Vietnam: New decree implementing the Public Private Partnership (PPP) Investment Law

In brief

The government of Vietnam recently issued new Decree No. 35/2021 dated 29 March 2021 ("Decree No. 35"), providing important guidelines for implementing a number of provisions of the PPP Law,including the following topics:

  • Sectors eligible for public-private partnership (PPP) investment and minimum investment scale
  • Additional guidelines on early termination events and termination compensation payments under PPP project contracts
  • Compensation in cases where the project is terminated/stopped due to the transition from the previous PPP regulations (i.e., Previous Decree No. 63)2 to the new PPP Law

Contents

Recommended actions

PPP project investors looking for opportunities in Vietnam may keep track of PPP regulatory developments in order to grasp key legal implications and take the necessary steps to ensure the best position for their projects.

Please do not hesitate to contact us if you would like to know more about any legal, regulatory and contractual issues, including the following specific matters:

  • Further details on the legal development on PPP projects in different sectors in Vietnam
  • Specific opportunities and challenges, as well as legal and practical solutions, for investing in PPP projects under the new legal landscape in Vietnam
  • More specific implications and practical advice for financing, developing and managing PPP projects in specific sectors, from energy projects, water supply and treatment, to transportation infrastructure and other PPP projects

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1 Law No. 64/2020/QH14 adopted by the National Assembly dated 18 June 2020 on PPP investment ("PPP Law").

2 Decree No. 63/2018/ND-CP of the Government dated 4 May 2018 on PPP investment ("Previous Decree No. 63").

Contact Information
Frederick Burke
Partner at BakerMcKenzie
Ho Chi Minh City
frederick.burke@bakermckenzie.com
Thanh Hai Nguyen
Partner at BakerMcKenzie
Hanoi
thanhhai.nguyen@bakermckenzie.com

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