On 18 June 2020, the National Assembly of Vietnam duly passed the Law on Public Private Partnerships (PPP Law) after several draft bills had been released by the Ministry of Planning and Investment (MPI) for public consultation. The PPP Law is one of Vietnam’s long-awaited legislative instruments which shall enter into force on 1 January 2021.
As there is a continued significant reliance on long-term, limited recourse project financings in Vietnam, the PPP Law aims to develop an improved enabling legal framework for public private partnerships (PPP) to promote private sector investors to invest, design, construct, finance, operate and maintain complex large-scale energy and infrastructure projects over a concession term. Whilst it makes a number of significant changes to the current PPP regime set out in Decree 63/2018/ND-CP (Decree 63) issued by the Government of Vietnam (Government), hope remains that implementing decrees and circulars being prepared by MPI shall provide sufficient clarity on a number of key risk areas for investors and lenders.
In this legal update, we look at key Vietnamese law issues in the PPP Law from project finance and development perspectives.
Hoang Le Hang
Business Development Manager
Tel: +84 24 3971 0888