State Committee for         Socialist Republic of Vietnam
Co-operation and            Independence-freedom-Happiness
  Investment                       html----*html----
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No: 1730/HDBT-TD 
                              Hanoi, September 08, 1994.

GUIDANCE ON INVESTMENT fOR PRODUCTION ASSEMBLY Of DOMESTIC ELECTRONIC PRODUCTS IN VIETNAM

Having agreement of the Ministry of Heavy Industry, the State Committee for Co-operation and Investment guides the investment of foreign countries in production assembly of domestic electronic products (TV set, radio-cassettes video-recorder, etc.) as fol lows:

1. foreign companies investing in Vietnam in the field of domestic electronics must comply strictly with the law on foreign Investment in Vietnam and must be the firms specialized in manufacturing electronic components accessories, semi-products and prod ucts.

Vietnamese partners must be electronic businesses and economic unit which are specialized in the field of electronic manufacturing on the basis of operating license.

2. The State of Vietnam encourages foreign companies to enter into Joint-ventures with Vietnamese businesses in the field of manufacturing domestic electronic products.

3. In the project applying for investment, it is necessary to refer to transfer of technology and to gradually raise proportion of home made electronic products in Vietnam.

Assembly projects must accept the IKD form and the value of components accessories manufactured in Vietnam in the first 2 years will occupy at least 20 percent of total value of the product and it will be gradually raised in the following years.

4. The projects concerning the assembly of domestic electronic products for export must pledge consumption market of the products of foreign partners.

5. The policies of the State of Vietnam shall not acknowledge any monopolization in production and trading in electronic products. The State shall create healthy competitive environment, make full use of regulating instrument, like tax to protect the inte rest of producers of consumers.

6. The State specially encourages, the transfer of technology with high-level technics in manufacturing components accessories, spare parts semi-products of specialized and domestic electronic products, encourages productive units which manufacture compon ent, accessories, spare-parts and semi-products of electronic products in order to put them into use for manufacturing automated products which will be used in the fields of economy, education, public health etc.

7. The contribution of capital of Vietnamese partner, under the form of existing plants and building, machinery material, facilities and equipment must be quoted by the bodies at a competent level according to the regulation, of the Ministry of finance.

When transacting with foreign companies in order to formulate investment projects for manufacturing the electronic products in Vietnam, the People's Committee of the provinces and cities and Vietnamese partners must base on regulations of this writing to implement projects concerned.

for State Committee for Cooperation and Investment Minister-Chairman

NGUYEN NHAC (Signed)