On March 28, 2025, the Government issued Decree No. 71/2025/ND-CP amending and supplementing several provisions of Decree No. 35/2021/ND-CP dated March 29, 2021, detailing and guiding the implementation of the Law on Investment under the Public-Private Partnership model ("Decree 71"). Accordingly, some notable amendments and supplements related to PPP investment are as follows:
1. Guidelines for Implementing BT Projects Without Payment Requirements
Compared to the 2020 Law on Investment under the Public-Private Partnership Model ("PPP Law"), the revised 2024 PPP Law has added payment methods for investors implementing BT projects using land funds and without requiring payment, facilitating investors in project implementation.
Accordingly, Decree 71 provides guidelines for implementing BT projects without payment requirements as follows:
a) Implementation Conditions
In addition to general conditions, Decree 71 stipulates that one of the conditions for implementing BT projects without payment requirements is that the project must not overlap with any PPP project for which the competent authority is preparing a pre-feasibility study report, a feasibility study report, or has already approved another investor to prepare such reports. This ensures stability and avoids disruption in PPP investment activities.
b) Implementation Process
The PPP Law grants investors significant autonomy in proposing BT projects without payment requirements. Accordingly, the investor must follow a two-step proposal process:
Step 1: Submit a proposal to the competent authority for approval to prepare the feasibility study report and draft contract.
Step 2: Based on the approval in Step 1, the investor submits a project proposal, including a draft feasibility study report, draft contract, legal qualification documents, and financial capacity documents to arrange capital for project implementation. After obtaining approval from the competent authority, the investor proceeds with project execution.
The investor bears all costs associated with the two-step proposal process if the competent authority does not approve the project.
c) Ownership of BT Works After Transfer
After the works and infrastructure system are accepted and deemed eligible for operation and use, the investor submits a transfer request.
The competent authority decides on the establishment of state ownership and designates an agency or unit responsible for operating, managing, and maintaining the transferred infrastructure system.
2. Shortened Appraisal Time for Pre-Feasibility and Feasibility Study Reports of PPP Projects
Decree 71 significantly reduces the appraisal time for pre-feasibility and feasibility study reports of PPP projects compared to Decree 35/2021/ND-CP ("Decree 35"), saving time for investors. Notably, the appraisal period may now be counted from the date of "establishing the appraisal council" instead of the date the "appraisal council receives the dossier" as before. The specific appraisal time reductions are as follows:
| Report Type | Project Type | Appraisal Time | |
| Decree 35 | Decree 71 | ||
| Pre-Feasibility Study Report | Projects under the investment policy decision authority of the Prime Minister | No more than 45 days | No more than 30 days |
| Projects under the investment policy decision authority of Ministers, heads of central agencies, other agencies, provincial People's Councils, and provincial People's Committees | No more than 30 days | No more than 14 days | |
| Projects requiring only the preparation of an economic-technical investment report | Not specified | No more than 10 days | |
| Feasibility Study Report | Projects under the approval authority of the Prime Minister | No more than 90 days | No more than 30 days |
| Projects under the approval authority of Ministers, heads of central agencies, other agencies, provincial People's Councils, and provincial People's Committees | No more than 60 days | No more than 14 days | |
Additionally, the approval time for investment policy decisions of PPP projects has also been significantly reduced. For projects under the investment policy decision authority of provincial People's Committees, the approval time is now no more than 10 days; for projects requiring only an economic-technical investment report, no more than 5 working days.
3. Shortened Investor Selection Period for PPP Projects
In addition to reducing the appraisal time for pre-feasibility and feasibility study reports, Decree 71 also shortens the minimum preparation time for bid documents (applicable to cases where investor selection for PPP projects is conducted through bidding), specifically:
| Type of Bidding | Type of Project | Implementation Time | |
| Decree 35 | Decree 71 | ||
| Selection of Domestic Investors | For projects under the authority of the National Assembly or the Prime Minister for investment policy decisions | 60 days | 45 days |
| For projects with a total investment equivalent to Group A projects as prescribed by law | 30 days | ||
| For projects with a total investment equivalent to Group B and Group C projects as prescribed by law | 20 days | ||
| For projects that only require the preparation of an economic-technical report for construction investment | 10 days | ||
| Selection of International Investors | For projects under the authority of the National Assembly or the Prime Minister for investment policy decisions | 90 days | 60 days |
| For projects with a total investment equivalent to Group A projects as prescribed by law | 45 days |
Reducing procedural timeframes facilitates business operations.
4. Detailed Guidelines on the Process and Procedures for Deciding Investor Selection in Special Cases
Compared to Decree 35/2021/ND-CP, Decree 71 provides detailed guidance and specific regulations on the process and procedures for deciding investor selection in special cases, ensuring flexibility and timeliness while maintaining strict controls to prevent abuse. Accordingly, investor selection proposals in special cases must be prepared as a proposal dossier, sent for consultation with relevant agencies, appraised, and submitted to the competent authority for decision. The decision on special case investor selection may be made simultaneously or separately from the project approval decision or the investment policy decision.
Overall, Decree 71 amends several regulations to be more favorable for investors in implementing PPP projects, reducing time and addressing difficulties in capital mobilization and financial arrangement.
Decree 71 takes effect on March 28, 2025.
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