investment projects to win the right to implement infrastructure works and projects organized by the government or state agencies. This brings great opportunities for contractors to develop and expand their business;
Second, cooperation under the PPP model: The Public Private Partnership (PPP) model is a form of cooperation between the state and private enterprises in implementing public projects. The parties cooperate to share resources, risks and profits to implement large infrastructure projects without having to rely entirely on the state budget;
Third, providing consulting and design services: Consulting and design service companies can participate in public projects to support state agencies in planning, technical design, and providing optimal solutions for public investment projects;
Fourth, supplying materials and equipment for the project: Enterprises can participate in the process of providing materials and equipment for public projects, ensuring quality and timely supply, from construction materials to high-tech equipment for infrastructure, transportation, healthcare, and education projects;
Fifth, participate in the construction and operation process: Contractors and construction companies can directly participate in the construction process of public works. Once completed, they can also participate in the operation, maintenance and upkeep of public investment projects throughout the life of the project.
Investors need to carefully study the relevant legal regulations and administrative procedures. At the same time, it is necessary to evaluate financial capacity and project implementation experience.
Long Phan provides comprehensive consulting services on public investment. Our team of experts has extensive experience in this field. Long Phan will support investors to optimize investment opportunities and achieve the highest efficiency.
Our support and consulting services include:
Long Phan is proud to have many years of experience in investment consulting in Vietnam. With a team of professional and highly specialized experts, we will provide optimal solutions for your public investment projects. If you have any needs, please contact us immediately via the hotline: 0906735386 for detailed advice on public investment opportunities and related procedures.
Note: The content of the articles published on the website of Long Phan Investment Consulting Company is for reference only regarding the application of legal policies. Depending on the time, subject, and amendments, supplements, and replacements of legal policies and legal documents, the consulting content may no longer be appropriate for the situation you are facing or need legal advice on. In case you need specific and in-depth advice according to each case or incident, please contact us through the methods below. With our enthusiasm and dedication, we believe that Long Phan will be a reliable solution provider for our clients.
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