Transparency in land funds used for BT project payments is necessary

Regarding provisions related to Build-Transfer (BT) contract projects, VCCI appreciates the draft’s addition of requirements to publicly disclose investment policy decisions on the National E-Procurement System and the official websites of competent authorities.

However, the current regulation only “encourages” the disclosure of information on the location and area of land funds intended for payment to investors, which VCCI considers insufficient to ensure transparency. According to VCCI, this may lead to inconsistent information disclosure across localities.

Therefore, VCCI proposes shifting from “encouragement” to mandatory disclosure of information related to land funds used for payment on the portals of commune-level People’s Committees and competent state authorities, thereby limiting complaints and improving transparency.

Another notable issue is the proposal to allow the deduction of infrastructure construction costs when determining the value of land used for payment. However, according to business feedback, there is currently no unified and comprehensive mechanism to determine these costs.

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At present, tools such as construction investment cost norms mainly serve as references and are insufficient to control risks of discrepancies or profiteering. Therefore, VCCI recommends adding mechanisms to determine costs based on independent appraisal, combined with market comparison, and clearly defining criteria for identifying areas with similar infrastructure conditions.

Regarding the application of the “highest land price” in cases where comparable areas cannot be identified, VCCI believes this approach is rigid and poses potential risks in practice.

Specifically, the lack of clear criteria for “areas with similar infrastructure conditions” may lead to inconsistent interpretation and application. At the same time, defaulting to the highest price may shift all financial risks onto investors, thereby affecting financial plans and reducing project attractiveness.

VCCI proposes a more flexible mechanism, allowing the application of land valuation methods in accordance with land laws to ensure a balance of interests among stakeholders.

Supplementing regulations on interest in case of delayed land allocation

The draft also introduces provisions allowing investors to receive an amount equivalent to interest in cases where the State delays land allocation or leasing for BT contract payments. VCCI considers this a positive step in protecting investors’ rights.

However, this provision needs further clarification regarding the type of interest rate applied, the interest calculation period, and the starting point for interest accrual. Additionally, for cases where land is allocated in a lump sum immediately after contract signing, VCCI suggests supplementing regulations on appropriate timing for interest calculation to avoid inconsistent interpretations during implementation.

Regarding amendments to Decree No. 243/2025/NĐ-CP, VCCI agrees with strengthening supervision of capital mobilization by project enterprises, including both equity and borrowed capital, as well as allowing the hiring of independent auditors to review periodic financial statements.

According to VCCI, these are necessary measures to enhance financial transparency and ensure the capacity to implement PPP projects, especially given existing limitations in supervision.

However, to ensure feasibility, it is necessary to clearly define mechanisms for allocating the costs of hiring independent auditors, including payment responsibilities and principles for determining such costs, in order to avoid disputes during implementation.

Overall, VCCI believes the draft contains many new provisions aimed at enhancing transparency and protecting investors’ interests. However, several provisions still need clarification and adjustment to minimize implementation risks while ensuring a balance of interests among the State, investors, and relevant parties.

These recommendations are expected to contribute to improving the legal framework for PPP investment, creating a more stable and attractive environment for enterprises participating in infrastructure projects.