The new regulation is applicable to major projects on lists of projects calling for investment as well as projects drawing attention from multiple investors.

Once a local people’s council and people’s committee chairman has approved a list of projects seeking investors and which require the issuance of land-use rights, the bid solicitor must publish the bidding information in the mass media, giving interested investors at least 30-days notice to register for bidding.

Interested bidders must meet certain conditions, including legal capacity; capital equal to at least 15 per cent of the total budget of a project using less than 20ha of land, and not less than 20 per cent of the budget of the project using more than 20ha; and demonstrated ability to raise capital to implement the projects, e.g., a bank guarantee.

The decision also sets a requirement that bidders post a bond equal to 1-3% of the base value of the land-use rights. Each domestic bidder must also post a deposit of no more than VND30 million and each foreign bidder a deposit of no more than VND50 million