On 04 November 2024, the Ministry of Planning and Investment (“MPI”) issued Decision No. 2544/QĐ-BKHĐT, approving measures to simplify administrative procedures, aiming at enhancing efficiency and reducing costs for small and medium-sized enterprises ("SMEs") and public-private partnership ("PPP") investment projects under MPI’s state management. These reforms are particularly significant for enterprises and investors engaging in innovative startup funds and PPP projects.

Key impacts on SMEs

For SMEs, the measures primarily focus on decentralizing authority, reducing documentation and procedures, eliminating unnecessary steps, and implementing online notification systems for certain procedures related to innovative startup funds, such as notifications of establishment, notifications of increase and decrease in capital contributions, notifications of dissolution, etc. Specifically:

• Decentralization of authority: Administrative authority is decentralized from provincial Departments of Planning and Investment to Business Registration Office under such departments, streamlining intermediary procedures and reducing processing times. This enables enterprises to fulfill legal requirements more promptly and commence their operations earlier.
• Simplification of administrative procedures: Unnecessary documentation and procedures are proposed for elimination, hence saving time, resources, and costs for enterprises while allowing them to focus on business. Additionally, this measure is expected to accelerate administrative processes and reduce costs for state agencies handling documentation.
• Application of online notification systems: Submission of documentation is proposed to be conducted through online information system of provincial People's Committee, offering benefits such as reduced operational costs, faster processing times, and increased transparency in management through streamlined procedures.

Example: The requirement to submit revised charters for notifications of increase and decrease in capital contributions for innovative startup funds is proposed for elimination compared to current regulations. ¹

Key impacts on PPP investment activities

Administrative simplification measures for PPP investments focus on simplifying the appraisal, approval, and investment decision processes. Key adjustments include:

• Simplification of procedures for appraising pre-feasibility study reports, appraising investment policy adjustment content and deciding (or adjusting) investment policies: Measures aim to reduce unnecessary appraisal procedures during the investment policy deciding process, eliminate the requirement for investment policy procedure for Group B projects without state capital and projects using O&M contracts. These changes will significantly contribute to reduction in the time for investment policy decision and investment preparation and investor selection, facilitating to save costs in administrative procedures.

Example: Procedures for appraising capital sources and capital balancing ability within regulatory scheme of investment policy decision for PPP projects are proposed to be eliminated compared to current regulations. ²

• Simplification of procedures for appraising feasibility study reports and the contents of feasibility study reports adjustment, and deciding to approve (or adjusting) projects: Proposals focus on reducing the burden of preparing feasibility study reports for projects applying O&M contracts and allowing the expedition of the bidding document preparation process, thereby shortening the time for preparing feasibility study reports and the time for investor selection. 

For example: For the procedures for appraising feasibility study reports and deciding to approve PPP projects, the organization of preparing bidding documents is allowed to be carried out during the project preparation process instead of only being carried out after project approval compared to current regulations. ³

Measures proposed in Decision No. 2544/QĐ-BKHĐT will serve as the basis for amending relevant regulations in Decree No. 38/2018/NĐ-CP dated 11 March 2018 of the Government detailing investment in innovative start-up SMEs, Law on Investment under the PPP method No. 64/2020/QH14 dated 18 June 2020 and Decree No. 35/2021/ND-CP dated 29 March 2021 of the Government detailing and guiding the implementation of the Law on Investment under the PPP method, thereby creating a transparent and unified regulatory framework. When these changes come into effect, SMEs and PPP project investors need to update promptly, utilize opportunities for cost-saving and reduction in administrative burdens, in order to enhance operational efficiency.

Disclaimer: This publication is for general update. This should not be construed as professional advice for any specific case, entity, or individual. If you require further information or professional assistance concerning your specific circumstances, please feel free to contact us.

¹ Section 2.1 Part I of Decision No. 2544/QD-BKHĐT, Article 12.4 of Decree No. 38/2018/ND-CP dated 11 March 2018 of the Government detailing investment for innovative start-up SMEs ↩

² Section 1.1 Part II of Decision No. 2544/QD-BKHDT; Article 13 of Law on Investment under the PPP method No. 64/2020/QH14 dated 18 June 2020 ↩

³ Section 3.1 Part II of Decision No. 2544/QD-BKHDT; Article 11.1(c) Law on Investment under the PPP method No. 64/2020/QH14 dated June 18, 2020 ↩

Dentons LuatViet acknowledges and thanks Trainee Associate Cuong Pham for his contribution to the article.