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GOVERNMENT THE SOCIALIST REPUBLIC Of VIETNAM
No.191/CP Independence-freedom-Happiness
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Hanoi, December 28th, 1994.
- Based on the proposal of the Minister - Chairman of the State Committee for Co-operation and Investment, the Minister of Justice;
DECREES
Article 1:
To promulgate along with this Decree the Regulations on the formation, evaluation and implementation of foreign direct investment projects.
Article 2:
To repeal the Regulations on the evaluation of projects with foreign direct invested capital promulgated along with the Decree No. 366-HDBT dated 7 November, 1991 of the Council of Ministers (now Government) and other regulations contrary to these Regulat ions.
Article 3:
This Decision shall come into effect from 1, January, 1995.
Article 4:
The Ministers, Heads of Ministry - ranking organizations and organizations under the Government shall be responsible for providing detailed guidance on the implementation of the Regulations promulgated along with this Decree.
Article 5:
The concerned Ministers, Heads of Ministry-ranking organizations and organizations under the Government, Chairmen of provincial and city People's Committees under the central authority and Heads of central social organizations shall be responsible for the implementation of this Decision.
for The Government The Prime Minister VO VAN KIET (Signed)
GOVERNMENT THE SOCIALIST REPUBLIC Of VIETNAM
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CHAPTER 1 GENERAL PROVISIONS
Article 1:
On the basis of economic and social development planning, the State Committee for Co-operation and Investment shall announce the List of the projects calling for foreign investment in each period.
The State Committee for Co-operation and Investment shall issue the form for Investment Project Documents, the key criteria of a number of projects in order to give instructions to investors in project preparation.
Article 2:
The concerned Ministries, Ministry-ranking organizations and organizations under the Government (hereinafter referred to as the Ministry) shall perform the function of state management in foreign direct investment, mainly through the following activities:
+ Issuing the documents for guiding the implementation of the law, criteria, process, rules, fixed economic and technical targets in their authority;
+ Stipulating specific and clear administrative formalities, streamlining the application and permission granting formalities for each specified work.
+ Inspecting and supervising the implementation of the law promulgated by the State and the regulations promulgated by the Ministry; and in their authority handling the breaches.
Article 3:
The provincial and city People's Committees under the Central Authority (hereinafter referred to as the People's Committee at provincial level) shall perform the function of State management accordance with the Regulations of State and Ministries, includ ing the definition of the list of the projects calling for investment, the local land rental level, points of contact for handling each specified work, the period of time needed for formality completion.
Article 4:
The Vietnamese enterprises of all economic sectors, who wish to negotiate and conclude invested contracts with foreign parties, shall fulfill the conditions as follows :
1. Being established in accordance with the regulations of laws;
2. Enjoying legal ownership of the property intended for capital contribution. In case that public property is to be used for capital contribution, permission from a competent state organization shall be necessary.
3. Having legal land use right or being permitted to use by the People's Committee at provincial level, land for co-operation and investment with foreign partners;
4. Having personnel knowledgeable about investment laws.
CHAPTER 2 PROJECT EVALUATION
Article 5:
The contents of project evaluation consist of:
1. Legal status, financial capacity of foreign and Vietnamese project owners;
2. The suitability of the projects' targets to economic and social development planning and orientations;
3. Interest of Vietnamese State and Vietnamese party:
+ The possibilities of creating new production capacity, trades and products and expanding the market;
+ The possibilities of creating more jobs for the laborers;
+ Bringing in financial sources;
4. Technical and applied technology qualification, proper utilization and protection of natural resources and ecology;
5. The suitability of land use, compensation scheme for residents existing for site clearing and the evaluation of Vietnamese party's property to be contributed to the capital, if any;
6. Tax rate, land rental, water surface, sea and preferential treatment.
Article 6:
The invested project evaluation and approval are specified as follows:
1. The Prime Minister shall decide on projects of Group A, which comprise:
+ Infrastructure construction for industrial zones, export processing zones and BOT projects;
+ The projects with invested capital of US$ 40,000,000 or over, which belong to the fields of electricity, mineral exploitation, petroleum, metallurgy, cement, fundamental chemistry, engineering, sea port, airport, telecommunication, business central, cul ture zones, tourist spot, real property;
+ Projects for culture, press and publication;
+ Projects for national defense and security;
+ Projects requiring the utilization of urban land of 5 ha or over and other types of land of 50 ha or over.
2. The Chairman of the State Committee for Co-operation and Investment shall decide on projects of Group B, not belonging to Group A specified in item 1 of this Article.
3. The consideration and land lease for starting up of project shall be completed with the project evaluation.
Article 7:
The invested project evaluation shall be organized as follows:
for projects of Group A: The Chairman of the State Committee for Co-operation and Investment shall undertake to gather the opinions of the State Planning Committee and the concerned Ministries, submitting them to the Prime Minister for consideration and d ecision. In case of disparity in the Ministries' opinions on significant matters of the projects, the Chairman of the State Committee for Co-operation and Investment shall set up a consultative council consisting of the competent representatives from Stat e Planning Committee and from concerned Ministries and experts for project consideration before submitting them to the Prime Minister. for each special specified situation, the Prime Minister will ask the National Council for project evaluation to researc h and consult for Prime Minister's reconsideration and decision.
for projects of Group B: The Chairman of the State Committee for Co-operation and Investment shall consult the State Planning Committee and concerned Ministries before consideration and decision.
The concerned Ministries shall be liable to assign their personnel to work with the State Committee for Co-operation and Investment for evaluation of invested projects.
Article 8:
Invested project evaluation duration:
1. Within 20 days from the receipt of the projects documents, the concerned Ministries shall submit the State Committee for Co-operation and Investment their written opinions of the project contents in their scope of management. The project contents shall be deemed to have been approved should the above duration finish without a written opinion from the said Committee.
2. for projects of Group A:
Within 50 days from the receipt of the project due documents, the opinions on the project evaluation of the Chairman of the State Committee for Co-operation and Investment shall be submitted to the Prime Minister. Within 7 days from the receipt of the Pri me Minister's decision, the project owner shall be informed about the decision by the Chairman of the State Committee for Co-operation and Investment.
3. for projects of Group B:
Within 45 days from the receipt of the project due documents, the project owner shall be informed about the decision made by the Chairman of the State Committee for Co-operation and Investment.
Article 9:
Within 20 days from the receipt of the project documents, the People's Committee at provincial level shall submit the State Committee for Co-operation and Investment their written opinions on the following matters:
1. Legal status of foreign and Vietnamese project owners;
2. The suitability of the projects' targets and project site to economic and social development planning and orientations;
3. The legal land use right of Vietnamese party, the area to be used by the project land rental rate, schemes for compensation to the residents existing for site clearing;
4. The value of the Vietnamese party's property to be contributed to the capital, if any.
The project shall be deemed to have been approved, should the above duration finish without a written opinion from the said Committee.
CHAPTER 3 IMPLEMENTATION Of INVESTED PROJECTS
Article 10:
Land lease for projects of Group A shall be decided by the Prime Minister. The Prime Minister shall authorize the decision on land lease for projects of Group B to the Chairman of the People's Committee at provincial level.
Within 30 days from the receipt of the investment license, the decision, signing contract for land lease and issuing the certificate of land use right shall be completed.
Article 11:
The project designs shall be appraised according to the contents below:
1. The legal status of the designing organization;
2. The design suitability to the project planning and architecture;
3. The compliance with the technical criteria agreed upon;
The project owner shall bear the responsibility before Vietnamese law for project safety, fire and explosion services, environmental protection during the construction period as well as throughout the life of the projects.
Article 12:
The design appraisal and issuing the construction license shall be stipulated as follows:
+ The Ministry of Construction shall organize the design appraisal of Group A projects. The Chairman of the People's Committee at the provincial level shall organize the design appraisal of Group B projects.
+ The project owner submit the design documents to the People's Committee at provincial level.
+ Within 7 days from the receipt of the due design documents of Group A projects, the People's Committees at provincial level shall submit the Ministry of Construction a written opinion and the enclosed design documents;
Within 20 days from the receipt of the due design documents, the Ministry of Construction must complete the design appraisal.
+ Within 20 days from the receipt of the due design documents of Group B projects , the People's Committee at provincial level must complete the design appraisal.
+ The Construction Permit shall be issued within 10 days from the date the construction permit-granting agency receives all the due documents.
Article 13:
When the construction of the project has been completed, the project owner shall report to the construction permit-granting agency on the completion of the construction works and permission for operating the projects. The construction permit-granting agen cies shall inspect the works, if necessary. If a breach of the Construction Permit and technical designed standard are discovered, the matter shall be dealt with in accordance with legal regulations.
Within 6 months from the work completion date, the project owner must send the cost-accounting report on investment capital to the State Committee for Co-operation and Investment.
Article 14:
Within 30 days from the receipt of the application documents for Import License, the Ministry of Trade shall issue the Import License which specifies the volumes of imported goods to be exempted from tax in compliance with legal regulations.
for the equipment that requires strict work safety, the Ministry of Trade and the Ministry of Labor, Invalids and Social Affairs shall coordinate in import consideration, approval and permission. for used equipment, the Ministry of Trade and the Ministry in charge of economics-technique in import consideration, approval and permission.
Article 15:
The project owners shall strictly comply with legal regulations on environmental protection. The Ministry of Science, Technology and Environment shall issue the environmental protection criteria and organize, supervise the implementation thereof and shall deal with the breaches immediately and strictly in accordance with legal regulations; these shall include the decision on suspension of the enterprise operations if the breaches cause adverse impact on the environment beyond the limitation permitted.
Article 16:
In addition to the License and Decisions mentioned in Articles 10, 11, 12, 13 and 14 of these Regulations, for the trades that require trading registration according to legal regulations, the enterprise shall, on the basis of the operational objectives pr ovided in the investment license, register as the form specified and submit it to the concerned agencies under the People's Committee at provincial level.
Article 17:
1. The enterprises shall have autonomous right in production and trading.
2. The State bodies (the Ministries and People's Committee at provincial level) undertake to perform their management function through the followings:
+ Keeping regular watch on the enterprise operations and dealing with the enterprise reasonable proposals immediately;
+ Handling disputes arising out of the enterprise operations;
+ Strictly and immediately handling the enterprise breaches of the law.
3. People's Committee of provincial level shall perform the function of State management to all of enterprises in its area. for the problem which is not belonging to its authority, people's committee of province shall co-operate with Ministries concerned and State Committee for Co-operation and Investment for decision.
Article 18 :
The concerned Ministries, People's Committees at provincial level shall co-ordinate with the State Committee for Co-operation and Investment in inspecting and supervising the enterprise operations to ensure that the law shall be strictly obeyed.
Strictly prohibiting illegal and willful inspection and supervision which cause trouble to the enterprise's operation.
Article 19:
The State Committee for Co-operation and Investment and the General Statistics Office shall issue sample tables for statistics report on the enterprise operations.
The State Committee for Co-operation and Investment shall be responsible for periodically summing up the situation, analyzing and appraising the operation of foreign direct investment nationwide.
CHAPTER 4 fiNAL PROVISIONS
Article 20:
Any organization or individual that violates the provisions of these Regulations shall be dealt with in accordance with the laws.
Article 21:
These Regulations shall come into effect from January 1st, 1995.
for The Government The Prime Minister
VO VAN KIET