DECISION

ON AUTHORIZED LICENSING OF FOREIGN DIRECT INVESTMENT PROJECTS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;
Pursuant to the Law on Foreign Investment in Vietnam of November 12, 1996;
Pursuant to Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No.10/1998/ND-CP of January 23, 1998 of the Government on a number of measures to encourage and guarantee foreign investment activities in Vietnam;
At the proposal of the Minister of Planning and Investment,

DECIDES

Article 1. - To entrust the licensing of foreign direct investment projects under the Law on Foreign Investment in Vietnam of November 12, 1996 to the People’s Committees of the provinces and centrally- run cities (referred collectively to as the provincial People’s Committees), except for the People’s Committees of the provinces which have already been authorized by the Prime Minister to license foreign direct investment projects under Decision No.386/TTg of June 7, 1997 and Decision No. 41/1998/ QD-TTg of February 20, 1998.

Article 2.- The provincial People’s Committees stated in Article 1 of this Decision shall have to receive project dossiers, evaluate and grant investment licenses to foreign direct investment projects in their respective localities as stated in Article 3 of this Decision.

Article 3.- Foreign direct investment projects to be licensed by the provincial People’s Committees must satisfy the following conditions:

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2. To have an investment capital of up to US$5 million, except for projects stipulated in Article 4 of this Decision.

3. To fulfill the export norms set by the Ministry of Planning and Investment for each period.

4. Foreign-invested enterprises and foreign parties to business cooperation shall ensure their own foreign currency demands.

5. Equipment, machinery and technologies must comply with current regulations; if not, they must be approved in writing by a competent State agency in charge of the economic-technical branch before the investment licenses are granted.

6. To satisfy the requirements on environmental protection, labor safety as well as fire and explosion prevention and combat.

Article 4.- The licensing of the following projects shall not be entrusted to the provincial People’s Committees:

1. Group-A projects as prescribed in Article 93 of Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

2. The projects in the following fields:

- Oil and gas prospection, exploitation and services.

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- Construction of seaports, airports, national highways and railways.

- Production of cement, metallurgy, production of sugar, production of liquors, beer and cigarettes.

3. The projects in industrial parks, export processing zones and high-tech parks, except for cases stipulated in Article 11 of this Decision.

Article 5.-

1. Investment project dossiers shall be compiled according to the guidance of the Ministry of Planning and Investment.

2. The project evaluation shall comply with the provisions in Articles 83, 92, 94, 96 and 100 of Decree No.12-CP of February 18 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

The provincial People�s Committees shall have to consult ministries and/or branches about matters that come under the latter’s jurisdiction but have not been specified yet.

The ministries and/or branches which are consulted on projects, including supplements and/or amendments thereto, shall have to reply in writing within seven (7) days after receiving the written inquiry from the provincial People’s Committees; past that time limit if they fail to issue a written reply, the projects shall be deemed to be approved.

3. Investment licenses shall be made according to the form set by the Ministry of Planning and Investment.

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Article 6.- The provincial People’s Committees shall consider and decide supplements and/or amendments to investment licenses of the projects under their delegated licensing power as well as the investment licenses granted by the Ministry of Planning and Investment within the investment capital limits under their authorized power.

In cases where a supplement or amendment to in investment license makes the project’s investment capital exceed the limit under their delegated power; or leads to the changes of the project’s foreign partner(s) or its target(s), the reduction of export percentage, the reduction of the Vietnamese party’s legal capital contribution as compared to the level prescribed in the investment license, or transform a joint venture into an enterprise with 100% foreign investment capital, such supplement or amendment can be effected only after it is approved in writing by the Ministry of Planning and Investment.

The stipulations in this Article shall also apply to the provincial People’s Committees which have been entrusted to grant investment licenses before the promulgation of this Decision.

Article 7.- The Ministry of Trade authorizes the provincial People’s Committees which are entrusted to grant investment licenses to approve the import and export plans of foreign invested enterprises and business cooperation parties outside the industrial parks, export processing zones and high-tech parks, except for cases stipulated in Article 11 of this Decision.

Article 8. - Every quarter, six months and year, thc provincial People’s Committees shall make sum-up reports on the granting, supplementing and amendment of investment licenses and send them to the Office of the Government and the Ministry of Planning and Investment.

Article 9.- The Ministry of Planning and Investment shall continue authorizing the provincial-level industrial parks management boards, established under the Prime Minister’s decision, to grant, adjust, supplement and/or withdraw licenses of foreign investors in industrial parks, export processing zones and high-tech parks, including the investment licenses granted by the said Ministry or the provincial People’s Committees under the provisions of Article 11 of this Decision. This stipulation shall also apply to 10 provincial-level industrial parks management boards which have been authorized by the Ministry of Planning and Investment. The investment capital limits as well as conditions for the granting, supplementing, amendment and/or withdrawal of investment licenses shall comply with the provisions of Official Dispatch No.07/KCN of June 16, 1997 of the Prime Minister and Article 6 of this Decision.

Article 10.- The delegation of power to the provincial-level industrial parks management boards shall be effected as follows:

For industrial parks and export processing zones, the Ministry of Planning and Investment shall issue authorization decisions on the basis of the proposals of the provincial People’s Committees (except for industrial parks which are located on the inter-provincial territory) and the provincial-level industrial parks management boards.

For high-tech parks, the authorization decisions shall be issued on the basis of the proposals of the Ministry of Science, Technology and Environment and high-tech parks management boards.

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Article 11. - Pending the delegation of power to the provincial-level industrial parks management boards, the People’s Committees of the relevant provinces which have been authorized to license foreign investment projects shall consider the granting, adjustment, supplementing and/or withdrawal of licenses for foreign investment in industrial parks and export processing zones.

Article 12.- This Decision takes effect 15 days after its signing.

The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People’s Committees of the provinces and centrally-run cities as well as the concerned agencies shall, within their assigned functions and tasks, have to implement this Decision.

FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER




Ngo Xuan Loc