THE MINISTRY OF SCIENCE, TECHNOLOGY AND
ENVIRONMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
1817/1999/TT-BKHCNMT
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Hanoi, October 21, 1999
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CIRCULAR
GUIDING THE CERTIFICATION OF PROJECTS
ELIGIBLE FOR SPECIAL INVESTMENT ENCOURAGEMENT SPECIFIED IN ITEM 7, LIST I,
APPENDIX I OF THE GOVERNMENT’S DECREE NO. 10/1998/ND-CP OF JANUARY 23, 1998
(projects for environmental pollution treatment and environmental protection,
and for waste treatment and processing)
Pursuant to the Government’s
Decree No. 22-CP of May 22, 1993 on the tasks, powers and organizational
apparatus of the Ministry of Science, Technology and Environment;
Pursuant to the Government’s Decree No. 10/1998/ND-CP of
January 23, 1998 on a number of measures to encourage and guarantee foreign
direct investment activities in Vietnam (hereinafter referred to as Decree No.
10/1998);
The Ministry of Science, Technology and Environment hereby provides the
following guidance on the certification of projects for environmental pollution
treatment and environmental protection, and for waste treatment and processing
as projects eligible for special investment encouragement specified in List I,
Item 7, Appendix I of Decree No. 10/1998:
I.
GENERAL PROVISIONS
1. Subjects of regulation and scope of
application
1.1. This Circular shall apply to projects of
enterprises operating under the November 12, 1996 Law on Foreign Investment in
Vietnam and conducting production and/or business activities in one of the
following fields:
a/ Environmental pollution treatment and
environmental protection
b/ Waste treatment and processing
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2. Interpretation of terms
2.1. "Environmental pollution treatment"
means activities of human beings to reduce the extent of environmental
pollution and meet the environmental standards.
2.2. "Waste treatment and processing"
means the application of technologies and technical solutions to turn wastes
into useful products and/or reduce environmental pollution.
2.3. "Environmental pollution" means a
change in the environmental characteristics in the adverse direction, violating
the environmental standards.
2.4. "Environmental protection" means
activities to keep the environment healthy and clean, improve the environment,
ensure the ecological balance, prevent and overcome adverse consequences caused
by human beings and nature to the environment, rationally and economically
exploit and use natural resources.
2.5. "Wastes" are substances
discharged from daily life, from the production processes or other activities
in Vietnam. Wastes may be in solid, gaseous, liquid or other forms.
3. Preferential regime
Enterprises executing projects, which meet the
conditions prescribed in this Circular and are those where investment is
specially encouraged, shall be entitled to privileges provided for in the
Government’s Decree No. 12/CP of February 18, 1997 detailing
the implementation of the Law on Foreign Investment in Vietnam and Decree No.
10/1998/ND-CP of January 23, 1998 on a number of measures to encourage and
guarantee foreign direct investment activities in Vietnam.
II.
CONDITIONS FOR BEING CERTIFIED AS PROJECTS ELIGIBLE FOR SPECIAL INVESTMENT ENCOURAGEMENT
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1. The projects must be entitled to the
independent cost-accounting, with 70% or more of their total turnover being
generated from production and/or business activities of environmental pollution
treatment and environmental protection or waste treatment and processing.
2. The projects’ fields of
production and/or business activities must conform to the production and
business fields specified in Appendix 1 of this Circular. For waste treatment
and processing projects, they must use a volume of wastes accounting for 50% or
more of their raw materials.
3. The projects must comply with the provisions
of Vietnamese legislation on environmental protection.
III.
ORGANIZATION OF IMPLEMENTATION
1. Dossiers of application for special
encouragement of investment
a/ For new projects:
Dossiers of projects applying for special
investment encouragement are at the same time dossiers of application for the
granting of investment license. The project owners must, however, clearly
describe in their economic-technical explanations (or the feasibility study
reports) the technological processes of environmental pollution treatment or
waste treatment and processing, the proportion of turnover generated from
production and/or business activities of environmental pollution treatment and
environmental protection or waste treatment and processing, the compatibility
of the project’s production and/or business
fields with Appendix 1 of this Circular. For waste treatment and processing
projects, the percentage of wastes to be used as raw materials in the treatment
and processing process must be clearly stated. The project owners must clearly
state in their applications for the granting of investment license: Application
for special investment encouragement.
The dossiers of projects applying for special
investment encouragement shall be sent to the investment license-granting
agency (mentioned in Section 2, Part III of this Circular). This agency shall
have to act as coordinator in sending such dossiers to the concerned agencies
involved in the process of evaluation and consideration of projects eligible
for special investment encouragement.
b/ For on-going projects that have not yet
applied for special investment encouragement or production and business
expansion projects applying for special investment encouragement, their
dossiers of application for special investment encouragement shall include:
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- The economic-technical explanation (or the
feasibility study report) with the contents mentioned in Item a above.
- A valid copy of the investment license.
For on-going projects, their dossiers of
application for special investment encouragement shall be sent to the
investment license-granting agency and the Science, Technology and Environment
agency (as mentioned in Section 2, Part III of this Circular) for consideration
of special investment encouragement.
2. Competence to consider and decide projects
eligible for special investment encouragement
2.1. The assignment of the competence to decide
the granting of investment licenses is prescribed in Decree No. 12/CP of March
18, 1997 detailing the implementation of the Law on Foreign Investment in
Vietnam.
For new projects, the consideration and
certification of projects eligible for special investment encouragement shall
be carried out simultaneously with the consideration of the granting of
investment licenses.
For on-going projects that have not yet applied
for special encouragement of investment or production and/or business expansion
projects applying for special investment encouragement, such consideration
shall be effected like in case of application for adjustment of investment
licenses.
2.2. For projects licensed by the Ministry of
Planning and Investment: On the basis of the conditions specified in this
Circular and the evaluation opinions of the Ministry of Science, Technology and
Environment, the Ministry of Planning and Environment shall decide the level of
special investment encouragement in the investment licenses.
2.3. For investment projects licensed by various
agencies according to assignment of responsibility: On the basis of the
conditions specified in Part II of this Circular and the evaluation opinions of
the provincial/municipal Science, Technology and Environment Services, the
local agency assigned with the competence to grant investment licenses (or the
Boards for Management of Industrial Parks, Export Processing Zones and
High-Tech Parks) shall decide the level of special investment encouragement in
the investment licenses.
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2.5. If projects are ineligible for special
investment encouragement, within 20 days after the date of receipt of the valid
dossiers, the managing Science, Technology and Environment agency (mentioned in
Items 2.2 and 2.3 above) shall reply the investment license-granting agency in
writing, clearly stating the reason(s) therefor.
2.6. If, in the course of operation, an
enterprise no longer meets the criteria specified in Part II of this Circular,
it shall be suspended from enjoying investment privileges.
2.7. The project owners (or the enterprises
owning the project) shall be entitled to lodge complaints with the competent
level if they are not allowed to enjoy investment privileges as prescribed by
law.
IV.
IMPLEMENTATION PROVISIONS
This Circular takes effect 15 days after its
signing.
If any problem arises in the process of
implementation of the Circular, agencies are requested to report it to the
Ministry of Science, Technology and Environment for study and settlement.
MINISTER OF SCIENCE, TECHNOLOGY AND ENVIRONMENT
Chu Tuan Nha
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APPENDIX 1
PRODUCTION AND
BUSINESS FIELDS OF PROJECTS WHERE INVESTMENT IS SPECIALLY ENCOURAGED ON ITEM 7,
LIST I, APPENDIX I OF DECREE No.10/1998
1.
Pollution treatment projects
1.1. Projects for cleaning seriously polluted
water areas, lakes, rivers, canals and ditches prone to environmental
degradation or incidents.
1.2. Projects for cleaning seriously polluted
land areas prone to environmental degradation or incidents.
1.3. Projects for treatment and control of air
and/or noise pollution.
1.4. Projects for treatment of hospital waste
water.
2. Waste
treatment projects
2.1. Projects for collection and treatment of
solid wastes from urban centers and industrial parks.
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2.3. Projects for treatment and destruction of
hazardous wastes and medical wastes.
2.4. Projects on the use of wastes as fuel for
the production process.
2.5. Projects for treatment of industrial
wastes.
3. Projects for recycling and processing of
wastes into useful products
3.1. Projects for recycling of wastes which are
assorted kinds of packing products made of paper, plastic, wood, metal,…
3.2. Projects for processing of wastes into
fertilizers.
3.3. Projects for processing various kinds of industrial
wastes, agricultural and daily life wastes into useful products.
3.4. Projects for restoration of faulty products
into products that meet the initial quality criteria.
4. Projects
for production of products used in the field of environmental protection.
Projects for production of oil-absorbent substances or sheets and fibers.-
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MINISTER OF SCIENCE, TECHNOLOGY AND ENVIRONMENT
Chu Tuan Nha