With the geographical characteristics of Vietnam, road traffic and road works are important "lifebloods" to promote the movement of goods and passengers. Therefore, in recent years, the State has devoted many preferential policies and resources to promote the development of road transport works. With the desire to quickly handle the existing problems and inadequacies, on November 28, 2023, the National Assembly issued Resolution 106/2023/QH15 piloting several peculiar policies on investment in road construction in the period from November 28, 2023, to July 1, 2025 ("Resolution 106”). Here, ATA will synthesize and analyze notable contents in Resolution 106 that impact the business community.
1. The application scope of the peculiar policies
The peculiar policies will not apply to all road projects but will only apply to some specific road projects - of special importance and great impact on socio-economic life. This regulation ensures that investment and mobilization of capital sources have a focus and are suitable to the current conditions of our country.
Specific policy application period: from November 28, 2023, to June 30, 2025, except for some projects specified in Section 2 below.
2. The content of the peculiar policies
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No |
Content |
Current legal provisions |
Works |
Term of application |
Comment
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1 |
To allow the proportion of state capital participating in investment projects under the mode of public-private partnership to exceed 50% of the total investment amount of the project. |
Clause 2, Article 69 of the Law on Investment in the Mode of public-private Partnership: the proportion of state capital participating in PPP projects must not exceed 50% of the total investment amount of the project for state capital used for the following purposes: + Support for the construction of works and infrastructure systems under PPP projects; + Payment for funds of compensation, site clearance, support, and resettlement; support the construction of temporary works. |
+ Investment project to build coastal roads in Thai Binh province; + Investment project to build Dong Dang expressway (Lang Son province) - Tra Linh (Cao Bang province) |
By the end of June 30, 2025 |
For important projects that require large capital and need to implement investment quickly and focused, raising the state participation capital ratio will be able to accelerate the attraction of other investment capital. |
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2 |
The Prime Minister is entitled to assign provincial-level People's Committees as managing authorities, use local budget and other lawful capital to invest in national highway and expressway projects, or be responsible for completing investment procedures during the effective time of Resolution 106.
The Prime Minister is also entitled to assign 01 provincial People's Committee as the managing agency, use this local budget to support other localities to carry out public investment activities of projects through localities or be responsible for completing investment procedures for projects on the list.
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Point a Clause 1, Article 36 of the Law on State Budget 2015, Point a Clause 1, Article 14 of Decree 163/2016/ND-CP, and Point a Clause 1, Article 4 of Circular 342/2016/TT-BTC stipulate that capital construction investment expenditures (including investment expenditures on road works) fall under the expenditure tasks of the central budget managed by central authorities; therefore, there is no mechanism for provincial-level authorities to use local budgets to invest in national highway and highway projects.
Clauses 2 and 3 of the 2020 Law on Construction stipulate that investors for projects using public investment capital are specialized construction investment project management boards or regional construction investment project management boards; for state-funded projects, the investor shall be the agency, organizations assigned to manage and use capital for construction investment by investment decision-makers.
Clause 1, Article 31 of Decree 11/2010/ND-CP stipulates that the Ministry of Transport is responsible for organizing the management of construction and maintenance of the national highway system,... highway.
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A. National highway and highway projects decentralized to localities for management + The project of upgrading and expanding the National Highway No.14 section of Dong Xoai - Chon Thanh; + Investment project to build Hoa Binh - Moc Chau expressway, section of the route in Son La province; + Investment project to build Ninh Binh - Hai Phong expressway, section through Ninh Binh province; + The project of upgrading and expanding the route connecting Can Tho - Hau Giang (National Highway 61C); + Project on developing a transport network in the Mekong Delta to adapt to climate change in Can Tho city - Project 1; + Project of upgrading and expanding National Highway 26B, Khanh Hoa province; + Ho Chi Minh City - Thu Dau Mot - Chon Thanh expressway project through Binh Phuoc province. B. Projects through localities assigned to a locality to manage: + Road tunnel project through Hoang Lien pass connecting Sa Pa (Lao Cai) with Tam Duong district (Lai Chau); + The project of building Bac Kan - Ho Ba Be city road connecting Na Hang - Tuyen Quang; + Investment project to build Golden Canal Bridge and two bridgeheads, connecting Bac Ninh and Hai Duong provinces; + Quang Da bridge project and bridgehead road (connecting Da Nang with Quang Nam); + Project to upgrade and expand Provincial Road 879B from Go Cat bridge (Tien Giang) to Long An boundary; + The project of connecting the road from Tan Son town, Ninh Son district, Ninh Thuan province to Ta Nang intersection, Duc Trong district, Lam Dong province; + Investment project to build Ong Doc River bridge, East-West axis, and Ganh Hao bridge (connecting Ca Mau and Bac Lieu); + Cao Lanh (Dong Thap) - An Huu (Tien Giang) highway construction project, phase 1; + Investment project to build Dong Dang expressway (Lang Son province) - Tra Linh (Cao Bang); + Investment project to build Dinh Khao bridge connecting Vinh Long and Ben Tre; + The project of upgrading and expanding the route connecting Can Tho - Hau Giang (National Highway 61C); + Investment project to expand Hoa Lac - Hoa Binh expressway; + Cua Dai bridge construction project connecting Ben Tre province with Tien Giang province; + Co Fried 2 bridge construction project, connecting Ben Tre province with Tra Vinh province. |
By the completion of the project |
Promote the initiative and closeness of localities, create synchronization in the investment - management of traffic works because the management of the completed works will be handed over to the locality. |
|
3 |
Construction contractors during the effective period of Resolution 106 are not required to carry out procedures for the issuance of licenses for the exploitation of minerals used as ordinary construction materials included in the construction materials survey dossiers serving 21 projects enclosed with Resolution 106. In case mineral exploitation investment projects are not required, procedures for making environmental impact assessment reports are not required. |
Clause 2, Article 4 of the Law on Minerals requires that mineral activities (including mining activities) be carried out only when permitted by competent state management authorities, in particular, mineral exploration licenses and mineral exploitation licenses must be granted by competent agencies. |
21 highway and national highway projects shall apply the policy on the exploitation of minerals as common construction materials specified in Appendix IV of Resolution 106. |
By the completion of the project |
Accelerate the supply of construction materials and the construction of key projects |
|
4 |
The works are entitled to use the general reserve capital of the Medium-term Public Investment Plan from 2021 to 2025 corresponding to the increase in central budget revenue in 2022. The missing capital will be allocated to other lawful sources. |
Clause 2 Article 2 of the National Assembly's Resolution No. 29/2021/QH15 stipulates the reserve for 10% of the central budget's medium-term investment plan according to each capital source to handle problems arising during the implementation of the medium-term investment plan. Clause 6 Article 6 of Resolution No. 29/2021/QH15 of the National Assembly: The unallocated reserve capital may only be used when ensuring the balance of capital sources and allocating for essential and urgent objectives by the Law on Public Investment and the Law on State Budget. |
+ Huu Nghi - Chi Lang border gate expressway project in the form of BOT; + Coastal road through Thua Thien Hue province and bridge over Thuan An gate (phase 1); + The project of building Bac Kan city - Ba Be Lake road connecting to Na Hang, Tuyen Quang; + Hoang Sa - Gravel Slope road project; + Construction project of Cao Lanh - An Huu expressway, phase 1; + Investment project to build Tuyen Quang - Phu Tho expressway connecting with Noi Bai - Lao Cai expressway. |
By the end of June 30, 2025 |
Promptly mobilize the lawful capital sources to accelerate the investment and project construction process. |
3. Issues related to the implementation of the peculiar policies
a. Responsibilities of contractors in the process of exploiting and using minerals for project implementation
The Contractor shall be responsible for performing the following tasks:
- Commitment to environmental protection;
- To allocate funds and carry out environmental renovation and rehabilitation after completion of exploitation;
- To be subject to the management and supervision of the exploitation and use of minerals;
- To pay taxes, fees, and other financial obligations as prescribed;
To be independent and responsible for the results of the assessment of impacts on riverbeds, banks, and banks for riverbed sand and gravel mines located in rivers and streams at high risk of landslides to ensure compliance with regulations
b. Issues related to the Post-investment project management
- For national highway projects, decentralized expressways for localities to govern:
+ The project is under central management, after completion of construction, the People's Committee of the province shall hand over the project to the Ministry of Transport for management, operation, exploitation, and maintenance by law;
+ The project is transferred to the locality for management, the locality shall manage, operate, exploit, and maintain by the provisions of law.
- For projects passing through localities assigned to 1 locality as the owner:
+ The project after completion of construction shall be assigned to the local management, operation, exploitation, and maintenance by the provisions of law;
+ Investment works in the mode of public-private partnership, the management, operation, exploitation, and maintenance after investment shall comply with the provisions of the project contract;
+ In case the prescribed routes are elevated to national highways, the Ministry of Transport shall take over the management, operation, exploitation, and maintenance by the provisions of law.
c. Delineation of the implementation of responsibilities to each management level
- The Government takes full responsibility for the selected project portfolio; synchronously implement solutions to implement policies and report to the National Assembly at the last session of 2025; take responsibility for the capital source and the missing capital in the total investment amount of the project eligible to use the general reserve capital of the Medium-term Public Investment Plan for the period 2021 - 2025 corresponding to the increase in central budget revenue in 2022 in Appendix V of the Resolution and the investment project to build Dong Dang expressway (Lang Son province) - Tra Linh (Cao Bang province) in Appendix I of the Resolution.
- The Ministry of Transport takes over the project after the managing agency completes the construction and finalization of the project for management, operation, exploitation, and maintenance according to regulations.
- Provincial-level People's Committees shall be assigned as governing bodies:
+ Responsible for performing assigned functions and tasks; inspect and supervise to ensure non-profiteering of policies, group benefits, loss or waste;
+ Responsible for ensuring the capacity and experience of agencies and organizations assigned to implement the project by the provisions of law.
Comment: