GOVERNMENT ----- No. 386-TTg

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness **** Hanoi, 7 June 1997

  DECISION

On delegation of authority for issuance of investment
licenses to foreign direct investment projects
****

The Prime Minister

Pursuant to the Law on the Organization of the Government dated 30 September 1992;

Pursuant to the Law on Foreign Investment in Vietnam dated 12 November 1996;

Pursuant to Decree 12-CP dated 18 February 1997 of the Government providing detailed regulations on the implementation of the Law on Foreign Investment in Vietnam;

Following the proposal of the Minister of Planning and Investment;

DECIDES:

Article 1.

To delegate to the following people’s committees of provinces and cities under central authority (hereinafter referred to as "provincial people’s committees") authority to issue investment licences to foreign direct investment projects in accordance with the Law on Foreign Investment in Vietnam dated 12 November 1996:

1. People’s Committee of Hanoi City.
2. People’s Committee of Ho Chi Minh City.
3. People’s Committee of Hai Phong City.
4. People’s Committee of Da Nang City.
5. People’s Committee of Ba Ria-Vung Tau Province.
6. People’s Committee of Dong Nai Province.
7. People’s Committee of Binh Duong Province.
8. People’s Committee of Quang Ninh Province.

Article 2.

Provincial people’s committees referred to in article 1 of this Decision shall be responsible for receipt and evaluation of project files and issuance of investment licences to foreign direct investment projects located within their respective localities as provided for in article 3 of this Decision.

Article 3.

Foreign direct investment projects to which provincial people’s committees shall issue investment licences must satisfy the following conditions:

1. Being in conformity with approved plans for development of economic-technical branches or approved plans or socio-economic development planning for the respective localities.
2. Having invested capital up to ten (10) million United States dollars in respect of investment projects located in Hanoi City or Ho Chi Minh City, and five million United States dollars in respect of investment projects located in other cities and provinces, except for the projects provided for in article 4 of this Decision.
3. Having a ratio of products for export in accordance with the provisions made by the Ministry of Planning and Investment in each period.
4. Being able to satisfy the foreign currency requirements of enterprises with foreign owned capital or foreign parties to business co-operation contracts.
5. Equipment, machinery and technology must satisfy the provisions currently in force; where they fail to satisfy those provisions, the written approval of the State authority in charge of the respective economic-technical branches shall be required prior to issuance of investment licences.
6. Satisfying requirements in relation to environmental protection, occupational safety and fire and explosion fighting and protection.

Article 4.

Provincial people’s committees shall not be authorized to issue investment licences to the following projects:

1. Group A projects as provided for in article 93 of Decree 12-CP dated 18 December 1997 of the Government providing detailed regulations on the implementation of the Law on Foreign Investment in Vietnam.
2. Projects in the following fields:

• Petroleum exploration and exploitation and provision of petroleum services.
• Electricity generation.
• Construction of sea ports, airports, national roads or railways.
• Cement, metallurgy, manufacture of sugar, alcohol, beer and cigarettes.

    3. Projects located in industrial zones, export processing zones and high-tech zones.

Article 5.

1. Files for investment projects shall be prepared in accordance with the guidelines provided by the Ministry of Planning and Investment.

2. Evaluation of projects shall be carried out in accordance with articles 83, 92, 94, 96 and 100 of Decree 12-CP dated 18 December 1997 of the Government providing detailed regulations on the implementation of the Law on Foreign Investment in Vietnam.

Provincial people’s committees shall have the responsibility of requesting the recommendations of ministries and branches in relation to issues which fall within the powers of the respective ministries and branches and are not subject to any specific provision.

Ministries and branches which are requested for their recommendations in relation to a project, including cases of addition and amendment, shall have the responsibility of responding in writing within seven days from the date of receipt of the written request of the provincial people’s committee; any ministry or branch failing to respond in writing to the request within such time-limit shall be deemed to have given its consent to the project.

3. Investment licence forms shall be prepared in accordance with the standard form of the Ministry of Planning and Investment.

Within a time-limit of seven days from the date of issuance of the investment licence, provincial people’s committees shall forward an original copy of the investment licence to the Ministry of Planning and Investment and other copies to the Office of Government, the Ministry of Finance, the Ministry of Trade and the ministry in charge of the economic-technical branch.

Article 6.

Provincial people’s committees shall carry out additions to and amendments of investment licences of projects in respect of which they are delegated with authority to issue investment licences.

In cases where a project shall exceed the delegated power as a result of the addition to or amendment of the investment licence, the written approval of the Ministry of Planning and Investment shall be required prior to the addition or amendment being made.

Article 7.

On a quarterly, six-monthly and annual basis, provincial people’s committees shall prepare and submit a report on issuance of investment licences and on additions to and amendments of investment licences to the Office of the Government and the Ministry of Planning and Investment.

Article 8.

The Ministry of Planning and Investment shall, on the basis of practical circumstances, request the Prime Minister of the Government to adjust the conditions for delegation and add to the list of cities and provinces under central authority which are delegated authority to issue investment licences.

Article 9.

This Decision shall be of full force and effect as of 1 July 1997.

Ministers, heads of ministerial equivalent bodies and Government bodies, and chairmen of the above provinces and cities under central authority shall be responsible for the implementation of this Decision.