On April 1, 2022, Circular 02/2022/TT-BKHDT issued by the Ministry of Planning and Investment officially took effect (“Circular 02″), Circular 02 guides the supervision and assessment of foreign investment activities in Vietnam

In Circular 02, the content of the assessment of foreign investment activities in Vietnam is specified as follows: Including closing assessment, impact assessment, and unexpected evaluation

I. Content of closing assessment
1. Progress of capital contribution to the charter capital of foreign-invested economic organizations, legal capital (for industries requiring legal capital), investment capital contribution of foreign-invested projects; the mobilization and use of mobilized capital in accordance with the provisions of law.
2. The project implementation progress is compared with the schedule specified in the Decision approving the investment policy or the Investment Registration Certificate.
3. The project’s land use and labor use; compliance with legal regulations on environmental protection.
4. The performance of financial obligations towards the State.
5. Evaluation of the results of the implementation of the objectives, mobilized resources, implementation progress, and project benefits.
6. Proposals and recommendations.

II. Content of Impact Assessment
1. Evaluation of the implementation of the investment objectives and scale (the compliance with the planning, in accordance with the contents of the Decision approving the investment policy or the Investment Registration Certificate, specialized legal regulations).
2. Evaluation of the completion level (according to the registered contents and progress; the content and progress are specified in the Decision approving the investment policy or the Investment Registration Certificate).
3. Evaluation of investment efficiency (using labor and land; payment to the state budget; investment rate; transfer of science, technology, and experience, management, and business skills) on the basis of comparing costs and actual results achieved in the process of exploitation and operation.
4. Assessment of production technology level, science and technology transfer, technology and experience, management, and business skills.
5. Assessment of the implementation of the reporting regime for state management agencies according to regulations.
6. Proposals and recommendations.

III. Content of unexpected evaluation
1. Conformity of project implementation results in investment objectives.
2. The degree of completion of the workload compared with the provisions in the Decision approving the investment policy, the Investment Registration Certificate.
3. Identify unexpected occurrences (if any) and causes.
4. Impact of unexpected occurrences on the project implementation and the project’s ability to complete the objectives.
5. Proposals and recommendations.

Circular 02 takes effect on April 1, 2022, and replaces Circular 09/2016/TT-BKHDT dated June 30, 2016.

* This newsletter is only for informational purposes about newly issued legal regulations, not used to advise or apply to specific cases.

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