Circular No. 03/2008/TT-BNG guiding the implementation of the Regulation on managing investment construction projects of Vietnamese representative agencies abroad and other Vietnamese agencies abroad.

CIRCULAR

Guidelines for Implementing the Regulation on Managing Investment Construction Projects of Vietnamese Representative Offices Abroad and Other Vietnamese Agencies Abroad

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Pursuant to Decision No. 02/2008/QĐ-TTg dated January 7, 2008 of the Prime Minister on the issuance of the Regulation on Managing Investment Construction Projects of Vietnamese Representative Offices Abroad and Other Vietnamese Agencies Abroad;

Pursuant to Decree No. 15/2008/CP-NĐ dated February 4, 2008 stipulating the functions, tasks, powers, and organizational structure of the Ministry of Foreign Affairs;

The Ministry of Foreign Affairs provides guidance on certain points regarding the management of investment construction projects of Vietnamese representative offices abroad and other Vietnamese agencies abroad (hereinafter referred to collectively as Vietnamese agencies abroad) as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The regulated subjects under Clause 2, Article 1 of the Regulation are guided as follows:

Investment construction projects of Vietnamese agencies abroad using state budget funds or funds with a state budget origin include:

1.1. New investment construction projects; renovation and upgrading of existing facilities.

1.2. Investment projects for purchasing houses, land for building office premises and housing for staff.

1.3. Projects for purchasing land and houses combined with construction, renovation, and upgrading.

2. Management principles under Clause 1, Article 2 of the Regulation are guided as follows:

2.1. Investment construction projects of Vietnamese agencies abroad shall be managed according to certain provisions of Vietnamese law that are suitable to the specific nature of the project and the laws of the host country. In cases where there are different regulations concerning the same issue, the regulation of the host country's law shall be implemented.

2.2. For investment projects of other Vietnamese agencies abroad, before making an investment decision, a written opinion from the Ministry of Foreign Affairs on the investment policy must be obtained. Based on long-term and medium-term plans approved by the Prime Minister and the actual situation of investment construction activities of Vietnamese agencies abroad, the Ministry of Foreign Affairs will provide opinions on the investment policies for investment projects of other Vietnamese agencies abroad. The project investment dossier shall be prepared according to the content of Appendix 01 of this Circular.

II. SPECIFIC PROVISIONS

1. Project owner, duties and powers of the project owner as stipulated in Clause 3, Article 3 of the Regulation are guided as follows:

1.1. Project owner: Is the Vietnamese agency abroad entrusted with the direct responsibility for managing and utilizing funds to implement the project and managing and using the facility after completion of the investment.

In cases where the Vietnamese agency abroad does not have the necessary conditions to perform the project owner's work, the ministry or sector managing the Vietnamese agency abroad shall undertake the project owner's task. The project owner shall include staff directly working at the Vietnamese agency abroad to carry out project owner's work abroad and manage the construction work of the facility.

1.2. In cases where the project owner is located abroad, the ministry or sector managing the Vietnamese agency abroad may establish an organization to represent the project owner to perform project owner's work within the country.

1.3. The project owner has duties and powers as prescribed by Vietnamese law, while also complying with regulations of the host country from the project preparation stage, implementation stage, and acceptance handover stage for operation. The project owner shall be responsible for matters within their duties and powers as prescribed by Vietnamese law and the host country's law.

2. Preparation of investment plan as stipulated in Article 4 of the Regulation is guided as follows:

2.1. Long-term and medium-term investment plan:

2.1.1. Based on strategic orientation and long-term plans for international cooperation of the State, the Ministry of Foreign Affairs and relevant ministries and sectors shall prepare long-term and medium-term (five-year) plans for investment construction of office premises of Vietnamese agencies abroad.

2.1.2. Long-term and medium-term investment plans for constructing office premises of Vietnamese agencies abroad are divided into two types:

- Office premises of Vietnamese agencies abroad managed by ministries and sectors for investment.

- Office premises of other Vietnamese agencies abroad but are part of the Vietnamese representative office abroad managed by the Ministry of Foreign Affairs for investment.

2.1.3. The Ministry of Foreign Affairs:

- Prepares long-term and medium-term plans for investment construction of office premises of Vietnamese representative offices abroad, including office premises of other Vietnamese agencies abroad but are part of the Vietnamese representative office abroad managed by the Ministry of Foreign Affairs for investment.

- Compiles long-term and medium-term plans for investment construction of office premises of Vietnamese agencies abroad, including office premises of Vietnamese representative offices abroad managed by the Ministry of Foreign Affairs for investment and office premises of other Vietnamese agencies abroad managed by ministries and sectors for investment; seeks comments from the Ministry of Planning and Investment and the Ministry of Finance; submits to the Prime Minister for approval.

2.2. Annual investment plan:

2.2.1. Based on long-term and medium-term plans for investment construction of office premises of Vietnamese agencies abroad approved by the Prime Minister, ministries and sectors with projects under their investment management authority shall prepare annual investment plans according to current regulations on preparing investment plans for projects funded by the state budget; send copies to the Ministry of Foreign Affairs for consolidation and monitoring.

2.2.2. After receiving the state budget allocation decision from the Prime Minister, ministries and sectors allocate detailed funds for each project that has completed investment procedures, send to the Ministry of Foreign Affairs, the Ministry of Planning and Investment for monitoring; send to the Ministry of Finance for payment.

2.2.3. Projects included in the annual plan must have completed all required investment procedures as stipulated. Necessary investment procedures can be completed during the planning year, not necessarily approved before October 31 of the previous year.

2.3. For projects that need to be invested immediately in the planning year but are not listed in the investment construction plan for Vietnamese agencies abroad up to 2015 approved by the Prime Minister, ministries and sectors should seek opinions from related ministries and sectors, complete necessary investment procedures, submit to the Prime Minister for consideration and decision. Then proceed with investment procedures as outlined above.

3. Preparation, review, and approval of investment projects.

3.1. The preparation of projects as prescribed in Clause 1, Article 5 of the Implementation Regulation shall be carried out as follows:

- Project investment dossier for each type of project:

+ For new construction, renovation, and upgrading projects of existing facilities: including both the explanatory section and the basic design section.

+ For house purchase and land purchase projects: only including the explanatory section.

+ For projects combining land and house purchase with construction, renovation, and upgrading: including both the explanatory section and the basic design section for the construction, renovation, and upgrading parts.

Investment projects must ensure the main requirements for project preparation, design... as stipulated in relevant legal documents.

The investor may carry out the project preparation themselves or hire consulting organizations to prepare the project. The investor bears responsibility for the legality and quality of the investment project.

3.2. The examination and approval of projects as prescribed in Clause 2, Article 5 of the Implementation Regulation shall be carried out as follows:

- Projects with total investment capital (converted to foreign currency) of 10 million USD or more: the ministries and sectors responsible for the projects shall conduct the examination and submit to the Prime Minister for investment decision.

- Projects with total investment capital (converted to foreign currency) below 10 million USD: the ministries and sectors responsible for the projects shall organize the examination and make the investment decision.

- For house and land purchase investment projects, the project approval shall be conducted after reaching a principle agreement with the competent authority of the host country regarding the sale and purchase of houses and lands and the proposed sale and purchase prices between the investor and the seller; the provisional total investment amount will be based on the proposed price and officially approved based on the actual sale and purchase price stated in the formal contract signed between the investor and the seller. The investor can only sign a house and land purchase contract once the investment project has been approved by the authorized person.

- The investor is responsible for organizing the preparation and submission of the project dossier to the lead examination unit. The lead examination unit is a specialized unit under the investment decision maker. The lead examination unit organizes the examination before submitting to the authorized person for project approval.

- The dossier for examination of the project includes:

+ The application for project examination according to the model at Appendix 2 of this Circular.

+ The investment project.

+ Relevant domestic and foreign legal documents.

- The lead examination unit is responsible for receiving the project dossier from the investor and sending it to related agencies for consultation (if necessary).

- The lead examination unit shall comply with current construction laws. Then, it compiles the opinions of related agencies (if necessary), comments, evaluates, advises, and submits to the investment decision maker for project approval.

- The dossier for project approval includes:

+ The application for project approval according to the model at Appendix 3 of this Circular.

+ The dossier submitted by the investor for project examination.

+ Relevant legal documents participating in the examination of the project (if any).

4. Design work, budget estimation, and application for construction permit:

4.1. The design work as prescribed in Clause 1, Article 6 of the Implementation Regulation shall be carried out as follows:

- New construction and renovation/upgrading projects with total investment capital (converted to foreign currency) of 10 million USD or more must have three stages of design, including: basic design, technical design, and construction drawing design.

- New construction and renovation/upgrading projects with total investment capital (converted to US dollars) below 10 million USD must have two stages of design, including: basic design and construction drawing design.

- House and land purchase projects: no design stage but must include floor plan documents and drawings.

- Projects combining land and house purchase with construction, renovation, and upgrading: the construction and upgrading part must be designed in one, two, or three stages depending on the value of the renovation.

Construction design must comply with national construction standards and technical standards issued by the State, except where local construction standards and technical standards must be applied.

Consulting organizations for construction design (including those in Vietnam) must supervise the author throughout the construction process.

4.2. Budget estimation as prescribed in Clause 2, Article 6 of the Implementation Regulation shall be carried out as follows:

- Preparation, approval, and management of the budget estimate and total budget estimate: The investor shall organize implementation in accordance with legal regulations on construction project cost management, while also complying with the regulations of the host country, and submit to the competent authority for approval. Specifically, the budget estimate norms and unit prices must be based on the regulations and specific characteristics of the host country.

- For real estate purchase projects: there is no need to prepare a budget estimate and total budget estimate; management shall be based on the approved total investment amount and the signed house and land purchase contract.

4.3. Examination and approval of construction design and total budget estimate:

- The investor hires consulting organizations to examine the construction design and total budget estimate according to the regulations of the host country with the project, submits the project dossier to the lead unit for consolidation and submission to related agencies for opinion (if necessary). The lead unit provides comments, evaluations, recommendations, and submits to the authorized person for investment decision for approval of the construction design and total budget estimate.

- If conditions for examination in the host country are not available, the investor sends the design and total budget estimate to the lead unit. The lead unit conducts the design examination. In cases where the host country does not have a budget estimate examination agency, the investor must bear responsibility for the accuracy of the total budget estimate. The lead unit consolidates and submits to related agencies for opinion (if necessary), recommends, and submits to the authorized person for investment decision for approval of the construction design and total budget estimate.

- The dossier for examination of construction design and total budget estimate (if the host country has a design and budget estimate examination unit) includes:

+ The application for examination of construction design and total budget estimate according to the model at Appendix 4 of this Circular.

+ The construction design dossier and total budget estimate dossier of the project and the examination results.

+ Relevant domestic and foreign legal documents.

- The dossier for approval of construction design and total budget estimate includes:

+ The dossier for examination of construction design and total budget estimate (if the host country has a design and budget estimate examination unit).

+ The application for approval of the construction design and total budget estimate according to the model attached as Appendix No. 5 of this Circular.

+ Any participating comments from relevant authorities concerning the construction design and total budget estimate (if any).

- Based on the application for approval of the construction design and total budget estimate submitted by the lead unit, the authorized investment decision-maker shall decide to approve the construction design and total budget estimate according to the model attached as Appendix No. 6 of this Circular.

4.4. The construction permit is regulated in Clause 3, Article 6 of the Implementation Regulation as follows:

The investor is responsible for handling matters related to applying for a construction permit, fire safety permits, labor safety permits, environmental hygiene permits, and other necessary permits in accordance with the regulations of the host country where the project is located.

4.5. Handling issues arising during the construction process is regulated in Clause 4, Article 6 of the Implementation Regulation as follows:

During the construction process, if there is a need to modify the design or budget estimate without changing the scale and approved total budget of the project, the investor shall consider and decide, and bear responsibility for their decision. In cases where changes to the design or budget estimate result in alterations to the scale, objectives, and exceed the approved total investment amount of the project, the investor must report to the investment decision-maker for a decision.

5. Project insurance:

The investor shall handle matters related to purchasing insurance for the project in accordance with the regulations of the host country where the project is located.

6. Selection of design and construction contractors as stipulated in Article 7 of the Regulation is guided as follows:

The investor shall organize the selection of contractors based on their capacity, experience, competitive pricing, and appropriate legal status in accordance with the laws of the host country where the project is located. The investor shall ensure the evaluation process selects the contractor best suited to meet the project requirements, and submit it for approval by the competent authority.

7. Construction implementation as stipulated in Article 8 of the Regulation is guided as follows:

a) The investor must comply with all regulations regarding construction implementation. Construction management includes: construction quality management (construction survey, design quality, construction quality, warranty and maintenance of construction projects);

b) The investor shall select a suitable construction management approach based on the scale of the project and their own capacity. The investor may directly manage construction work. If the investor lacks the capacity for construction management, they may enter into a contract to hire a third party to manage all or part of the construction work.

c) Organizations and individuals hired by the investor to provide project management consulting services, construction supervision, and legal advice must have valid permits in accordance with the regulations of the host country where the project is located. The investor is responsible for the quality and progress of contracts signed with consulting units.

8. Payment and final settlement of investment capital as stipulated in Article 9 of the Regulation is guided as follows:

Follow the guidance of the Ministry of Finance.

9. Responsibilities of relevant agencies as stipulated in Article 10 of the Regulation are guided as follows:

9.1. Ministries and sectors shall manage projects of Vietnamese agencies abroad within their jurisdiction as prescribed by this Regulation and relevant laws; carry out monitoring, inspection, consolidation, and guide investors under their management to implement projects in compliance with regulations.

9.2. Annually, ministries and sectors shall report the results of investment construction projects of other Vietnamese agencies abroad to the Ministry of Planning and Investment and the Ministry of Finance for consolidation and reporting to the Prime Minister.

III. IMPLEMENTATION

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. During implementation, if any difficulties arise, please reflect them to the Ministry of Foreign Affairs for guidance, amendment, and supplementation as appropriate./.