|
THE
GOVERNMENT
-------
|
SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
---------
|
|
No:
177-CP
|
Hanoi,
October 20, 1994
|
DECREE
ON THE PROMULGATION OF THE REGULATION ON THE MANAGEMENT OF
INVESTMENT AND CONSTRUCTION
THE GOVERNMENT
Pursuant to the Law on
Organization of the Government on the 30th of September, 1992;
At the proposals of the Minister of Construction, the Minister of Finance and
the Minister-Chairman of the State Planning Committee:
DECREES:
Article 1.-
To issue together with this Decree the Regulation on the Management of
Investment and Construction in replacement of the Regulation on the Management
of Capital Construction issued together with Decree No. 385-HDBT on the 7th of
November 1990, and the Regulation on the Drawing up, Inspection and Approval of
Construction Designs issued together with Decree No. 237-HDBT on the 19th of
September 1985 by the Council of Ministers.
Article 2.-
This Decree takes effect on the date of its signing.
Article 3.-
The Minister-Chairman of the State Planning Committee, the Minister of
Construction and the Minister of Finance shall have to direct the detailed
implementation of the Regulation on the Management of Investment and
Construction issued together with this Decree.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
ON
BEHALF OF THE GOVERNMENT
PRIME MINISTER
Vo Van Kiet
REGULATION
ON THE MANAGEMENT OF INVESTMENT AND CONSTRUCTION (ISSUED
TOGETHER WITH DECREE No. 177-CP OF THE GOVERNMENT ON THE 20th OF OCTOBER, 1994)
Chapter I
GENERAL PROVISIONS
Article
1.- Definition:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. Management of investment and
construction: To manage investment and construction is to exercise State
management of the process of investment and construction from the determination
of the investment project to the implementation of the investment and also of
the process of putting the project into operation and use according to the set
objective.
2. Investment project: An
investment project is an assortment of suggestions concerning the disbursement
of capital to create, expand or transform given objects aimed at realizing an
increment in quality or an improvement or upgrading of the quality of a certain
product or services in a given period.
3. Construction projects: A
construction project is a product of the construction and assembly technology
associated with land (including water area, the sea and the continental shelf)
created by construction materials, equipment and labor.
A construction project may
consist of one or many installations in a synchronous technological chain (this
may include cooperation in production) in order to produce the end-product
stated in the project.
4. Investor: The investor is the
owner of the capital. An investor may be an organization or an individual who contributes
the whole or part of the capital and takes responsibility for mobilizing the
remaining part of the capital to invest as prescribed by law.
In case the investment capital
of the project is chiefly owned by the State, the investor is the one who is
granted the decision on investment right from the moment the project is drawn
up and who is given the responsibility of directly using the capital.
5. Total investment: Total
investment is the investment projected to be spent on the whole process of investment
aimed at achieving the objective of investment in order to put the project into
operation and use according to the requirement of the project (including
allowance made for an increase of prices).
6. Total estimated cost of the
project: Total estimated cost is the total expenditures necessary for the
investment in the project which is minutely calculated in the stage of
technocal designing. This total estimated cost comprises expenditures related
to the survey, designing, construction, purchase of equipment; expenditures in
the use of the land on which compensation is to be made for the displacement of
former constructions or for clearing the ground; expenditures on out-houses,
working offices, the temporary dwelling of the construction workers in large-scale
constructions; and other expenditures, including reserve expenditures
(including allowance made for an increase of prices).
7. Statement of accounts
concerning the investment capital: An investment capital account is the whole
of lawful expenditures already made in the process of investment aimed at
putting the project into operation or use (not counting the expenditures to
overcome consequences of natural disasters and enemy sabotage and unreasonable
and unlawful expenditures).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
9. Construction criteria:
Construction criteria are prescribed technical norms in the carrying out of
survey, designing, assembly and construction and test operation on completion,
in order to ensure the quality of the project. They differ from one branch of
construction to another and are issued by the State or the managing board of
the controlling ministries of the specialized construction services.
Article
2.- Fundamental requirements in the management of investment and
construction:
1. To ensure strict
implementation of the objectives of the socio-economic development strategy in
each period along the socialist orientation. To achieve economic restructuring
along the line of industrialization-modernization, to accelerate the economic
growth rate, and to improve the material and cultural life of the people.
2. To mobilize and make the most
effective use of domestic and foreign sources of investment in Vietnam, to make
good use of the natural resources, labor and land potentials and all other
potentials while protecting the ecological environment.
3. All construction must comply
with the approved plans, have rational advanced and beautiful designs and apply
advanced construction technology. The construction and assembly must conform to
the schedule, achieve high quality with reasonable expenditures and adopt the
system of construction guaranty.
Article
3.- Fundamental principles of the management of investment and
construction:
1. The management of investment
and construction must ensure the creation of products and services accepted by
the society and market in terms of prices and quality and meeting the
objectives of socio-economic development in each period.
2. Realization of unified State
management in terms of mechanism, policies and economic and technical norms for
the whole process of investment and construction from general planning and
planning to the mobilization and utilization of capital, selection of
technology, architecture and design solutions, technical design, assembly,
insurance and guaranty of the project.
3. Strict compliance with the
order of investment and construction.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article
4.- Order in investment and construction:
All investments and
constructions shall have to follow this three-period order:
1. Preparation for investment;
2. Carrying out of investment;
3. Completion of construction
and putting the product into operation or use.
Article 5.-
Classification of investment projects:
Depending on their character and
scale, the investment projects are divided into three groups, A, B and C. The
characteristics of each group are defined in the Appendix issued together with
this Regulation (except for the projects using direct foreign investments which
shall have a separate regulation).
Article 6.-
State managerial responsibility in investment and construction:
1. The Government exercises
unified management of investment and construction by all economic sectors
according to law and in conformity with the strategy for socio-economic
development, defense and security and with the set general program and plan.
The Government shall promulgate policies on the management of investment and
construction policies to encourage investment in different areas and sectors of
the economy, and preferential policies in investment as well as in the
mechanism of capital mobilization and retrieval.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. The State Planning Committee:
The State Planning Committee
shall have to study the mechanism and policies on the management of investment,
work out the strategic aims and the socio-economic development plans in each
region and territory, determine the investment structures and the list of
priority projects and submit them to the Prime Minister for examination,
approval and promulgation, or it may be empowered by the Prime Minister to
promulgate them. The Committee shall have to balance the resources to ensure
the needs of investment according to the development targets and the economic
structure; direct the elaboration of the projects, preside over the expertise
of the investment projects in Group A and submit them to the Prime Minister for
decision to invest; inspect and supervise the implementation of the investment
plan funded by sources under State management; ensure the necessary factors for
the realization of the plan of putting part by part the results of investment
into operation.
4. The Ministry of Construction:
The Ministry of Construction
shall have to study the mechanism and polcies on the management of construction
and the plan for rural and urban construction and submit them to the Prime
Minister for approval and promulgation. It may also have to issue or agree with
specialized construction services to issue the norms, rules and regulations on
the management of quality of construction and the construction economics (the
system of economic and technical norms and targets, the general unit price) it
shall also preside over the expertise the total estimate of expenditures of
projects in Group A and submit them to the Prime Minister for examination
before empowering the Minister of the controlling ministry to approve it. The
Ministry of Construction shall exercise unified State management of consultancy
work in construction investment and the business of construction and assembly,
and the management and guidance for the organization of bidding and selection
of consultants in bidders in construction and assembly.
5. The Ministry of Finance:
The Ministry of Finance shall
have to study the mechanism of managing the investment capital sources, the
distribution of the total capital from the annual State investment budget and
the measures to ensure its balance, then submit them to the Prime Minister for
examination and promulgation or it may be empowered by the Prime Minister to
promulgate them. The Ministry of Finance shall manage and allocate the State
investment budget and preferential credits from the State investment budget and
preferential credits from the State budget to the projects and program targets
defined by the Government or re-loan to the businesses through the chosen bank.
It shall inform the investors of the plan of annual budget allocation with
regard to the projects which meet the conditions currently prescribed. The
Ministry shall also ensure the State budget capital and preferential credits
for the projects already registered in the investment plan, control the use of
investment capital, direct the drawing up of the final statement of accounts
when the project (or part of the project or installation) is completed and put
into operation, and inspect the balance of accounts before the investment
management agency's approval.
6. The Vietnam State Bank:
- The Vietnam State Bank shall
have to study the mechanism and policy on State management of money and bank
credits in investment and construction and submit them of the Prime Minister
for promulgation, or it may be empowered by the Prime Minister to promulgate
them. It shall also guide the banks to mobilize capital inside the country and
from outside the country to lend to the investors and to lend floating capital
to the construction and assembly businesses. The banks shall have to decide themselves
the loans and retrieval of debts from the investment projects at the market
interest rates.
- The Vietnam State Bank shall
coordinate with the Ministry of Finance in the selection of the appropriate
bank to provide the projects with capital borrowed from international credit
organizations with the accreditation of the Ministry of Finance.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
8. The other concerned
ministries:
- The ministries with State
functions in the management of land, natural resources, technology,
environment, commerce, museums and cultural relics conservation, preservation
of landscapes, national defense and political security and social order shall
have to direct the investors in matters related to the drawing up of the
investment projects within no more than thirty days after receiving the written
proposal of the investor. They are entitled, depending on the concrete
requirement of each project, to effect their managerial functions in the
process of investment and construction and may ask for the suspension of
unlawful investments and construction activities.
- The ministries in charge of
service management shall have to give concrete guidance for the implementation
of the mechanism and policies on development investment of their services and
shall exercise State management of the investment projects in their services.
- The ministries with
specialized construction service (industrial and civil construction, projects
in transport, water conservancy, mining, power transmission and transformers,
posts, agriculture, forestry and fisheries) shall provide concrete guidance for
the realization of the mechanism and policies on construction in a way
compatible to the characteristics of the specialized services; study and issue
as prescribed by Government assignment the norms, order and technical rules of
construction; work out the specialized economic and technical norms, and
promulgate them with the consent of the Ministry of Construction.
9. The People's Committees in
the provinces and cities directly under the Central Government:
The People's Committees in the
provinces and cities directly under the Central Government shall have to
exercise State administrative management of all the organizations and
individuals in carrying out investment projects on their territories in
accordance with law.
Article 7.-
Responsibility of the investors and the consultancy organizations in
construction and the supply of equipment and assembly:
1. Investors:
- The investor shall have to
carry out or hire consultancy organizations and the construction and assembly
businesses having legal entity, or it shall have to expertize the projects
drawn up by other consultancy firms. It also has to manage the project, and
carry out the investment project through the economic contract as prescribed by
current law.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The investor has the
responsibility to repay the loans as well as the mobilized capital on schedule
and in conformity with other commitments made during the capital mobilization.
- In case of a change of the investor,
the successor must take the responsibility of inheriting the whole investment
work of his predecessor and the responsibility of the investment work conducted
during his incumbency.
- If the investor is a business
of all forms of ownership, in case of bankruptcy, the investment already
achieved by the investor shall be handled in accordance with the Law on
Bankruptcy.
- When drawing up the dossier on
pre-feasibility and feasibility study, the investor has the duty and right to
ask the concerned agencies of the State to provide guidance on questions
related to the project such as land, natural resources, water and electric
supply, comminations and transport, ecological environment, fire prevention,
protection of cultural and historical relics, defense and security.
2. Consultancy organizations on
construction and equipment supply and assembly:
The consultancy organizations on
investment and construction (survey, designing, management of the implementation
of the project) on the supply of equipment and materials, construction and
assembly shall have to fully implement the economic contract signed with the
investor or the managing director of the project and shall be accountable
before law on the result of the implementation of the contract.
Article 8.-
Principles on the management of the use of the sources of investment capital:
1. The State budgetary capital
shall be used for investment according to the State plan in the projects of
construction of economic infrastructures; the headwater afforestation projects;
the planting of protection forests, national parks, nature preserves; the
construction of cultural, social and public utility projects; the State
management projects and projects on science, technique, defense and security
and other key projects of the State which are decided by the Government and
which are not capable of direct capital retrieval.
2. The preferential credits from
the State Budget shall be used to invest in economic infrastructure projects,
job generation production centers, key projects of the State in each period
(electricity, cement, iron and steel, water supply and drainage...), and a
number of other projects of different services capable of capital retrieval
already listed in the State plan. The Government shall decide on the investment
in each of these project in different periods of the plan.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. The commercial credits shall
be used to invest in new constructions and in the transformation, expansion and
technological renewal at the production, business and service establishments
which are economically effective, which are capable of capital retrieval and
which meet the conditions for loans as required by the regulations in force.
The use of this capital shall conform to the mechanism of self-borrowing and
self-repayment and full implementation of the investment procedures and
conditions for capital borrowing and repayment.
5. Capital mobilized by the
State businesses shall be used to invest in developing production and business
and in improving the quality and competitiveness of products. The business
shall have to use this capital in accordance with current regimes of management
of investment capital. The controlling organization of the business shall have
the responsibility to closely control the use of capital in order to ensure
that it is used effectively for the right purpose.
6. The capital of a cooperative
venture or join venture between State businesses and foreign partners according
to the Law on Foreign Investment in Vietnam.
In case a State business is
allowed to contribute to the capital of a joint venture with foreigners with
the right to use land, water surface, sea area, workshops and working space,
equipment and other installations owned by the State, it must have the
permission of the authorized echelon and must fill the procedures to receive
capital and has the responsibility to return the capital to the State according
to current regulations.
7. Contributions of the
population in cash, materials or labor to the investment projects shall be used
chiefly for the construction of public utility projects for direct benefits to
the contributors under the terms of the commitments made during the
mobilization.
8. With regard to investments
made by non-State population, the investor must fill in the procedures and
submit them to the authorized agency, which shall consider and examine them and
issue business or construction permits.
9. The management of direct
foreign investments is effected according to Decree No.18/CP on the 16th of
April 1993 of the Government providing details for the implementation of the
Law on Foreign Investment in Vietnam.
10. The investment capital of
diplomatic offices, international organizations and other foreign agencies
which are allowed to build on Vietnamese land shall be managed according to the
treaties or agreements signed between the Vietnam Government and the
governments of the concerned countries or with the concerned foreign
organizations and agencies.
11. One investment project may
use different sources of capital but not in contravention of the regulations on
the use of capital stipulated in this Regulation. It is not entitled to use the
administrative source of capital to invest in new constructions, except for the
infrastructure works under the target programs defined by the Government. No
services nor localities are allowed to transfer on their own initiative the
capital allocated or loaned under plan from one project to another pending the
permission of the Prime Minister or the empowered agency (the State Planning
Committee or the Ministry of Finance).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. The investment plan must
reflect all sources of investment capital of various economic sectors, first of
all the investment projects owned by the State.
2. The implementation of the
investment plan must comply with the approved projects. The State investment
capital shall be approved once and for all for the projects based on the total
investment stipulated in the investment decision. Any readjustment leading to
the prolongation of the implementation of the project must have the permission
of the authorized level which decides the investment.
3. The investment for the
projects and the administrative sources devoted to construction purposes must
be registered in the State plan and shall be managed according to this
Regulation.
4. Order and conditions to
register investment plans:
a/ The investment plan is to
follow this order:
- The plan of capital
procurement for the survey and prospection, for service and territorial
planning, and for urban and rural planning.
- The plan for preparations of
investment including the investment capital to be used in the drafting of the
project (including prospection and survey).
- The plan of preparation to
implement the project must assure enough capital to conduct survey and
technical designing, drafting of the estimated total cost, the dossier for
bidding, building the support sector, appendant constructions, the temporary
dwellings of construction workers with regard to the projects requiring the
permission of the authorized level and expenditures for the preparations of the
implementation of other related projects.
- The plan of implementation of
the project comprises the investment capital for the purchase of equipment,
construction and assembly and other expenditures related to the putting of the
project into operation or use.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- All projects registered in the
plan of preparation for investment must lie within the service and territorial
development program.
- The projects registered in the
plans for preparation for implementation of the project must have the
investment license conforming to the prescriptions of this Regulation.
- With regard to the investment
projects, including constructions registered in the plan of implementation of
the project, they must have the technical design and the total cost estimate,
or the technical design and cost estimate according to each phase and each part
of the project which has stated construction (concerning large-scale projects
built over a long period) and has been approved by the authorized level.
Chapter II
PREPARATIONS OF
INVESTMENT
Article
10.- Work involved in the preparation for investment:
The preparations of investment
involve the following:
1. Study of the necessity of
investment and the size of investment.
2. Contacting and exploring the
market in the country and abroad in order to find the source of supply of
material and equipment and the marketing of products. Examining the possibility
of mobilizing different sources of capital for investment and choosing the
forms of investment.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. Drawing up the investment
project.
5. Examining the project to
decide on the investment.
Article
11.- Drawing up the investment project:
The drawing up of an investment
project shall proceed by the following steps:
- To determine the investment
project.
- To make pre-feasibility and
feasibility studies.
- With regard to the projects in
Group A and the projects using ODA capital, there must be two steps:
pre-feasibility study and feasibility study.
- The other projects shall
proceed with only a feasibility study.
Article
12.- Main contents of the report on pre-feasibility study:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Projected size of the
investment, factors and possibilities to ensure operation of the project, and a
comparison of different forms of investment.
3. Selection of the area and
site of construction and projected need in land area.
4. Preliminary analysis in terms
of technology, technique and construction, selection of the various options in
the finding of sources, conditions for the supply of materials and equipment,
and the conditions in the supply of raw materials, energy, services and
infrastructures.
5. Financial analysis:
Preliminary determination of the total investment, the various possibilities
and conditions to mobilize various sources of capital, estimated cost of
production and possibility of capital retrieval, debt payment and expected
profits.
6. Preliminary estimate of the
efficiency of the investment in the project in economic and social terms.
Article
13.- Main contents of the report on feasibility study:
1. Foundations to determine the
necessity of investment.
2. Selection of the form of
investment.
3. The production program and
the conditions which are to be met.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
5. Analysis of the selection of
the technological and technical option.
6. The construction options and
solutions.
7. The organization for managing
the use of labor.
8. Financial and economic
analysis.
The detailed report on the
feasibility study shall be made with the guidance of the State Planning
Committee and the Ministry of Construction.
Article
14.- Expertise of the investment project:
1. The pre-feasibility study
report approved in writing by the investment deciding level shall be the basis
for drawing the feasibility study report or for the continued sounding,
negotiations and signing of agreements among the partners before the
feasibility study report is drawn up. Depending on the level of complexity and
the significance of each project and before approving the report on
pre-feasibility study, the investment deciding authority may ask the concerned
agencies to give their opinions or submit to the Expertise Council. The
time-limit for the approval in writing shall not exceed twenty days after the
full dossier in due form is received (including the cases which necessitate the
approval of the Expertise Council).
2. Report on feasibility study:
- The projects in Group A must
go through the State Expertise Council before the decision to invest is taken.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The projects in Group B and C:
The investment deciding level may use qualified specialized agencies directly
under its control or set up the Expertise Council, or select a consultant
organization to expertize the project before deciding to invest.
3. The expertise of the direct
foreign investment projects shall follow a special regulation.
Article
15.- Requirement for expertise of projects:
1. All investment projects
involving constructions belonging to whatever source of capital and economic
sector must be expertized in terms of construction planning and in terms of
architecture, technology, land use, environmental and ecological protection,
and its social impact.
2. With regard to the investment
projects using State capital, they must also be expertized on their financial
option and their economic efficiency.
3. The investment projects using
ODA fund shall have to comply with the requirements of the State and
international practice.
Article
16.- Expertise Council at various levels:
The Expertise Council at various
levels is constituted as follows:
1. The Expertise Council at the
State level shall be headed by the Chairman of the State Planning Committee.
Its standing members are the Ministry of Construction, the Ministry of Finance,
the Ministry of Science, Technology and Environment, and the Office of the
Government. A number of other members may be invited in by the Council
Chairman, depending on the character of the project. With regard to the direct
foreign investment projects, the State Committee for Cooperation and Investment
shall be the standing member.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. The Expertise Council at
provincial level shall be headed by a Vice-President of the provincial People's
Committee. The standing members are the head of the planning committee of the
province, the director of the construction service and the directors of the
specialized construction service, of the finance pricing service, the science
and technology service, and the chief architect in the city.
Article
17.- Time limit for the expertise of the project:
1. With regard to the investment
projects in Group A, the time-limit for expertise shall not exceed forty five
days after receiving the full and duly compiled dossier.
2. With regard to the projects
in Group B, the time-limit shall not exceed thirty days after receiving the
full and duly compiled dossier.
3. With regard to projects in
Group C, the time-limit shall not exceed twenty days after receiving the full
and duly compiled dossier.
Article
18.- Decision to invest:
1. All the investment projects
covered by State capital must have a decision to invest issued by the
authorized level before investment can be carried out.
2. Contents of the decision to
invest:
a/ Determination of the investor
and the form of carrying out the project.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
c/ The design capacity.
d/ Total investment and sources
of capital mobilization.
e/ Modalities for bidding,
selection or appointment of the contractor.
f/ Duration of construction and
the main time-limits of the construction tempo.
Article
19.- Changing the contents of the project:
1. Any change in the contents of
the project must have the written consent of the authorized level which has
approved the project or decided the investment.
2. When the need arises to
change the contents of the approved project, the reason for the change must be
given and the contents of the changes specified, and the expertise and decision
must be done as prescribed by this Regulation.
3. The project may be suspended
or cancelled in the following conditions:
- The investor does not begin
implementing the project without the consent of the authorized level twelve
months after the decision to invest is made.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The implementation of the
project is prolonged for more than six months compared with the time limits
stipulated in the investment decision (or investment permit) without plausible
reason.
Article
20.- Expenditures in the drawing up of the projects and in the expertise of
the project:
1. The expenditures in the drawing
up and expertise of a project shall be accounted for in the source of capital
to which the project belongs. In case the source of capital is not yet
determined, the investor may use his legal capital or borrow from the Bank and
shall repay after the official source of funding has been determined.
2. The levels of the
expenditures for the consultancy in the drawing up and expertise of the project
shall be set by the Ministry of Construction in consultation with the State
Planning Committee and the Ministry of Finance.
Chapter
III
IMPLEMENTATION OF THE
INVESTMENT PROJECT
Article
21.- The implementation of an investment project involving construction
shall comprise the following:
1. Application for a certificate
of land use right (including water surface, sea area and continental shelf).
2. Leveling the ground for
construction.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. Expertise of project design.
5. Organizing bidding for the
purchase of equipment, construction and assembly.
6. Application for construction
permit and a permit for the exploitation of natural resources (if any).
7. Signing contracts with
concerned organizations and individuals to implement the project.
8. Construction and assembly of
the project.
9. Monitoring and inspecting the
implementation of the contracts.
Article
22.- Delivering and taking delivery of construction land:
1. The investor who needs the
use of land has to draw up a dossier to apply for land allocation as prescribed
by the State.
2. The time for considering and
settling an application for land allocation and deciding to allocate land by
the authorized agency shall not exceed twenty five days after receiving the
full and duly compiled dossier.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article
23.- Leveling the ground:
1. The investor shall take the
main responsibility for paying compensations and leveling the construction
ground before delivering the ground to the construction unit. The investor may
sign a contract with an organization specializing in compensation work and
ground leveling in the locality in the discharge of this task.
2. Compensation work and ground
leveling shall be carried out according to the prescriptions of the State.
Article
24.- Bidding for consultancy in survey, designing and technical expertise
and of technique and project quality:
The bidding for construction
consultancy shall be carried out according to the Regulation of the State. In
case of bidding for international consultancy, it shall be done according to
international practice with consideration for the concrete conditions of
Vietnam.
Article
25.- Designing of the project:
1. Lawful documents used in
designing:
All documents on the prospection
and survey of the terrain geology, hydrology and meteorology and other
documents used in designing the construction of projects must be compiled by
specialized organizations with a legal entity according to the construction
criteria, rules and technical norms for construction issued by the State. In
case the foreign modalities and construction norms are applied, they must have
the approval of the Ministry of Construction.
2. Order in designing:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- With regard to projects with
high technical requirements and complicated geology and hydrology conditions of
foundation, two step designing shall apply: technical designing and
construction blueprint designing;
- With regard to simple projects
requiring simple technique or provided with model designs and requiring no
complicated techniques in the building of the foundations, only one step is
required: designing of construction technique;
- The designing organization
must draw up the total cost estimate suited to the technical design or the
design for construction technique;
- The contents of designing work
in each step shall be effected according to the prescriptions of the Ministry
of Construction.
Article
26.- Expertise and approval of design:
All construction investment
projects of any source of capital and economic sector must have their designs
expertized.
1. With regard to the
construction investment projects owned by the State:
- The technical designs of the
projects in Group A shall be expertized and approved by the controlling
Minister of the service concerned after expertise by the specialized agency.
- The technical designs of the
other projects shall be expertized and approved by the Head of the agency with
authority to decide the investment after it is expertized by the specialized
agency. The technical designs of the projects in Group B owned by the agencies
attached to the Government or the organizations and associations directly under
the Center shall be expertized and approved by the Minister of Construction.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
3. With regard to the non-State
economic sectors, the Ministry of Construction shall direct the People's
Committees in the provinces and cities directly under the Central Government to
assign the power to approve the designs in conformity with the local
conditions.
Article
27.- Construction permit:
1. Exemptions from construction
permits:
- The construction belonging to
projects in Group A which the Prime Minister has decided to invest and of which
the Minister of the controlling ministry has approved the technical designs.
- Transport works and water
conservancy works belonging to Group B and Group C which have been approved for
their technical designs, which do not cross and urban center and which have won
the approval of the President of the provincial People's Committee.
- Repairs which do not lead to
the change in the structure or architecture of street-front construction or to
civil disputes.
2. Competence in issuing
construction permits:
The Minister of Construction
shall issue construction permits to the inter-provincial construction
investment projects on the basis of the certification by the concerned
localities that the projects meet the conditions for the issue of construction
permits.
- The issue of permits for new
constructions, transformations and repairs of constructions on urban land shall
be effected in accordance with Decree No. 91/CP issued by the Government on the
17th of August 1994.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The Presidents of the
districts and provincial towns shall issue construction permits for signing
dwelling houses and new constructions capitalized at less than 500 million
Dong.
3. The dossier to apply for
construction (or repair) permit consists of:
- An application for
construction (or repair),
- The dossier on the project
design,
- The certificate of lawful
right to land use,
- The certificate of the lawful
right to use the house (in case of repair or transformation of a house).
4. Validity of construction
permit:
If twelve months after the issue
of the construction permit the investor still has not begun construction, the
construction permit shall cease to be valid.
5. Changes and supplements to
construction permit:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- Only the agency authorized to
issue construction permits shall have the right to change or amend the
construction permits.
Article
28.- Permit for exploitation of natural resources:
In case the investment project
is aimed at exploiting natural resources, the investor must ask for the permit
to exploit natural resources as stipulated in Decree No.95/HDBT of the Council
of Ministers (now the Government) issued on the 23rd of March 1992 on the
implementation of the Ordinance on Mineral Resources.
Article
29.- Bidding for construction:
1. All investment projects owned
by the State shall have to organize bidding or selection of contractors
according to the regulations issued by the State (including bidding and
selection of contractor, purchase of equipment, construction and assembly, and
consultancy). But the following projects shall apply the mode of designation of
contractor:
- Projects of a research or
experimental character,
- Projects of an emergency
character necessitated by natural disasters and acts of sabotage,
- Projects of small value of
less than 500 million Dong,
- Projects of a specific
character owned by a number of branches licensed by the Prime Minister.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Depending on the size,
character and categories of the projects, and the practical conditions of each
project, the bidding or selection of contractor may be done for the whole
project or each construction or each installation in the construction or each
job involving a big volume of work.
3. The international bidding for
the above projects mentioned above shall be held in Vietnam.
Article
30.- Economic contract on consultancy, purchase of equipment and
construction and assembly:
The consultancy work, purchase
of equipment and construction and assembly shall be effected through the
contract between the investor (or his legal representative) and the
organizations for consultancy, equipment dealers and construction and assembly
businesses with legal entity operating in the lines stipulated in their
licenses. Before signing such a contract, the investor (or his legal
representative) must base himself on the realization tempo to prepare
conditions for organizing the bidding or selection of the contractor in
accordance with State regulations or international practice, depending on the
source of investment of the project.
Article
31.- Conditions to start the construction:
Before starting their operations
all constructions must meet the following conditions:
- They must have a construction
permit (for projects requiring such a permit).
- They must have a technical
design (for the constructions owned by the State, they must have a total cost
estimate approved by the authorized level). Large-scale construction projects with
long construction time which cannot yet make a total cost estimate, must
procure a technical design and cost estimate approved for each period or for
each part of the projects which have started construction.
- They must have a duly made
delivery and receipt contract.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. The survey and designing
organizations must assure close examination of details of each project. Every
designing project must have a project director who takes personal responsibility
before law for the project's quality and efficiency. These organizations must
effect the regime of supervision of the author, and the project director must
closely cooperate with the investor and the construction business to settle in
time the issues arising in the process of construction in order to ensure the
quality.
2. The construction business
shall take responsibility before the State and the investor for the
construction technique and quality of the project. The construction business
must set up a section for technical and quality control in order to manage the
construction technique and quality. Together with the investor, the design
organization and the supervising organization, it must draw up the dossier on
test on completion and inspect the quality of each work, each construction and
the whole project.
3. The investor shall have to
carry out by himself or to hire a consultancy organization to expertize the
construction quality during the process of construction.
4. The Ministry of Construction
is the agency having the function of exercising unified State management of the
quality of construction projects and cooperates with the specialized ministries
in issuing or assigning responsibilities in issuing the regulations on
management of quality of specialized construction projects.
5. The Construction Service is
the agency to assist the People's Committees in the provinces and cities
directly under the Central Government in exercising unified State management of
the quality of construction projects in the territory of the province or city.
It shall have to coordinate with the specialized services in directing and
organizing the State inspection, control and State expertise of the quality of
construction projects in the provinces and cities.
Article
33.- Test on completion:
Test on completion shall have to
be conducted phase by phase right after completion of the volumes of work
concerning hidden installations, weight-bearing structures, parts or the whole
installation, or the whole project.
Article
34.- Fund allocation and payment:
1. The fund allocation, loans
and payment of the fund for the projects in which the contractors are
designated shall be based on the value of the volume achieved and tested on
completion every month, but they must lie within the plan for annual investment
capital and must be registered in the economic contract and also in the total
cost estimate already approved.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
With regard to the contracts on
construction consultancy, they shall be given advance funding representing at least
25% of the value of the contract.
2. In the ending year of the
project the investor shall be allocated or loaned not more than 95% of the
value of the volume in the plan-year. The remaining 5% is to be paid by the
investor immediately after the final balance of accounts is approved.
3. The expenditures for the
transformation and repair of works and target programs decided by the
Government shall be taken from the administrative fund having the character of
capital construction from the State budget. It shall also apply the mechanism
of allocation and payment according to the provisions of this Regulation.
Article
35.- Balance of accounts:
1. Each year the investor shall
have to report the investment capital already used to the allocating or lending
agency. On completion of the project (the whole project or part of the
project), the investor shall have to send a report on the final balance of
accounts on the investment capital to the allocating or lending agency and also
to the agency which decides the investment.
2. If the investment project is
financed by different sources of capital, the report must deal separately and
distinctively with each source.
3. With regard to the projects
the construction of which stretches over many years, when making the final
balance of accounts, the investor must convert the investment capital already
achieved to the price platform at the time of delivery and operation of the
project in order to determine the value of the newly added value of the fixed
assets and the valued of the assets on delivery.
The Ministry of Construction
shall have to guide the unified method of conversion in each period for the
uniform conversion by the investors during the drawing up of the final balance
of accounts.
4. One month at the latest after
the conclusion of the plan-year, the investor shall have to complete his report
on the investment capital already achieved in the previous year to the Ministry
or the People's Committee of the province or the city directly under the
Central Government. Six months at the latest after the investment project is
completed and put into operation, the investor shall have to complete the
report on the final statement of accounts of the investment capital and send it
to the allocating or lending agency and the agencies of the ministry or
province entrusted with examining the final statement of accounts and the
agency authorized to approve the final statement of accounts.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article
36.- Inspecting and approving the final statement of accounts:
1. Before approving the final
statement of accounts of the project on completion, inspection shall be made of
the following:
- The Ministry of Finance shall
have to preside over the inspection with regard to the projects in Group A.
- The ministries or the
provinces shall organize the inspection with regard to the remaining projects.
The financial agency shall have
to carry out inspection and make its observation in writing before the
authorized agency approves the final statement of accounts.
2. Approving the final statement
of accounts:
- On completion of an investment
project (or one construction or one installation) the person authorized to
decide on the investment is also the person who approves the final statement of
accounts. With regard to the projects in Group A, their final statement of
accounts shall be approved by the Minister of Finance with the accreditation of
the Prime Minister.
- With regard to the investment
capital to be carried out yearly, the allocating or lending agency shall
inspect the capital already used according to the approved plan.
3. The cost of inspection and
approval of the final statement of accounts shall be taken from the investment
capital of the project to be defined by the Ministry of Finance.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
CONCLUSION OF
CONSTRUCTION AND PUTTING THE PROJECT INTO OPERATION OR USE
Article
37.- Contents of the work in the concluding period of construction and
putting the project into operation or use:
1. Hand-over of the
construction.
2. Conclusion of the
construction.
3. Providing maintenance
services,
4. Putting the project into
operation.
Article
38.- Handing over the project:
1. The project can be handed
over to the user only after it has been completely built according to the
approved design and the quality of the construction certified as up to standard
(including the completion of the project's interior and exterior decorations
and the clearance of waster matters).
2. The dossier concerning the
completion of the project and related issues must be handed over together with
the project.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
Article
39.- Completion of construction:
1. The construction work ends as
soon as the project is handed over to the investor.
2. After handing over the
project, the builder must dispose of or move all his properties from the
construction site and return the land borrowed or rented for the construction
of the project as stipulated by the contract.
3. The obligation defined by the
construction contract will cease completely as soon as the warranty period
expires.
Article
40.- Warranty of project:
1. The suppliers of documents,
survey statistics (including copies, drawing and tests) for the design,
construction, test on completion, expertise of the project; the chairman of the
design project; the contractor of the construction; the supplier of materials
and equipment for the construction, and the supervisor of the construction must
bear full responsibility before law for the quality of the project or the
results of their work.
2. The warranty period, the
privileges and obligation of the sides, the procedure of exercising those
privileges and obligations, and litigations about them are defined by the
competent State institution:
- The Ministry of Construction
sets regulations for the survey, design and construction of the project.
- The Ministry of Science,
Technology and Environment sets regulations for industrial products such as
materials and equipment.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
After taking delivery of the
project, the investor is obliged to make use of the project's capacity and
arrange a uniform organization of production, trade and services and to perfect
the organization and the method of management in order to bring into full play
the economic and technical norms set by the project.
Article
42.- Repaying the investment capital:
1. It is compulsory for all
investment projects to retrieve investment capital if they have such
capabilities.
2. With regard to projects
invested with State budget allocations, low-interest loans, bank loans and
investment capital of those businesses whose investors are obliged to return
the capital or to repay the debt, the sources of capital to draw from and to
repay the debt include all the depreciation fund, part of the profit gained and
other sources of capital (if any).
In case the investor fails to
retrieve his capital and to repay his debt, he must bear the responsibility for
it in accordance with current law.
3. With regard to those projects
invested with capital borrowed by a business from foreign partners with the
guarantee of the State, the business concerned must repay the debt in
accordance with the loan contract. In case the business fails to repay fully
the debt which is due, the guarantor is obliged to repay the debt, an at the
same time, has the right to sell the property of the business as stipulated by
the Law on Insolvency.
Chapter V
THE FORMS OF ORGANIZING
MANAGEMENT IN IMPLEMENTING PROJECTS
Article
43.- The forms of organizing management in the implementation of projects:
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
- The investor directly manages
the implementation of the project,
- The Chairman manages the
project,
- Turnkey project,
- Self-implementation.
Article
44.- Direct management of the implementation of the project by the
investor:
The investor organizes a bidding
for contractors and directly signs a contract with one or more consultancy
organizations to carry out the survey and designing of the projects, compile
the dossier for the bidding, organize the bidding or select the contractor.
After the investor signs a contract with the winner of the bidding for the
construction, the task of supervising and managing the construction, and
ensuring the tempo and quality of the construction continues to be undertaken
by the selected consultancy organization.
Article
45.- Management of the project by the chairman:
1. The investor organizes a
bidding for contractors and signs a contract with a consultancy organization to
act as manager of the project by contacting and signing contracts on his behalf
with survey and design organizations and suppliers of materials and equipment
for the construction to implement the projects, and at the same time, to assume
the responsibility of supervising and managing the whole process of
implementing the project.
2. This form applies only to
large-scale projects involving complicated technical matters and a long time of
construction.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. The investor organizes a
bidding for the project to select a contractor (chief construction contractor)
to carry out the whole project (designing, buying materials and equipment,
building...). The investor only submits for approval the technical design and
total cost estimate, checks the quality of the project and takes delivery of it
when the project is completed and put into operation. The chief construction
contractor can sub-contract to other contractors the survey, design and
purchase of equipment or part of the construction.
2. This form usually applies to
the construction of dwelling houses, civil projects and production and business
projects which have a small scale and require simple technical solutions. This
form can also apply to those constructions (projects) which meet these
conditions.
Article
47.- Self-implementation:
1. The investor uses his
workforce licensed as builders to build the project.
2. This form applies only to
small-scale repair and renovation projects, and projects of a specialized
branch (agro-forestry projects...).
Article
48.- Consultancy on investment and construction:
Providing consultancy on
investment and construction are professional consultancy companies of different
economic sectors which are founded on and operate in accordance with law; the
research institutions which have a legal status and are licensed to practice
consultancy organizations can in their capabilities plan or supervise the
planning of projects (pre-feasibility, feasibility); make the design and a
total cost estimate, compile a dossier inviting bidders, organize the bidding,
supervise and manage the process of construction, and check the quality of the
project. They can also sub-contract to other consultancy organizations to carry
out part of the consultancy work.
Chapter VI
MANAGEMENT OF
CONSTRUCTION COST
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. The State exercises its
management of construction cost by issuing pricing policies, the principle and
method of making cost estimates and the basic date (economic and technical
norms, construction cost per unit, allocation of investment capital...) in
order to set the total estimated investment of the construction and cost
estimate of the construction (or project) and the cost estimates of different
construction items.
2. All projects owned by the
State must compile the necessary documents on the cost estimates stating the
necessary expenses of the project and the construction cost of the
installations. The investors and consultancy organizations must base themselves
on the State regulations on the management of construction costs to compile,
check and submit the total cost estimates and estimates of different
construction items to the competent institution for approval and use them as a
basis for selecting contractors of the projects owned by the State. The
businesses winning a construction contract shall base themselves on the State
regulations on the management of construction costs as a reference to determine
their bidding price.
3. The cost to be paid for the
construction (or project) is the cost of the winning bid and the conditions written
in the contract between the investor and construction businesses.
Article
50.- State management of construction cost:
The Ministry of Construction
shall sponsor and, together with the State managing offices concerned, exercise
unified control of the construction cost (economic-technical norms, unit price,
standard price, suggested price: survey, design, planning, construction
design), and directly manage norms, for the unit price of State-owned projects
in Group A and use them as a basis for determining the minimum bidding price
(at a bidding or for selecting the contractor) and the paid unit price (if the
State designates the contractor).
Article
51.- Managing the total cost estimates of State-owned projects:
1. The Ministry of Construction
chairs the expertise of the total cost estimate of group-A projects, submits it
to the Prime Minister for consideration, and empowers the Minister concerned to
approve it.
2. The director of the
authorized agency decides the level of investment in projects of groups B and
C, and ratifies the total cost estimate after expertise by the professional
institution concerned.
As for the total cost estimate
for group B projects of government institutions and economic and mass
organizations under the Central Government, they shall be approved by the
Ministry of Construction.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
4. With regard to those projects
where contractor is designated, the paid price even in cases of absolute
necessity shall not exceed 5% of the total cost estimate already approved and
it must be approved by the institution that is authorized to ratify the total
cost estimate.
5. In case the total cost
estimate changes from group B to group A, or from group C to group B, the
investor must re-submit the feasibility study to the agency which has authority
to decide the investment.
Article
52.- Insuring construction projects:
1. In making an investment for
construction, the investor must buy insurance for the project from an Insurance
Company which is licensed to operate in Vietnam. With regard to foreign
invested projects, the investor must buy insurance in accordance with the Law
on Foreign Investment in Vietnam.
2. The expense for the insurance
of the project is part of the investment capital of the project. The insurance
expense is calculated in percentage of the project's value.
3. The construction contractors
and consultancy organizations buy insurance for the materials, equipment and
workshop used in construction, against labor accidents, for the responsibility
of the third party, and for the survey and design in the process of
implementing the project. The insurance expense is added to the production
cost.
4. The conditions and stipulations
for insuring the interests and obligations of the insured parties shall be
mutually agreed upon, but they must not contravene Vietnam's laws,
international practice, and the instructions of the Ministry of Finance.
Chapter
VII
INSPECTION, CONTROL AND
HANDLING OF VIOLATIONS
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. All investment and
construction activities of every organization concerned must be subject to the
inspection and control of the authorized State agency in each sphere of
management.
2. According to the specific
conditions of each investment project, a part or all parts of the process of
investment and construction can be inspected and controlled.
Article
54.- Handling violations by investors:
1. The investor must strictly
observe the State's regulations on the management of investment projects as
defined in these Regulations, any violation by them will be fined, or
prosecuted, depending on extent of the violation.
2. If the investor fails to
fulfill his responsibilities as defined in the economic contract with the
contractor organizations (consultancy, equipment supply, construction), he must
pay fines to the contractor organizations for violating the contract, and if it
causes losses, he must compensate also for the losses in accordance with the
Ordinance on Economic Contracts.
3. If the investor seriously
violates the stipulations written in the construction permit, causing pollution
to the surrounding environment, putting the adjacent buildings in danger of
collapse as verified by a technical control agency, he will have his
construction permit revoked and shall be fined for the violation.
Article
55.- Handling violations by organizations (individuals) who supervise the
project, design, total cost estimates and final statement of accounts:
The supervisory organization
(individual) is responsible before the investor institution for the accuracy of
the documents, statistics and conclusion in its report on the results of the
expertise. In case the competent person decides that it is wrong (causing
accident and waster or having no economic or social efficiency) due to the
inaccuracy of the documents, statistics and conclusion of the expertise
organizations (individuals), the latter shall be fined or can be investigated
for penal liability.
If the authorized person makes a
wrong decision on investment and the location of construction, etc., causing
serious economic, social and environmental consequences, the person who signs
the decision is responsible for it before the law.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
1. In case labor safety in
construction is found to be in jeopardy or the construction organizations have
repeatedly violated the regulations on labor safety, the institutions for
management of construction and inspection of construction safety can suspend
the construction temporarily.
The temporary suspension of the
construction shall be lifted after the construction units have taken measures
to eliminate the danger or stop such a violation.
2. Any major technical mistake
made by the consultancy organization or the construction organization which
seriously affects the quality of the project (construction), causing collapse
or damage, even after the project (construction) has been put into operation,
the consultancy organization and the chairman of the project design or the
construction unit must compensate for the damage and shall be prosecuted before
law.
3. If the consultancy
organization and the organization supplying construction equipment fail to
comply with the contract's terms on the quality and tempo of construction, they
must compensate for all the losses and shall be fined. The fine (not including
expenses for compensation and repair of the damage...) is to be mutually agreed
upon and written in the economic contract, but its total shall not exceed 10%
of the expenditure for the consultancy work or 5% of the value of the defective
volume of work. The fine is drawn from the profit of the unit concerned after
it has paid tax to the State.
Article
57.- Individual responsibility:
Regarding violations by
individuals in the investor organization, consultancy organizations,
organizations supplying equipment and materials for the construction, and the
managing offices concerned, they are liable to fines, compensations or
prosecution depending on the extent of the violation.
Chapter
VIII
IMPLEMENTATION
PROVISIONS
Article
58.- These Regulations are issued in replacement of the Regulations on the
Management of Capital Construction issued together with Decree No.385-HDBT on
the 7th of November 1990 and the Regulations on the Drawing up, Inspection and
Approval of Construction Designs issued together with Decree No.237-HDBT on the
19th of September 1985 of the Council of Ministers.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
The Minister of Construction and
other Ministers concerned shall have to submit the necessary documents to the
Government for promulgation together with this Regulation and are responsible
for guiding, supervising and inspecting the implementation of this Regulation.
Article
60.- This Regulation takes effect as from the date of its issue and is applicable
to all economic sectors throughout the country.
APPENDIX
CLASSIFICATION OF INVESTMENT PROJECTS
(issued
together with the Regulation on the Management of Investment and Construction
issued together with Decree No.177-CP on the 20th of October 1994 of the
Government)
Investment projects (not
including foreign invested projects) are classified into three groups - A, B
and C - according to the following definitions:
1. Projects of group A are those
that have one of the following conditions:
1.1. New investment projects of
whatever size of investment which are classified as national secrets or have
vital political or social significance, and investment projects in these
branches: production of toxics and explosives, exploitation and processing of
precious minerals (gold, silver, gemstone, rare earth).
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
a/ Over 200 billion Vietnamese
Dong (VND) or over 20 million USD for the following branches:
- Electricity, mining, metallurgy,
machine building, fuel, cement.
- Transport, irrigation, supply
and drainage of water in urban areas.
b/ Over 100 billion VND or over
10 million USD for the following branches:
- Heavy industry: technologies
of electricity, electronics, chemicals, fertilizer, engineering, construction
materials.
- Light industry: pottery,
porcelain, glass, paper, textiles, leather, garments.
- Posts.
- Pharmaco-chemistry, medicines,
the processing of agro-forestry products, foods, aquaproducts, agricultural
production (not including supply stations, farms), aquaculture.
c/ Over 50 billion VND or over 5
million USD for the remaining branches.
...
...
...
Please sign up or sign in to your Pro Membership to see English documents.
2. Projects of group B are those
which have one of the following conditions:
2.1. Investment projects
stipulated at point 1.2.a which have a total investment of 25 billion VND to
200 billion VND or 2.5 million USD to 20 million USD.
2.2. Investment projects
stipulated at point 1.2.b which have a total investment of 15 billion VND to
100 billion VND or 1.5 million USD to 10 million USD.
2.3. Investment projects
stipulated at point 1.2.c which have a total investment of 5 billion VND to 50
billion VND or 0.5 million USD to 5 million USD.
2.4. Projects stipulated at
point 1.3. which have a total investment equal to 70% of the investment level
stipulated at points 2.1., 2.2. and 2.3.
3. Projects of group C are those
not mentioned above.-