12 June 2020
Vietnam

On 28 February 2020, the Government of Vietnam promulgated Decree 25/2020/ND-CP providing detailed regulations for implementation of the law on tendering regarding selection of investors (“Decree 25”). Decree 25 revokes the previous Decree 30/2015/ND-CP dated 17 March 2015 (“Decree 30”) on the same subject.

The key differences between Decree 25 and Decree 30 on the regulation that are applicable to enterprises are as follows:

No.ContentsDecree 30Decree 25
1The concept of “ investment projects using land zones and/or land funds with a high commercial value and for which it is necessary to select an investor when the project is on the list of projects approved by Chairman of People’s Committee at the provincial level to construct urban works, a new urban zone, commercial housing, commercial and services works.”

This concept has been removed since the concept of “land zones and/or land funds with a high commercial value” is unclear, causing an obstacle to select investors to carry out the project using land in practise.

 

2Selection of investor to implement a project in accordance with the specialised law and the law on socialisation.Not regulated.Decree 25 extends the scope of adjustment to private projects in the fields of encouraging socialisation (such as health, education, culture, sports, environment, etc.) or according to specialised laws (such as advertising, horse racing, dog racing, etc. ) when the related law requires the selection investors through tender but does not mention the provisions for such selection.
3The investor to propose to implement an investment project using land not included on the list of investment projects using land as approved by the chairman of the provincial people’s committee.Not regulated.

4Order and procedures for land assignment or land lease to the investor who won the tenderNot regulated.Decree 25 clarifies that the order and procedures for land assignment or land lease to the investor who won the tender shall be conducted under the provisions of Law on Land, which create a new legal ground to unplug bottlenecks for real estate projects.

If you have any questions or require any additional information, please contact Trang Hoang of ZICO Law Vietnam (a member of ZICO Law).


This alert is for general information only and is not a substitute for legal advice.