Decision No. 233/1998/QĐ-TTg On the Delegation and Authorization to Issue Investment Licenses for Foreign Direct Investment Projects

DECISION OF THE PRIME MINISTER

Regarding the delegation and authorization to issue investment permits

for foreign direct investment projects

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

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

At the proposal of the Minister of Planning and Investment,

DECISION:

Article 1The issuance of investment permits for foreign direct investment projects under the Law on Foreign Investment in Vietnam dated November 12, 1996 shall be delegated to provincial people's committees (referred to collectively as provincial people's committees), except for those provincial people's committees that have been authorized by the Prime Minister to issue foreign investment permits pursuant to Decision No. 386/TTg dated June 7, 1997 and Decision No. 41/1998/QĐ-TTg dated February 20, 1998.

Article 2. The provincial people's committee mentioned in Article 1 of this Decision shall be responsible for organizing the receipt of project files, reviewing, and issuing investment permits for foreign direct investment projects at the local level as stipulated in Article 3 of this Decision.

Article 3. Foreign direct investment projects for which investment permits are issued by provincial people's committees must meet the following conditions:

1. Consistent with regional economic development plans, industry economic-technical development plans, and local economic-social development plans that have been approved.

2. Have a capital investment scale of up to five million US dollars, except for projects specified in Article 4 of this Decision.

3. Meet the export product ratio requirements established by the Ministry of Planning and Investment during each period.

4. Foreign-invested enterprises and foreign joint venture partners must ensure their own foreign currency needs.

5. Equipment, machinery, and technology must comply with current regulations; if they do not meet these regulations, approval in writing from the competent state management agency overseeing the relevant economic-technical sector must be obtained before issuing the investment permit.

6. Comply with environmental protection, labor safety, and fire prevention and explosion control requirements.

Article 4. Investment permits shall not be delegated to provincial people's committees for the following projects:

1. Projects belonging to Group A as defined 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.

2. Projects in the following sectors:

- Oil exploration, exploitation, and service.

- Electricity production.

- Construction of seaports, airports, national highways, and railways.

- Cement, metallurgy, sugar production, alcohol, beer, and tobacco production.

3. Projects within industrial zones, export processing zones, and high-tech parks, except as provided for in Article 11 of this Decision.

Article 5.

1. Project files for investment shall be prepared according to the guidelines of the Ministry of Planning and Investment.

2. The review of projects shall be conducted in accordance with 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.

Provincial people's committees shall be responsible for soliciting opinions from ministries and sectors regarding issues within their respective jurisdictions that have not been specifically detailed.

Ministries and sectors solicited for their opinions on projects, including cases of supplementation and amendment, shall provide written responses within seven days of receiving the provincial people's committee's document; failure to provide written comments within this timeframe shall be deemed as approval of the project.

3. Investment permits shall be drafted according to a unified template of the Ministry of Planning and Investment.

Within seven days of issuing the investment permit, the provincial people's committee shall send the original investment permit to the Ministry of Planning and Investment and copies to the Office of the Government, the Ministry of Finance, the Ministry of Trade, and the economic-technical sector management ministry.

Article 6.Provincial people's committees shall consider and decide on supplementing, amending investment permits for projects that have been delegated to issue investment permits and also for investment permits already issued by the Ministry of Planning and Investment within the allocated investment capital limit.

In cases where supplementing or amending investment permits results in exceeding the allocated investment capital limit, changing foreign partners, altering project objectives, reducing the export ratio, decreasing the statutory contribution ratio of the Vietnamese party compared to the provisions in the investment permit, or converting a joint venture form to 100% foreign investment, prior written approval from the Ministry of Planning and Investment is required before such supplements or amendments can be made.

The provisions of this Article shall apply to provincial people's committees that have been delegated to issue investment permits prior to the issuance date of this Decision.

Article 7. The Ministry of Trade shall delegate to provincial people's committees that have been delegated to issue investment permits the authority to approve import-export plans for foreign-invested enterprises and joint ventures outside industrial zones, export processing zones, and high-tech parks, except as provided for in Article 11 of this Decision.

Article 8. Quarterly, semi-annually, and annually, provincial people's committees shall compile reports on the issuance of investment permits, supplementary and amended investment permits, and submit them to the Office of the Government and the Ministry of Planning and Investment.

Article 9. The Ministry of Planning and Investment shall continue to authorize provincial industrial zone management boards established by the Prime Minister to implement the issuance, adjustment, supplementation, and revocation of foreign investment permits for projects in industrial zones, export processing zones, and high-tech parks, including the adjustment, supplementation, and revocation of foreign investment permits previously issued by the Ministry or provincial people's committees as stipulated in Article 11 of this Decision. This provision also applies to ten provincial industrial zone management boards authorized by the Ministry of Planning and Investment. The investment capital limits and conditions for issuing, adjusting, supplementing, and revoking investment permits shall be carried out in accordance with Circular No. 07/KCN dated June 16, 1997 of the Prime Minister and the provisions of Article 6 of this Decision.

Article 10.The delegation to provincial industrial zone management boards shall be implemented as follows:

For industrial zones and export processing zones, based on the proposal of the provincial people's committee (except for cases where the industrial zone is located across provinces) and the provincial-level industrial zone management board, the Ministry of Planning and Investment shall issue a delegation decision.

For high-tech zones, based on the proposal of the Ministry of Science and Technology and Environment and the high-tech zone management board.

The Ministry of Planning and Investment shall organize training and guidance for provincial-level industrial zone management boards and high-tech zone management boards authorized to implement current regulations; promulgate specific provisions on the ratio of exported products so that provincial people's committees and provincial-level industrial zone management boards can proactively review and issue investment permits.

Article 11. During the period when the provincial-level industrial zone management board has not been delegated authority, the provincial people's committee that has been delegated the authority to issue foreign investment permits shall carry out the examination, adjustment, supplementation, and revocation of foreign investment permits in industrial zones and export processing zones.

Article 12. THIS DECISION SHALL TAKE EFFECT 15 DAYS FROM THE DATE OF SIGNATURE.

The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally-administered city people's committees, and other relevant agencies according to their assigned functions and tasks are responsible for implementing this Decision.