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THE
GOVERNMENT
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SOCIALIST
REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
09/2001/NQ-CP
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Hanoi,
August 28, 2001
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RESOLUTION
ON FURTHER ATTRACTING AND RAISING THE EFFICIENCY OF FOREIGN
DIRECT INVESTMENT IN THE 2001-2005 PERIOD
The Resolution of the IXth National Party
Congress affirmed that the foreign-invested economic sector constitutes an
important part of the socialist-oriented market economy in our country, which is
encouraged for long-term development on an equal footing with other economic
sectors. Attracting foreign direct investment (FDI) is a significant policy
contributing to tapping domestic resources, expanding international economic
cooperation and thereby creating a combined strength in service of the cause of
national industrialization, modernization and development.
Over the past 10 years after the promulgation of
the Law on Foreign Investment in Vietnam in 1987, the FDI activities in our
country have witnessed important achievements, actively contributing to the
attainment of the socio-economic targets and to the success of the renewal
cause, taking the country out of the economic crisis, increasing its strength
and raising its posture on the international arena. FDI has become one of the
important capital sources for development investment, contributing to promoting
the economic restructure along the direction of industrialization and
modernization, opening up many new production and business lines with new
products, raising the managerial capability and technological levels, expanding
the export market, creating more jobs and contributing to the expansion of
external relations and active integration into the world economy.
However, the FDI activities over the recent
years have revealed weaknesses and shortcomings. The perception and viewpoints
on FDI were neither unanimous nor fully comprehended by administrations of all
levels and branches; the FDI structure still saw irrationalities and the
overall socio-economic efficiency of the FDI activities was not high yet; the
investment environment remained unattractive; the economic and legal
environments remained incomplete as they are being in the process of
betterment. The State management over FDI was struck with many weaknesses; the
administrative procedures remained troublesome, and the personnel work saw many
shortcomings. The FDI growth rate has fallen continuously since 1997 though
having shown signs of recuperation in 2000, which is not really stable and may
affect the development investment capital sources in the years to come if no
remedial measures are taken in time. Meanwhile, the competition to attract FDI
in the world and the region is getting fiercer and fiercer, particularly after
the regional economic crisis; the world’s economic growth rate is slowing down;
the regional economies and leading foreign investors in Vietnam are facing
difficulties.
With a view to further improving the investment
environment, consolidating the foreign direct investors’ confidence, creating
favorable conditions for foreign-invested economic sector to develop, thereby
making more contributions to economic development, as well as to the successful
attainment of the socio-economic development targets in the time to come, the
Government hereby promulgates the Resolution on "further attracting and
raising the efficiency of FDI in the 2001-2005 period", with the following
major contents:
I. OBJECTIVES AND
ORIENTATIONS FOR THE FDI ATTRACTION
1. Objectives:
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a/ The registered capital of the newly licensed
projects: about USD 12 billion.
b/ The realized capital: about USD 11 billion.
c/ By 2005, the FDI shall represent about 15% of
GDP, 25% of the total export value and 10% of the total State budget revenue of
the whole country (excluding petroleum).
2. Orientations:
a/ To strongly encourage the attraction of FDI
into the export goods production and processing industries; industries in
service of the development of agriculture and rural economy; projects on the
application of information technology, biotechnology, petroleum, electronics,
new materials, telecommunications, production and development of socio-economic
infrastructure and branches where Vietnam have many competitive edges in
association with the modern technologies, thus creating more jobs and
contributing to the economic restructure.
b/ To further attract FDI into the geographical
areas with many advantages so as to bring into play the role of dynamic areas,
creating conditions for associated development of other regions on the basis of
promoting their comparative advantages. To encourage and give maximum
preferences to FDI in the geographical regions and areas meeting with
socio-economic difficulties and step up the investment in the construction of
infrastructure projects in these areas with capital from other sources in order
to facilitate FDI activities. To concentrate on the attraction of FDI into the
industrial parks (IPs), which have been set up under the ratified planning.
c/ To encourage foreign direct investors from
all countries and territories to invest in Vietnam, especially those foreign
investors that have big financial potential and grasp original technologies
from the developed countries; to further attract foreign direct investors in
the region. To work out plans to mobilize big consortiums and companies to
invest in Vietnam and at the same time pay attention to the small- and
medium-sized companies posessing modern technologies; to encourage and create
favorable conditions for overseas Vietnamese to invest in the country.
II. IMPLEMENTATION SOLUTIONS
1. To draw up lists of projects calling for FDI
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b/ The ministries and branches shall elaborate
and adjust the branch plannings and major products to suit the 2001-2010
socio-economic development strategy and 2001-2005 socio-economic development
plan; clearly determine the demand for capital from each source, including the
FDI capital, so as to achieve the targets and products already set forth in
their plans.
2. To continue perfecting the legal system,
mechanism and policies on FDI
a/ To continue studying the formulation,
adjustment and perfection of the legal system related to FDI, creating
favorable conditions for the FDI activities to develop strictly according to
the orientations of the socio-economic development strategy and meet the
requirements of the active integration into the world economy.
b/ To study, elaborate and finalize legal
documents on FDI along the following directions:
- Establishing a common legal framework
applicable to both domestic investment and FDI in order to create a stable and
equal environment for production and business; concurrently applying a number
of regulations on the conditions for investment and preferences suited to each
subject and domain in each period.
- Diversifying FDI forms in order to exploit
more channels for investment attraction; studying and experimenting such
investment forms as partnerships and capital management companies; amending and
supplementing the Government’s Decree No.103/1999/ND-CP of September 10, 1999
on the assignment, sale, contracting and lease of State enterprises along the
line of allowing foreign direct investors to purchase, contract, manage and
hire domestic enterprises; studying the model of open economic zone.
- Broadening the fields where FDI is attracted
to according to the commitments in the course of active integration into the
world economy. Step by step opening the real estate market for overseas
Vietnamese and foreign direct investors to invest in Vietnam; formulating a mechanism
whereby FDI enterprises may build and trade in dwelling houses as well as
build, trade in and develop new urban quarters; encouraging investment in the
fields of scientific, technological and information services, technological
transfer and human resource development; step by step expanding investment
cooperation in the fields of trade, service and tourism.
In 2001, it is necessary to perform the
following urgent tasks:
- Elaborating a project on broadening the fields
where FDI is attracted to on the basis of reviewing and assessing the fields
where FDI has been permitted on the experimental basis as well as the fields
where investment licensing is not allowed or restricted; adjusting the list of
products which must ensure the export percentage of at least 80%.
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- Elaborating a Regulation on the experimental
transformation of FDI enterprises into joint-stock companies and creating
conditions for them to be listed at the securities market. Studying the
amendment of specific provisions on time limit for negotiation on BOT projects
as well as the rules and competence to appoint foreign direct investors to
implement BOT projects in a number of necessary cases.
- Issuing the regulations on permitting foreign
direct investors to invest in import and domestic distribution services in the spirit
of the Government’s Decree No.24/2000/ND-CP of July 31, 2000. To shorten the
list of goods other than those purchased by FDI enterprises for export.
- Studying the supplement and amendment of the
Government’s Decree No.60/CP of July 5, 1994 on dwelling house ownership right
and residential land use right in urban areas and Decree No.61/CP of July 5,
1994 on the purchase, sale and trading of dwelling houses in accordance with
the provisions of the Civil Code and the Law Amending and Supplementing a Number
of Articles of the Land Law; promulgating the Government’s Decree specifying
the purchase of dwelling houses by overseas Vietnamese who have investment
projects and reside in Vietnam.
- Promulgating as soon as possible legal
documents guiding the implementation of policies and regulations on investment
cooperation with foreign countries in the domain of education and training as
well as scientific research under the Government’s Decree No.06/2000/ND-CP of
March 6, 2000 in order to further attract qualitative investment projects and
manage operations of investment projects in this domain.
c/ To continue with the roadmap of reducing
investment expenses and proceeding to the one- price regime, to be uniformly
applied to both domestic investment and FDI under the Prime Minister’s Decision
No.53/1999/QD-TTg of March 26, 1999.
In 2001, to uniformly apply the motorized
transport means registration fee, seaport charge, charge of advertisement on
the mass media and charge of visiting cultural, historical and revolutionary
relics.
To complete before June 2002 the reimbursement
to FDI enterprises of legal capital amounts they have actually invested in
building outside-fence power projects.
d/ To renew and improve monetary policies
related to the FDI activities along the direction of gradually reducing,
proceeding to the eradication of compulsory foreign exchange settlement when
conditions permit. To use flexibly and efficiently monetary instruments and
policies such as exchange rates and interest rates according to the market
principles under the State macro management.
e/ To continue reforming tax system in
conformity with the national socio-economic development situation and
international commitments along the direction of simplifying tax laws, step by
step applying a common tax system to both domestic investment and FDI. To
elaborate tax policies to encourage FDI in the production of accessories and
spare parts, raising the products’ localization percentage; to allow projects
on the production of auxiliary materials for export goods to enjoy preferences
like investment projects on the production of export goods. To effectively
protect a number of important products for an adequate period of time.
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f/ To promptly remove difficulties and problems
regarding land and ground clearance in order to step up the project
implementation tempo. To allow, on an experimental basis, individuals in the
country who have been granted long-term land use right, to sublease land to
foreign direct investors within their land use terms.
To seek ways to satisfy the demand of foreign
enterprises which invest in the implementation of big projects in Vietnam and
need to mortgage the value of the right to use land already assigned or leased
to them for a long term to borrow capital from credit institutions operating
overseas in cases where credit institutions in Vietnam are incapable of meeting
their capital demand.
In 2001, it is necessary to do the following
urgent things:
- To step up the tempo of compensation payment
and ground clearance, creating favorable conditions for the implementation of
FDI projects. The local People’s Committees shall resolutely organize the
forced ground clearance for cases where the State’s policies and regulations
have been properly applied but the concerned subjects still fail to execute
them.
- To issue legal documents guiding the granting
of land use right certificates to enterprises operating in industrial parks and
export processing zones.
- To issue legal documents guiding the handling
of responsibilities and obligations of joint-venture parties towards the land
contributed as capital to joint ventures in cases where the enterprises change
their investment forms, go bankrupt or dissolve ahead of time.
3. To raise the State management effectiveness
a/ The investment licensing bodies shall have to
regularly revise and classify the already licensed FDI projects so as to take
appropriate and timely measures to remove difficulties for FDI enterprises.
For enterprises having commenced their
production and business, the ministries, branches and provincial-level People’s
Committees should, within the ambit of their respective jurisdictions,
encourage, commend or reward them in time so that such enterprises may well
operate and continue develop, and at the same time, take appropriate measures
to remove difficulties for them, particularly those related to the product
consumption markets and tax obligations.
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Projects, which have not yet been deployed but
the implementation thereof is deemed feasible, must be implemented within given
periods of time and the obstacles must be removed, including the adjustment of
such projects’ objectives and operation scope.
For projects that have not yet been deployed but
the implementation thereof is impossible, the investment licenses must be
withdrawn to give place to other investors.
In the 3rd quarter of 2001, the Prime Minister
shall examine the initial results of the revision and handling of the already
licensed FDI projects.
b/ To closely control the establishment of new
IPs and evaluate the situation of setting up those IPs for which establishment
decisions have been issued; the Ministry of Planning and Investment shall, in
October 2001, submit to the Prime Minister a plan on terminating or
rescheduling the construction of unfeasible IPs.
In 2001, to amend and supplement the Regulation
on Industrial Parks, Export Processing Zones and Hi-Tech Parks, issued together
with the Government’s Decree No.36/CP of April 24, 1997 along the direction of
narrowing the gap between and proceeding to the unified mechanism and policies
for, domestic investment and FDI in IPs, adding new models of small IPs in
service of development of branches and trades in rural areas and urban
renovation, adjusting the mechanism and policies on investment in
infrastructure development inside and outside fences, and separating the lease
of natural land from infrastructure business.
c/ To further implement the policy on
decentralizing the State management over FDI to the provincial-level People’s
Committees on the basis of ensuring the principle of centralism and unified
management over the planning, structure, policies and mechanisms; to attach
importance to the decentralization of State management over the post-licensing
activities of the FDI projects; to enhance the guidance and inspection
activities of the ministries and centrally-run branches. To work out a
mechanism to severely handle violations of laws, policies and planning in the
implementation of the policy on decentralization of the State management over
the FDI; to invalidate the investment licenses granted not according to
regulations.
4. To improve the administrative procedures
To boost the administrative reform related to
the FDI activities. To study the elaboration of the one-door and
one-coordinator management mechanism and organize the management at the central
and local levels according to that mechanism in order to facilitate the FDI
activities.
In order to create substantial changes in the
administrative procedures, the following solutions should be applied in 2001:
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- Strongly improving the administrative
procedures related to FDI activities along the direction of further simplifying
the investment licensing, broadening the scope of projects to be registered for
investment licensing. Setting up inter-branch working team with the Ministry of
Planning and Investment assuming the prime responsibility for systematically
revising all kinds of licenses and regulations related to the FDI activities,
thereby suggesting the cancellation of licenses or regulations unnecessary for
the FDI activities.
- The ministries, branches and localities shall
clearly specify and publicize administrative procedures, simplify and reduce
unnecessary procedures; resolutely and strictly handle cases of harassment,
authoritarianism, negative acts and irresponsibility committed by public
employees.
5. To boost investment mobilization and
promotion
a/ To renew the contents and mode of investment
mobilization and promotion. To implement investment promotion programs
according to branches, domains and geographical areas with specific projects
and partners, focusing on foreign partners with great financial potentials and original
technologies. On the basis of the list of national projects calling for FDI, to
thoroughly prepare for a number of important investment projects, select and
directly invite a number of big consortiums in the concerned branches and
domains to negotiate and invest in such projects.
b/ To attach importance also to investment
promotion in order to attract new FDI projects and activities in support of
investors to effectively implement the underway FDI projects. To remove
difficulties and obstacles in time in order to facilitate operations of the FDI
enterprises. To commend or reward in time enterprises and foreign investors
with outstanding achievements in business and practical contributions to the
national construction. At the same time, to criticize and strictly handle cases
of breaching Vietnamese laws.
- To diversify investment promotion activities
through the Party’s and State’s external relation activities, international
forums and investment promotion cooperation activities within the AIA, ASEAN,
APEC and ASEM cooperation framework as well as the symposiums on investment at
home and abroad; to combine various investment promotion means such as mass
media, Internet, direct contact...
- To boost the propagation and introduction on
the FDI activities so as to create a new image on Vietnam; to formulate a
unified public assessment of the FDI.
- Vietnamese diplomatic and trade missions shall
have to well mobilize and promote investment in Vietnam, arrange personnel to
take charge of investment promotion in a number of key geographical areas. To
post more personnel for the work of investment promotion in the ministries,
branches and localities.
- To arrange financial sources for investment
promotion activities in the annual budget regular expenditures of the
ministries, branches and localities.
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- To elaborate and perfect the FDI information
system, which shall serve as basis for making policies and managing the FDI
activities, expanding the external propagation by using the modern information
technology. To establish and put into operation a website on FDI in service of
the provision of updated information on investment orientations, policies and
legislation, to introduce projects calling for investment and compliment on
successful projects...
6. The personnel and training work
To attach importance to the strengthening of
personnel work and training of cadres and technicians working in the
foreign-invested economic sector. In 2001, the following projects must be
finalized:
- Elaborating the Regulation on Vietnamese
officials participating in the Managing Boards and the management of
joint-venture enterprises, which clearly determine the political and professional
criteria for selection thereof; the responsibilities, obligations and interests
of officials working in the FDI enterprises.
- Organizing different forms of training for
officials involved in the FDI work and officials managing FDI enterprises;
organizing regular professional training and law dissemination for Vietnamese
officials working in the FDI enterprises.
- Organizing the training of skilled workers for
FDI enterprises, first of all in service of the big IPs.
III. ORGANIZATION OF
IMPLEMENTATION
1. The Ministry of Planning and Investment shall
assume the prime responsibility and coordinate with the Government Office in
acting as the prime agencies in monitoring, urging, inspecting, summing up and
periodically reporting the situation on implementation of this Resolution to
the Prime Minister according to the latter’s assignment.
In the course of implementation, if problem
arise, they must be promptly reported to the Prime Minister for direction.
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ON BEHALF OF THE GOVERNMENT
PRIME MINISTER
Phan Van Khai