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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No: 22/1999/ND-CP
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Hanoi, April 14, 1999
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DECREE
PROVIDING FOR INVEST-MENT ABROAD BY
VIETNAMESE ENTERPRISES
THE GOVERNMENT
Pursuant
to the Law on Organization of the Government of September 30, 1992;
With a view to creating conditions for Vietnamese enterprises to invest abroad
and helping to broaden and increase the efficiency of economic, technical and
trade cooperation with foreign countries;
At the proposal of the Minister of Planning and Investment,
DECREES:
Article
1.-
1. Investing abroad by Vietnamese enterprises is
the act by which Vietnamese enterprises take capital in the form of money and
other properties abroad to directly invest in foreign countries according to
the stipulations of this Decree;
2. This Decree does not regulate the investment
abroad by Vietnamese enterprises in the forms of credit loans, purchase of
stocks and investment abroad in the domains of banking and insurance.
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1. The Vietnamese enterprises allowed to invest
abroad comprise:
a/ Enterprises set up under the Law on State
Enterprises;
b/ Cooperatives set up under the Law on
Cooperatives;
c/ Enterprises set up under the Law on
Companies;
d/ Enterprises set up under the Law on Private
Enterprises.
(The enterprises mentioned in this Clause shall
be hereafter called Vietnam enterprises for short).
2. Investment abroad by enterprises with foreign
investment and with the parties joining in business cooperation contracts shall
follow separate stipulations of the Government.
Article 3.- Vietnam enterprises investing abroad shall have
to meet the following conditions:
1. The project of investment abroad must be
feasible;
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3. Fully accomplishing their financial
obligations to the State.
Article 4.- Vietnam enterprises are allowed to invest abroad
with:
1. Machinery, equipment, spare parts; materials,
raw materials and fuel;
2. The value of the industrial property right;
technical know-how; technological process, technical services;
3. Foreign currency;
4. Other property rights, except those not
allowed to be transferred abroad as prescribed by law.
Article 5.-
1. The transfer of investment capital abroad in the
form of money and properties mentioned in Article 4 of this Decree must comply
with current regulations on the management of foreign exchange, on export and
technology transfer;
2. The exemption of export tax on the properties
invested abroad by the enterprises mentioned Point 1, Article 4 of this Decree
shall be made according to the prescriptions of law on export tax and import
tax.
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Article 6.-
1. Vietnam enterprises investing abroad shall
have to comply with the stipulations concerning the application for investing
abroad mentioned in Articles 7, 8, 9 and 10 of this Decree. They include:
a/ State enterprises;
b/ Enterprises of other economic sectors with an
investment capital abroad valued at 1,000,000 US dollars upward.
2. For the investments not regulated by Clause 1
of this Article, the enterprise needs only to register with the Ministry of
Planning and Investment according to the prescribed form.
Article 7.- The dossier of investment abroad sent to the
Ministry of Planning and Investment shall comprise:
1. An application for investment abroad;
2. A copy of the decision to set up the
enterprise;
3. The written permit of investment issued by
the competent agency of the country receiving the investment, or the contract
or the written agreement with the foreign side on the investment project;
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5. The financial situation of the enterprise;
6. The written agreement on investment abroad of
the agency that has decided the setting up of the enterprise (in case of a
State enterprise).
Article 8.- After receiving the dossier of the project, the
Ministry of Planning and Investment shall organize the evaluation of the
project with the following main contents:
1. The financial capability of the Vietnam
enterprise investing abroad;
2. Efficiency of the project (various kinds of
remittances to the budget, possibility of broadening the market).
Article 9.- The competence of deciding the investment abroad
is stipulated as follows:
1. The Prime Minister shall decide on projects
of the enterprises which are set up by his own decisions, or State enterprises
with investment capital valued at 1,000,000 USD dollars upward;
2. The Minister of Planning and Investment shall
decide on the remaining projects.
Article 10.- The evaluation of projects of investment abroad
is prescribed as follows:
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2. Within 5 days after receiving the valid
dossier, the Ministry of Planning and Investment shall send the dossier of the
project to the related ministries and the People’s
Committees of the related provinces and centrally-run cities for consultation;
3. Within 10 days after receiving the dossier,
the agencies mentioned above shall send their written comments to the Ministry
of Planning and Investment concerning issues in the project falling under their
jurisdiction;
4. For the projects under the decision authority
of the Prime Minister, 15 days at the latest after receiving the project
dossier, the Ministry of Planning and Investment shall have to present to the
Prime Minister its evaluation comments attached to the dossier of the project
and the comments of the related ministries and branches and the People’s Committees of the related provinces and
centrally-run cities so that the Prime Minister may consider and decide. Within
7 days after receiving the decision of the Prime Minister, the Ministry of
Planning and Investment shall have to notify thereof to the enterprise;
5. With regard to the remaining projects, after
receiving the written comments of the related ministries and branches and the
People’s Committees of the related
provinces and centrally-run cities, the Ministry of Planning and Investment
shall inform the enterprises of the decision. In case of divergence of
opinions, the Ministry of Planning and Investment shall propose to the Prime
Minister to consider and decide;
6. In case the application for investment is
accepted, the Ministry of Planning and Investment shall issue the investment
permit to the enterprise and send copies of it to the related ministries,
branches and the People’s Committees of the
related provinces and centrally-run cities.
In case the application for investment is not
accepted, the Ministry of Planning and Investment shall notify the enterprise
of its decision and state the reason therefor.
7. The time for evaluation and issue of the
permit for investment abroad shall not exceed 30 days after reception of the
valid dossier.
Article 11.- The enterprise is allowed to proceed with the
procedures related to the transfer of money and properties invested abroad for
the execution of the project only after the Ministry of Planning and Investment
issues the permit and the project of investment has been accepted by the
competent agency of the country receiving the investment.
Article 12.- To carry out its project of investment abroad,
the enterprise must open an account at a bank which is authorized to operate in
Vietnam. All transactions to transfer money abroad and into Vietnam related to
the activities of the enterprise must be effected through this account.
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Article 14.- An enterprise investing abroad which wants to
use the profit to re-invest abroad must be agreed upon by the Ministry of
Planning and Investment and must register with the State Bank of Vietnam.
Article 15.- On completion of its project of investment
abroad on schedule or ahead of schedule the enterprise must fill the procedures
of liquidation and transfer to the country all its income through liquidation 6
months at the latest after completion of the liquidation.
Article 16.- Enterprises engaged in investment abroad must
carry out their financial obligations and tax obligations toward the State as
prescribed by current law.
If the investment is made in a country which has
signed an agreement on avoidance of double taxation with Vietnam, the tax
obligations of the enterprise shall be made according to the stipulations of
the agreement
Article 17.- Each year, within six months after
completion of the fiscal year of the country accepting the investment, the
enterprise must report on the situation of its operations and make a financial
report certified by the audit agency or a competent agency of the
investment-accepting country to the Ministry of Planning and Investment, the
Ministry of Finance, the State Bank of Vietnam and the agency that has decided
to set up the enterprise.
Article 18.- Within the ambit of their functions, the State
management agencies managing the enterprise investing abroad which has
properties under State ownership shall have to manage and supervise the
enterprise in the process of negotiation, signing and deploying its activities
in order to preserve and develop the capital.
Article 19.- Enterprises and/or individuals that violate the
stipulations in Articles 11, 12, 13, 14, 15, 16 and 17 of this Decree shall,
depending on the character and extent of the violation, be subject to
discipline or administrative sanctions or examined for penal liability. If they
cause damage they shall have to make compensation as prescribed by law.
Article 20.- This Decree takes effect 15 days after its
signing.
The enterprises which have been issued with
permits for investment abroad prior to the effective date of this Decree are
allowed to continue their operations as prescribed in the permits of investment
and must obey the provisions of this Decree.
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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 cities centrally-run shall, within the ambit of
their functions and tasks, have to implement this Decree.
THE GOVERNMENT
Phan Van Khai