The Chairman of the Provincial People's Committee is authorized to decide on investment policies for projects under VND 4,600 billion.

On the afternoon of November 29, the National Assembly voted to pass the Law on Public Investment (amended) with more than 92% of delegates in favor.

Accordingly, the capital level to determine the criteria for important national public investment projects is 30,000 billion VND, 3 times higher than the current level (10,000 billion VND). The capital criteria for group A, B and C projects are increased by 2 times.

Group A, B, C projects are classified according to their importance, total investment and specific fields. Group C has an investment of up to VND 240 billion; Group B has an investment of up to VND 4,600 billion and Group A is projects in some fields with an investment capital of over VND 4,600 billion.

Regarding the authority to decide on investment policies, the National Assembly still decides on policies for national target programs and important national projects (capital of 30,000 billion VND). The Prime Minister decides on investment policies for group A projects of 10,000 billion VND or more, managed by ministries and central agencies.

Provincial People's Councils decide on investment policies for group A projects managed by localities or projects bordering two provinces, with a total investment of VND 4,600 billion or more.

The new point in this amendment is that from January 1, 2025, the Chairman of the People's Committee at all levels will decide on investment policies for groups B and C managed by the locality (or projects bordering two provinces), instead of the People's Council. Therefore, the Chairman of the Provincial People's Committee is allowed to decide on investment policies for projects under VND 4,600 billion.

In its report on the acceptance before the National Assembly passed the law, the National Assembly Standing Committee said that many delegates believed that transferring the right to decide on project investment policies from the authority of the People's Council to the People's Committees at all levels was a major change. Therefore, it needed to be carefully and comprehensively evaluated.

The National Assembly Standing Committee agrees with this assessment. However, in reality, the 2019 Law on Public Investment has stipulated that the People's Committees are assigned to decide on investment policies for projects. According to the Government's report, in the 2021-2025 period, 43 provincial People's Councils have delegated the decision on investment policies for Group B and C projects to the People's Committees at the same level.

In addition, the contents on investment approval and project implementation remain the same as current regulations. That is, the Chairman of the People's Committee at all levels still decides on project investment and the People's Committee is still the governing body, responsible for project implementation. The People's Council supervises the implementation.

However, for projects and public investment programs that have been decided on by competent authorities before January 1, 2015, and have had capital allocated but not yet completed, implementation will continue.

Projects that have completed the procedures for establishment and appraisal, submitted to the competent authority for decision on investment policy and have been decided on investment policy before January 1, 2025 - the time this law takes effect, shall be implemented according to the Investment Law 2019.