Vietnam’s Decree No. 225/2025/ND-CP: Transforming Investor Selection Procedures

On August 15, 2025, Vietnam’s government unveiled Decree No. 225/2025/ND-CP, a landmark regulation aimed at overhauling previous investor selection procedures under the country’s Law on Bidding. This decree not only modernizes the regulatory framework but also strives to enhance accountability and fairness in the bidding process for significant investment projects, ultimately contributing to the nation’s social and economic growth.

Key Changes and Roadmap for Online Bidding

A significant feature of Decree 225 is the introduction of the National Bidding Network System (NBNS), which will facilitate the mandatory online selection of investors. This transition to digital processes is set to unfold according to a structured timeline:

• Starting July 1, 2026: All domestic “invitations for expressions of interest” for investment projects must be conducted online.
• Starting January 1, 2027: The online selection of investors will be mandatory for land-use investment projects employing domestic open and limited bidding formats.

This digital transformation promises to streamline procedures, making it simpler for businesses to navigate the bidding environment efficiently.

Amended Directives

Decree 225 serves primarily to amend and supplement two previous decrees, notably:

• Decree 23/2024/ND-CP: Focused on investor selection under sectoral/industry laws.
• Decree 115/2024/ND-CP: Pertained to investor selection for land use projects.

These amendments reflect an evolving landscape in investor selection, responding to the pressing demands of contemporary investment challenges.

Petitions and Settlement Procedures

A noteworthy addition in Decree 225 is the standardization of petition settlement in investor selection, ensuring a structured, transparent process for resolving grievances. The Petition Settlement Council is a key feature here. It is composed of various stakeholders, with stipulations to ensure that members have no conflicts of interest and are appointed promptly upon receiving a petition.

Conditions and Procedures for Petitions

Petition procedures are well-defined, promoting transparency:

• Before bid results are announced, stakeholders can submit petitions related to bidding documents.
• After results are disclosed, only participating investors may lodge petitions concerning bid evaluations, fostering a fair environment for all participants.

The decree introduces strict timelines for responses, ensuring prompt resolution and the possibility for escalations if initial responses are unsatisfactory.

Special Exemptions and Advantages

Decree 225 outlines exemptions from competition safeguards in specific scenarios. Certain projects can bypass standard bidding processes, such as:

• Direct appointments for investors with strategic technology ownership.
• Projects with special circumstances related to national interest, defense, or urgent socio-economic requirements.

Moreover, the decree promotes incentives for technology-oriented firms and foreign investors committed to technological transfer, elevating the competitive landscape for innovative entities.

Removal of Experience Criteria

One of the hallmark changes in Decree 225 is the removal of mandatory experience criteria from investor evaluations. This relieves potential investors of the burden of providing extensive past experience documentation while still allowing them to submit relevant supporting evidence if available. The primary focus of assessment now shifts to an entity’s capacity—financial, technical, and human resources.

Expanded Definition of Special Circumstances

The criteria defining “special circumstances” under which alternative selection procedures can apply have been broadened. Notable inclusions are:

• Urgent projects resonate with local governmental resolutions.
• Infrastructure connectivity initiatives can encompass various local authorities.
• New classifications for sectors such as nuclear energy and offshore wind add dimensions to project eligibility.

These revisions reflect a responsiveness to evolving economic dynamics and the increasing complexity of infrastructure needs.

Direct Appointment Procedures

The decree delineates clearer rules regarding the direct appointment of investors, which can occur under several circumstances:

• High-tech innovations.
• Projects necessitating continuity with existing infrastructure.
• Urgent national projects like disaster recovery.

These specifications not only streamline procedures but also ensure that the implementing authorities maintain accountability through annual performance reporting.

New Approaches to Investor Appointment

The introduction of distinct procedures for investor appointment indicates a move towards flexibility and efficiency:

• Standard Procedure: Aimed primarily at projects with complete approval dossiers, consisting of a comprehensive seven-step process.
• Simplified Procedure: For projects initiated directly by investors, focusing on efficiency with only four steps.

These approaches aim to balance thorough evaluation with the need for rapid implementation, particularly in time-sensitive investments.

The Bigger Picture

Decree 225 is a striking evolution in Vietnam’s investment landscape, encouraging a more transparent, efficient, and equitable bidding process. By promoting mandatory online investor selection and establishing a structured petition settlement system, the decree fosters a competitive and accountable environment for prospective investors. As businesses prepare to adapt to these significant changes, they are presented with opportunities to optimize their bidding strategies and thrive in a promising yet complex investment climate.