International
Asia Pacific
EMEA
North America
Latin America
On 18 June 2020, the National Assembly of Vietnam officially passed the Law on Public - Private Partnership (PPP) investment ("PPP Law") to take effect on 1 January 2021 and replacing the current PPP regulations, including PPP Decree No. 63/2018/ND-CP ("Decree No. 63"). Two draft decrees were also recently released in connection with the PPP Law ("PPP Law Decrees"). They provide details on the processes and procedures for implementing PPP projects and for managing the financial aspects of PPP projects. The PPP Law and its proposed implementing decrees will replace.
Whilst the PPP Law provides for a number of improvements on the current PPP regulations it still does not resolve certain risk allocation and bankability issues that are likely to concern foreign investors and lenders. This may impact the negotiation of PPP Projects and frustrate the development and implementation of what otherwise are commercially attractive projects being developed with limited or non-recourse project financing.
The PPP Law has set as an overall objective the promotion of PPP investments and creating a stable and long-term legal framework. However, issues on flexibility and certainty from a private sector perspective remain a significant concern. The key areas of issues in the PPP Law include the following:
The PPP Law will apply to numerous ongoing or newly proposed power, energy and infrastructure projects in Vietnam, with effect from 1 January 2021.
Please click here for a detailed summary of the proposed changes and related issues under the PPP Law.
Investors and financial institutions should take into account these new rules in order to be prepared to take the necessary steps to best position themselves for growing investment opportunities in infrastructure projects and in the provision of public services in Vietnam. Moreover, regulatory issues for project developments and project financings based on best practices can be better addressed with a proper understanding of the PPP Law and the draft new decree's guidelines and their developments.
Please do not hesitate to contact us if you would like to know more about any of the following:
Copyright © 2023 Baker McKenzie. All rights reserved. Ownership: This site (Site) including all documentation and content (Content) is a Copyright © 2022 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.
Are you sure want to delete comment ?
Scan this QR Code to share this content