MINISTRY OF PLANNING AND INVESTMENT *** No. 03/BKH-QLDA

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness *** Dated March 15th, 1997

CIRCULAR

Guiding procedures on the implementation of
foreign-invested projects in Vietnam
*****

This Circular replaces Articles on guiding the implementation of foreign-invested projects under Circular No.215/UB-LXT dated February 8, 1995.

The Circular mentions :

1. Procedures to set up and realize joint venture projects; wholly foreign own projects; business cooperation contracts; and projects in industrial zones, export processing zones.

After appointed, general director; of joint ventures, wholly foreign capital enterprises and parties in business cooperation contracts implement the following administrative procedures:

1. Establishment announcement in line with Article 32 of Decree No.12/CP dated February 18, 1997 of the Government on detailed guidance to implement the Law on Foreign Investment in Vietnam;
2. To register businesses head offices;
3. To cut and register their seal in police departments of provinces or central cities where their head office; located;
4. To open accounts in banks, register accounting systems to be applied with the Ministry of Finance;
5. To register employment plan; with local employment management agencies,...

2. Investment license amendment includes:

• to change partner, transfer capital;
• to change investment form;
• to amend operation objectives;
• to open branches;
• to adjust capital (including the increase of reduction of investment capital, legal capital; capital structure and legal capital contribution mode adjustment, ...);
• other amendment, adjustment such as duration, tax payable, land rental, product consumption, equipment and machinery conditions (brand-new, second-hand),.. Investors must submit to the license issuance agencies all amendment and adjustment of investment licenses, ...

3. Repair, statistics and inspection systems in foreign invested enterprises: Foreign invested enterprises and parties in business co-operation contract; must submit annual financial report; to the Ministries of Finance, Planning and Investment, statistic; department, of provinces (central cities); statistics reports to statistics department, of provinces (central cities), the Ministry of Planning and Investment and investment license issuing agencies; comply report. statistics systems in line with regulations of the General Department of Statistics and the Ministry of Planning and Investment. Regarding enterprises in industrial zones, export processing zones, they must submit statistic, reports to industrial zones and export processing zones management units in addition to the submission to the above said agencies...

4. Non compensated transfer and business liquidation, disband: the non compensated transfer for foreign partners as the contracts come to due is complied with investment contract s and licenses. The properties transferring must in good conditions and be state owned ones. At least 6 months after the operation ended, Vietnamese partners in joint ventures and investors of wholly foreign capital enterprises must report the Ministry of Finance and announce the license issuing agencies on the non compensated property transfer of foreign partners...