Circular No. 55/2002/TT-BKHCNMT guides the assessment of technology and environment for investment projects.

CIRCULAR

Guidelines for assessing technology and environment of investment projects.

Pursuant to the Government Decree number 22/CP dated May 22, 1993 of the Government on tasks, authorities, and organization set machine of AND Science Technology and Environment, Department,

WHEREAS EDUCATIONDecree No. 24/2000/NĐ-CP dated July 31, 2000 of the Government detailing theimplementation of the Law on Investment 1. The contents and levels of expenditure from the state budget to support the implementation of initiatives as stipulated in Chapter II of this Circular are maximum levels. Based on the ability to balance resources, the Ministers of Ministries, Heads of central agencies, Provincial People's Councils, and centrally governed cities shall decide on specific contents and levels of expenditure for initiative activities that ensure appropriateness. outside Vietnam,

WHEREAS EDUCATIONDecree No. 51/1999/NĐ-CP dated 08 July 9, 1999 of the Government detailing the implementation of the Law onEncouraging Domestic Investment (hereinafter referred to as of Decree No. 51/1999/NĐ-CP) and Decree No. 35/2002/NĐ-CP dated March 29, 2002 ofthe Government on amending aresupplementing the List 2002 A, one attached as Appendix annexed to Decree No. 51/1999/NĐ-CP, B and C based on Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on theissuance of the Regulation on Management of investment and construction and Decree No. 12/2000/NĐ-CP dated May 5, 2000 on amending

supplementing certain provisions of the Regulation on Management of Investmentand Construction, reason dated October 18, 1994 of the Government on guidelines for implementing theEnvironmental Protection Law, number The Ministry of Science one Technology and Environment issues this Circular to guide the assessment oftechnology and environment

WHEREAS EDUCATIONDecree NUMBER 175/ dated October 20, 2015 of of investment projects at

the stage of considering issuance of investment permits. Technology and Environment,1. Assessment of technology and environment of investment projects: the a)Assessment of technology of investment projects is a process of examining andevaluating the suitability of the technology stated in the project with theobjectives and contents of the investment project based on the policies, plans ofthe State at the time of project assessment. b)Assessment of the environment of investment projects involves examining andevaluating the impact of the project on the environment, measures to minimizeadverse impacts on the environment according to current regulations of the Stateon environmental protection.

I. GENERAL PROVISIONS

Onthe basis of the results of examination and evaluation at

points a and b above, recommend to the competent authority regarding whether toissue an Investment License (for foreign investment projects) or an investmentdecision, acceptance of investment (for domestic investment projects) along withany issues that need attention (if any) for the project owner.

2. Objects of assessment:

a)Foreign investment projects under Decree No. 24/2000/NĐ-CP dated July 31, 2000of the Government detailing the implementation of the Law on Foreign Investmentin Vietnam. b)Domestic investment projects under Decree No. 51/1999/NĐ-CP dated July 8, 1999of the Government detailing the implementation of the Law on Encouraging DomesticInvestment, Decree No. 52/1999/NĐ-CP dated July 8, 1999 of the Government on theissuance of the Regulation

onManagement of Investment and Construction and Decree No. 12/2000/NĐ-CP dated May5, 2000 on amending

supplementing certain provisions of the Regulation on Management of Investmentand Construction.

3. Contents of assessment of technology and environment of investment projects:

a)Products produced by the technology. Product market.

b)Selection of technology.

c)Equipment in the production line.

d)Raw materials, spare parts, components for production.

e)Selection of location.

f)Technology transfer.

Impact of the project on theenvironment.

g)Project effectiveness.

g)GENERAL PROVISIONSh)Other related issues (if any).

II. DETAIL CONTENTS OF TECHNOLOGY AND ENVIRONMENT ASSESSMENT OF INVESTMENT PROJECTS

In the project dossier, the following contents should be assessed:

1.Products produced by the technology. Product market.

a)Market demand forecast (both domestic and international) taking into accountsimilar products, reliability of the forecast.

b)Forecast of the market share of products produced by the technology, exportratio, marketing methods.

c)Reasonableness of the scale of technology, necessary capacity of equipment.

d)Product quality standards.

e)Competitiveness (quality, model

price) of products produced by the technology.

2.Selection of technology: a)Examine the completeness of the technology: The applied technology must havestability, been commercialized. Depending on the type of product and productionmethod, the technology flow may differ but must fully reflect all stages in theproduction line to produce the expected quantity and quality of products.

b)Examine the level of advancement of the production line: An advanced productionline is specialized, organized in a mechanized manner, where at least 113 (one-third)of the equipment is automatically controlled by a program; there are no heavymanual labor stages on the production line; the production line is arranged in aspace ensuring industrial hygiene, occupational safety, and environmental hygiene.The enterprise management system must be advanced (computerizing some stages suchas: technology management, materials, marketing...).

c)Encourage the application of advanced technology according to the concept of anadvanced production line as mentioned above, but in some cases, suitable technologycan be applied according to the level of production and conditions of the countryor the locality where the project is implemented. It is necessary to clearlyexplain the advantages when applying this technology and justify its appropriateness.

d)Selection of technology: In an investment project, there can be one or moretechnology options. If there are multiple technology options, it is necessary tocompare the strengths and weaknesses of each option and, based on the completenessof the technology, the level of advancement of the production line, and theappropriateness of the technology, to comment on the selected technology option.

3.Equipment in the production line:

a)Evaluate the suitability of the equipment: Equipment in the production line isexamined based on whether it has features and quality that meet the requirements ofthe technology to produce the expected quantity and quality of products.

Theequipment must be compatible, meaning the list of equipment must demonstrate theability to perform the stages in the technology flow, meeting the requirements forquantity and quality of products. Attention should be paid to avoid situationswhere essential equipment for the production line is missing or unnecessaryequipment is included in the list (this may occur when a party contributes capitalto the project through equipment).

b)Evaluate the quality of the equipment: Based on the list of equipment in theinvestment project, it is necessary to examine:

Countryof origin of the equipment (manufacturing country, manufacturing company).

Yearof manufacture, serial number of the equipment.

Technicalcharacteristics, features.

Year of manufacture, model code of the equipment.

Characteristics, technical features.

Quality standards of products produced by the equipment.

c) Equipment procurement method: whether there will be bidding? Reason?

d) Assessment of the newness level of the equipment: In investment projects, it isencouraged to use completely new equipment. In cases where imported usedequipment is necessary, it must comply with the current legal regulations.

4.Raw materials, spare parts, components for production:

a) Consider the feasibility of exploiting, transporting, and storing raw materialsfor the project.

b) Consider the types, quantities, and values of spare parts, components, or semi-finished products that need to be imported for processing, assembly, andproduction. Consider the localization rate and plans to increase the localizationrate.

c) Consider the types, quantities, and values of raw materials that need to beimported, the possibility of using local and domestic materials, and thepossibility of using materials that cause less environmental pollution.5.Location selection:

a) Consider the suitability of the project location for the production line.

b) Consider the advantages and disadvantages of the environmental impact on theproject location.

c) The advantages of the selected location compared to other locations.

6.Technology transfer:

If the investment project includes one or more of the following contents (referredto as technology transfer contents), the project owner must establish atechnology transfer contract according to the law (Decree No. 45/1998/NĐ-CP datedJuly 1, 1998 of the Government detailing technology transfer), these contents are:

a) Transfer of ownership and usage rights of industrial property objects.

b) Transfer of technological secrets, knowledge in the form of technical solutions,technical procedures, preliminary design and detailed engineering drawings,formulas, technical parameters, process diagrams, computer software (transferredunder the technology transfer contract), information data about transferredtechnology accompanied or not accompanied by machinery and equipment.

c) Transfer of rationalization solutions and technological innovation.

d) Implementation of service forms to support technology transfer:

Technical assistance in selecting technology, guiding installation of equipment,trial operation of production lines.

Management consulting, business management consulting, guiding implementationof transferred technological processes.

Training to improve professional skills and management capabilities of workersand technical staff to master the transferred technology.

e) Supply of machinery, equipment, and technical means along with one or more ofthe above contents.

7.Environmental impact of the project:

7.GENERAL PROVISIONSa) Consider factors affecting negative environmental impacts: sources ofpollution from production stages, various solid, liquid, and gas waste generatedduring production, etc.

b) Consider potential environmental accidents. c) Consider measures to reduce negative environmental impacts as well as preventenvironmental accidents.

d) Classify the project to prepare an Environmental Impact Assessment Report (TypeI project) or register to meet environmental standards (Type II project) basedon Circular No. 490/TT-BKHCNMT dated April 29, 1998 of the Ministry of Science,Technology and Environment guiding the preparation and review of EnvironmentalImpact Assessment Reports for investment projects.

8.Project effectiveness:

When evaluating the effectiveness of the project, including contributions fromtechnology, consider the following aspects: a) Economic and social benefits brought by the project (ability to create newproduction capacity, new industries, new products, expand markets, createemployment for workers, contribute to the state budget, economic benefits forthe project owner, etc.)

b) Consider the financial feasibility of the project:

Capital recovery period.

Net present value (NPV).

Internal Rate of Return (IRR). Other related issues (if any): In addition to the main task of assessing technologyand the environment, it is also necessary to consider and comment on otherrelated issues such as:

a) Project objectives:

Consider the necessity of investment.

Priceaffecting many people, both inside and outside the Army or enforcement actions involving foreign elements; Consider the appropriateness of the project's objectives with national policies,planning.

b) Labor and training:Consider labor utilization plans in enterprises prioritizing Vietnamese workers(except for special positions requiring foreign workers). .

9. Encourage projects to create more jobs for Vietnamese workers.

Consider training plans (both domestic and international) for Vietnamese workersaccording to job requirements in the production line.

c) Safety and hygiene at work, fire prevention:

Consider safety and hygiene at work: Protective equipment suitable for eachposition in the production line. Consider fire prevention: Fire prevention andexplosion prevention equipment and other necessary equipment must be equippedaccording to the design complying with current regulations.

d) Professional capability, financial capability, legal status of the project owner,etc.

III. METHODS OF REVIEWING INVESTMENT PROJECTS

Depending on the requirements for each project, the following methods can beapplied:

a) Self-review by experts:

This method applies to the following cases:

Investment projects with clear technological content.

Projects with specialized nature or clear opinions from related sectors.....

Reviewing experts have a thorough understanding of the project's industry.

b) Consulting experts:

This method applies to the following cases:

Reviewing experts understand the project's industry but lack sufficientinformation. Expert opinions are needed to update information.

Technological content requires deep expertise, expert opinions from relatedindustries are needed to provide comprehensive and accurate comments on theproject.

c) Organize advisory meetings:

Interdisciplinary projects or projects with wide-ranging impacts.

Projects with complex issues and differing opinions.

ORGANIZATION AND IMPLEMENTATION

The appraiser may be knowledgeable about the field of operation of the investment project, but lacks sufficient information. It is necessary to seek the opinion of experts to update information.

The technological content requires specialized expertise; it is necessary to consult relevant industry experts to provide a comprehensive and accurate assessment of the project.

c) Organize an advisory conference:

ORGANIZATION AND IMPLEMENTATION

The project involves multiple sectors or has a broad scope of impact.

The project has complex issues with differing opinions.

IV. ORGANIZATION OF IMPLEMENTATION ACTUALIZATION体制机制物质技术条件、人力资源报告（根据2016年7月1日第105/2016/NĐ-CP号政府决议附表02规定，该决议对计量器具和测量标准的检定、校准、检测活动条件进行了规定，并经2018年第154/2018/NĐ-CP号决议第二条第十二条修正）N |||

1. The Ministry of Science, Technology and Environment organizes the technical and environmental assessment for investment projects in Group A and Group B (excluding Group B projects that have been delegated). The Technical and Environmental Assessment Office for Investment Projects is the lead unit organizing such assessments.

2.Organizations and individuals wishing to publish and disseminate works abroad shall comply with the provisions of Government Decree No. 72/2000/NĐ-CP dated December 5, 2000 on publishing and disseminating works abroad. scientific, technological and environmental management bodies of ministries, sectors and provincial Departments of Science, Technology and Environment of centrally governed cities organize the technical and environmental assessment for investment projects in Group B or Group C according to delegated authority or authorization.

3. Industrial zones, export processing zones, high-tech zones, State-owned Joint Stock Companies 90 and 91 assess the technology and environment for investment projects in Group B or Group C according to delegated authority or authorization to issue Investment Licenses.

V. IMPLEMENTATION PROVISIONS

1. This Circular takes effect fifteen days from the date of issuance and replaces Circular No. 1940/TT-BKHCNMT dated November 15, 1997 issued by the Ministry of Science, Technology and Environment guiding the technical assessment of investment projects during the investment license issuance review phase.

2. During implementation, if any issues arise or difficulties occur, they should be reported promptly to the Ministry of Science, Technology and Environment for research and resolution./.