Law on Public Private Partnership Investment, 2021 (Viet Nam)

The Law on Public Private Partnership of Vietnam governs investment activities in public private partnerships (PPP), state administration of PPP projects, rights, obligations and responsibilities of the agencies, organizations and individuals involved in public private partnership investment activities. It specifies the five sectors in which PPP projects are allowed, namely: (I) transportation, (ii) power grids and power plants (except hydroelectric power plants and State monopolies stipulated in law), (iii) irrigation, clean water supply, water drainage sewerage and waste treatment, (iv) healthcare and education, and (v) information technology infrastructure. The PPP Law provides for several contract types: Build-Operation, Build-Transfer, Build-Own, Build-Own-Operate, Operate-Management, Build-Transfer-Lease, Build-Lease, and Mixed Contract, and stipulates the minimum total investment for PPP projects. Moreover, the government shall provide on the application of the guarantee mechanism on the balance of foreign currency for the project, which guarantee shall be no more than 30% of the project revenue after expenditures. It also provides for the mechanism for sharing revenue surplus and shortfall, particularly when actual revenues reach more then 125% of the revenue in the financial plan and when it reaches less than 75% of the revenue in the financial plan. Finally, the Governing law for the PPP project contract shall be Vietnamese laws and regulations.