New Boost for Foreign Investment in Vietnam

The government of Vietnam has just issued a new decree, encouraging foreign investment into the country’s infrastructure development projects via BOT (Build-Operate-Transfer), BTO (Build-Transfer-Operate) and BT (Build-Transfer) methods, a report from the Government website said.

 

Ministries, ministry-line agencies under the Government, and provincial people’s committees are authorized to approve projects, it said.

 

The new decree replaces the older one issued in 1997 that required the Ministry of Planning and Investment to coordinate with ministries, sectors and provincial people’s committees in considering projects and submitted them to the PM for approval.

 

The new decree also specifies detailed investments for BOT projects, the report noted.

 

Article 4 of the decree stipulates that project developers must contribute at least 30 per cent of the total for projects valued below VND75 billion, 20 per cent for those valued VND75 billion-VND1.7 trillion, and not less 10 per cent for projects capitalized at VND1.5 trillion and up.

 

Investors must also deposit minimal warrants ranging from 1 per cent for projects valued at VND1.5 trillion, 2 per cent for VND75 billion-VND1.5 trillion projects, and 3 per cent for works worth below VND75 billion.

 

The Government of Vietnam is now seeking foreign investments for infrastructure projects, including most transport, water and power works.

 

Currently, Vietnam is home to 90 IPs, employing 1 million laborers; by 2010 an additional 60 IPs will be formed. (Transport, Government’s Website)