I. What is a Business Investment Project Contract?

A business investment project contract is an agreement signed during the bidding process under the 2023 Law on Bidding. This contract serves as a legal agreement between two or more parties, where one party commits to providing capital, assets, or services to implement a specific business project, while the other party uses these resources to execute the project and share profits or bear risks.

II. Contents of a Business Investment Project Contract

According to Section I, Appendix II, Guidance on the preparation of Business Investment Project Contracts issued together with Decree 23/2024/ND-CP, the components of a business investment project contract are as follows:

• Agreement document of the parties on the contract, including:
• Legal basis for signing the project contract;
• Information about the parties signing the project contract;
• Contract documents and order of priority;
• Contract term and effective date of the contract.
• General conditions of the contract, including general applicable contents and specific contents suitable for the industry and field of the project.
• Specific conditions of the contract, including contents corresponding to the general conditions when applied to each specific project.
• The contract appendix specifies in detail some terms of the contract (if any).

In general, a business investment project contract must clearly define the project’s scope and objectives, implementation conditions, timeline, and investment format. The parties must agree on investment capital, payment methods, and conditions for adjusting contract prices during implementation. Additionally, provisions regarding the rights and obligations of each party, along with remedies for contract breaches, must be explicitly outlined.

Another key element of the contract is the regulations on project monitoring and progress evaluation. These ensure that the investor adheres to the agreed commitments and quality standards. Furthermore, the contract should include specific terms for securing contract performance obligations, such as bank guarantees or other forms of assurance as prescribed by law.

Lastly, the contract should specify dispute resolution mechanisms, including negotiation, mediation, or litigation in court, to protect the parties’ rights and address conflicts promptly. Adherence to the provisions of the 2023 Law on Bidding ensures legal compliance and efficiency in executing business investment projects.

III. Conditions for Signing a Business Investment Project Contract

The signing of a business investment project contract must meet the following conditions:

• At the time of signing, the selected investor’s bid dossier remains valid.
• At the time of signing, the selected investor must demonstrate the technical and financial capacity required to execute the business investment project as stipulated in the bidding documents.

Additionally, under Clause 3, Article 2 of the 2023 Law on Bidding, investor selection for business investment projects applies to:

• Investment projects using land that require bidding as prescribed by land laws;
• Investment projects requiring bidding for investor selection under sector-specific regulatory laws.

IV. Responsibilities for Ensuring Contract Performance

To ensure the performance of a business investment project contract, the investor must implement one of the following measures:

• Submit a guarantee letter from a domestic credit institution or a branch of a foreign bank established under Vietnamese law.
• Provide a guarantee insurance certificate from a domestic non-life insurance enterprise or a branch of a foreign non-life insurance enterprise established under Vietnamese law.

V. About Us, Hankuk Law Firm

■ Hankuk Law Firm – Introduction

The goal of the legal services provided by HANKUK LAW FIRM is to support businesses, investors, and people. Our organization employs skilled Korean lawyers, partners, and professionals to provide legal services to businesses related to corporations and litigation.

To support the startup process, our lawyers and staff provide a wide range of services, including business law consulting, tax and immigration law consulting, real estate services, business consulting, marketing and communications, human resources, product distribution, franchise options, etc. We provide expert advice on every aspect of your business needs.

To protect the legitimate rights and interests of our clients and achieve the best results, we provide legal advice and participate in civil lawsuits related to business, labor, marriage, family, and inheritance.

■ Contact us now

For reliable and effective legal advice, please contact HANKUK LAW FIRM now. We are committed to providing you with the best possible answers and our team of experienced lawyers has extensive knowledge in many legal fields. We are always here to provide the most competent and dedicated support, whether you are dealing with contractual issues, commercial disputes or need guidance on foreign investment. HANKUK LAW FIRM is honored to have assisted hundreds of domestic and international clients in skillfully resolving complex legal issues as their trusted legal partner. Do not let legal issues hinder your success. Let us accompany you towards legal achievement and comfort. For prompt guidance and support to ensure your rights are always maintained at the highest standards, contact HANKUK LAW FIRM now.

■ Contact Hankuk Law Firm:

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