When an investor implements an investment project that falls under the category of projects requiring investment policy approval, the investor must apply for investment proposal approval in accordance with legal regulations before implementing the project. So, which projects require investment policy approvals? Which agencies are authorized to approve investment policies? What conditions must be met to obtain investment policy approvals? Let's find out with NPLaw in the following article.

1. What is Investment Policy Approval?

According to Clause 1, Article 3 of the Law on Investment, investment policy approval is the process by which a competent state agency approves the following aspects of an investment project: objectives, location, scale, progress and implementation time; investor or method of investor selection, special mechanisms and policies (if any). 

2. Are Investment Policy Approval and Investor Approval Different?

The terms "investment policy approval" and "investor approval" are quite common and are often confused with each other. However, these two terms have different meanings, as follows:

- Investor approval is the process by which a competent state agency approves an investor when the investor meets the conditions prescribed by law in the following cases: Only one bidder registers to participate in the land use right auction or the auction fails in accordance with the Law on Land; or only one investor registers to participate in the investor selection by bidding organizations in accordance with the Law on Bidding.

- Investment policy approval is the process by which a competent state agency approves the following aspects of an investment project: objectives, location, scale, progress and implementation time; investor or method of investor selection, special mechanisms and policies (if any).

3. What are the legal requirements for investment policy approval?

In order to obtain investment policy approval, investment projects must meet the following conditions as prescribed by Law and the competent authorities will comply with relevant legal regulations to assess and appraise investment projects in accordance with Clause 3, Article 33 of the Law on Investment 2020 and Clause 3, Article 3 of the amended law of the Law on Public Investment and the Law on Investment under the Public-Private Partnership method, the Law on Investment, the Law on Housing, the Law on Bidding, the Electricity Law, the Law on Enterprise, the Law on Special Consumption Tax and the Law on Enforcement of Civil Judgments 2022, effective from March 1, 2022. Specifically:

- Assessing the project's compliance with national, regional, provincial, urban, and special administrative-economic unit planning (if applicable);

- Evaluating the project's need for land use;

- Conducting a preliminary assessment of the project's economic and social impact; preliminarily evaluating the potential environmental impact (if applicable) according to Environmental Protection laws;

- Assessing the project's eligibility for investment incentives and conditions for receiving such incentives (if applicable);

- For projects subject to technology assessment or opinion collection, evaluating the project's used technology according to Laws on Technology Transfer;

- Assessing the capacity and conformity of the investment project with the goals and orientations of urban development and housing development programs and plans; making preliminary plans for investment phases ensuring synchronous requirements; preliminary structures of housing products and uses of land allocation for social housing development; preliminary plans for investment in construction and management of urban infrastructure inside and outside the scope of housing construction and urban area projects;

- Evaluating the project's compliance with the requirements for the protection and promotion of cultural heritage values, as stipulated by Cultural Heritage laws.

4. Which agencies are competent to approve the investment policy according to legal regulations?

According to legal regulations, the agencies competent to approve the investment policy include the National Assembly, the Prime Minister and the People's Committee at the provincial level as prescribed in Articles 30, 31 and 32 of the Law on Investment 2020.
Depending on the type and scale of investment projects, the competence to approve the investment policy will belong to one of the above agencies. Investors need to correctly identify the competence to approve the investment policy in order to carry out the procedures for applying for the investment policy if the project is subject to investment policy approval before proceeding with the project implementation.

5. NPLaw's answers to frequently asked questions when implementing the procedures for investment policy approval.

5.1. Are the procedures for adjusting the Investment Registration Certificate for investment projects subject to the approval of the adjustment of the investment policy?

According to the provisions of Article 43 of Decree 31/2021/ND-CP stipulating the contents and procedures for adjusting investment projects, specifically:

- In the process of implementing the investment projects, the investors are allowed to adjust the projects including the contents specified in clauses 1, 2 and 3, Article 41 of the Law on Investment.

- For projects that have been approved for investment policy, investors shall implement the following procedures:

+ In case of adjusting the contents of the investment projects as prescribed in Clause 3, Article 41 of the Law on Investment, the investors shall implement the procedures for adjusting the “Decision approving the investment policy” in accordance with the corresponding regulations in Articles 44, 45 and 46 of this Decree. Based on the “Decision approving the adjustment of the investment policy”, the investors shall implement the procedures for adjusting the “Decision approving the investor” (if any) or “the Investment Registration Certificate” (if any);

+ When adjusting the contents of the investment projects doesn’t fall into the cases prescribed in Clause 3, Article 41 of the Law on Investment, the investors don’t have to implement the procedures for approving the adjustment of the investment policy.

- For investment projects that are not subject to investment policy approval or projects that have been approved for investment policy but do not fall into the cases prescribed in Clause 3, Article 41 of the Law on Investment, the investors shall implement the procedures for adjusting the Investment Registration Certificate (if any) according to the regulations in Article 47 of this Decree.

- In case the request adjusting the investment projects that are not subject to the approval of the investment policy, which leads to the investment projects being subject to the approval of the investment policy, the investors must implement the procedures for approving the investment policy according to the regulations in Section 2, Chapter IV of this Decree before adjusting the investment projects. In this case, the investment policy approval agencies shall consider the adjustment contents to approve the investment policy.

The adjustment of the contents of the investment projects falls into the cases specified in Clause 3, Article 41 of the Law on Investment 2020, it is necessary to implement the procedures for approving the adjustment of the investment policy, specifically:

- Changing the objectives specified in the investment policy approval documents; adding objectives subject to investment policy approval;

- Changing the land use area by more than 10% or more than 30 hectares and changing the investment location;

- Changing the total investment capital by 20% or more, changing the scale of the investment projects;

- Extending the implementation progress of the investment projects when the total investment time of the projects exceeds 12 months compared to the implementation progress of the investment projects specified in the first investment policy approval documents;

- Adjusting the operation period of the investment projects;

- Changing the technology that has been appraised and consulted during the investment policy approval process;

- Changing the investors of the investment projects approved for investment policy at the same time as approving the investors before the projects are exploited and operated or changing the conditions for the investors (if any).”

Thus, if the adjustment of the Investment Registration Certificate does not fall into the cases specified in Clause 3, Article 41 of the Law on Investment 2020, the investors don’t have to implement the procedures for approving the adjustment of the investment policy.

5.2. Are the investment projects for the construction and business of a Golf course subject to the projects that need to be approved for the investment policy?

According to the provisions of Point c, Clause 1, Article 32 of the Law on Investment 2020, the projects for construction and business of a golf course (Golf) are subject to investment policy approval.

The competence to approve the investment policy for the projects to construct and operate a golf course (Golf) belongs to the People's Committee of the provincial level according to the regulations in Article 32 of the Law on Investment 2020.

5.3. Which agencies will be competent to approve the investment policy for the Casino business investment projects according to legal regulations?

According to the provisions of Point e, Clause 1, Article 31 of the Law on Investment 2020, the Casino business investment projects will be under the competence of the Prime Minister to approve the investment policy.

6. Reputable services of applying for investment policy approval procedures

The procedures for applying for investment policy approval are quite complicated administrative procedures. Therefore, when implementing these procedures, many investors still encounter many difficulties and obstacles in applying for investment policy approval. Understanding that problem, NPLaw is an organization established in accordance with the law, specializing in providing comprehensive legal services.

With a team of lawyers and experts with many years of experience in applying for investment policy approval, NPLaw is confident to provide investment policy approval services promptly at the most reasonable cost.

Above are the entire contents of the consultancy of NPLaw Firm on issues related to investment policy approval according to legal regulations. If you have any questions related to the above issue, please contact NPLaw Firm immediately for the most comprehensive consultations from lawyers and experts. Thank you for your trust and choice of NPLaw's services. Sincerely.