20-08-26 MTParners
Starting tomorrow, August 21, 2026, new rules on investor selection for business investment projects take effect, resolving a long-standing legal conflict between the 2023 Bidding Law and the 2024 Land Law, while for the first time quantifying incentives for high-tech and green investors.
The Government has issued Decree No. 274/2026/ND-CP dated July 7, 2026, detailing a number of articles and implementing measures of the Bidding Law on investor selection for business investment projects. The decree takes effect from August 21, 2026, replacing Decree No. 23/2024/ND-CP and Decree No. 115/2024/ND-CP. Legal experts regard it as a significant turning point that finally resolves long-standing difficulties faced by localities and investors in determining which projects must go through a bidding process, particularly in healthcare, education, and water-supply works.
The most anticipated change in Decree 274/2026/ND-CP is the consolidation and clear delineation of three groups of business investment projects subject to mandatory investor-selection bidding: (i) projects subject to State land recovery under Point a, Clause 1, Article 126 of the 2024 Land Law; (ii) land-use projects required to undergo bidding under sector-specific laws; and (iii) projects that do not use land but are still required to undergo bidding under specialized laws, and are not subject to public asset auction.
Previously, Decree 115/2024/ND-CP left a gap that caused confusion for many projects — particularly in healthcare, education, and water supply — which were simultaneously subject to land recovery under land law and classified as requiring bidding under sector-specific law, creating uncertainty for both authorities and investors during implementation. The clearer classification eliminates this overlap and shortens project preparation time.
The decree introduces a breakthrough incentive mechanism: investors who commit to applying advanced or high technology, or environmentally friendly solutions — such as circular economy models, carbon emission reduction, or best available techniques to minimize pollution — for projects classified as having a high risk of adverse environmental impact will receive an additional 5% added to their overall bid evaluation score. This is the first time an incentive for sustainable-development investors has been codified into a specific figure, rather than expressed only in qualitative terms.
As a result, bid evaluation no longer focuses solely on financial capacity, experience, or investment plans, but now also incorporates technology and environmental criteria — requiring investors to prepare supporting documentation early if they wish to benefit from this competitive advantage.
Decree 274/2026/ND-CP continues to cut and shorten timelines in the investor-selection process, strengthens decentralization to local authorities, and standardizes the submission of bids through the National Bidding Network System. At the same time, fair-competition requirements have been tightened: from the moment the request for expressions of interest is issued, investors must satisfy conditions of legal and financial independence from the bid-inviting party to avoid conflicts of interest — investors who fail to meet these conditions may be eliminated as early as the preliminary evaluation stage.
Notably, Article 74 of the Decree — which amends Article 6 of Decree No. 257/2025/ND-CP on the implementation of BT-contract projects — takes effect immediately from the date of signing, July 7, 2026, nearly one and a half months ahead of the Decree’s general effective date.
For investors currently implementing or preparing to implement land-use projects, the new regulation allows for early and accurate determination of whether a project is subject to mandatory bidding, reducing the risk of procedural delays caused by jurisdictional disputes among management agencies. On the other hand, the tightened fair-competition requirements and the addition of technology and environmental criteria in bid evaluation require businesses to prepare their capacity and supporting documentation more thoroughly before submitting bids, to avoid disqualification due to formal errors or conflicts of interest.
MT & Partners Law Firm, with a team of experienced lawyers in investment, bidding, and corporate legal matters, is ready to assist businesses in reviewing project documentation, advising on incentive eligibility, and building bidding strategies in line with Decree 274/2026/ND-CP. Contact hotline 0987140772 or email info@mtpartners.vn for consultation.
(*) This article is for reference only and does not replace specific legal advice.
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