Decree No. 132/2024/ND-CP on Foreign Investment in Oil and Gas Activities

DECREE

Regulations on foreign investment in oil and gas activities

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Pursuant to the Government Organization Law dated June 19, 2015;the Law Amending and Supplementing Certain Provisions of the Government Organization Law and the Local Administration Organization Law dated November 22, 2019;

Pursuant to the Investment Law dated June 17, 2020;

Pursuant to the Law on Management and Use of State Capital for Investment in Business Operations dated November 26, 2014;

Pursuant to the Law on Enterprises dated June 17, 2020;

At the proposal of the Minister of Industry and Trade;

the Government issues this Decree to regulate foreign investment in oil and gas activities."b) In addition to the lists of public services issued according to the provisions of Clause 2, Article 4 of this Decree, specialized agencies under provincial People's Committees shall report to the provincial People's Committee for decision-making on amending, supplementing, or issuing the list of public services funded by the state budget within their jurisdiction and consistent with the local budget capacity within the approved budget by the Provincial People's Assembly, and send it to the Ministry of Finance and relevant ministries and sectors for supervision during implementation.". 

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

Article 1. This Decree regulates foreign investment in accordance with the forms prescribed in Points a, b, c, and đ of Clause 1, Article 52 of the Investment Law for participating in oil and gas activities and oil and gas projects abroad (hereinafter referred to as foreign investment in oil and gas activities).

Article 2. Foreign investment in the form of capital contribution, share purchase, or acquisition of equity interest in economic organizations abroad to implement oil and gas activities in Vietnam shall be carried out in accordance with the provisions of Decree No. 31/2021/NĐ-CP dated March 26, 2021 of the Government detailing and guiding the implementation of certain articles of the Investment Law (hereinafter referred to as Decree No. 31/2021/NĐ-CP).

Article 2. Applicability

This Decree applies to investors, agencies, organizations, and individuals related to foreign investment in oil and gas activities.

Article 3. Explanation of Terms

In this Decree, the following terms are understood as follows:

Point 1. Oil and gas project is an investment project formed from one or more oil and gas contracts or licenses to carry out oil and gas activities abroad.

Point 2. License or equivalent document is a document issued by the host country to the investor or legal entity established by the investor under the laws to carry out oil and gas activities abroad.

Point 3. Oil and gas activities abroad include exploration, development, production, decommissioning of oil and gas facilities, and other related activities carried out abroad according to the laws of the host country, oil and gas contracts, or licenses.

Point 4. Oil and gas contract is a written agreement concluded between the representative of the owner of oil and gas resources and the investor or legal entity established by the investor under the laws of the host country to carry out oil and gas activities abroad.

Point 5. Investor's profit is the portion received by the investor after deducting all expenses, fees, and taxes stipulated in the oil and gas contract and the laws of the host country.

Article 4. Capital for foreign investment in oil and gas activities

Clause 1. Sources of capital for foreign investment in oil and gas activities include lawful money and assets of the investor, including equity capital, loans transferred abroad from Vietnam, recovery costs, profits, and other shares distributed from oil and gas projects abroad retained for foreign investment.

Clause 2. Lawful money and assets as prescribed in Clause 1 above include:

Point a. Foreign currency on accounts at authorized credit institutions or purchased from authorized credit institutions in accordance with the law;

Point b. Vietnamese dong in compliance with the law on foreign exchange management of Vietnam;

Point c. Machinery, equipment, materials, raw materials, fuel, finished goods, semi-finished goods;

Point d. Value of intellectual property rights, technology, brands, rights to assets;

Point đ. Shares, equity interests, or projects of the investor exchanged at economic organizations in Vietnam and abroad in accordance with Clause 4 below;

Point e. Other lawful assets as prescribed by civil law.

Clause 3. Capital for foreign investment is used to contribute capital, pay for share purchases, equity interests, fulfill any guarantee obligations arising (if any), and other financial obligations of the investor as prescribed by the laws of the host country, oil and gas contracts, licenses, and related agreements to carry out oil and gas activities and projects abroad from the formation of the project until its completion and fulfillment of all obligations as prescribed. Capital already transferred abroad, when recovered and repatriated, is not counted as capital transferred abroad.

Clause 4. Vietnamese investors may use their shares, equity interests, or investment projects in Vietnam to settle or exchange for the purchase of shares, equity interests, or oil and gas projects of economic organizations abroad. In this case, the Vietnamese investor must first complete the procedures for registering foreign investment, followed by the foreign investor completing the investment procedures in Vietnam in accordance with the law.

Article 5. Foreign investment by economic organizations with foreign invested capital in Vietnam

Foreign investment by economic organizations with foreign invested capital in Vietnam shall be implemented in accordance with the provisions of Article 70 of Decree No. 31/2021/NĐ-CP.

Article 6. Documents to determine the location for implementing overseas oil and gas projects

1. Overseas oil and gas projects must have documents to determine the location for implementation.

2. Documents to determine the location for implementing overseas oil and gas projects include one of the following types of documents, which contain information on the location:

a) Permit or equivalent document of the host country;

b) Oil and gas contract or investment agreement with foreign partners or document agreeing to the transfer of rights to participate or partial or full transfer of equity contribution of the economic organization conducting overseas oil and gas activities;

c) Land lease contract or decision on land allocation or lease issued by competent authorities in the host country;

d) Notification of winning bid to participate in overseas oil and gas projects or equivalent document of the host country.

Article 7. Documents to determine the form of foreign investment; language used in foreign investment documents in oil and gas activities; acceptance of documents and processing procedures related to foreign investment in oil and gas activities; handling of forged documents

1. Documents to determine the form of foreign investment shall be carried out in accordance with the provisions of Article 74 of Decree No. 31/2021/NĐ-CP.

2. Language used in foreign investment documents in oil and gas activities shall be carried out in accordance with the provisions of Article 5 of Decree No. 31/2021/NĐ-CP.

3. Acceptance of documents and processing procedures related to foreign investment in oil and gas activities shall be carried out in accordance with the provisions of Article 6 of Decree No. 31/2021/NĐ-CP.

4. Handling of forged documents shall be carried out in accordance with the provisions of Article 7 of Decree No. 31/2021/NĐ-CP.

Chapter II

PROCEDURES FOR ISSUING AND AMENDING INVESTMENT REGISTRATION CERTIFICATE

FOREIGN INVESTMENT REGISTRATION

Article 8. Documents, procedures, and processes for issuing investment registration certificates for overseas oil and gas projects requiring approval of the investment proposal

1. Documents for issuing investment registration certificates for overseas oil and gas projects requiring approval of the investment proposal include the following documents:

a) Documents as stipulated in points a, b, c, d, đ, e of Clause 1, Article 57 of the Investment Law;

b) For the documents stipulated in point c of Clause 1, Article 57 of the Investment Law, investors must fully assess technical, economic, and environmental risks at the host country and other risks appropriate to the nature of the project or phases of overseas oil and gas projects;

c) For the documents stipulated in point đ of Clause 1, Article 57 of the Investment Law, if the investor submits a commitment letter to balance foreign currency sources, they must also submit a confirmation letter from a credit institution regarding the foreign currency account balance of the investor;

d) Document from tax authorities confirming the investor's compliance with tax obligations as stipulated in Clause 5, Article 60 of the Investment Law;

đ) Documents to determine the location for implementing overseas oil and gas projects as stipulated in Article 6 of this Decree;

e) Documents to determine the form of foreign investment as stipulated in Clause 1, Article 7 of this Decree;

g) Report on lending to overseas economic organizations to implement overseas oil and gas activities (if applicable), including: name of borrower; total loan amount; purpose and conditions of the loan; disbursement plan; debt recovery plan; asset guarantee measures and asset guarantee disposal methods (if applicable); foreign currency source balancing plan for the loan; financial capability assessment of the borrower; risk level and anticipated risk prevention measures for the loan;

h) Documents to determine the performance of guarantee obligations arising from overseas oil and gas projects where the investor guarantees loans for overseas economic organizations to implement the project;

i) Other relevant documents.

2. Procedures and processes for issuing investment registration certificates for overseas oil and gas projects requiring approval of the investment proposal shall be carried out in accordance with the provisions of Article 76 of Decree No. 31/2021/NĐ-CP.

Article 9. Documents, procedures, and formalities for adjusting the certificate of investment registration for foreign investment in oil and gas projects requiring approval of the investment orientation

1. The documents for adjusting the certificate of investment registration for foreign investment in oil and gas projects requiring approval of the investment orientation shall be implemented in accordance with Clause 1 of Article 77 of Decree No. 31/2021/NĐ-CP and Point b of Clause 1 of Article 8 of this Decree.

2. The procedures and formalities for adjusting the certificate of investment registration for foreign investment in oil and gas projects requiring approval of the investment orientation shall be implemented in accordance with Clauses 2 and 3 of Article 77 of Decree No. 31/2021/NĐ-CP.

Article 10. Documents, procedures, and formalities for issuing the certificate of investment registration for foreign investment in oil and gas projects not requiring approval of the investment orientation

The documents, procedures, and formalities for issuing the certificate of investment registration for foreign investment in oil and gas projects not requiring approval of the investment orientation shall be implemented in accordance with Article 78 of Decree No. 31/2021/NĐ-CP.

Article 11. Documents, procedures, and formalities for adjusting the certificate of investment registration for foreign investment in oil and gas projects not requiring approval of the investment orientation

The documents, procedures, and formalities for adjusting the certificate of investment registration for foreign investment in oil and gas projects not requiring approval of the investment orientation shall be implemented in accordance with Article 79 of Decree No. 31/2021/NĐ-CP.

Chapter III

IMPLEMENTATION OF OIL AND GAS PROJECTS

Article 12. Establishment of Management Companies

1. To implement activities to form oil and gas projects abroad or to implement oil and gas projects abroad, investors are permitted to establish or participate in establishing management companies in Vietnam, in the host country, or in a third country in accordance with the laws of the host country and oil and gas contracts.

2. In cases where the investor decides to establish a management company to act on behalf of the investor to participate in or implement oil and gas projects abroad, both the management company and the investor will be recorded in the certificate of investment registration for foreign investment. The management company may use the certificate of investment registration for foreign investment to serve activities related to implementing oil and gas projects.

3. Investors may use a management company to manage and operate one or more oil and gas projects abroad in compliance with the regulations of the host country. Costs for each oil and gas project must be allocated and accounted for independently.

Article 13. Transfer of Investment Capital Abroad

1. Investors are allowed to transfer investment capital abroad to carry out oil and gas activities abroad in accordance with Article 66 of the Investment Law.

2. Investors are allowed to transfer foreign currency, goods, machinery, and equipment abroad before obtaining the certificate of investment registration for foreign investment to meet costs for forming oil and gas projects abroad, including:

a) Market research and investment opportunities;

b) On-site surveys;

c) Document studies;

d) Collecting and purchasing materials and information related to project selection;

đ) Summarizing, evaluating, and appraising, including selecting and hiring experts and consultants to access, evaluate, and appraise projects;

e) Organizing scientific seminars and conferences;

g) Establishing and operating overseas liaison offices related to project formation;

h) Negotiating contracts;

i) Purchasing or leasing assets and services supporting project formation;

k) Participating in international bidding, placing deposits, providing guarantees, or other financial assurances, paying fees and charges as required by the tenderer or the host country related to bidding conditions and project implementation conditions;

l) Participating in mergers and acquisitions, placing deposits, providing guarantees, or other financial assurances, paying fees and charges as required by the seller or according to the laws of the host country.

3. The limit for transferring foreign currency under Points a, b, c, d, đ, e, g, h, and i of Clause 2 of this Article shall not exceed US$500,000; the limit for transferring foreign currency under Points k and l of Clause 2 of this Article shall not exceed US$2 million. In cases where the investor is a state-owned enterprise, transactions exceeding the limits specified in this clause shall be decided by the board of members or the board of directors of the company after receiving opinions from the State Capital Management Agency within 15 days from the date of receipt of the investor's request for opinion and notifying the State Bank of Vietnam for monitoring within its authority. In cases where the investor is not a state-owned enterprise, transactions exceeding the limits specified in this clause shall be decided by the investor and notified to the State Bank of Vietnam for monitoring within its authority.

4. Investors are responsible under the law for the amount of foreign currency transferred abroad to implement the contents stipulated in Clause 2 of this Article, ensuring proper use based on presenting all valid documents and certificates in accordance with the regulations of authorized credit institutions when transferring foreign currency abroad; they are responsible under the law for the authenticity of the documents and certificates presented to authorized credit institutions.

5. The amount of foreign currency transferred abroad to implement the contents stipulated in Clause 2 of this Article shall be included in the total foreign investment capital.

6. The transfer of foreign currency abroad before obtaining the certificate of investment registration for foreign investment and after obtaining the certificate of investment registration for foreign investment shall be carried out in accordance with the laws on foreign exchange management and the provisions of this Decree.

Article 14. Principles for transferring foreign currency abroad before issuing a certificate of investment registration abroad

1. The amount of foreign currency transferred abroad before issuing a certificate of investment registration abroad must be conducted through a pre-investment foreign currency account at a permitted credit institution in Vietnam. All transactions related to the transfer of foreign currency abroad before obtaining a certificate of investment registration abroad must be carried out through this account.

2. When conducting transactions to transfer foreign currency abroad before issuing a certificate of investment registration abroad for investors, permitted credit institutions have the responsibility to request investors to provide appropriate documentation, records, and certificates for review, inspection, retention, and to ensure that the transfer of foreign currency abroad before obtaining a certificate of investment registration abroad complies with the costs for preparatory activities of the investor as stipulated by the Investment Law and this Decree; report to the State Bank of Vietnam on the foreign currency transfer transactions of the investor through the pre-investment foreign currency account opened at a permitted credit institution.

3. After the oil and gas project has been issued a certificate of investment registration abroad, the aforementioned pre-investment foreign currency account shall be used as an investment capital account and must be registered with the State Bank of Vietnam in accordance with the provisions of the law.

Article 15. Documents, procedures, and formalities for registering foreign exchange transactions related to overseas investment in oil and gas activities after obtaining a certificate of investment registration abroad

1. The documents for registering foreign exchange transactions include:

a) A foreign exchange transaction registration form according to Form No. 01 attached to this Decree;

b) A certified copy or a copy accompanied by the original for verification of the investment permit or certificate of investment abroad or certificate of investment registration abroad. In cases where the investor submits a copy accompanied by the original for verification, the verifier is responsible for confirming the accuracy of the copy compared to the original;

c) A foreign language copy, Vietnamese translation (with confirmation from the investor regarding the accuracy of the copy and translation) of the approval or investment permit document issued by the competent authority of the receiving country or evidence proving the right to conduct investment activities in the receiving country in accordance with the regulations of the receiving country;

d) The original document confirming by a permitted credit institution about the opening of the investor's investment capital account, specifying the account number and type of foreign currency;

đ) The original document confirming by a permitted credit institution about the amount of foreign currency the investor has transferred abroad before obtaining a certificate of investment registration abroad in cases where the investor has transferred investment capital abroad before obtaining a certificate of investment registration abroad;

e) An explanatory document regarding the need to transfer investment capital abroad in Vietnamese currency in cases where investment capital is transferred abroad in Vietnamese currency.

2. Procedures for registering foreign exchange transactions with the State Bank of Vietnam

a) Investors submit one set of foreign exchange transaction registration documents (sent directly, sent via postal service, or submitted electronically) in accordance with Clause 1 of this Article to the State Bank of Vietnam;

b) In cases where the documents are incomplete, within five working days from the date of receipt of the documents, the State Bank of Vietnam will issue a document requesting the investor to supplement the documents;

c) Within ten working days from the date of receiving all documents, the State Bank of Vietnam confirms or refuses to confirm the registration of the transaction. In cases where the foreign exchange transaction is refused, the State Bank of Vietnam must specify the reasons in writing and send them to the investor.

Article 16. Registration or notification when changing foreign exchange transactions related to foreign investment in oil and gas activities after being issued with a certificate of registration for foreign investment adjustment

1. Investors shall be responsible for registering changes in foreign exchange transactions with the State Bank of Vietnam after being issued with a certificate of registration for foreign investment adjustment or if there are changes compared to the content confirmed in the foreign exchange transaction registration confirmation document of the State Bank of Vietnam in the following cases:

a) Change of the Vietnamese investor implementing the overseas oil and gas project;

b) Change of the foreign currency account for investment capital, change of the place where the investment capital account is opened;

c) Change of the amount of investment capital transferred abroad (except in the case of using profits from overseas investments to continue contributing capital for overseas investments or recovered capital to continue contributing capital for overseas investments in cases where the registered capital has not been fully contributed or increasing overseas investment capital according to point a and point b, Clause 1, Article 67 of the Investment Law and Clause 3, Article 18 of this Decree);

d) Change in the schedule for transferring investment capital abroad by the investor in cases where the amount transferred abroad exceeds the schedule confirmed by the State Bank of Vietnam.

2. The documents for registering changes in foreign exchange transactions include:

a) Application form according to Form No. 02 attached to this Decree;

b) Original confirmation from the authorized credit institution where the investor opens the investment capital account regarding the balance on this account; the amount transferred abroad and the amount transferred back to Vietnam at the time of change;

c) Certified copy or copy accompanied by the original for verification of the certificate of registration for foreign investment after adjustment. In cases where the investor submits a copy accompanied by the original for verification, the verifier is responsible for confirming the accuracy of the copy compared to the original.

3. Within thirty days from the date the Ministry of Planning and Investment adjusts the certificate of registration for foreign investment and before implementing the changes specified in points b, c, and d of Clause 1 of this Article, the investor must register changes in foreign exchange transactions with the State Bank of Vietnam according to the following procedures:

a) The investor sends one set of documents for registering changes in foreign exchange transactions (sent directly, sent via postal service, or submitted electronically) as stipulated in point a of this clause to the State Bank of Vietnam;

b) In cases where the documents are incomplete, within five working days from the date of receipt of the documents, the State Bank of Vietnam will issue a document requesting the investor to supplement the documents;

c) Within ten working days from the date of receiving all registration documents, the State Bank of Vietnam is responsible for confirming or refusing to confirm the registration of changes in foreign exchange transactions for the investor. In cases of refusal to confirm the registration of changes in foreign exchange transactions, the State Bank of Vietnam must provide reasons in writing and send them to the investor.

4. For other changes not specified in Clause 1 of this Article (including changes in the name of the Vietnamese investor implementing the overseas oil and gas project, changes in the name of the overseas investment project, changes in the name of the overseas economic organization (if any), changes in the form of investment, changes in the source of investment capital, form of investment capital, changes in the location of investment activities for projects requiring a specific investment location, changes in the main objectives of overseas investment activities, using profits from overseas investments or recovered capital to continue contributing capital for overseas investments in cases where the registered capital has not been fully contributed or increasing overseas investment capital according to point a and point b, Clause 1, Article 67 of the Investment Law and Clause 3, Article 18 of this Decree, or changes in the account number, except in the cases specified in point b of Clause 1 of this Article), within thirty days from the date of change, the investor must notify in writing the State Bank of Vietnam and the authorized credit institution where the investor opens the investment capital account along with a certified copy of the certificate of registration for foreign investment after adjustment (if applicable) or documentation proving updates on the National Investment Information System when changing contents as prescribed in Clause 2, Article 63 of the Investment Law.

Article 17. Mobilizing capital for overseas oil and gas projects and guaranteeing loans to implement such projects

1. Vietnamese investors authorized to mobilize capital from financial and credit institutions (overseas or domestic) for implementing overseas oil and gas projects corresponding to their investment participation ratio in the project in accordance with relevant laws.

2. In cases where an operating company is established for overseas oil and gas projects and financial and credit institutions require collateral for loans, investors shall undertake the necessary legal procedures for the operating company to obtain such loans.

3. Where financial and credit institutions require guarantees from investors, Vietnamese investors shall provide guarantees corresponding to their investment participation ratio in the project in accordance with relevant laws.

Article 18. Repatriation of Capital (Costs) from Overseas Oil and Gas Projects

1. Investors are responsible for transferring funds for repatriating capital (costs) from overseas oil and gas projects back to Vietnam within six months from the date of receiving the final tax settlement report or equivalent legal document as stipulated by the host country's laws, except as provided for in Clause 3 of this Article.

2. If the investor fails to transfer funds for repatriating capital (costs) from overseas oil and gas projects back to Vietnam within the time limit specified in Clause 1 of this Article, they must notify in writing the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Industry and Trade, the State Bank of Vietnam, and the agency representing the owner for monitoring and management in accordance with their assigned functions and tasks. The deadline for transferring funds for repatriating capital (costs) can be extended up to twelve months from the end of the period specified in Clause 1 of this Article.

3. In cases where the total foreign direct investment does not reach the registered amount or in cases of increased foreign direct investment, the investor may retain the repatriated capital (costs) for reinvestment in the project if it is stipulated in the certificate of foreign direct investment, the amended certificate of foreign direct investment, the registration certificate of foreign direct investment, or the amended registration certificate of foreign direct investment.

Article 19. Transfer of Overseas Oil and Gas Projects

1. Investors may transfer part or all of overseas oil and gas projects in compliance with the provisions of the oil and gas contract, agreements, related permits, laws of the host country, and relevant countries, and the provisions of this Decree. The authority that decides on the investment in overseas oil and gas projects is the authority that decides on the transfer of the project.

2. In cases where the entire overseas oil and gas project is transferred to a domestic investor, the investor shall follow the procedures to amend the certificate of foreign direct investment registration as stipulated in Article 63 of the Investment Law. In cases where the entire overseas oil and gas project is transferred to a foreign investor, the investor shall follow the procedures to terminate the effect of the certificate of foreign direct investment registration as stipulated in Article 64 of the Investment Law.

3. In cases where the transfer of overseas oil and gas projects generates profits, the investor shall fulfill their financial obligations in Vietnam in accordance with the laws on taxation, relevant laws, and the Double Taxation Avoidance Agreement and Prevention of Evasion and Tax Fraud on Income and Property Taxes between Vietnam and other countries and territories.

Article 20. Handling Costs of Unsuccessful Overseas Oil Projects

The costs of unsuccessful overseas oil projects shall be handled in accordance with the provisions of the law and the financial management regulations of the enterprise.

Article 21. Accounting

1. Investors shall apply an accounting system for overseas oil projects that is consistent with the provisions of the oil contract, permit, and the regulations of the host country.

2. The recording and tracking of investment costs in the investor's accounting books shall be carried out in accordance with the provisions of Vietnamese law on accounting.

Article 22. Financial Obligations in Vietnam

1. Investors shall fulfill all financial obligations related to oil activities and overseas oil projects towards the Vietnamese State in accordance with the provisions of tax laws, relevant laws, and the Double Taxation Avoidance Agreement and Prevention of Tax Evasion between Vietnam and other countries and territories.

2. For oil contracts and overseas oil projects where the investor's share of revenue (if any) is not divided into capital recovery portions and income portions, the investor shall register additional information with the Ministry of Finance regarding the mechanism for determining the investor's revenues for state management purposes and fulfilling obligations in Vietnam (if applicable).

3. The exemption from export duties and import duties for capital in the form of goods, machinery, and equipment transferred abroad for investment activities and transferred back to Vietnam shall be implemented in accordance with the provisions of Vietnamese law on export duties and import duties.

Article 23. Dispatching Vietnamese Workers to Work at Overseas Oil Projects and Stabilizing Policies for Workers Participating in Overseas Oil Projects

1. Investors may only dispatch Vietnamese workers to work at overseas oil projects after obtaining an investment registration certificate and complying with the labor laws of Vietnam and the host country.

2. Investors must fully comply with the regulations on dispatching Vietnamese workers to work at overseas oil projects as stipulated in the Law on Vietnamese Workers Working Abroad under Contract and other relevant regulations.

3. In cases where workers dispatched by investors to work regularly at organizations implementing overseas oil projects, according to a written agreement between the investor and partners, have their salaries, bonuses, allowances, and insurance calculated as project costs before being transferred to the investor for payment, such workers shall be guaranteed salary, bonus, and allowance benefits in accordance with the labor contract and agreements with the investor (employer). The investor may use foreign currency payrolls applicable to workers and use them as a basis for fulfilling social insurance, health insurance, unemployment insurance, and other mandatory social contribution obligations in accordance with Vietnamese law.

4. In cases where workers dispatched by investors to work regularly at organizations implementing overseas oil projects have mandatory allowances and insurance contributions required by Vietnamese law which are not included in project tax costs, the investor may deduct these from production and business expenses, and workers may contribute from their personal income to fulfill social insurance, health insurance, unemployment insurance, and other mandatory social contribution obligations for workers in accordance with Vietnamese law.

5. Social insurance, health insurance, unemployment insurance, and other mandatory social contributions for workers dispatched by investors to work regularly at organizations implementing overseas oil projects shall be implemented in the same manner as similar positions in Vietnam.

Article 24. Implementation of the reporting regime for foreign investment in oil and gas activities

The reporting regime for foreign investment in oil and gas activities shall be implemented in accordance with Article 83 of Decree No. 31/2021/NĐ-CP.

Article 25. Termination of foreign investment in oil and gas activities and the dossier, procedures, and formalities to terminate the effect of the certificate of registration for foreign investment

1. The termination of foreign investment in oil and gas activities shall be carried out in accordance with Article 86 of Decree No. 31/2021/NĐ-CP.

2. The dossier, procedures, and formalities to terminate the effect of the certificate of registration for foreign investment shall be carried out in accordance with Article 87 of Decree No. 31/2021/NĐ-CP.

3. Investors may transfer funds abroad to fulfill financial obligations to the host country and partners in accordance with the petroleum contract, license, or other relevant legal documents and agreements on the basis of presenting the required documents and certificates as stipulated by authorized credit institutions when transferring foreign currency abroad. Investors shall bear legal responsibility for the authenticity of the documents and certificates presented to authorized credit institutions.

Chapter IV

IMPLEMENTING PROVISIONS

Article 26. Effective date

1. This Decree takes effect from December 5, 2024, and replaces Decree No. 124/2017/NĐ-CP dated November 15, 2017, of the Government on foreign investment in oil and gas activities.

2. In cases where the legal normative documents cited in this Decree are amended, supplemented, or replaced, they shall be applied according to the provisions of the new documents.

Article 27. Responsibility for Implementation

1. State management of foreign investment activities

a) Ministries, ministerial-level agencies, government agencies, People's Committees of provinces and centrally governed cities, and Vietnamese representative offices abroad shall perform state management functions regarding foreign investment in oil and gas activities in accordance with the Investment Law and Article 99 of Decree No. 31/2021/NĐ-CP;

b) In addition to the tasks specified in point a, Clause 1 of this Article, the Ministry of Industry and Trade shall provide opinions on issues within its assigned administrative management domain upon request;

c) The agency representing the owner shall be responsible for managing, inspecting, and supervising the use of state capital invested abroad by state enterprises in accordance with the law; establishing internal regulations on the examination and approval of investment proposals and decisions for overseas oil projects by state enterprises, and performing the tasks specified in Clauses 2 and 3 of Article 71 of Decree No. 31/2021/NĐ-CP for overseas oil projects of state enterprises.

2. Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairmen of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.

Article 28. Transitional Provisions

From the date this Decree takes effect, valid dossiers that have been received and exceeded the processing deadline but have not yet received results shall continue to be processed in accordance with the Investment Law No. 61/2020/QH14.

 

 

 

Appendix

(Attached to Decree No.         /2024/NĐ-CP

Date        Month October 2024 of the Government)

^__________

 

Form No. 01

 

 

APPLICATION FOR REGISTRATION FOREIGN EXCHANGE TRANSACTIONS RELATED TO FOREIGN INVESTMENT ACTIVITIES IN OIL AND GAS

 

Respectfully submitted to: State Bank of Vietnam Branch in province/city ...

Based on Decree No. …/2024/NĐ-CP dated … Month … Year … of the Government on foreign investment in oil and gas activities;

Based on Certificate of Registration for Foreign Investment No. … dated …;

Based on the agreement, commitment to the progress of capital contribution of the project or the anticipated progress of capital contribution of (Investor's name);

(Name of investor) registering with the State Bank of Vietnam Branch in province/city regarding foreign exchange transactions related to foreign investment activities in oil and gas as follows:

I. INFORMATION ON THE INVESTOR AND THE INVESTMENT PROJECT:

- Name of investor: ………

- Address: ………

- Phone number: ………

- Certificate of Registration for Foreign Investment No. ……… dated ………

- License of the receiving country No. ……… dated ……… or documentation proving the right to operate investment in the receiving country in accordance with the laws of the receiving country (if applicable).

- Project name/Bilateral Cooperation Contract name/Economic organization established abroad name:

- Location of the project:

- Total investment capital permitted according to the Certificate of Registration for Foreign Investment: ……… (if applicable)

- Value of investor's capital contribution: …, including:

+ In cash: ………

+ Other forms of capital contribution as prescribed by law (machinery; goods; retained earnings reinvested; other assets): ………(detailed forms of capital contribution)

- Total amount transferred abroad before obtaining the Certificate of Registration for Foreign Investment: ………

+ Transfer period: ………

+ Purpose of use: ………

+ Foreign currency account before obtaining the Certificate of Registration for Foreign Investment No. ……… opened at ……… on …

II. CONTENT OF REGISTRATION FOR FOREIGN EXCHANGE TRANSACTIONS RELATED TO FOREIGN INVESTMENT ACTIVITIES IN OIL AND GAS:

1. Investment capital in cash shall be conducted through the investment capital account No.: ……… opened at: ………on …

2. Amount registered to transfer abroad after obtaining the Certificate of Registration for Foreign Investment: ………

3. Progress of transferring investment capital abroad:

 

(Detailed according to the value of capital contribution, according to the form of capital contribution)

III. COMMITMENTS:

1. The person signing below (legal representative of the investor) commits to being responsible for the accuracy of the information recorded in the Application for Registration of foreign exchange transactions related to foreign investment activities in oil and gas and the accompanying documents in the registration dossier of (Investor's name).

2. (Investor's name) commits to comply with the provisions of this Decree and Circular No. ………/TT-NHNN dated … of the State Bank of Vietnam guiding foreign exchange management for foreign investment activities in oil and gas and any amendments or supplements to this Circular (if any) and other relevant legal provisions.