Ho Chi Minh City Department of Finance supports investment in BT projects with payment by land fund

On the afternoon of September 11, at a press conference on the socio -economic situation of Ho Chi Minh City, the Department of Finance issued a written response to a reporter from the Finance - Investment Newspaper's question regarding land funds to meet the needs of investors when there have been many proposals to implement projects under the BT form recently.

The Department of Finance said that previously, the Law on Investment under the Public-Private Partnership (PPP) method, passed by the National Assembly in 2020 and effective from the beginning of 2021, eliminated the BT contract form.

However, the PPP Law has been amended and supplemented in Law No. 57/2024/QH15 and Law No. 90/2025/QH15 (effective from July 1, 2025), adding the BT (build-transfer) contract type, including payment in cash, by land fund or no payment required.

Perspective of Can Gio Bridge Project. This project is proposed by the investor to be implemented in the form of BT Contract with payment by land fund.

Recently, Ho Chi Minh City has recorded many investors interested in and proposing to implement projects in the form of BT payment using land funds.

“The Department of Finance supports the mobilization of private resources for infrastructure development through investment in the form of public-private partnerships, especially BT contracts paid by land funds. Because this is an important method of mobilizing social resources that is meaningful in promoting the effectiveness of land resources, which still has a lot of room to contribute to socio-economic development,” the document of the Department of Finance stated.

According to the Department of Finance, the implementation of BT projects with payment by land fund, if carried out publicly, transparently, and in compliance with legal regulations, will help mobilize private capital for infrastructure investment, reducing the burden on the State budget.

At the same time, transform land resources into development resources, exploit land value associated with urban planning and development orientation.

Currently, Ho Chi Minh City is commenting and coordinating with the Ministry of Finance to develop a Decree regulating PPP projects applying BT Contracts to submit to the Prime Minister for consideration and decision.

In particular, according to the draft content, the first step is to determine the land fund for payment, ensuring sufficient legal and planning conditions for handover after the project is completed, to avoid the situation where the investor completes the project but encounters problems related to the land fund for payment.

Source: https://baodautu.vn/so-tai-chinh-tphcm-ung-ho-viec-dau-tu-du-an-bt-thanh-toan-bang-quy-dat-d383822.html