Circular No. 1817/1999/TT-BKHCNMT guides the confirmation of special investment encouragement projects specified in Clause 7, Part I, Appendix 1 of Government Decree No. 10/1998/NĐ-CP dated January 23, 1998.

CIRCULAR

Guidelines for confirming special investment encouragement projects

stipulated in Clause 7 of Part I of Appendix I to Decree No. 10/1998/NĐ-CP

dated January 23, 1998 of the Government

(Projects for pollution treatment and environmental protection, waste processing and treatment)

Pursuant to Decree No. 22/CP dated May 22, 1993 of the Government on the tasks, powers, and organizational structure of the Ministry of Science, Technology, and Environment;

Pursuant to Decree No. 10/1998/NĐ-CP dated January 23, 1998 of the Government on certain measures to encourage and ensure foreign direct investment activities in Vietnam (hereinafter referred to as Decree No. 10/1998);

The Ministry of Science, Technology, and Environment guides the confirmation of projects for pollution treatment and environmental protection, waste processing and treatment, which belong to the list of special investment encouragement projects specified in Item 7 of Part I of Appendix 1 to Decree No. 10/1998, 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. Scope of Application

Article 1.1. These Circular applies to projects of enterprises operating under the Law on Foreign Investment in Vietnam dated November 12, 1996 that conduct production and/or business activities in one or more of the following areas:

a) Pollution treatment and environmental protection

b) Waste processing and treatment.

Article 1.2. These Circular does not apply to projects of enterprises engaged in production and business activities where such projects have components for waste treatment and pollution control generated from their own production processes to ensure compliance with environmental standards as prescribed by law.

Article 2. Definitions

Article 2.1. "Pollution treatment" means human activities aimed at reducing environmental pollution levels to meet environmental standards.

Article 2.2. "Waste processing and treatment" refers to the application of technology and technical solutions to transform waste into useful products and/or reduce environmental pollution.

Article 2.3. "Environmental pollution" is the alteration of environmental characteristics in a negative direction, violating environmental standards.

Article 2.4. "Environmental protection" encompasses actions to maintain a clean and beautiful environment, improve environmental conditions, ensure ecological balance, prevent and mitigate adverse effects caused by human and natural factors on the environment, and rationally exploit and use natural resources.

Article 2.5. "Waste" is material separated out during daily life, production processes, or other activities in Vietnam. Waste can be in solid, gas, liquid, or other forms.

Article 3. Preferential Treatment

Enterprises implementing projects meeting the conditions set forth in this Circular are considered special investment encouragement projects and are entitled to preferential treatments as provided for in Decree No. 12/CP dated February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 10/1998/NĐ-CP dated January 23, 1998 on certain measures to encourage and ensure foreign direct investment activities in Vietnam.

II. CONDITIONS FOR CONFIRMATION

OF SPECIAL INVESTMENT ENCOURAGEMENT PROJECTS

Projects classified as special investment encouragement projects under Clause 7 of Part I of Appendix 1 to Decree No. 10/1998/NĐ-CP dated January 23, 1998 must simultaneously satisfy the following conditions:

1. The project must be independently accounted for, with at least 70% of total revenue derived from production and/or business activities related to pollution treatment and environmental protection, waste processing and treatment.

2. The production and business activities of the project must align with the production and business fields specified in Appendix 1 of this Circular. For waste processing and treatment projects, at least 50% of raw materials must be waste.

3. The project must comply with Vietnam's laws on environmental protection.

III. IMPLEMENTATION

1. Application Documents for Special Investment Encouragement

a) For new projects:

The application documents for special investment encouragement are the investment permit application documents. However, in the economic and technical justification (or feasibility study), the project proponent must clearly state the pollution treatment process, waste processing and treatment process, the proportion of revenue from production and/or business activities related to pollution treatment and environmental protection, waste processing and treatment, the alignment of the project's production and business activities with Appendix 1 of this Circular. If it is a waste processing and treatment project, the proportion of waste used as raw material for the processing and treatment process must be clearly stated. In the investment permit application, the investor must clearly indicate the request for special investment encouragement.

The application documents for special investment encouragement are submitted to the investment permit issuing authority (as specified in Section 2 of Part III of this Circular). This authority is responsible for coordinating with relevant agencies during the review and examination of special investment encouragement projects.

b) For ongoing projects that have not yet requested special investment encouragement or projects expanding production and business operations seeking special investment encouragement, the application documents for special investment encouragement include:

- Request for special investment encouragement;

- Economic and technical justification (or feasibility study) with the contents as specified above in item a;

- A valid copy of the Investment Permit.

The application documents for special investment encouragement for ongoing projects are submitted to the investment permit issuing authority and the science, technology, and environment agency (as specified in Section 2 of Part III of this Circular) for consideration of special investment encouragement.

2. Authority to Examine and Decide on Special Investment Encouragement Projects

2.1. The分级授权决定投资许可证的规定见于1997年3月18日发布的第12/CP号政府法令，关于详细实施越南外国投资法。

对于新项目，特殊投资鼓励项目的审查和确认与投资许可证的审查同时进行。

对于正在运营但尚未申请特殊投资鼓励或扩大生产、经营活动寻求特殊投资鼓励的项目，审查程序与调整投资许可证的程序相同。

2.2. For investment projects licensed by the Ministry of Planning and Investment: Based on the conditions set forth in this Circular and the project appraisal opinion of the Ministry of Science and Technology and Environment, the Ministry of Planning and Investment shall decide on the special investment incentives level in the investment license.

2.3. For investment projects under delegated licensing authority: Based on the conditions set forth in Part II of this Circular and the project appraisal opinion of the Department of Science and Technology and Environment, the local agency with delegated authority to issue investment licenses (or Industrial Park Management Board, Export Processing Zone Management Board, High-Tech Park Management Board) shall decide on the special investment incentives level in the investment license.

2.4. The science, technology, and environment management agency shall respond to the investment license issuing agency within thirty days for cases where the project meets the conditions to enjoy special investment incentives.

2.5. In cases where the project does not meet the conditions to enjoy special investment incentives, within twenty days from the date of receiving complete valid files, the science, technology, and environment management agency (as mentioned in points 2.2 and 2.3 above) must provide a written response to the investment license issuing agency explaining the reasons.

2.6. During the operation period, if the enterprise no longer meets the criteria stipulated in Part II of this Circular, it will be suspended from enjoying investment incentives.

2.7. The project proponent (or the enterprise with the project) has the right to appeal to the competent authority regarding the non-granting of investment incentives as prescribed by law.

IV. IMPLEMENTATION PROVISIONS

This Circular takes effect fifteen days from the date of signature.

During the implementation of this Circular, if there are any issues encountered, agencies are advised to report them to the Ministry of Science and Technology and Environment for research and resolution./.