Decision No. 159/BKH-KCN on delegating authority to the Management Board of industrial parks and export processing zones in Ho Chi Minh City for the formation of projects; receiving, examining project files; issuing, adjusting, revoking investment permits, and managing foreign-invested projects in industrial parks and export processing zones.

Pursuant to …;

Regarding the delegation to the management boards of industrial zones and export processing zones in Ho Chi Minh City for project formation; receiving, examining project files; issuing, adjusting, revoking investment permits and managing foreign-invested projects within industrial zones and export processing zones
____________

THE MINISTER OF PLANNING AND INVESTMENT

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

- Pursuant to Decree No. 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam;

- Pursuant to Decree No. 36/CP dated April 24, 1997 of the Government promulgating the Regulations on Industrial Zones, Export Processing Zones, and High-Tech Zones;

- Pursuant to Decision No. 07/KCN dated June 16, 1997 of the Prime Minister regarding the delegation to the Management Boards of Industrial Zones to issue Investment Permits;

DECISION

Article 1.

1. The Management Board of Industrial Zones and Export Processing Zones in Ho Chi Minh City (hereinafter referred to as the Management Board) shall be the focal point guiding foreign investors to operate in accordance with the Regulations on Industrial Zones, Export Processing Zones, and High-Tech Zones issued together with Decree No. 36/CP dated April 24, 1997 of the Government within the territory of Ho Chi Minh City.

Project files shall be prepared in accordance with the guidelines of the Ministry of Planning and Investment.

2. Delegating the Management Board to receive project files of foreign-invested projects investing in industrial zones and projects investing in the aforementioned export processing zones, and to examine, issue Investment Permits for projects meeting the conditions stipulated in this Decision.

Article 2.

Projects for which the Management Board is authorized to issue Investment Permits must meet the following conditions:

1. Complying with detailed planning and the Bylaws of industrial zones or export processing zones that have been approved.

2. Being projects in the field of industry and industrial services with a scale under 40 million US dollars, except those projects belonging to Group A as prescribed in Article 93 of Decree No. 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

3. Having an export ratio of products meeting the regulations issued by the Ministry of Planning and Investment during each period.

4. Industrial zone enterprises, export processing zone enterprises, and joint ventures with foreign parties commit to self-funding their foreign currency needs.

5. Equipment, machinery, and technology must comply with current regulations: in cases where they do not meet these regulations, approval in writing from the competent state agency managing the economic and technical sector must be obtained before issuing the Investment Permit.

6. Meeting requirements for environmental protection, labor safety, and fire prevention and explosion control.

Article 3.

Project examination shall be carried out by the Management Board in close coordination with the Department of Planning and Investment and local functional agencies as prescribed in Articles 83, 92, 94, 96, and 100 of Decree No. 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

The Management Board is responsible for drafting the Regulations on cooperation with local functional agencies, submitting them for approval by the People's Committee of Ho Chi Minh City and notifying the Ministry of Planning and Investment.

Article 4.

1. The Management Board shall organize the examination and make its own decision on issuing Investment Licenses for the following types of projects:

- Export processing zone enterprises with an investment capital up to 40 million US dollars.

- Projects meeting the provisions of Article 2 of this Decision and having a scale up to 10 million US dollars for industrial production enterprises, and up to 5 million US dollars for industrial service enterprises.

2. The time limit for the Management Board to examine and issue Investment Permits is 15 days from the date of receipt of the project file, excluding the time required for the investor to amend and supplement the application for an Investment Permit according to the Management Board's requirements.

Any requests by the Management Board for the investor to amend and supplement the application for an Investment Permit must be completed within 7 days from the date of receipt of the project file. After 7 days, if the investor does not respond in writing from the date the Management Board requests amendments, the investment application attached to the project file will become invalid.

3. For projects outside the scope of the above decisions, prior to making a decision, the Management Board is responsible for sending a summary of the project according to the guidelines attached to the Ministry of Planning and Investment; seeking opinions from ministries and sectors on issues within their jurisdiction that have not been specifically regulated.

Ministries and sectors providing opinions on the project, including in cases of adjustment, must reply in writing within 7 days from the date of receipt of the project file; beyond this period, without a written opinion, it is considered as approval of the project.

Article 5.

The Investment Permit shall be drafted according to a unified model of the Ministry of Planning and Investment.

Within 7 days from the date of issuance of the Investment Permit, the Management Board shall send the Investment Permit to the Ministry of Planning and Investment, the People's Committee of Ho Chi Minh City (original), and the Ministry of Finance, the Ministry of Trade, the Ministry of Economic and Technical Management, the Management Board of Industrial Zones of Vietnam, and other relevant state management agencies (copies).

Article 6.

For projects for which the Management Board is not authorized to issue Investment Permits, after receipt, the Management Board retains one set of the file (copy) and forwards the remaining sets of the project file along with the Management Board's comments on the project to the Ministry of Planning and Investment for examination and issuance of the Investment Permit in accordance with Articles 93 and 94 of Decree No. 12/CP dated February 18, 1997 of the Government.

Article 7.

The Management Board guides investors to implement projects; carries out state management over activities within industrial zones and export processing zones in accordance with the Regulations on Industrial Zones, Export Processing Zones, and High-Tech Zones.

The Management Board implements adjustments to Investment Permits for projects for which the Management Board has been authorized to issue Investment Permits.

In cases where the adjustment of the Investment Permit results in the project becoming a Group A project, it must be approved in writing by the Prime Minister before the adjustment.

In cases where the adjustment of the Investment Permit results in the project exceeding the authorized limit but still being a Group B project, it must be approved in writing by the Ministry of Planning and Investment before the adjustment.

The Management Board shall revoke Investment Permits issued by the Management Board in cases consistent with the provisions of the law.

Article 8.

Quarterly, semi-annually, and annually, the Management Board shall compile information on the issuance and adjustment of Investment Licenses, the operational status of enterprises within industrial parks and export processing zones under its jurisdiction, and submit reports to the Ministry of Planning and Investment, the People's Committee of Ho Chi Minh City, and the Management Board of Industrial Parks of Vietnam.

Article 9.

The Ministry of Planning and Investment shall create favorable conditions and monitor the Management Board's implementation of delegated tasks in accordance with legal regulations, bearing legal responsibility before the Government for the delegation stipulated in this Decision.

Article 10.

This Decision replaces Decision No. 76/UB/KCX dated May 23, 1995, issued by the State Committee for Cooperation and Investment, now the Ministry of Planning and Investment, and shall take effect from July 1, 1997.