Headlines 14/07/2020 11:14 SA

2020 Public – Private Partnership Investment Law are now ready to take effect

Quý Tân

The 2020 Public – Private Partnership Investment (PPP) Law was ratified in the National Assembly’s 9th meeting held on June 18, 2020.

This Law defines the public - private partnership investment is an investment approach carried out by the fixed-term cooperation between the state and a private investor through conclusion and execution of a PPP agreement in order to call for their involvement in a PPP project. 

Sectors permitted for PPP investment include:

+ Traffic and transportation (1);

+ Electrical grid, power plants, except hydropower plants and those subject to the state monopoly requirement as provided in the Law on Electricity (2);

+ Water resources; supply of clean water; water drainage and wastewater treatment; waste disposal (3);

+ Healthcare; education – training (4);

+ Information technology infrastructure (5).

Minimum investment capital requirements for PPP projects in specific sectors are prescribed as follows:

- Not less than VND 200 billion for PPP projects in sectors like (1), (2), (3) and (5). 

Minimum investment capital of PPP projects to be executed in areas facing socio-economic difficulties or extreme socio-economic difficulties prescribed in laws on investment is VND 100 billion.

- Not less than VND 100 billion for PPP projects in such sectors as: healthcare and education – training. 

Public – Private Partnership Investment Law are entering into force on January 1, 2021.

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