List of Land-use Projects Not Subject to Investment Policy Approval in Vietnam

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List of Land-use Projects Not Subject to Investment Policy Approval in Vietnam

Summary: The list of land-use projects not subject to investment policy approval in Vietnam highlights specific types of projects that do not require the approval of state authorities before execution. These projects are typically smaller in scale, may involve specific sectors, or pertain to non-sensitive locations. Investors still need to follow standard legal procedures for registration, but they avoid the lengthy approval process. Understanding this can significantly reduce administrative burdens for businesses.

Introduction

The “List of land-use projects not subject to investment policy approval” serves as a key aspect of Vietnam’s legal framework for encouraging efficient and streamlined investment processes. While some large-scale or sensitive projects in Vietnam require investment policy approval from relevant authorities, many others do not. This article explores these exempted projects and the significance of this policy for foreign and local investors.

Overview of Investment Policy Approval

Investment policy approval is a process whereby the government must review and approve certain projects before they can proceed. This step ensures that investments align with national economic, social, and environmental goals. However, not all projects are subject to this approval, as defined in Vietnam’s investment law framework.

Categories of Exempt Projects

1. Small-scale Land-use Projects

Projects that use land on a small scale, particularly in areas not classified as highly strategic, often do not require investment policy approval. These projects include smaller agricultural ventures, non-sensitive industrial establishments, and residential developments. Investors are still required to comply with land-use laws, but they do not need approval from higher authorities.

2. Projects Outside Restricted Areas

Vietnam has designated certain areas as sensitive or strategic due to their geographical, economic, or environmental significance. Projects outside these restricted zones, such as rural areas or zones far from national defense installations, are often exempt from investment policy approval.

3. Public-Private Partnerships (PPPs) with Local Governments

Certain PPP projects, particularly those focused on local infrastructure development, may bypass investment policy approval. This is often the case when local authorities take the lead in facilitating such investments, thereby reducing the burden on central approval mechanisms.

4. Non-State Funded Projects

Projects funded entirely by private capital or foreign investment may not need investment policy approval. The government’s aim is to foster an open and business-friendly environment, especially for foreign direct investments (FDI) in non-strategic sectors. However, these projects must comply with all other legal requirements, including registration with relevant authorities.

Legal Framework Governing Land-Use Projects

The framework for investment policy approval and exemptions is outlined in Vietnam’s Law on Investment, particularly in decrees such as Decree 31/2021/NĐ-CP, which guides the implementation of the Investment Law. This law specifies the types of projects exempt from approval, ensuring that small to mid-size investors can operate without unnecessary delays. According to Article 36 of the law, projects not involving land transfer or sensitive technology are often fast-tracked without needing investment approval.

Benefits of Exemptions

The primary benefit of the “List of land-use projects not subject to investment policy approval” is the reduction of administrative burdens. Investors can focus on quickly moving forward with their projects without waiting for months or years for state approval. This exemption is especially beneficial for small and medium enterprises (SMEs) and foreign investors targeting the Vietnamese market.

Improved Investment Climate

Vietnam’s decision to exempt certain land-use projects from investment policy approval is part of its broader strategy to create an inviting investment climate. By removing unnecessary red tape, the government hopes to attract more international investors while supporting local businesses in less-regulated sectors.

Enhanced Efficiency in Project Implementation

Without the need for time-consuming approvals, companies can implement projects faster, especially in non-sensitive areas. This is crucial in sectors like manufacturing, technology, and agriculture, where timing and quick market entry are vital for business success.

Specific Laws Related to Exempt Projects

According to Decree 31/2021/NĐ-CP, projects that do not involve changes in land use, sensitive industries, or state capital are generally exempt from investment policy approval. Additionally, Article 36 of the Investment Law outlines that projects located in industrial zones, export processing zones, and high-tech parks are not subject to investment policy approval under specific conditions.

Relevant Legal Articles

  • Article 30, Law on Investment 2020: Details categories of projects that do not require investment policy approval.
  • Decree 31/2021/NĐ-CP: Provides further details on projects exempt from approval and outlines specific conditions under which exemptions apply.
  • Article 36, Law on Investment 2020: Clarifies the conditions for projects that do not require approval and sets guidelines for land-use regulations.

Consulting with Legal Experts

Understanding which projects fall under the “List of land-use projects not subject to investment policy approval” can be challenging. Investors should consult legal experts to ensure compliance with Vietnam’s investment regulations. Renowned legal experts such as lawyer Nguyen Nhu Hai often assist investors in navigating these complexities, helping to ensure that projects proceed smoothly without regulatory hurdles.

Conclusion

The “List of land-use projects not subject to investment policy approval” in Vietnam provides significant advantages for investors looking to develop projects in less-regulated sectors. These exemptions save time, reduce bureaucracy, and enhance the overall business environment in the country. For foreign and local investors, understanding these rules and seeking legal counsel where necessary is essential to take full advantage of the opportunities available.

Further Reading and Resources

 

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