Construction done, acceptance done — but to close the capital loop, investors must still pass two key financial procedures: capital payment during implementation and capital settlement upon project completion. Since 26/9/2025, both procedures have been governed by Decree 254/2025/ND-CP (replacing Decree 99/2021/ND-CP).
Important note: Decree 206/2026/ND-CP on construction investment cost management does not govern capital payment and settlement (Article 1 of Decree 206 excludes these) — this article follows the correct instrument, Decree 254/2025.
1. Scope: public investment capital
Decree 254/2025/ND-CP governs management, payment and settlement for projects using public investment capital. A notable reform from the outset: the payment-processing time of payment agencies was cut from 3 working days (under Decree 99/2021) to 2 working days from receipt of complete dossiers — a clear procedural reform.
2. Annual capital payment: procedures and timelines (Article 12)
Procedure: the investor prepares payment request dossiers (capital advances, completed-volume payments) and sends them to the payment agency → the agency reviews the dossiers and pays according to annually allocated plan capital. Total advances and payments in a year must not exceed the year’s allocated plan capital for the project.
Timelines:
- Annual plan capital advances: until 31 December of the plan year (for compensation, support and resettlement advances: until 31 January of the following year);
- Payment for accepted completed volumes: until 31 December of the plan year, extendable to 31 January of the following year (including payments recovering advances);
- The payment agency pays within 2 working days of receiving complete dossiers; for capital advances: 1 working day.
3. Settlement of completed project capital (Article 44)
When a project or work is acceptance-completed and handed over for operation (or there is a document permitting project suspension), the investor must prepare settlement dossiers. Maximum timelines:
- Investor prepares dossiers for approval: 9 months (nationally important projects, Group A) / 6 months (Group B) / 4 months (Group C) — counted from signing the completion acceptance and handover record;
- Settlement appraisal: 8 / 8 / 5 / 4 months respectively — from the date the lead appraisal agency receives complete dossiers;
- Settlement approval: 1 month / 1 month / 20 days / 15 days respectively — from the date the competent approver receives complete submission dossiers.
4. Settlement approval authority (Article 46)
- Nationally important projects and other key projects decided by the Prime Minister: heads of ministries, central agencies, state groups/corporations, Chairpersons of provincial/communal People’s Committees approve settlement for projects/component projects/independent sub-projects using public investment capital assigned to their management;
- Other projects: the authority competent to approve the investment project approves the completed project’s capital settlement.
5. Distinguishing three easily confused concepts
- Capital payment: occurs during project implementation, per plan year — paying for accepted completed volumes;
- Annual capital settlement: settlement per state budget fiscal year at year-end;
- Completed project settlement: overall settlement of all investment capital when the project is completed and handed over — with its own timelines and authority as analyzed above.
Frequently asked questions
Q: What happens if settlement deadlines are missed?
A: Investors, appraisal agencies and approvers are each responsible for progress within their authority. Delayed settlement prolongs “hanging” capital, affects project closure and may trigger liability under public investment management regulations.
Q: Which instrument governs settlement for non-public investment capital projects?
A: Decree 254/2025 covers public investment capital projects. For projects using other state capital, the Ministry of Finance is finalizing separate guidance — investors should follow new instruments while being able to reference Decree 254’s framework.
Q: Do the 14-day contract payment and 2-day public capital payment conflict?
A: No. These are two different layers: 14 working days (Decree 210/2026) is the awarding party’s obligation to pay the contractor; 2 working days (Decree 254/2025) is the payment agency’s (Treasury) deadline to disburse capital to the investor after receiving complete dossiers.
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This article was prepared by the FLAW AI Legal Council. Content is pending QA Council review before submission for approval; information is for reference only and does not replace legal advice for your specific case.