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GOVERNMENT Socialist Republic of Vietnam
No.: 177/CP Independence-freedom-Happiness
Hanoi, October 20, 1994
At the proposals of the Minister of Construction, the Minister of finance and the Minister-Chairman of the State Planning Committee;
To promulgate attached to this Decree the Regulation on Investment and Construction Management, which replaces the Regulation on Capital Construction Management promulgated attached to Decree No. 385-HDBT dated November 11, 1990 and the Regulation on Esta blishment, Appraisal and Approval of Designs of Construction Projects promulgated attached to Decree No. 237-HDBT dated September 19, 1985, of the Council of Ministers.
Article 2 :
This Decree comes into force as from the date of signing.
Article 3 :
The Minister-Chairman of the State Planning Committee, the Ministry of Construction and the Minister of finance are responsible for providing detailed guidance for the implementation of the Regulation on Investment and Construction Management promulgated attached to this Decree.
Article 4 :
The ministers, the heads of the ministerial offices, the heads of other public offices directly under the Government, and chairman of the People's Committees of the provinces and centrally-ruled cities are responsible for the implementation of this Decree .
for the Government Prime Minister
VO VAN KIET (Signed)
The Government Socialist Republic of Vietnam Independence-freedom-Happiness
REGULATION ON INVESTMENT AND CONSTRUCTION MANAGEMENT (Promulgated attached to Decree No. 177/CP dated October 20, 1994 of the Government)
Chapter I General provisions
Article 1 : Interpretations :
In this Regulation, the terms and expressions listed below are construed as follows :
1/ Investment and construction management :
Investment and construction management means the State management on the process of investment and construction, from identifying an investment project to making an investment, including the process of commissioning and operating such project for its inte nded objectives.
2/ Investment project :
An investment project is an aggregate of proposals for investing capital in creating, expanding or transforming certain objects in order to achieve a quantitative growth and/or an improvement or enhancement of the quality of some product or service within specified period of time.
3/ Construction project :
A construction project is a product of certain building technology(ies) linked up with land (which includes the water and sea surface and the continental shelf) and created with building materials, equipment and labour.
A construction project may include a project item or project items within a synchronous and complete technological line (taking into account cooperation of production) with which to produce the final product set out in the project.
4/ Investor :
An investor is the owner of the capital. An investor may be an organization or an individual who puts up the whole capital or part of it and assume responsibility for raising the remainder of such capital to invest in accordance with law.
In case the invested capital is mainly owned by the State, then the investor shall be appointed by the office that decides on the investment right at the time of project formulation and assigned the task of direct management of the capital.
5/ Total invested capital :
The total invested capital means the invested capital estimated to cover the costs of the entire investment process (including provision of inflation) in order to achieve the investment objective of commissioning and operating the project as required.
6/ Total project cost estimate :
The total project cost estimate means the total costs and expenses needed for investment in the project, which has been specifically calculated at the technical designing stage. The total project cost estimate consists of all expenses related to surveys, designs, construction, procurement of equipment, land use fees, compensations for obtaining vacant possession and clearance of the land site, the costs of auxiliary and office areas and worker' temporary dormitories in case of major projects, and other ex penses including provision for contingency spending (and inflation inclusively).
7/ Settlement of invested capital :
The settled invested capital in relation to a project means all appropriate expenses already made in the course of investment in order to put such project into operation (exclusive of such expenses due to natural calamity(ies) and enemy attack(s) and unre asonable/illicit expenses).
8/ Stipulated criteria of construction :
The stipulated criteria of construction mean such statutory documents containing stipulations concerning the technical conditions required to be applied in designing, building and managing civil and industrial projects.
9/ Standards of construction
Standards of construction means the technical standards stipulated for implementing such jobs as survey, designing building and assembly, acceptance of project, and project quality control required to be applied to each specialized branch of construction as promulgated by the State or the Ministries in charge of such specialized construction branches.
Article 2 :
Basic requirements of investment and construction management:
1. To ensure proper observance of the strategic objective of socio-economic development set for each stage in keeping with socialist orientation. To effect economic restructuring in the direction of industrialization and modernization, accelerate economic growth rate and enhance the people's material and spiritual living standards.
2. To mobilize and put to the most effective use the invested capital in Vietnam from both domestic and foreign sources, satisfactorily exploit natural resources, labour and land potentials and all other potential resources and at the same time protect th e ecological environment.
3. Construction must be in accordance with the approved planning and with reasonable, advanced and aesthetic designs; building technologies must be advanced; progress of construction must be ensured; and construction works must be done with high quality a nd at reasonable costs and placed under warranty.
Article 3 :
fundamental principles of investment and construction management :
1. Investment and construction management must ensure the creation of such products as acceptable to society and the market in terms of their prices and quality, and meet the socio-economic development targets set for each stage.
2. Uniform State management must be ensured with respect to institutional mechanism, policy and technical-economic standards on the entire process of investment and construction, from project planning and formulation to funds raising and utilization, tech nological selection and architectural - designing and technical-designing solutions, project building and assembly, project insurance and warranty.
3. The procedure of investment and construction shall be properly proceeded.
4. Clear-cut distinction shall be made between the function of State management and that of business management. Shall be expressly stipulated the respective responsibilities of the office(s) assuming the function of State management, the investor(s), the counseling organizations, the building enterprises and the equipment and materials suppliers involved in the process of investment and construction.
Article 4 :
The procedure of investment and construction :
The procedure of investment and construction consists of three stages :
1. Preparation for investment 2. Implementation of investment 3. Completion of construction and commissioning of project.
Article 5 :
Classification of investment projects :
Subject to their nature and scales, investment projects are classified into three groups : A, B and C. The peculiarities of each of such groups are stipulated in the Appendix attached to this Regulation (with particular regard to such projects where the i nvested capital is financed from direct foreign investment, their classification is subject to exclusive stipulations).
Article 6 : The responsibility of State management on investment and construction :
1. The Government shall execute a uniform State management on investment and construction activities undertaken in all economic sectors as by law enacted, in line with the strategy for socio-economic development and national defense and security and accor ding to the established plans and programs; and promulgate policies on investment and construction management, investment promotion policies regarding the various economic fields and sectors, preferential policies applicable to investment and funds-raisin g and recovering mechanism.
2. The Prime Minister of the Government shall decide on investment projects in group A and authorize the Ministers, the Heads of the Ministerial-Level Offices and the Chairpersons of the People's Committees of the provinces and Center-ruled cities to dec ide on investment in projects of groups B and C in accordance with the provisions of this Regulation; with particular regard to the group-B projects, the identical views of the Minister-Chairman of the State Planning Committee should be sought before any investment decision is taken. With regard to investment projects of the offices directly under the Government and of the organizations and associations directly under the Center, the Prime Minister of the Government shall authorize the Heads of such offic es to decide on investment in group-C projects and the Minister-Chairman of the State Planning Committee to decide on investment in group-B projects.
3. The State Planning Committee shall be responsible for conducting studies on investment-managing mechanisms and policies; formulating strategic targets and socio-economic, regional and territorial-development plans; identifying investment structures ad priority investment projects to be submitted to the Prime Minister of the Government for approval or promulgation or shall promulgate the same with the authorization of the Prime Minister of the Government; balancing resources to ensure investment needs i n accordance with the development targets and economic structure; guiding the formulation of projects; sponsoring the appraisal of group-A investment projects to be submitted to the Prime Minister of the Government for investment decision; inspecting and supervising the implementation of investment projects financed from the State-controlled funds; and ensuring necessary factors for carrying out the plan of putting investment result part by part into operation.
4. The Ministry of Construction shall be responsible for conducting studies on construction-managing policies and urban and rural development plans to be submitted to the Prime Minister of the Government for approval or promulgation or shall promulgate t he same with the authorization of the Prime Minister of the Government; promulgating or agreeing to promulgation by other Ministries in charge of specialized-branch construction of the building standards, rules and stipulations relating to project qualit y control and building economy (the system of economic-technical norms and targets, universal unit prices); sponsoring the appraisal of the total cost estimates of group-A projects and submitting them to the consideration of the Prime Minister of the Gove rnment who in turn shall authorize the ministers in charge of the relevant branches to approve such estimates; exercising a uniform State management on practice of building investment counseling and building and assembly business; and managing and guiding the invitation of tenders and selection of counseling, building and assembly contractors.
5. The Ministry of finance shall be responsible for conducting studies on the mechanism of managing invested capital sources; arranging the total level of annual invested capital financed from the State budget and measures to ensure budget-balancing sour ces to be submitted to the Prime Minister of the Government for consideration and promulgation or promulgating the same with the authorization of the Prime Minister of the Government; managing and releasing the State budget-invested capital and preferred credit capital from the State budget source to the Government-stipulated projects, targets and programs or sub-lending it to enterprises through selected banks; notifying investors of the annual plan for issue of invested capital with regard to such proje cts that meet all conditions required by the existing stipulations; ensuring State-budget capital and preferred credit capital for the projects listed in the investment plan; checking the utilization of invested capital; guiding the settlement of invested capital upon completion and commissioning of each project (whole project or project items); and checking such settlement before it is approved by the office(s) taking the relevant investment decision.
6. The State Bank of Vietnam :
- The State Bank of Vietnam shall be responsible for conducting studies on the mechanism and policies of State management on the monetary, credit and banking systems in the field of investment and construction to be submitted to the Prime Minister of the Government for promulgation or shall promulgate the same with the authorization of the Prime Minister of the Government; guiding the banks in effecting the mobilization of domestic and foreign capital sources with which to provide loans to investors and l end working capital to building and assembling enterprises.
The banks shall decide on their own their lending to and recovering loans from invested capital at market interest rate.
- The State Bank of Vietnam shall cooperate with the Ministry of finance in selecting appropriate banks which shall assume lending to projects from loan capital borrowed from international credit organizations as authorized by the Ministry of finance.
7. The State Committee for Cooperation and Investment shall be responsible for conducting studies on such mechanism and policies that attract direct foreign invested capital, to be submitted to the Prime Minister of the Government for promulgation or shal l promulgate the same with the authorization of the Prime Minister of the Government; issuing investment licenses and guiding businesses with foreign invested capital in implementing their investment and construction in accordance with the Law on foreign Investment in Vietnam and the relevant provisions of this Regulation; coordinating with the concern branches and levels in conducting regular inspection of the operations of businesses as stipulated in their respective investment licenses and other legal documents of the State.
8. Other concerned Ministries vested with State management function :
- The Ministries vested with the function of State management on land, natural resources, technologies, environment, museological conservation of historical relics, cultural heritage and landscape, national defense, political security and social order and safety shall be responsible for advising investors on matters related to formulation of investment projects and in each case within a period of not more than 30 days as from the date of receipt of the relevant investor's written request, and subject to t he specific requirement of each project shall have the right to exercise their respective management functions in the process of investment and construction, and petition for suspension of illegal investment and construction activities.
- The Ministries in charge of branch administration are responsible for specifically guiding the implementation of the mechanisms and policies related to investment in branch development and exercising the function of State management each on those inves tment projects belonging to the branch under its respective administration.
- The Ministries in charge of specialized construction branches (industrial and civil construction; civil; irrigation and mining engineering; and construction of power transmission lines and transformation stations, postal works and agriculture-forestry-f ishery facilities) shall be responsible for providing specifically guidance so that the construction mechanisms and policies are implemented in accordance with the peculiarities of such specialized branches; studying and promulgating building technical st andards, processes and rules according to the stipulation and assignment of the Government; and formulating economic-technical norms for their respective specialized branches to be promulgated with the agreement of the Ministry of Construction.
9. The People's Committees of the provinces and Center-ruled cities shall bear the responsibility of State management on all organizations and individuals implementing investment projects in their respective geographical areas in accordance with the stip ulation of law.
Article 7 : The responsibilities of the investor and organizations operating in the fields of building consultancy, equipment supplies and building/assembly activities.
1. The Investor :
- The Investor is responsible for undertaking, or engaging such consultative organizations or building/assembly enterprises having legal person status to undertake, project formulation or appraisal of project(s) formulated by other consultative organizati ons; managing and implementing such investment project(s) under economic contract(s) in accordance with the currently applicable laws.
- The Investor can use various capital sources as stipulated in this Regulation to implement the project and bears comprehensive and continuous responsibility for managing and using such invested capital sources from the time of project formulation to pro ject implementation and eventually project commissioning according to the requirements set out in the project as approved.
- The Investor is responsible for repaying loans borrowed from loan capital and mobilized capital sources according schedule and other terms agreed to at the time of raising such capital.
- When the Investor is replaced, the replacement thereof shall be responsible for inheriting the entire investment work left behind by his/her/its predecessor and for the part of investment work done during his/her/its appointment.
- In case the Investor which is any of the businesses belonging to all forms of ownership goes bankrupt, the implemented part of its investment work shall be treated according to the provisions of the Business Bankruptcy Law.
- Upon documentation of pre-feasibility study or feasibility study, the Investor has the duty of and is entitled to, requesting the relevant State agencies to advise it on such matters related to the project as land, natural resources, water and electric power sources, communication and transport, ecological environment, fire prevention, protection of historical relics and cultural heritage, security and national defense.
2. The organizations operating in the fields of building consultancy, equipment supplies and building/assembly activities :
- The organizations providing investment and building consultancy (survey, designing, management of project implementation), supplying equipment and materials, and doing building/assembly work bear responsibility for fulfilling the economic contracts they have signed with the Investor or Project Managing Director and shall be responsible to the law for the result and implementation of such contracts.
Article 8 : The principle for management and utilization of invested capital sources :
1. State budget capital is used to invest under the State plans in building economic infrastructure projects, headwater forest-and protective forest-planting projects, national gardens, natural reserves, cultural, social and public welfare works, State ma nagement projects, scientific and technical projects, national defense and security projects, and the key projects of the State which are decided by the Government and from which direct recovery of capital is not possible.
2. Preferred credit capital belonging to the State budget is used to invest in building economic infrastructure projects and employment-generating production projects; key investment projects of the State in each period of time (electric power, cement, st eel, water supply and drainage, etc.) and a number of other projects identified in the State plan structure and belonging to various branches, from which recovery of capital is possible. Arrangements of investment in these projects are decided specificall y for each of them in the plan period.
3. Capital from the Official Development Assistance (ODA) of international organizations and foreign governments provided directed to the Government of Vietnam shall be uniformly managed in accordance with Decree No. 20/CP dated March 15, 1994 of the Gove rnment.
4. Commercial credit capital is used to invest in newly building, transformation, expansion and renewing techniques and technologies of, production, trade and service projects which are capable of efficient operation and capital recovery and which meet al l loan-borrowing conditions as required by the existing stipulations. Commercial credit capital is applicable on the principle of self-borrowing, self-repaying, and fulfilling all investment procedures and capital borrowing and repaying conditions.
5. Capital mobilized from State-owned enterprises is used to invest in developing production and trade and enhancing product quality and competitiveness; such enterprises shall have to use it in accordance with the existing regimes of invested capital man agement. The parent bodies of such enterprises shall be responsible for closely checking to ensure that the capital is to be used to its proper purposes and effectively.
6. Capital to be contributed to joint ventures with foreign partners by State-owned enterprises under the Law of foreign Investment in Vietnam.
In case State-owned enterprises are permitted to make capital contributions to joint ventures with foreign partners in the forms of the right to use land and water and sea surfaces and of plants, equipment and other building works owned by the State, suc h permission must be granted by the competent authorities and the capital-receiving procedures completed so that the recipients shall be responsible for returning such capital to the State in accordance with the currently applicable stipulations.
7. Capital contributions made by the people in the forms of money, materials or labour to investment projects are used mainly for building public welfare works directly serving the contributors according to the agreed terms upon mobilization of their capi tal.
8. With regard to the invested capital of non-State economic organizations and that of the people, the Investor have to complete the procedures required to be submitted to the competent authorities for consideration and issue of business licenses or build ing licenses, as the case may be.
9. The management of direct foreign invested capital is implemented as per Decree No. 18/CP dated April 16, 1993 of the Government providing in detail for the implementation of the Law of foreign Investment in Vietnam.
10. The invested capital of diplomatic missions, international organizations and other foreign offices which are permitted to carry out construction on Vietnamese territory is managed in accordance with the relevant treaties or agreements signed between t he Government of Vietnam and the governments of such foreign countries or organizations or offices as mentioned above.
11. An investment project can use various sources of capital, but should not be contrary to the provisions for capital utilization of this Regulation; neither should it use capital from the non-productive capital source to invest in newly building any pro jects other than those infrastructure ones categorized in the Target Programs stipulated by the Government. No branches or localities are allowed discretion to transfer or lend the invested capital assigned to them from project to project before such acti ons are approved by the Prime Minister of the Government or the authorized offices (the State Planning Committee and the Ministry of finance).
Article 9 : Investment planning
1. Investment planning must reflect all sources of invested capital of all economic sectors, first of all the investment projects owned by the State.
2. The investment plan shall be implemented according to the approved project. The State-owned invested capital shall be approved once for an
Chapter II Preparation of investment
Article 10 :
The task of investment preparation : The contents of the task of investment preparation consist of :
1/ Study on investment need and investment scale;
2/ Conducting contacts and explorations in the domestic or foreign market to look for sources of material and equipment supplies or product consumption; considering the possibility of mobilizing capital sources to invest and selecting forms of investment;
3/ Carrying out investigation and survey and selecting location of construction;
4/ formulation of investment project;
5/ Appraisal of project to decide on investment.
Article 11 :
formulation of an investment project :
The procedure of investment project formulation consists of the following steps :
- Identification of investment project; - Pre-feasibility study and feasibility study; - With regard to group-A projects and projects using capital from ODA source, conducting both steps, pre-feasibility study and feasibility study, is compulsory; - As for the remaining projects, only one step, feasibility study, is needed.
Article 12 :
Main contents of pre-feasibility study report :
1/ Results of preliminary study on the need of investment and favorable conditions that enable implementation of investment (legal bases, natural conditions, natural resources, investment opportunity, market forecast, etc.);
2/ Estimated scale of investment and factors and possibilities that secure the project once in operation, comparison of options of investment forms;
3/ Selection of location of construction site and estimated ground space needed for utilization;
4/ Preliminary technological, technical and constructional analysis, selected solutions concerning the sources and conditions of material and equipment supplies, and the sources and conditions of raw material, energy, service and infrastructure supplies;
5/ financial analysis : Preliminary determination of the total level of investment, possibilities and conditions for mobilizing capital sources, contemplated costs or production, possibility of repaying capital and loan(s), and profitability;
6/ Preliminary calculation of investment efficiency in the economic and social aspects of the project.
Article 13 : Main contents of feasibility study report :
1. Grounds to justify the need of investment;
2. Selection of investment form;
3. Production program and factors to be satisfied;
4. Specific options of location (or line of projects);
5. Analysis of the selection of technical-technological option;
6. Constructional options and solutions;
7. Organization and management of labour employment and utilization;
8. financial and economic analyses.
The detailed substance of the feasibility study report shall be as guided by the State Planning Committee and the Ministry of Construction.
Article 14 :
Appraisal of investment project :
1. The pre-feasibility study report approved in writing by the competent authorities that make the investment decision shall be the basis to formulate the feasibility study report, or to proceed with further exploration, negotiations and execution of agre ements between the partners involved before formulating the feasibility study report. Subject to the complexity and significance of each specific project, upon approval of the relevant pre-feasibility study report, the competent authorities that make the investment decision may request comments from the offices concerned or caused it to be evaluated by an Appraisal Council. The time limit for issuing such written approval is not more than 20 days as from the date if receipt of full and properly - executed documentation (including such cases of evaluation by the Appraisal Council).
2. The feasibility study report :
- all projects in group A are subject to evaluation by the State Appraisal Council before any investment decision is taken.
The Chairman of the State Appraisal Council may select an organization of consultants or individual consultants to appraise each aspect of the project or the entire project before subjecting it to review by the Council. The appraisal Council shall be resp onsible to the law for the appraisal result.
- Regarding projects in groups B and C, the investment decision-making authorities may engage qualified professional offices directly under them or form Appraisal Councils or select organizations of consultants to evaluate such projects before making any investment decision.
3. The appraisal of direct foreign invested projects is subject to exclusive stipulations.
Article 15 :
The requirements of project appraisal :
1. All investment projects including construction financed from all capital sources and belonging to all economic sectors are subject to appraisal in terms of construction planning, options related to architecture, technology, utilization of land and natu ral resources, protection of the ecological environment and the social aspects of the project.
2. Regarding investment projects financed from the State-owned capital, appraisal in terms of financial option and economic efficiency is also required.
3. Such investment projects financed from the ODA capital source shall have to be in accordance with the State requirement and international practice.
Article 16 :
The Appraisal Councils at all levels : The composition of the Appraisal Councils at all levels shall comprise :
1. The State-level Appraisal Council is chaired by the Chairman of the State Planning Committee. Its permanent members are the Ministry of Construction, the Ministry of finance, the Ministry of Science-Technology and Environment and the Government's Offi ce. Its other members shall be invited by the Chairman of the Council on a case-by-case basis. Regarding the direct foreign invested projects, the State Committee for Cooperation and Investment shall be a permanent member.
2. The Ministerial-level Appraisal Council is chaired by a Vice-Minister. Its permanent members are the Department Directors in charge of capital construction, planning, finance, accounting, economy, science and technology.
3. The Provincial-level Appraisal Council is chaired by a Vice-Chairman of the provincial People's Committee. Its permanent members are the Chairman of the provincial Planning Committee, the Directors of the provincial Construction Department, Specialized -branch Construction Management Department, finance-Pricing Department, Science and Technology Department and Economic Board, and the Chief Architect of the established cities.
Article 17 :
The duration of project appraisal :
1. Regarding investment projects in group A, the duration of appraisal is not more than 45 days as from the date of receipt of full and property-executed documentation;
2. Regarding investment projects in group B, the duration of appraisal is not more than 30 days as from the date of receipt of full and property-executed documentation;
3. Regarding investment projects in group C, the duration of appraisal is not more than 20 days as from the date of receipt of full and property-executed documentation;
Article 18 :
Investment decision :
1. All investment projects financed from the State-owned capital source are required to be issued respective investment decisions of the competent authorities before investment implementation.
2. The contents of investment decision :
a. Identification of the Investor and the form of project implementation, b. Identification of the location and area of the land site to be used, c. Design capacity, d. Total level of investment and source(s) of mobilized capital, e. Method of inviting, selecting or appointing tenders, f. Duration of construction and main landmarks of progress.
Article 19 :
Change of project contents :
1. Any change in the contents of any project as needed shall have to be agreed to in writing by the competent authorities which have approved or decided on such project.
2. When a change is needed to be made to the contents of a project already decided upon, explanation thereof is required which expressly presents the substance of the intended alteration and which shall be followed by the appraisal and decision-making ste ps as required in accordance with the provisions of this Regulation.
3. A project can be suspended or canceled in any of the following cases :
- The Investor fails to start implementing the project after 12 months of grant of the investment decision without the approval of the competent authorities;
- The project objective is changed without it being re-approved by the competent authorities; and
- Project implementation is delayed for more than six months as compared with its progress landmarks set out in the investment decision (or investment license) without any legitimate grounds.
Article 20 :
funds for investment project formulation and appraisal :
1. funds for the formulation and appraisal of investment projects shall be charged to their respective capital sources. As regards such projects whose capital sources are not yet identified, their Investors shall use their lawful capital sources or borro w loan capital from the bank to implement them and shall repay it after the official capital sources of such projects ate identified.
2. The levels of consultancy fees incurred in project formulation and appraisal shall be stipulated by the Ministry of Construction after reaching identical agreement with the State Planning Committee and the Ministry of finance.
Chapter III Implementation of investment
Article 21 :
The contents of implementation of investment project containing construction :
1. Application for issue of certificate of land (including water and sea surfaces and continental shelf) use right;
2. Preparation of construction ground;
3. Invitation of tenders for consultancy in such activities as survey, designing and control of construction engineering and quality;
4. Appraisal of project design;
5. Invitation of tenders for procurement of equipment, construction and assembly;
6. Application for building license and license for exploitation of natural resources (if any);
7. Execution of agreements with related organizations and individuals for project implementation;
8. Project construction and assembly; and
9. Monitoring and inspecting the implementation of the agreements.
Article 22 :
Assignment and take-over of land for constructional purpose:
1. The Investor who wish to use and shall have to establish documentation in application for assignment of land as stipulated by the State.
2. The time-limit for consideration and resolution of an application for assignment of land by the competent authorities is not more than 25 days as from the date of receipt of full and properly-executed documentation.
3. The assignment and take-over of land at the land site shall be effected when the Investor has paid full amounts of land use fee and cadastral fee and completed all compensation procedures as stipulated by the State.
Article 23 :
Preparation of construction ground :
1. The Investor bears principal responsibility for paying compensations and clearing the ground of the land site before handing it over to the construction unit(s). The Investor can enter into contract(s) with a local body/local bodies specializing in com pensation and ground-clearance work, which shall have it done.
2. The compensation and ground-clearance work shall be done in accordance with the relevant stipulations of the State.
Article 24 :
Invitation of tenders for consultancy in such activities as survey, designing and control of construction engineering and quality :
The invitation of tenders for constructional consultancy shall be in accordance with the relevant Regulations of the State. In case of invitation of international tenders, the relevant international practice shall apply, taking into account specific condi tions in Vietnam.
Article 25 :
Project designing :
1. Lawful documents for use in designing : Such documents as related to topographical, geological, hydrological and meteorological exploration and survey and other documents for use in designing project construction must be established by specialized organizations enjoying legal person status in c onformity with the stipulated criteria and technical standards of construction promulgated by the State. In case where foreign stipulated criteria and technical standards of construction are applied, the relevant approval of the Ministry of Construction s hall have to be granted.
2. Procedure of designing : Subject to the technical complexity of each project, one-step or two-step designing procedure shall apply.
- Regarding projects where high technical features are required and geological and hydrological foundation is complex, the two-step designing procedure is compulsory : engineering designing and working-drawing designing;
- As for projects where technical requirements are simple or based on model designs and where the treatment of foundation is not complex, then the one-step designing procedure is applicable : construction-engineering designing;
- The designing organization shall have to establish a total estimate in accordance with the engineering design or the construction-engineering design.
- The contents of the designing documentation for each step shall be implemented as stipulated by the Ministry of Construction.
Article 26 :
Appraisal and approval of project design :
The designs of all investment and construction projects are subject to appraisal, irrespective of what capital sources or economic sectors they belong to.
1. Regarding such investment and construction projects owned by the State :
- The engineering designs of groups-A projects shall be approved the Heads of the offices competent to make investment decision after approval by the relevant provisional agency(ies). With particular regards to such group-B project owned by the offices di rectly under the Government and of the organizations and associations directly under the Center, their engineering designs shall be approved by the Minister of Construction.
2. With respect to direct foreign invested projects, design appraisal is under exclusive guidance.
3. Concerning non-State economic sector, the Ministry of Construction shall guide the People's Committee of the provinces and Center-ruled cities in delegating the power of design approval in accordance with local realities.
Article 27 :
Building license :
1. The following cases are exempted from building license :
- Projects in group-A, where investment has been decided by the Prime Minister of the Government and engineering designs have been approved by the respective Ministers in charge of branch administration.
- Transport and irrigation projects in groups B and C not running through urban areas, whose engineering designs have been approved and agreed to by the Chairpersons of the relevant Provincial People's Committees.
- Such repair cases which do not alter the structure and architecture of the street-front works or cause civil disputes.
2. Power to issue building license :
- The Minister of Construction shall issue building licenses to inter-provincial investment and construction projects on the basis of their being determined as fully qualified for the issue of building licenses by the concerned localities.
- The issue of building licenses to build new works or to transform or repair existing works on urban land shall be in accordance with Decree No.91/CP dated August 17, 1994 of the Government.
- The Directors of Construction Departments shall issue building licenses to investment and construction projects not on urban land.
- The Chairpersons of the urban Precinct, rural District and provincial town People's Committees shall issue building licenses for building separate residential houses and new building works whose invested capital level is less than Vietnamese Dong 500 mi llion each.
3. Documentation in application for construction (or repair) license :
- form of application for construction (or repair) license, - Design(s) of such works, - Certificate of legal right to land use, - Certificate of legal right to house use (in cases of house repair or transformation).
4. The term of validity of building license :
A building license shall become invalidated if after 12 months from the date of issue of the building license the Investor still fails to start building the project.
5. Amendment and addition to building license :
- When any amendment(s) or addition(s) is/are needed to be made to a building license, the Investor shall have to submit a written request as such to the competent authorities for consideration;
- Only the offices competent to issue building licenses have the power to amend or supplement building license.
Article 28 :
License for exploiting natural resources :
In case an investment project requires exploitation of natural resources, then the Investor shall have to apply for a license for exploiting natural resources as stipulated at Decree No.95/HDBT dated March 23, 1992 of the Council of Ministers (now referre d to as the Government) on promulgating the Ordinance on Natural and Mineral Resources.
Article 29 :
Bidding for projects :
1. All investment projects owned by the State must be subject to bidding or selection of bids according to the relevant regulations promulgated by the State (including bidding or selection of bids for procuring equipment, construction/assembly and consult ancy), with exception for the following projects where contractors are appointed :
- Projects of a research or experiment nature,
- Projects characteristic of urgency due natural calamities or enemy attacks,
- Projects whose value is less than Vietnamese Dong 500 million each,
- Projects peculiar to a number of branches permitted to do so by the Prime Minister of the Government.
The financial institutions or banks at all levels shall refrain from providing or lending capital to such projects where the Investors discretionary award contracts otherwise than the foregoing stipulations, and at the same time shall deal with the relate d matters according to the seriousness of the Investors' offenses.
2. Depending on the project scale, nature and type and the specific conditions of each project, bids can be invited or selected for the entire project, or for each of the project works or items, or for each type of work of substantial volume.
3. International bidding for the projects mentioned above shall be held in Vietnam.
Article 30 :
Economic contracts for consultancy, equipment procurement, construction an assembly :
The supply of consultancy, procurement of equipment, construction and assembly shall have to be implemented under contracts signed between the Investors (or their legal proxies) and consultancy organizations, equipment suppliers and construction/assembly enterprises having legal person status and doing business in the right trades or branches as registered in their licenses. Before signing these contracts, the Investors (or their legal proxies) shall have to base themselves on the progress of project impl ementation and prepare conditions for inviting or selecting tenders in accordance with the State stipulations or international practice subject to the sources of invested capital of such projects.
Article 31 :
Conditions to start project implementation : Meeting the following conditions is necessary to start implementation of any project :
- Building license has been issued (with regard to such projects whose building licenses are compulsory),
- Engineering design is available (with particular regard to the State-owned projects, their total estimates must be approved by the competent authorities). Regarding large-scale construction projects with extended duration of construction while condition s are insufficient for establishing total estimates, their engineering designs and partial estimates approved for such stage or item whose implementation shall be started must be available.
- Contract is duly executed under which project implementation is awarded to successful bidder(s).
Article 32 :
Management of construction engineering and quality
1. Survey and design bodies must strictly implement the internal consideration and approval of each project plan. for each project plan, its manager must bear personal responsibility to the law for its quality and efficiency. Implementing the regime of su pervision of project plan author, the project plan manger shall coordinate closely with the Investor and the building enterprise(s) in timely settlement of any problems arising in the process of construction so as to ensure quality.
2. The building enterprises are responsible to the State and the Investor for the technical requirement and quality of project construction. Each of them should have a technical and quality control unit to manage technical matters and the quality of const ruction/assembly work done, and together with the Investor and design and supervision bodies implement the establishment of acceptance documents and examine the quality of each job, each item of works and the entire project.
3. The Investor is responsible for implementing or engaging consultancy organization(s) to implement, project quality examination in the process of construction and assembly.
4. The Ministry of Construction shall execute the function of uniform State management on construction project quality and, in coordination with other Ministries in charge of specialized - branch administration, promulgate or delegate to other levels the power to promulgate, stipulations on management of the quality of specialized projects.
5. The Construction Departments shall assist the People's Committees of the provinces and Center-ruled cities in executing the function of uniform State management on construction project quality in their respective provincial or municipal areas, and are responsible for coordination with the specialized Departments in guiding and organizing State inspection, examination and control of construction project quality in their respective provincial or municipal areas.
Article 33 :
Acceptance of projects :
The acceptance of projects shall have to be implemented in stages, immediately after completion of each of the hidden project works, load-bearing structures and project components or items, and the entire project.
Article 34 :
Capital financing and payment :
1. financing, lending and payment of invested capital of such projects where executing contractors are appointed shall be subject to the value of completed construction volume as accepted monthly, but must be within the frame of their annual invested capi tal plans and recorded in the relevant economic contracts and within the level of their total estimates as approved.
Regarding the construction projects implemented by way of invitation and selection of tenders, the temporary advance of invested capital and the modes of payment shall be in accordance with the Regulations on invitation and selection of tenders.
Regarding the contracts for construction consultancy, the minimum advance amount shall be equal to 25% of the value of such contracts.
2. In the ending year of a contract, the Investor shall only be entitled to paying out or lending up to 95% of the value of the volume of the planning year. The remaining 5% shall be paid out by the Investor when the settlement report is approved.
3. The transformation and repair of the Government-decided target works and programs financed from the non-productive capital source characteristic of capital construction in the State budget are also subject to the application of the financing and paymen t regime stipulated in this Regulation.
Article 35 :
Settlement of invested capital :
1. The Investor shall have to report annually on the application of invested capital to the financing or capital-lending institutions. Upon completion of a project (works or item of works), the Investor shall have to send a report on invested capital sett lement to the financing or capital-lending institution and the office making investment decision.
2. Regarding investment projects financed from various capital sources, each settlement report must include an express analysis of each of such sources.
3. Regarding such investment projects whose implementation spans several years, the Investors shall at the time of settlement have to convert the amounts of invested capital applied in terms of the price-level at the time of hand-over to put them into ope ration in order to determine the increased value of fixed assets and the value of the assets as handed over.
The Ministry of Construction is responsible for guidance on uniform methods of price conversion in each stage to be applied by the Investors upon settlement.
4. Not later than one month after the end of a planning year, the Investor shall have to complete a report on invested capital applied in the previous year and submit it to the financing or capital-lending institutions and the relevant Ministry or the Peo ple's Committee of the concerned province or Center-ruled city.
Not later than six months after an investment project is accomplished and put into operation, the Investor shall have to complete an invested capital settlement report to be submitted to the financing or capital-lending institutions, other offices vested with the function of examining such settlement of the relevant Ministry or province and the authorities competent to approve such settlement.
5. The Ministry of finance is responsible for providing guidance in terms of the timing of establishment of such settlement, the contents of a settlement report, the contents of examination and approval the settlement of invested capital of the State-owne d projects.
Article 36 :
Examination and approval of settlement :
1. Before approving the settlement of invested capital of a completed project, it has to be placed under examinations as follows :
- Regarding the group-A projects, the Ministry of finance is responsible for sponsoring such examination;
- Regarding the remaining projects, their relevant Ministries or provinces shall organize such examination.
The financial office is responsible for checking and commenting on the settlement before its being approved by the competent level.
2. Approval of settlement :
- Regarding a completed invested project (or works or item of works), the office competent to make the investment decision shall at the same time be in charge of approving its settlement.
With particular regard to such projects in group A, the Prime Minister of the Government shall authorize the Minister of finance to approve their settlement.
- Regarding invested capital applied annually, the financing or capital-lending institutions shall inspect the amount of capital already used under the relevant plans as approved.
3. The costs of examination and approval of the settlement shall be applied to the invested capital of the project as stipulated by the Ministry of finance.
Chapter IV Termination of construction and commissioning of project
Article 37 :
The contents of work in the stage of termination of construction and commissioning of a project :
1. Hand-over of the project, 2. Termination of construction, 3. Provision of warranty services, 4. Operation of the project.
Article 38 :
Hand-over of the project :
1. A construction project can be definitively handed over to the user party only after construction/assembly work thereupon has been completed according to its approved design and it has been determined upon acceptance that quality is as required (includi ng exterior and interior perfection and cleaning up of the project site).
2. Upon hand-over of a project, the records of its completion and other related matters must also be handed over at the same time.
3. The records of project construction must be filed in the archives in accordance with the relevant State stipulations.
Article 39 : Termination of construction :
1. The construction activity shall be terminated upon the hand-over of the project to the Investor.
2. following project hand-over, the constructor shall have to dispose of or remove all his assets from the site of project construction and return the land area he has borrowed or temporarily leased in service of construction as stipulated in the relevant contract.
3. The obligation under the construction contract shall be totally terminated upon expire of the period of project warranty.
Article 40 :
Project warranty :
1. The supplier(s) of documents and survey data (including products of copying, photography, measurement, drawing and experiment) in service of project designing, building, assembly, acceptance and examination; project plan manager; construction/assembly contractor(s); the supplier(s) of building materials and equipment and construction supervisor(s) must bear full responsibility to the law for the product liability or the results of work done by them.
2. The period of warranty, the rights and obligations of the parties involved, the procedures of implementation and claims to such rights and obligations shall be stipulated by the competent State agencies as follows :
- Regarding products of survey and designing for project construction/assembly, the foregoing shall be stipulated by the Ministry of Construction.
- Regarding such materials and equipment which are industrial commodity products, the foregoing shall be stipulated by the Ministry of Science, Technology and Environment.
Article 41 :
Operation of project :
After take-over of the project, the Investor is responsible for operating and using the capacity of, the project; synchronizing its production, business and service organization; and perfecting its managerial organization and methodology; with a view to b ringing into full play the economic-technical targets set out in the project.
Article 42 :
Repayment of invested capital :
1. Recovery of invested capital is compulsory principle applicable to all investment projects capable of capital recovery.
2. Regarding such projects invested with the State budget capital, preferred credit, banking credit and invested capital of enterprises whose investors are responsible for repaying such capital or loans, the sources of funds for capital recovery and loan repayment shall include : the aggregate of capital depreciation/amortization, part of the profit and other capital sources (if any),
In case of failure to recover the capital and retire all loans, the Investor shall be held liable in accordance with the currently applicable laws.
3. Regarding the projects financed from foreign loans directly borrowed by enterprises under the State's guarantee, such enterprises are responsible for repayment under the relevant loan agreements. In case such enterprises are unable to retire such loans before they become overdue then the Guarantor shall be responsible for repayment instead, and at the same time entitled to putting enterprise assets up for sale as stipulated in the Business Bankruptcy Law.
Chapter V forms of organization and management of project implementation
Article 43 :
forms of organizing management of project implementation:
Subject to the concrete conditions of each project (works), the following forms of management are applicable :
- Direct management of project implementation by the Investor, - Project managing director, - Project implementation on the turn-key basis, and - Self-implementation.
Article 44 :
form of direct management of project implementation by the Investor:
The Investor organizes selection of contractor(s) and signs direct contract(s) to engage consultancy organization(s) in conducting survey, project designing, compiling bidding documents and organizing bidding session or selection of contractor(s). After t he Investor has signed contract(s) with the successful tender(s) for construction/assembly work, the task of supervision and management of the construction process to ensure project progress and quality is still undertaken by the selected consultancy orga nization(s).
Article 45 :
form of project managing director
1. The Investor organizes contractor(s) and directly contracts a consultancy organization/consultancy organizations to act on his behalf as project managing director who shall deal and sign agreements with surveyor(s), designer(s), material and equipment supplier(s) and construction/assembly contractor(s) for implementing the tasks of the project implementation process, and at the same time shall be responsible for monitoring and managing the entire process of project implementation.
2. This form is only applicable to large-scale projects involving complex engineering and with extended duration of construction.
Article 46 :
form of project implementation on the turn-key basis:
1. The Investor invites tenders to select a contractor (general building contractor) who shall assume the whole work of project implementation (designing, procurement of materials and equipment, construction and assembly, etc.). The Investor shall only su bmit the engineering design and total cost estimate for approval, performs acceptance procedure, receives hand-over of the project and puts it into operation. The general building contractor may engage sub-contractor(s) for doing survey and design work, p rocuring equipment or assuming part of the construction/assembly work.
2. This form is often applicable in cases of building residential houses, civilian works and small-scale production/business facilities involving simple techniques. Such works (projects) fully meet the relevant conditions can adopt this form.
Article 47 :
form of self-implementation :
1. The Investor shall engage his own labor force licensed to practice building trade in implementing the volume of project construction/assembly.
2. This form is applicable only to small-scale repair and transformation works and specialized works of particular branches (construction works of agricultural and forestry branches, etc.).
Article 48 :
Investment and construction consultancy organizations:
The investment and construction consultancy organizations include companies of professional consultants belonging to economic sectors and operating in accordance with law, and research institutes having legal person status and licensed to do investment an d construction consultancy business. Such consultancy organizations depending on their respective capabilities can undertake project formulation or appraisal (pre-feasibility study and feasibility study), work out designs and total cost estimates, compile bidding documents, organize bidding sessions, supervise and manage the process of construction and assembly, perform acceptance procedure and sign sub-contracts with other consultancy organizations for implementing part(s) of their consultancy work.
Chapter VI Management of construction prices
Article 49 :
Principle of formulation and management of construction prices:
1. The State exercises the management of construction prices through promulgation of regimes and policies relevant to prices, the principles and methods of cost estimate formulation, bases (economic-technical norms, unit prices of construction, invested c apital rates, etc.) for determining the total level of invested capital of projects, total estimates of works (or projects) and estimates of items of works.
2. All projects owned by the State require formulation of all estimates in which are calculated the necessary costs and expenses of projects and the prices of building works. The Investors and consultancy organizations have to rely on the State stipulatio ns for management of construction prices to formulate, appraise and submit to the competent offices for approval the total cost estimates and estimates of items of works to be used as the basis for judging tenders for State-owned projects. Enterprises awa rded building contracts shall rely on the State stipulations on management of construction prices as references when determining their bid prices.
3. The payment price of works (or projects) means the accepted bid price together with the terms and conditions set out in a contract between the Investor and construction enterprise(s).
Article 50 :
State management on construction prices :
The Ministry of Construction as the sponsor shall together with the other relevant managerial agencies of the State are responsible for effecting a uniform management on construction prices (economic-technical norms, general unit prices, standard prices a nd consultancy prices related to : survey, designing, planning, working drawing), and directly managing the norms and unit prices of the works in group-A projects of the State as the basis for determining the prices against which tenders are judged (when opening tenders or selecting contractors) and determining the payment prices (in case contractors are appointed by the State).
Article 51 :
Management of total cost estimates of the State-owned projects :
1. The Minister of Construction shall sponsor the appraisal of the total cost estimates of the group-A projects and submit them to the Prime Minister of the Government who shall consider them and authorize the Ministers in charge of the relevant branches to approve them.
2. The Heads of the offices competent to decide on investment in projects in groups B and C shall approve their total cost estimates after appraisal by the relevant professional agencies.
With particular regard to the total cost estimates of group-B projects owned by the offices directly under the Government and by the organizations and associations directly under the Center, such approvals shall be given by the Minister of Construction.
3. Regarding such projects where the methods of opening tenders and selecting contractors are applied, the accepted bid price in each case should not exceed its approved total cost estimate.
4. Regarding such projects where appointment of contractors is permitted, the payment price in really necessary cases shall be permitted to exceed their respective approved total cost estimates by less than 5% only, which must be agreed to by the competen t level that approves such total cost estimates.
5. In case where a total cost estimate is uplifted from group B to group A or from group C to group B, the Investor shall have to re-submit the relevant feasibility study report to the right level competent to make investment decision.
Article 52 :
Insurance of construction works :
1. Upon commencement of investment and construction, the Investor must have the project insured with an Insurance Company licensed to operate legally in Vietnam. The direct foreign investment projects must be insured in accordance with the Law of foreign Investment in Vietnam.
2. Project insurance premiums constitute part of the invested capital. Insurance premiums are calculated as a percentage of the project value.
3. The construction/assembly contractors and the consultancy organizations shall insure the materials, equipment and plants in service of construction, pay personal accident insurance and liability insurance, and insure the products of survey and designin g in the process of project implementation. Insurance premiums shall be applied to the cost of production.
4. The terms and conditions for covering the interests and obligations of the insured shall be agreed upon by the parties concerned but not contrary to the relevant stipulations of the Laws of Vietnam, international practice and the guidance of the Minist ry of finance.
Chapter VII Inspection, examination and treatment of violations
Article 53 :
Inspection and examination of investment and construction activities
1. All investment and construction activities belonging to any organizations concerned must be subject to the inspection and examination of the functional agencies of the State, each in its respective sphere of management.
2. Subject to the concrete situation of each investment project, such inspection and examination can be conducted of each stage or all stages of the process of construction.
Article 54 :
Treatment of violations by the Investor :
1. The Investor must properly observe the State stipulations concerning management of investment project as set out in this Regulation, any violations thereof shall face penalties ranging from administrative fine to prosecution by law subject to the serio usness of the offenses.
2. When the Investor fails to fulfill his obligation as set out in the economic contracts signed with the contractors (consultancy, equipment procurement, construction/assembly), he shall have to make a penalty payment for breach of contract to such contr actors, and in case of loss or damage incurred due to such failure, he shall have to pay damages as stipulated in the Ordinance on Economic Contracts.
3. When the Investor seriously violated the stipulations set out in his building license, to the extent of polluting or contaminating the surrounding environment or putting adjacent works at the risk of collapse as proven by the technical inspection, his building license shall be withdrawn and his violations shall be treated.
Article 55 : Treatment of violations by organizations (individuals) in charge of appraising projects, designs, total cost estimates and total invested capital settlement :
The organizations (individuals) in charge of appraisal shall be responsible to the offices that make investment decisions for the accuracy of the documents, data and conclusions contained in their appraisal result reports. In case the competent office mak es a wrong decision (causing breakdown, wastefulness or economic and social inefficiency) due to the inaccuracy of the documents, data and conclusions of those appraising organizations (individuals), such appraisers shall face administrative penalty or pr osecution for criminal liability.
If the competent offices make a wrong decision in terms of investment policy, location of construction, etc., causing serious economic, social and environmental consequences, the signatories to such decision are liable to the law.
Article 56 :
Treatment of violations by consultancy organizations, equipment suppliers and construction/assembly contractors :
1. In case it is found that labour safety is at risk during construction or that the building organizations involved repeatedly violate labour safety rules, the construction management offices, the labour safety inspectors have the authority to suspend co nstruction temporarily.
The temporary suspension of construction shall cease to be valid when such building organizations manage to overcome such risk or violation.
2. If any of such consultancy or building organizations makes major technical error/errors resulting in serious decrease in project (works) quality or causing collapse or damage, including the incidents that occur when putting the project (works) into ope ration, then such consultancy organization and the project plan manager or such building organization, as the case may be, shall have to pay damages and face prosecution by law.
3. If any of such consultancy organizations or suppliers of building equipment fail to implement its contracts properly in terms of quality and/or progress, it shall have to compensate for all losses and suffer a penalty. The specific amount of penalty (n ot including indemnity and the cost of repair of the damage) shall be mutually agreed upon by the parties concerned and recorded in the contract, but its total value shall not exceed 10% of the cost of consultancy work, or 5% in value of the equipment in breach of contract, or 5% in value of the volume of the construction work in breach of contract. Penalty payment shall be made out of the construction work in breach of contract. Penalty payment shall be made out of the profit enjoyed by that unit after i t has fulfilled its tax obligation to the State.
Article 57 :
Penalty on individuals :
Such individuals employed by the Investor, consultancy organizations, supplies of building/assembly equipment and materials and the relevant managerial offices, in case of violation, shall suffer administrative penalties, pay material compensations or fac e prosecution by law subject to the seriousness of their offenses.
Chapter VIII Provisions of implementation
Article 58 :
This Regulation replaces the Regulation on Management of Capital Construction promulgated attached to Decree No.385/HDBT dated November 11, 1990 and the Regulation on formulation, Appraisal and Approval of Designs of Construction Projects promulgated atta ched to Decree No.237/HDBT dated September 19, 1985 of the Council of Ministers.
Article 59 :
The Ministers, the Heads of Ministerial-level Offices and other offices under the Government, and the Chairpersons of the People's Committees of the provinces and Center-ruled cities are responsible for fully implementing this Regulation.
The Minister of Construction shall together with the Heads of the concerned Ministries shall submit to the Government for promulgation necessary documents attached to this Regulation and be responsible for guiding, monitoring and inspecting its implementa tion.
Article 60 :
This Regulation comes into forces as from the date of promulgation and applies to all economic sectors in the whole country./.
for the Government Prime Minister
VO VAN KIET (Signed)
Appendix Classification of investment projects
(Attached to the Regulation on Investment and Construction Management promulgated attached to Decree No.177/CP dated October 20, 1994 of the Prime Minister of the Government)
The investment projects (not including direct foreign invested projects) are classified into three group A, B and C according to the following stipulations :
1. Projects in group A are those that satisfy one of the following conditions :
1.1. The new investment projects irrespective of the levels of invested capital, which come within the area of national secret protection or which are of important political and social significance of the country, and the investment projects belonging to such branches as : production of toxic and harmful substances and explosives, and exploitation and processing of rare and valuable minerals (gold, silver, precious stone, rare earth).
1.2. The investment projects each having a total level of investment higher than the levels stipulated in the following :
a. More than Vietnamese Dong 200 billion or more than US$ 20 million with regard to such branches as :
- Power, mining, metallurgical, machine tool-building, fuel, and cement industries;
- Transport, irrigation and urban water supply and drainage.
b. More than Vietnamese dong 100 billion or more than US$ 10 million with regard to the following branches :
- Heavy industries such as : electrical engineering, electronics, chemistry, fertilizer, engineering manufacture and building materials;
- Light industries such as : ceramics, pottery, glassware, paper, textile, leather, garment and tailoring;
- Posts;
- Other branches producing pharmaceuticals chemicals and medicines, processing agricultural and forestry products and foodstuffs, aquatic products, agricultural production (not including farms and stations) and aquaculture.
c. More than Vietnamese dong 50 billion or more than US$ 5 million with regard to the remaining branches.
1.3. Projects for restoration, transformation, expansion and technical renovation purpose each with a total level of investment equal to 70% of the investment level stipulated in Paragraph 1.2.
2. Projects in group B are such that satisfy one of the following conditions :
2.1. Investment projects belonging to Paragraph 1.2.a each with a total level of investment ranging from Vietnamese dong 25 billion to Vietnamese Dong 200 billion or using foreign currencies equivalent to between US$ 2.5 million and US$ 20 million.
2.2. Investment projects belonging to Paragraph 1.2.b each with a total level of investment ranging from Vietnamese dong 15 billion to Vietnamese Dong 100 billion or using foreign currencies equivalent to between US$ 1.5 million and US$ 10 million.
2.3. Investment projects belonging to Paragraph 1.2.c each with a total level of investment ranging from Vietnamese dong 5 billion to Vietnamese Dong 50 billion or using foreign currencies equivalent to between US$ 0.5 million and US$ 5 million.
2.1. Investment projects belonging to Paragraph 1.3 each with a total level of investment equal to 70% of the levels of investment stipulated in Paragraphs 2.1, 2.2 and 2.3.