Public investment in
Vietnam is not just limited to the transportation infrastructure,
electricity, renewable energy,
water, health and environment, but also in areas such as education, training,
vocational training, culture, sports, commercial infrastructure complex,
science and technology, economic zones, industrial zones…
Vietnam is in the
development stage that needs significant investment in infrastructure.
However, the state budget is limited, and donor funds have been reduced and
limited. Therefore, the investment pattern in the form of public-private partnership
(also known as PPP) is an effective solution to this problem. PPP has been
expected to mobilize resources for investment in infrastructure from the
private sector, from both domestic and foreign investment.
Investments in the form
of public-private partnership investment is made on the basis of contracts
between competent state agencies and investors or project company for
the implementation, management and operation of the project in infrastructure,
or providing public services. Accordingly, investors, project company shall be
authorized to implement investment projects on construction or renovation,
upgrading, expansion, management and operation of infrastructure projects or
providing public services.
The investment contracts
in the form of public-private partnership are defined in Vietnam as
following.
BOT Contract
“Build – Operate –
Transfer contract” (referred to as BOT contract) means a type of contract to
build an infrastructure project between a competent state agency and an
investor; after completing the construction, the investor shall be entitled to
operate it for a specified period of time; eventually, the investor shall
transfer it to the Vietnam competent state agency.
BTO Contract
“Build – Transfer –
Operate contract” (referred to as BTO contract) means a type of contract to
build an infrastructure project between a competent state agency and an
investor; after completing the construction, the investor shall transfer it to
the competent agency, and shall be entitled to operate it for an agreed period
of time.
BT Contract
“Build – Transfer
contract” (referred to as BT contract) means a type of contract to build an
infrastructure project between a regulatory agency and an investor; after
completing the construction, the investor shall transfer it to the competent
agency, and then the investor will be allotted a land parcel used for carrying
out another project.
BOO Contract
“Build – Own – Operate
contract” (referred to as BOO contract) is a type of contract to build an
infrastructure project between a competent agency and an investor; after
completing the construction, the investor shall take ownership of this project
and have the right to operate it for a specified period of time.
BTL Contract
The Build – Transfer –
Lease contract (referred to as BTL contract) means a type of contract to build
an infrastructure project between a competent agency and an investor; after
completing the construction, the investor shall transfer it to the regulatory agency
and shall be entitled to provide services on the basis of operation of such
project for a specified period of time; the competent agency shall lease and
make payment for the investor’s services.
BLT Contract
“Build – Lease –
Transfer contract” (referred to as BLT contract) means a type of contract to
build an infrastructure project between a competent agency and an investor;
after completing the construction, the investor shall have the right to provide
services on the basis of operation of such projector a specified period of
time; the competent agency shall lease and make payment for the investor’s
services according to the regulation; when the lease term expires, such project
shall be transferred to the competent agency.
O&M Contract
“Operation & Management
contract” (hereinafter referred to as O&M contract) means a type of
contract to operate the project between a competent agency and an investor for
a specified period of time.
ANT Consulting is here
to assist you from the outset; providing corporate intelligence, risk advisory, management consulting services that assist
market entrance, and ensure efficient business start-up operation. Our
services are as following:
We strive to save your
cost by guiding you towards economical solutions that comply with local
legislation and procedures. We support you through early logistic solutions and
carry you through as your business grows.
We aim to bridge the gap between international best practices and local
cultures and assist foreign companies and organizations entering Vietnam market
to overcome commercial and regulatory issues.
We could be reached at
email: ant@antconsult.vn or
tel: +848 3520 2779 . To learn more about us, please visit
www.antconsult.vn
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