The amendment and supplementation of a number of articles of the Law on Investment under the Public-Private Partnership (PPP) method in Law No. 57/2024/QH15 will remove obstacles for PPP projects and promote investment capital attraction.
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| New regulations in Law No. 57/2024/QH15 amending a number of contents in the PPP Law will contribute to removing obstacles for projects and promoting investment attraction. Photo: D.T |
The Law amending and supplementing a number of articles of the Law on Planning, the Law on Investment, the Law on Investment under the public-private partnership model and the Law on Bidding (Law No. 57/2024/QH15) was passed by the 15th National Assembly at its 8th session.
This is an important step forward in perfecting the legal framework, resolving bottlenecks in investment mechanisms, and promoting infrastructure development. These changes not only address existing barriers but also open up great opportunities for future PPP projects.
Remove restrictions on sectors and minimum capital
Previously, the PPP Law only allowed projects in five key areas: transportation, power grid, water supply, health care and education, with a minimum capital of VND100-200 billion. This limited the ability to implement small-scale projects, especially in localities with difficult socio-economic conditions, where private investment capital should be encouraged to solve urgent problems.
Law No. 57/2024/QH15 has removed these limitations, allowing the application of the PPP method in all areas in accordance with the needs of socio-economic development. Expanding the scope of investment and removing the minimum capital requirement will create favorable conditions for localities to implement urgent but small-scale infrastructure projects, thereby attracting more investors and improving capital efficiency.
This is a breakthrough, not only increasing flexibility but also promoting creativity in proposing new projects, meeting the practical needs of each region.
Increase the proportion of state capital participating in the project
A notable new point in Law No. 57/2024/QH15 is the increase in the proportion of State capital participating in PPP projects to a maximum of 70% of the total investment for projects with large site clearance costs or implemented in economically disadvantaged areas. Previous regulations only allowed State capital to account for no more than 50%, leading to many projects being stalled because they were not attractive enough to private investors.
The new regulation not only reduces the financial burden on investors but also creates peace of mind when participating in high-risk projects. The higher proportion of State capital helps ensure that important infrastructure projects will be implemented quickly and on schedule, contributing to improving the quality of public services and promoting economic growth.
Strong reform of investment procedures
Simplifying investment procedures is one of the top priorities in the revision of the PPP Law. The project appraisal and approval process has been streamlined and strongly decentralized to localities. This not only reduces approval time but also increases flexibility, helping projects to be implemented promptly, meeting the urgent needs of people and businesses.
In particular, the new law requires the entire project appraisal and approval process to be open and transparent, in order to limit corruption and waste. Investors are also guaranteed their rights as procedures become clearer and more transparent.
This reform is expected to create a more favorable and attractive investment environment, not only for domestic investors but also for foreign partners.
Reapply BT contract with innovation mechanism
Law No. 57/2024/QH15 marks the return of BT (Build-Transfer) contracts after a long suspension. This is an important form of contract, allowing investors to propose infrastructure projects without using state budget capital.
However, to avoid past shortcomings such as lack of transparency or uncontrolled costs, this revised law has introduced stricter management regulations. The bidding process to select investors will be strictly implemented, with clear and public criteria to ensure fairness and efficiency.
In addition, the payment mechanism for investors is specified in detail right from the project preparation stage, helping to minimize the situation of prolonged debt. The monitoring mechanism is also enhanced to promptly detect and handle problems arising during the contract implementation process.
Reapplying BT contracts not only helps reduce financial pressure on the State but also unlocks private capital sources, speeding up the construction of essential infrastructure projects.
Solving problems of transition projects
Currently, many BOT and BT projects are facing difficulties in implementation due to legal mechanisms. Law No. 57/2024/QH15 allows the application of new regulations to contracts signed before the law takes effect. This creates conditions for projects to continue to be implemented, while providing a legal basis to resolve arising issues.
The Government also allows piloting the application of PPP in unregulated sectors in Hanoi, Ho Chi Minh City and Da Nang. This is an opportunity for localities to maximize the potential of BT contracts, attract private capital and promote flexible infrastructure development.
It can be said that the amendment of the PPP Law not only resolves current legal problems but also opens up a clear, transparent and effective legal corridor for future public infrastructure projects.
Reforms such as expanding investment sectors, increasing the proportion of State capital and re-applying BT contracts demonstrate the Government's efforts in unlocking resources and promoting socio-economic development.
If effectively implemented, these changes will not only improve infrastructure quality but also enhance national competitiveness, attract domestic and foreign investment, and create strong momentum for sustainable growth.
Source: https://baodautu.vn/dong-luc-moi-de-khoi-thong-nguon-luc-dau-tu-d234842.html
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