The issuance of Decree No. 275/2025/ND-CP marks a critical legal step in modernizing Vietnam’s public investment regime. By amending and supplementing Decree No. 85/2025/ND-CP, this new instrument strengthens fiscal discipline, clarifies investment approval procedures—especially for complex projects such as nuclear power—and introduces more flexible mechanisms for planning and funding adjustments. In essence, the decree serves as both a legal and managerial safeguard for the country’s growing public investment portfolio amid an increasingly dynamic macroeconomic context.
A central reform under Decree 275 is the institutionalization of Article 9a, which codifies a five-step process for investment policy decisions regarding nuclear power plant projects. This is a pivotal development: for the first time, Vietnam’s legal framework provides an explicit and methodical procedure for approving nuclear infrastructure, ensuring rigorous state oversight. The process begins with the Prime Minister’s assignment of a lead agency, followed by the formation of a state appraisal council chaired by the Minister of Industry and Trade. Crucially, the decree authorizes the council’s early establishment—allowing concurrent appraisal and report preparation—to avoid procedural bottlenecks that have historically delayed major projects. The Ministry of Finance’s fund evaluation adds a fiscal safeguard, ensuring that capital allocation aligns with budgetary capacity and public debt management principles. Finally, the Prime Minister’s investment policy decision consolidates accountability at the highest executive level, underscoring the sensitivity and national importance of nuclear energy projects.
Beyond the nuclear sector, Article 15a introduces a comprehensive mechanism for appraising funding sources and balancing capacity across public investment programs. This article aims to address a long-standing challenge in Vietnam’s investment management—discrepancies between project approval and actual fiscal capacity. The new rules impose a clear ceiling: total projected investments must not exceed the capital amounts formally notified for each planning period. This seemingly technical adjustment carries substantial governance implications. It reinforces the constitutional principle of budgetary prudence and transparency while preventing overcommitment and the fragmentation of capital flows.
Equally significant is the decree’s recognition of “awaiting projects”—those with approved investment policies but pending funding. By allowing these projects to be reconsidered once new funds become available, Decree 275 injects flexibility into the rigid planning cycle without breaching fiscal discipline. Meanwhile, for ODA and concessional loans, the Ministry of Finance’s role is strengthened: letters of intent or donor commitments will now require Prime Ministerial approval before being integrated into national funding plans. This ensures a unified approach to foreign capital mobilization, minimizing the legal and administrative risks associated with overlapping donor projects.
Viewed systemically, Decree 275/2025/ND-CP deepens the legal coherence between the Law on Public Investment (2019) and its implementing instruments. It operationalizes Article 59 of the Law—particularly regarding the notification of medium-term investment limits—while enhancing inter-ministerial coordination. Moreover, its procedural refinements align Vietnam’s investment governance more closely with OECD principles of public investment management, particularly regarding transparency, fiscal sustainability, and evidence-based decision-making.
Politically, the decree also reflects the Government’s determination to professionalize the public investment process at a time when infrastructure spending is expected to drive post-pandemic growth. By tightening appraisal standards and emphasizing fund-balancing capacity, the State signals a move away from quantity-driven investment toward quality-oriented fiscal governance. The provisions on nuclear power projects further demonstrate Vietnam’s cautious yet deliberate approach toward energy diversification, combining administrative oversight with technical expertise.
In conclusion, Decree 275/2025/ND-CP represents not merely a technical amendment but a structural upgrade of Vietnam’s public investment law. It consolidates fiscal responsibility, strengthens inter-agency accountability, and lays the legal groundwork for the next generation of high-tech and strategic infrastructure projects. If effectively implemented, this decree could become a cornerstone in Vietnam’s transition from a state-led investment model to a rules-based, efficiency-driven public investment system—anchored in legal precision and strategic foresight.
