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COUNCIL
OF MINISTERS
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No.
366-HDBT
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Hanoi,
November 07, 1991
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DECISION
ON
EVALUATION OF PROJECTS WITH FOREIGN OWNED CAPITAL PROMULGATING REGULATIONS ON THE
EVALUATION OF PROJECTS WITH FOREIGN OWNED CAPITAL
THE COUNCIL OF MINISTERS
On the basis of the Law on
the Organization of the Council of Ministers dated 4 July 1981;
In order to ensure proper evaluation of projects with foreign owned capital and
to create favorable conditions for foreign organizations and individuals to
invest in Vietnam;
On the proposal of the Chairman of the State Committee for Co-operation and
Investment;
DECIDES:
Article 1
To promulgate
hereby the Regulations on Evaluation of Projects with foreign Owned Capital.
Article 2
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The Chairman
of the State Committee for Co-operation and Investment shall be responsible for
implementation of this Decision.
Article 3
Ministers,
Chairmen of State Committees, heads of bodies under the Council of Ministers,
Chairmen of the people's committees of the provinces, cities and special zones
under central authority shall be responsible for implementation of this
Decision.
FOR
THE COUNCIL OF MINISTERS
VICE CHAIRMAN
Phan Van Khai
REGULATIONS
ON
EVALUATION OF PROJECTS WITH FOREIGN OWNED CAPITAL
(issued with Decision No. 366-HDBT of the Council of Ministers dated 7
November 1991)
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GENERAL PROVISIONS
Article 1
This regime
for assessment of projects with foreign capital investment shall apply to the
assessment investment projects in the three forms: contractual business
co-operation, joint venture enterprise or corporation (hereinafter referred to
as joint venture enterprise), and enterprise with one hundred (100) per cent
foreign owned capital.
Article 2
Assessment of
a project shall include consideration of the following main matters:
1. The legal
status and financial capacity of the foreign and Vietnamese investor.
2. The
compatibility of the project with social and economic objectives.
3. The
viability of a production plan and suitability of the proposed technology and
technical know how.
4. The
compatibility of the proposed markets with State policy on the sale of
products.
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6. The
effectiveness of the economic and social aspects of the project; the benefits
to be gained by Vietnamese party and the State of Vietnam.
7. The
capability of existing infrastructure to meet the needs of the project.
8. The
location of the land, water or sea surface to be used for the project; the
timing of and steps to be taken in construction.
9. The use
and protection of resources and protection of the environment and ecology.
Detailed
matters to be considered may be specified for each type or nature of project.
Article 3
The
Ministries and the people's committees of provinces and cities shall examine
and make specific recommendations on the following principal matters:
1. The
compatibility of the objectives of the project with the development policy of
the relevant branch and locality; the need for utilization of foreign
investment.
2. The legal
status, financial capacity and current business production of the foreign and
Vietnamese economic organizations concerned.
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4. Valuation
of the assets to be contributed by the Vietnamese party to the capital of the
joint venture enterprise.
5. The
compatibility of the location of the project with planning schemes prepared by
the branch.
6. Any
petition in relation to the rental rates for land, water or sea surface.
Chapter II
LEVELS OF AUTHORITY FOR EVALUATION OF PROJECTS
Article 4
The levels of
authority for evaluation of projects with foreign capital investment are as
follows:
1. Projects
that require approval from the Chairman of the Council of Ministers:
(a) Projects
in the following economic and technical areas regardless of the amount of capital
invested;
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-
Telecommunications, broadcasting, television, and publishing;
- Marine,
aviation, and railway transport and, construction of sea ports, airports,
railways, and national highways;
- Production
of pharmaceutical products, poisons, and explosives;
- Real estate
business, finance, and banking;
- Projects
related to defence and security; and
- Export and
import business and international tourism.
(b) Projects
in heavy industry with capital investment of over thirty (30) million US
dollars.
(c) Projects
in other areas with capital investment of over twenty (20) million US dollars.
(d) Projects
which require a large area of land and will significantly affect environment.
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(a) The
projects (hereinafter referred to as Group A Projects) which the Chairman of
the Council of Ministers shall refer for review by the National Council for
Project Evaluation:
- The
projects referred to in clause 1(a) of this article with a capital investment
of least twenty (20) million US dollars or more;
- The
projects referred to in clause 1(b) of this article with a capital investment
of forty (40) million US dollars or more;
- The
projects referred to in clause 1(c) of this article with a capital investment
of thirty (30) million US dollars or more; and
- The
projects referred to in clause 1(d) of this article.
(b) The
remaining projects (hereinafter referred to as Group B Projects), which the
State Committee for Co-operation and Investment and Chairman of the National
Council for Project Evaluation shall consider, assess with the Ministries
concerned on the basis of the submissions made by Ministries and local bodies
and which shall then be submitted to the Chairman of the Council of Ministers
for decision.
3. In respect
of the projects which are not on the list of projects which require approval
from the Chairman of the Council of Ministers (hereinafter referred to as Group
C Projects), the State Committee for Co-operation and Investment shall consult
with the Ministries concerned and decide whether to issue a licence.
Chapter
III
PROCEDURE FOR EVALUATION OF PROJECTS
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Article 5
After receipt
of the project application and documents, the State Committee for Co-operation
and Investment shall request the Chairman of the National Council for Project Evaluation
to convene a meeting of the Council to review the project.
The Chairman
of the Council of Ministers will make his decision whether to grant an
investment licence based on the recommendations of the National Council for
Project Evaluation.
Article 6
1. Members of
the National Council for Project Evaluation shall include:
- Chairman of
the Board: Chairman of the State Planning Committee.
- Vice
Chairman of the Board: Vice Chairman of the State Committee for Co-operation
and Investment.
- Permanent members
of the Council: Ministers or Vice Ministers of the Ministries of finance,
Commerce and Tourism, Construction, and the Chairman of the State Committee for
Science, the State Bank of Vietnam, and a representative of the office of the
Council of Ministers.
- Other
members of the Council: The Minister or Vice Ministers responsible for the
relevant economic and technical branches and a representative of other branches
or localities concerned.
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3. The
National Council for Project Evaluation may engage local or foreign experts who
have knowledge and experience in science, technology, economics or law to make
recommendations to the Council.
Article 7
The work of
the National Council for Project Evaluation shall proceed as follows:
The Chairman
or Vice Chairman of the Council shall preside over meetings of members of the
Council - which meetings shall evaluate the projects by reference to each of
the matters referred to article 2.
Members of
the Council shall be responsible for evaluation of all aspects of the projects.
However, each member shall primarily evaluate those aspects within its
management responsibility of the branch which he or she represents.
Members of
the Council shall attend all Council meetings. An absentee may submit his or
her recommendations in writing.
Article 8
The National
Council for Project Evaluation shall vote on the basis of a simple majority of
votes of those members present at the Council Meeting. In the event that there are
significant competing considerations the Chairman of the Council shall submit
alternative recommendations to the Chairman of the Council of Ministers for his
consideration and decision.
Article 9:
Time for Evaluation of Projects.
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Within two
months from the date of receipt of the application and project documents, the
National Council for Project Evaluation shall complete its evaluation for
submission to the Chairman of the Council of Ministers for decision.
The Chairman
of the Council of Ministers shall consider the recommendation of the National
Council for Project Evaluation and make an official decision within fifteen
(15) days from the date of receipt of the recommendation from the National
Council for Project Evaluation.
The State
Committee for Co-operation and Investment shall prepare a letter of reply to
the investors based on the decision of the Chairman of the Council of
Ministers.
II. IN
RESPECT OF THE GROUP B PROJECTS
Article 10
The Chairman
of the Council of Ministers shall, based on the recommendations of the State
Committee for Co-operation and Investment and the Chairman of the National
Council for Project Evaluation decide whether to grant a license in respect of
a group B project.
Article
11: Time for assessment of projects.
- Within five
days from the date of receipt of an application and project documents, the
State Committee for Co-operation and Investment shall send copies of the
project documents to the State Planning Committee, Ministry of finance,
Ministry of Commerce an d Tourism, the State Committee for Science, the
Ministry of Construction, the State Bank of Vietnam, the Ministries in charge
of the relevant economic and technical branch and other Ministries concerned;
- Within
twenty five (25) days from the date of receipt of the application and project
documents, the above-mentioned bodies shall notify the State Committee for Co-operation
and Investment in writing of any further information or further explanation
required from the investor.
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- Within
fifty (50) days from the date of receipt of the application and project
documents, the State Committee for Co-operation and Investment and the Chairman
of the National Council for Project Evaluation shall submit their
recommendations to the Chairman of the Council of Ministers for his
consideration.
- The
Chairman of the Council of Ministers shall make an official decision within
fifteen (15) days from the date of receipt of the submission from the State
Committee for Co-operation and Investment and the Chairman of the National
Council for Project Evaluation.
- The State
Committee for Co-operation and Investment shall prepare a letter of reply to the
investors based on the decision of the Chairman of the Council of Ministers.
III. IN
RESPECT OF THE GROUP C PROJECTS
Article 12
The State
Committee for Co-operation and Investment shall have the power to consider and
grant licenses for group C projects.
Article 13
When
considering the projects of this group, the State Committee for Co-operation
and Investment shall obtain recommendations in writing from the following
bodies: The State Planning Committee, the State Committee for Science, the
Ministry of Commerce an d Tourism, the Ministry of finance, the State Bank of
Vietnam and the Ministry concerned. Recommendations shall be provided within
forty (40) days from the date of receipt of the project file and application.
If, after forty (40) days the above-mentioned bodies have not sent their
recommendations in writing they shall be considered as not having any
recommendations to make on the project of the investor concerned. In the event
that there are differing recommendations, the State Committee for Co-Operati on
and Investment shall seek the opinion of the Chairman of the Council of
Ministers.
Chapter IV
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Article 14
These
Regulations shall be of full force and effect as of the date of their
promulgation.
Article 15
The Chairman of
the State Committee for Co-operation and Investment and the Chairman of the
State Planning Committee shall be responsible for implementing these
Regulations.