New rules filter investors in projects using land

The new regulation is applicable to major projects on lists of projects calling for investment as well as projects drawing attention from multiple investors.

Once a local people’s council and people’s committee chairman has approved a list of projects seeking investors and which require the issuance of land-use rights, the bid solicitor must publish the bidding information in the mass media, giving interested investors at least 30-days notice to register for bidding.

Interested bidders must meet certain conditions, including legal capacity; capital equal to at least 15 per cent of the total budget of a project using less than 20ha of land, and not less than 20 per cent of the budget of the project using more than 20ha; and demonstrated ability to raise capital to implement the projects, e.g., a bank guarantee.

The decision also sets a requirement that bidders post a bond equal to 1-3% of the base value of the land-use rights. Each domestic bidder must also post a deposit of no more than VND30 million and each foreign bidder a deposit of no more than VND50 million