THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No. 113/2009/ND-CP	Hanoi, December 15, 2009

DECREE

ON INVESTMENT MONITORING AND EVALUATION

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to Law No. 38/2009/QH12 Amending and Supplementing a Number of Articles of the Laws Concerning Capital Construction Investment;
Pursuant to Investment Law No. 59/2005/QH11;
At the proposal of the Minister of Planning and Investment,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. Scope of regulation:

a/ This Decree provides for the contents and organization of monitoring and evaluation of investment projects and direct investment activities funded with capital of all sources;

b/ The monitoring and evaluation of offshore direct investment activities comply with the Government's separate regulations;

c/ The monitoring and evaluation of investment projects funded with official development assistance (ODA) comply with the law on ODA management and use when this Decree contains different provisions. The inspection of ODA-funded investment projects complies with this Decree;

d/ Community monitoring complies with the Prime Minister's regulations.

2. This Decree applies to agencies, organizations and individuals involved in direct investment and investment monitoring and evaluation activities.

Article 2. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Investment monitoring and evaluation means the supervision, inspection and evaluation of the level of achievement of the investment process against investment requirements and objectives. Investment monitoring and evaluation consist of monitoring and evaluation of investment projects and investment-related overall monitoring and evaluation.

2. Monitoring of an investment project means the regular supervision and planned periodical or unexpected inspection of a project's investment process under investment management regulations to assure the achievement of project's objectives and efficiency.

3. Supervision of an investment project means the regular and periodical update of information relating to the project implementation; summarization, analysis and evaluation of information and putting forward of options to management authorities at all levels for decision to ensure that the project is implemented according to its objectives and schedule, with quality and within the bounds of specified resources.

4. Inspection of an investment project means the planned periodical or unexpected inspection of the observance of project management regulations by concerned agencies, organizations and individuals; detect in time mistakes and weaknesses in project management under law; propose problems or violations of project management regulations to competent authorities for handling; and monitor the handling of the detected problems and compliance with handling measures.

5. Evaluation of an investment project means the planned periodical or unexpected determination of the level of achievement of specific objectives and targets against the project investment decision or the State-prescribed evaluation standards at a given point of time. Evaluation of an investment project consists of initial evaluation, mid-term evaluation, final evaluation, impact evaluation and unexpected evaluation.

6. Initial evaluation means the evaluation conducted right after the project implementation commences, aiming to review the project's practical situation compared to the time of its approval, so as to take handling measures right at the stage of technical designing and planning for project implementation.

7. Mid-term evaluation means the evaluation conducted in the middle of the approved project implementation duration or after finishing each phase (for a project implemented in different phases), aiming to review the process of project implementation from the time of commencement, so as to propose necessary adjustments.

8. Final evaluation means the evaluation conducted right after the project is completed, aiming to consider the project's outcomes and draw experience lessons.

9. Impact evaluation means the evaluation conducted at an appropriate point of time after the third year from the date a project is put into operation, aiming to identify the project's efficiency, sustainability and socio-economic impacts against the set objectives.

10. Unexpected evaluation means the evaluation conducted when arise unexpected problems, difficulties and impacts in the process of project implementation.

11. Investment-related overall monitoring means regular supervision and planned periodical inspection of the investment process at different levels in different sectors and localities; identification and timely remedying of wrongdoings and mistakes to ensure efficient investment is made in line with plannings and plans and according to set objectives.

12. Investment-related overall supervision means the regular and periodical update of information relating to investment activities and investment management by different levels, sectors and localities; summarization, analysis and evaluation of information and proposition of mechanisms and policies related to investment management.

13. Investment-related overall inspection means the planned periodical or unexpected inspection of the observance of investment management regulations by different levels and sectors; detection and timely remedying of mistakes and weaknesses to ensure lawful investment management; detection and reporting of arising problems or violations of investment management regulations to competent authorities for timely handling; and supervision of the handling of the detected problems and compliance with handling measures.

14. Investment-related overall evaluation means the planned periodical analysis and evaluation of investment results of the economy, sectors and localities; determination of the level of achievement compared to plannings and plans in each period or phase; analysis of causes affecting investment results and putting forward of solutions to raising investment efficiency in the subsequent period or phase.

15. Investment project funded with 30% or more state capital means an investment project with a state capital portion accounting for 30% or more of its total investment and specified in the project approval decision. The state capital portion in a project shall be determined on a case-by-case basis.

16. Investment project funded with capital of other sources means an investment project not funded with state capital or with a state capital portion accounting for less than 30% of its total investment.

17. Corporation 91 means a state corporation established under the Prime Minister's Decision No. 91/TTg of March 7, 1994, on pilot establishment of business groups.

Chapter II

MONITORING AND EVALUATION OF INVESTMENT PROJECTS

Section I. MONITORING AND EVALUATION OF INVESTMENT PROJECTS FUNDED WITH 30% OR MORE STATE CAPITAL

Article 3. Supervision of investment projects

1. Investors shall supervise an investment project through:

a/ Keeping updated the project implementation: implementation progress; performed work volume; work quality; expenses; and developments;

b/ Keeping updated the situation of project implementation management: elaboration of implementation plans; concretization of plans to implement the contents of project implementation management; implementation and adjustment of plans; and assurance of project managemeni quality and effect;

c/ Keeping updated the processing of and response to information: assurance of reporting: processing of reported information: situation and outcomes of the settlement of arising problems;

d/ Promptly reporting and proposing solutions to difficulties, problems and issues which fall beyond their competence.

2. Persons with investment-deciding competence shall supervise an investment project through:

a/ Supervising investors' observance of reporting regulations; inspecting the completeness, update and accuracy of project supervision information provided by investors;

b/ Summarizing the project implementation situation: implementation progress, capital disbursement, bidding, ground clearance, resettlement and environmental protection; major difficulties and problems affecting the project implementation;

c/ Promptly responding to and handling arising problems according to their competence;

d/ Supervising the handling of problems and the compliance with handling measures by investors;

e/ Promptly reporting on and proposing solutions to difficulties and problems and issues which fall beyond their competence under regulations.

3. Investment state management agencies shall supervise an investment project through:

a/ Supervising the observance of reporting regulations by investment deciders and investors under regulations;

b/ Summarizing the project implementation situation: implementation progress, capital disbursement and bidding; and major difficulties and problems affecting the project;

c/ Responding to and handling in time arising problems according to their competence;

d/ Supervising the handling of problems and compliance with handling measures by investors and investment deciders of the projects;

e/ Promptly reporting on and proposing solutions to difficulties, problems and issues which fall beyond their competence.

Article 4. Inspection of investment projects

1. Regulations on inspection of investment projects

a/ Investors shall themselves conduct regular inspection of their investment projects.

b/ Persons with investment-deciding competence shall:

Inspect investment projects falling within their competence at least once, for projects to be implemented for over 12 months;

Inspect investment projects upon their adjustment resulting in changes in project location, size or objectives or an increase in the total investment by 30% or more;

Conduct inspection in other cases when necessary;

c/ Investment state management agencies shall decide to conduct planned or unexpected inspection of investment projects.

2. Investors shall inspect an investment project through:

a/ Inspecting all issues related to the project implementation and management;

b/ Inspecting the observance of investment management regulations by project management units and contractors;

c/ Inspecting the project implementation management capacity of project management units and contractors;

d/ Detecting and reporting to competent authorities for timely handling difficulties, problems and violations in the process of project implementation; monitoring the handling of the detected problems and compliance with handling measures by project management units and contractors.

3. Persons with investment-deciding competence shall inspect an investment project through:

a/ Inspecting the observance of regulations on bidding; compensation, ground clearance and resettlement; use of investment capital and other resources; allocation, disbursement and payment of investment capital; settlement of problems arising in the process of project investment; test before take-over and putting of the project into operation; project management and operation; and environmental and ecological protection;

b/ Inspecting the project implementation management capacity of investors and project management units;

c/ Detecting and reporting to competent authorities for timely handling difficulties, problems and violations in the process of project implementation; monitoring the handling of the detected problems and compliance with handling measures by investors and project management units.

4. Investment state management agencies shall inspect an investment project through:

a/ Inspecting the observance of regulations on project formulation, appraisal and approval; bidding; compensation, ground clearance and resettlement; use of investment capital and other resources; allocation, disbursement, payment and finalization of investment capital; settlement of problems arising in the process of project investment; test before take-over and putting of the project into operation; project management and operation; and environmental and ecological protection;

b/ Inspecting the project implementation management capacity of investor-managing agencies, investors and project management units;