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Vietnam has introduced significant new regulations governing the selection of investors for land-using projects through Government Decree 115/2024/ND-CP, which provides detailed guidelines for implementing the Bidding Law.
Scope of Application
The new decree mandates bidding procedures for several categories of land-using projects, including:
- Construction of urban areas
- Rural residential area developments
- Specialized projects governed by specific laws
Specialized Projects Subject to Bidding
The decree specifically identifies various specialized projects that fall under the bidding requirement:
- Domestic solid waste treatment facilities
- Clean water supply infrastructure
- Marketplace developments
- Rest area constructions
- Aviation service facilities at airports
- Educational, healthcare, cultural, sports, and environmental projects utilizing social resources
- Social housing developments
- Condominium renovation and reconstruction
- Horse and dog racing courses with betting facilities
- Energy infrastructure projects
Key Requirements for Bidding Organization
Land Eligibility Criteria
For bidding to proceed, land areas designated for investment projects must meet two essential conditions:
- They must be subject to State recovery as specified in Article 79 of the 2024 Land Law
- They must be included in the list of land areas eligible for bidding, as approved by provincial-level People’s Councils
Investor Incentives
The decree introduces a tiered system of incentives for qualified investors:
5% Incentive Rate
This applies to investors who:
- Implement advanced, high, or environmentally friendly technologies
- Utilize the best available techniques to minimize environmental impact in high-risk projects
2% Incentive Rate
Available for investors who commit to:
- Technology transfer
- Hi-tech activities related to:
- Technologies prioritized for development investment (as per Prime Minister’s List)
- Hi-tech products promoted for development
- Technologies encouraged for transfer
Qualification Requirements for Incentives
To qualify for these incentives, investors must:
Submit documentation proving:
- Application of advanced, high, or eco-friendly technologies
- Implementation of best available techniques
- Legal rights to use proposed technologies
Demonstrate compliance with:
- High technology laws
- Technology transfer regulations
- Environmental protection requirements
Maintain adherence to:
- Commitments stated in bidding documents
- Project contract obligations
This new regulatory framework represents Vietnam’s commitment to promoting sustainable development while ensuring transparent and efficient investor selection processes for land-using projects.
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