New Regulations of Preferences on the Selecting of an Investor

On 17 March 2015, the Decree No.30/2015/ND-CP guiding a number of articles of the Law on Tendering 2013 related to the selection of an investor was issued by the Government (Decree 30).

This Decree, along with the Decree No.15/2015/ND-CP on investment in the form of Public-Private Partnership (PPP) dated 14 February 2015, have formulated a full and basic legal framework on tender and PPP project implementation. Accordingly, a wide range of comprehensive and advantageous regulations on the selection of investor has been stipulated to contribute to the attractiveness of investment capital for infrastructure of Vietnam.

More specifically, the investors may put emphasis on of the regulation of preferences during the selection of investors for PPP projects implementation. The investors are required to satisfy the following conditions to enjoy preferences during the financial–commercial assessment process:

  1. Such investors have already had the approved feasibility study report or project proposal (for group C PPP project).
  2. Such investors must apply the methods of (i) the service price; (ii) state contributed capital; (iii) social benefits and state benefits; or (iv) a combined method.

Accordingly, the investors who may satisfy the above conditions are not required to plus an additional 5% to the price or contributed capital of each mentioned method respectively.

Decree 30 has particular provisions on the procedure required for the selection of investors from the pre-qualification documents stage, to the tender approval stage.

It is clearly that new and transparent regulations on selection of investors and tender process may encourage the foreign investors to invest in infrastructure supply in Vietnam.

Decree 30 will take effect on 5 May 2015.

By Vietnam Law Insight, LNT & Partners

Disclaimer: This Briefing is for information purposes only. Its contents do not constitute legal advice and should not be regarded as detailed advice in individual cases. For more information, please contact us or visit the website: Http://

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