Construction investment

The investment process refers to the allocation of capital, resources, labor, and various material elements to generate fixed assets that achieve the highest possible economic efficiency. It encompasses the totality of activities aimed at transforming investment capital into fixed assets serving the national economy.

From a systemic perspective, the investment process is recognized as a complex system comprising both input and output elements. Its development and operation are realized through several distinct stages: investment advisory and preparation, investment implementation, and construction completion and commissioning.

Input elements such as resources, labor, and financing are considered the material foundation of the investment process.

The socio-economic outcomes of the system development process, reflected in the form of completed products at the output stage, have a direct impact on the national economy. These results contribute to the reproduction cycle, forming the material foundation for the next phase of the investment consulting process.

With a deep understanding of the entire project implementation workflow as well as the investment licensing procedures of government authorities and industrial parks, we have effectively supported investors in obtaining investment licenses to implement numerous projects right from the early stages. Our investment consulting services include: preparing investment project proposals (pre-feasibility studies), applying for investment policy approval, identifying favorable project locations, obtaining land allocation decisions or signing land lease contracts, and securing investment licenses.

For certain specialized industrial zones, such as the Ho Chi Minh City High-Tech Park, a technology explanation is also required in accordance with the Law on High Technology and relevant sectoral regulations on investment.

Foreign construction and consulting firms operating on projects in Vietnam also need legal consultation to complete the procedures for obtaining a contractor license.

The internal process of investment proceeds according to its natural dynamics and in line with the investment and construction sequence as prescribed by the Government.

To ensure the highest investment efficiency, the investor must identify the appropriate sector for investment, determine the amount of capital needed, select the most strategic location, and time the investment for maximum profitability at each stage. Among all, the investment preparation and advisory phase is the most critical, serving as the foundation for making informed and effective investment decisions.

During this stage, the following tasks must be addressed:

• Assessing the demand and scale of the investment.
• Conducting outreach and market research domestically and internationally to identify sources for materials, equipment, and product distribution;
• Evaluating the capacity to mobilize capital and selecting appropriate investment forms;
• Surveying and selecting the project site;
• Preparing an investment advisory report or feasibility study;
• Appraising the investment project and making the investment decision.

This stage concludes when the investor receives the official investment decision (for state-owned projects) or the investment license (for private or other economic sector investments).

This stage plays a decisive role in transforming investment capital into fixed assets that contribute to the national economy. Key tasks during this phase include:

• Applying for land use rights certificates, including inland water bodies, maritime zones, and continental shelf areas.
• Preparing the construction site.
• Organizing contractor selection for surveying, design consulting, technical supervision, and quality control.
• Reviewing and approving the project’s technical design.
• Conducting tenders for procurement of equipment, construction, and installation works.
• Obtaining construction permits and natural resource exploitation licenses (if applicable);
• Signing contracts with construction contractors to implement the project;
• Carrying out construction activities;
• Monitoring and inspecting contract execution;
• Installing equipment.
• Performing final inspection and acceptance of the project.

The efficiency of this phase relies heavily on the accuracy and thoroughness of the preceding stages, particularly the technical and economic feasibility of the project. Inadequate preparation during the investment advisory and planning phase can lead to operational difficulties, high rectification costs, and, in some cases, investment failure due to the investor’s inability to resolve unforeseen issues.

Therefore, the investment and construction consultancy must be meticulously executed from the outset to ensure smooth project operation, effective use of capital and assets, and a successful return on investment.

Key tasks in this stage include:

• Project handover;
• Completion and finalization of construction works;
• Implementation of warranty obligations;
• Operation and integration of the project into business or production activities.