Decree No. 78/2006/ND-CP on foreign direct investment

DECREE

Regulations on Foreign Direct Investment

_____________

 THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Investment Law dated November 29, 2005.

At the proposal of the Minister of Planning and Investment,

DECREE

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Decree stipulates the activities of foreign direct investment by investors in Vietnam.

2. Activities of foreign direct investment in the oil and gas sector and other special sectors or in special investment areas shall be carried out in accordance with separate regulations of the Government.

3. In cases where international treaties to which Vietnam is a party provide different provisions from those of this Decree, the provisions of such international treaties shall apply.

Article 2. Applicability

Investors in Vietnam (hereinafter referred to as investors) include:

1. Limited liability companies, joint-stock companies, partnerships, and private enterprises registered for business under the Enterprise Law.

2. Enterprises established under the State-Owned Enterprise Law that have not yet re-registered under the Enterprise Law.

3. Foreign-invested enterprises established under the Law on Investment by Foreign Investors that have not yet re-registered under the Enterprise Law and the Investment Law.

4. Enterprises belonging to political organizations or socio-political organizations that have not yet re-registered under the Enterprise Law.

5. Cooperatives and cooperative unions established under the Cooperative Law.

6. Health, education, scientific, cultural, sports service establishments, and other service establishments engaged in profit-making investment activities.

7. Individual businesses and Vietnamese individuals.

Article 3. Explanation of Terms

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

1. Foreign direct investment is the act of transferring investment capital abroad to carry out investment activities and directly participate in managing such investment activities abroad.

2. An economic organization abroad is an economic organization established or registered for business abroad in accordance with the laws of the receiving country to implement foreign direct investment activities, in which the investor owns part or all of the investment capital.

A valid dossier is a dossier that is complete with documents and contains declarations in accordance with the law.

Article 4. Conditions for Foreign Direct Investment

To be eligible for foreign direct investment, investors specified in Article 2 of this Decree must meet the following conditions:

1. Having a foreign direct investment project (hereinafter referred to as the investment project).

2. Fulfilling all financial obligations to the State of Vietnam.

3. Adhering to the legal regulations on the management and use of state capital for cases where state capital is used for foreign direct investment.

4. Being issued an Investment Certificate by the Ministry of Planning and Investment.

Article 5. Encouraged, Prohibited, and Restricted Sectors for Foreign Investment

Based on the provisions of Article 75 of the Investment Law and the economic and social situation during each period,

Article 6. Application of Investment Incentives

1. In cases where new laws or policies provide greater benefits or incentives than those previously enjoyed by investors, investors shall enjoy the benefits and incentives according to the new provisions from the date these new laws or policies come into effect.

2. In cases where the benefits or incentives recorded in the Investment License or the document permitting foreign direct investment issued to investors are more advantageous than those currently provided by existing regulations, such investors may continue to enjoy the benefits or incentives recorded in their Investment License or the document permitting foreign direct investment.

Article 7. Direct Investment Capital Outflows Abroad

Direct investment capital outflows abroad shall be manifested in the following forms:

1. Foreign currency.

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

3. Value of industrial property rights, technical secrets, technological processes, technical services, intellectual property rights.

4. Other lawful assets.

Article 8. Language Used

Project investment files and related documents for investment procedures submitted to Vietnamese state agencies shall be in Vietnamese or in Vietnamese and a foreign language; in case of discrepancies between the Vietnamese version and the foreign language version, the Vietnamese version shall prevail.

Chapter II

AUTHORITY, PROCEDURES FOR ISSUING AND AMENDING INVESTMENT CERTIFICATE

Article 9. Authority to Approve Investments

1. Investment projects in banking, insurance business, finance, credit, press, radio, television, telecommunications sectors using State capital of 150 billion Vietnamese dong or more, or capital from various economic sectors of 300 billion Vietnamese dong or more.

2. Investment projects not specified in Clause 1 of this Article using State capital of 300 billion Vietnamese dong or more, or capital from various economic sectors of 600 billion Vietnamese dong or more.

Article 10. Authority to Issue Investment Certificate

The Ministry of Planning and Investment shall issue Investment Certificates for the following investment projects:

1. Investment projects specified in Article 9 of this Decree after approval.

2. Investment projects not specified in Article 9 of this Decree.

Article 11. Procedures for Issuing Investment Certificate

The issuance of Investment Certificates shall be carried out according to the following procedures:

1. Registration and issuance procedure for Investment Certificates applies to investment projects with investment capital under 15 billion Vietnamese dong.

2. Examination and issuance procedure for Investment Certificates applies to investment projects with investment capital of 15 billion Vietnamese dong or more.

Article 12. Investment Certificate and Other Sample Documents

1. Main contents of the Investment Certificate include:

a) Name and address of the investor.

b) Investment objectives, scale of the investment project.

c) Name of the country or territory receiving the investment project.

d) Investment capital.

đ) Duration of implementation of the investment project.

e) Progress of implementation of the investment project.

g) Investment incentives and support (if any).

2. The Ministry of Planning and Investment shall promulgate the following sample documents: project registration; request for examination of the project; explanation on the project; request for amendment of the Investment Certificate; explanation on the request for amendment of the Investment Certificate; notification of project implementation; report on the operation status of the project.

Article 13. Procedures for Registration and Issuance of Investment Certificate

1. The project investment file includes:

a) Project registration document.

b) Notarized copy of: Investment Certificate for foreign-invested enterprises; or Business Registration Certificate or establishment decision or equivalent legal document for organizations; or Identity Card or passport for Vietnamese individual investors; or Investment License for foreign-invested enterprises that were issued an Investment License before July 1, 2006 but did not re-register under the Investment Law and Enterprise Law.

c) Contract or agreement with partner regarding capital contribution or share purchase or joint venture investment for projects involving other partners.

d) Approval document of the Board of Members or Board of Directors or Shareholders' Meeting or General Assembly regarding direct investment abroad for cases where the investor is a Limited Liability Company, Partnership, Joint Stock Company, or cooperative society as required by laws on enterprises and cooperatives.

2. The investor shall submit three sets of project investment files to the Ministry of Planning and Investment, including one original set. The Ministry of Planning and Investment shall check the validity of the project investment files as stipulated in Clause 1 of this Article. In case there are issues requiring clarification related to the project investment files, within five working days from the date of receipt of the files, the Ministry of Planning and Investment shall issue a document requesting the investor to explain the issues needing clarification.

3. Within fifteen working days from the date of receipt of valid files, the Ministry of Planning and Investment shall issue the Investment Certificate, simultaneously sending copies to the Ministry of Finance, Ministry of Trade, State Bank of Vietnam, relevant ministries managing economic and technical sectors, Ministry of Foreign Affairs, and People's Committees of provinces and centrally-administered cities (hereinafter referred to collectively as provincial-level People's Committees) where the investor's headquarters is located.

4. In case the project investment files are not approved, the Ministry of Planning and Investment shall notify the investor in writing and specify the reasons.

Article 14. Procedure for examination and issuance of Investment Certificate

1. The project investment file includes:

a) Application for project investment examination.

b) Certified copy of: Investment Certificate for foreign-invested enterprises; or Business Registration Certificate or establishment decision or equivalent legal document for organizations; or Identity Card or passport for Vietnamese individual investors; or Investment License for foreign-invested enterprises that were issued an Investment License before July 1, 2006 but did not re-register under the Investment Law and Enterprise Law.

c) Explanation document on the investment project including the following contents: investment objectives; investment location; investment capital scale; sources of investment capital; use of Vietnamese labor (if applicable); use of raw materials from Vietnam (if applicable); progress of the investment project implementation.

d) Contract or agreement with partner regarding capital contribution or share purchase or joint investment for cases where other partners participate in the investment.

đ) Approval document of the Board of Members or Board of Directors or Shareholders' Meeting or General Assembly of members regarding overseas investment for limited liability companies, partnerships, joint-stock companies, or cooperatives when necessary according to the provisions of the Enterprise Law and Cooperative Law.

2. The investor submits eight sets of investment project files to the Ministry of Planning and Investment, including one original set. The Ministry of Planning and Investment checks the validity of the investment project files as stipulated in Clause 1 of this Article.

3. Contents of project investment examination include:

a) Direct foreign investment conditions specified in Clause 1, Clause 2, and Clause 3 of Article 4 of this Decree.

b) Legal status of the investor.

c) Legality of direct foreign investment capital.

d) Progress of the investment project implementation.

4. The procedure for examination and issuance of Investment Certificate is carried out as follows:

a) Within three working days from the date of receipt of valid files, the Ministry of Planning and Investment issues a document seeking opinions along with the investment project file to relevant ministries, sectors, and provincial People's Committees where the investor's headquarters are located.

b) Within fifteen working days from the date of receipt of the opinion-seeking document of the Ministry of Planning and Investment, the agency asked for opinions conducts examination of the investment project file and provides written comments on matters within its administrative management scope; if the agency does not provide written comments beyond this period, it shall be deemed to have approved the investment project file for matters within its administrative management scope.

c) For projects specified in Article 9 of this Decree, within twenty-five working days from the date of receipt of valid files, the Ministry of Planning and Investment will submit.

d) For projects not specified in Article 9 of this Decree, within thirty days from the date of receipt of valid files, the Ministry of Planning and Investment issues the Investment Certificate.

đ) The Investment Certificate is sent to the Ministry of Finance, Ministry of Trade, State Bank of Vietnam, Ministry managing economic and technical sectors, Ministry of Foreign Affairs, and provincial People's Committee where the investor's headquarters are located.

e) In case the investment project file is not approved, the Ministry of Planning and Investment will issue a notification document stating the reasons and send it to the investor.

Article 15. Adjustment of Investment Certificate

When there is a need to adjust an investment project that has already been granted an Investment Certificate concerning the investment objectives, scale of the investment project, investment capital, investor, receiving country of the investment project, implementation period of the investment project, the investor must go through the procedures for adjusting the Investment Certificate according to the following process:

1. The registration and adjustment procedure of the Investment Certificate applies to the following cases:

a) The content of the adjustment of the Investment Certificate does not relate to the scale of investment capital and the investment sector.

b) The content of the adjustment of the Investment Certificate does not relate to the investment sector specified in Clause 1, Article 9 of this Decree and the total investment capital after being increased is not greater than 15 billion Vietnamese dong.

2. The examination and adjustment procedure of the Investment Certificate applies to cases not provided for in Clause 1 of this Article.

Article 16. Registration and Adjustment Procedure of the Investment Certificate

1. The project investment file includes:

a) A document requesting the adjustment of the Investment Certificate.

b) The investment capital transfer contract and legal documentation of the new partner joining the investment project (if there is a transfer of investment capital).

c) A certified copy of the Investment Certificate.

d) An agreement from the Board of Members or the Board of Directors or the Shareholders' Meeting or the General Assembly of Members regarding direct foreign investment for investors who are Limited Liability Companies, Joint Stock Companies, or Cooperatives when necessary according to the laws on enterprises and cooperatives.

đ) Report on the operation status of the investment project up to the date the investor submits the document requesting the adjustment of the Investment Certificate.

2. The investor sends the Ministry of Planning and Investment three sets of investment project files, including one original set.

3. In case the content related to the investment project file needs clarification, within five working days from the date of receipt of the investment project file, the Ministry of Planning and Investment will request the investor to explain the content that needs clarification.

4. Within fifteen working days from the date of receipt of the valid file, the Ministry of Planning and Investment issues the adjusted Investment Certificate, simultaneously sending copies to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry managing the economic and technical sector, the Ministry of Foreign Affairs, and the People's Committee of the province where the investor's headquarters is located. If the investment project file is not approved, the Ministry of Planning and Investment will notify the investor with detailed reasons.

Article 17. Examination and Adjustment Procedure of the Investment Certificate

1. The project investment file includes:

a) A document requesting the adjustment of the Investment Certificate.

b) An explanation document regarding the request to adjust the Investment Certificate.

c) The investment capital transfer contract and legal documentation of the new partner joining the investment project (if there is a transfer of investment capital).

d) A certified copy of the Investment Certificate.

đ) An agreement from the Board of Members or the Board of Directors or the Shareholders' Meeting or the General Assembly of Members regarding foreign investment for investors who are Limited Liability Companies, Joint Stock Companies, or Cooperatives when necessary according to the laws on enterprises and cooperatives.

e) Report on the operation status of the investment project up to the date the investor submits the document requesting the adjustment of the Investment Certificate.

2. The investor sends the Ministry of Planning and Investment six sets of investment project files, including one original set.

3. Within three working days from the date of receipt of the valid file, the Ministry of Planning and Investment will issue a document seeking opinions along with the investment project file sent to relevant ministries, sectors, and the People's Committee of the province where the investor's headquarters is located. Within fifteen working days from the date of receipt of the document seeking opinions from the Ministry of Planning and Investment, the agency asked for opinions will examine the investment project file and provide written comments on the contents under their administrative management; if the agency does not provide written comments within the above-mentioned time limit, it shall be deemed to have approved the investment project file for the contents under its administrative management.

4. The Ministry of Planning and Investment will submit

a) Adjustments to the investment project concerning the investment sector or the scale of investment capital as stipulated in Article 9 of this Decree.

b) Adjustments concerning the investment sector or the scale of investment capital for investment projects not specified in Article 9 of this Decree but after adjustment, such investment projects meet the conditions for approval of investment by

5. For investment projects specified in Article 9 of this Decree, within twenty-five working days from the date of receipt of the valid file, the Ministry of Planning and Investment will submit

6. For investment projects not specified in Article 9 of this Decree, within thirty working days from the date of receipt of the valid file, the Ministry of Planning and Investment will issue the adjusted Investment Certificate.

7. The adjusted Investment Certificate will be copied and sent to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry managing the economic and technical sector, the Ministry of Foreign Affairs, and the People's Committee of the province where the investor's headquarters is located.

8. If the investment project file is not approved, the Ministry of Planning and Investment will notify the investor with detailed reasons.

Article 18. Using Profits for Foreign Investment

1. In cases where profits from foreign investment projects are reinvested back into the same project, the Ministry of Planning and Investment must adjust the Certificate of Investment in accordance with the provisions of this Decree.

2. In cases where profits from foreign investment projects are used to invest in other projects abroad, the Ministry of Planning and Investment must issue a Certificate of Investment for such other projects in accordance with the provisions of this Decree.

Article 19. Re-registering Foreign Investment Projects

1. Investors are not required to re-register for investment projects that have already obtained an Investment License or a document permitting direct foreign investment prior to the effective date of this Decree.

2. In cases where there is a need to re-register, investors shall submit three sets of project registration files to the Ministry of Planning and Investment, including one original set. The project registration file includes:

a) A request for re-registration of the investment project.

b) A report on the operation status of the investment project up to the time the investor submits the re-registration request.

c) A certified copy of the Investment License or document permitting foreign investment.

2. When processing the re-registration request submitted by the investor, the Ministry of Planning and Investment shall record in the Certificate of Investment the benefits and incentives that the investor is entitled to under the law.

3. Within fifteen working days from the date of receipt of a complete application, the Ministry of Planning and Investment shall issue a new Certificate of Investment to replace the previously issued Investment License or permit.

Chapter III

IMPLEMENTATION OF THE INVESTMENT PROJECT

Article 20. Notification of Implementation of Investment Projects

1. Within sixty days from the date the investment project is approved in accordance with the laws of the host country, the investor must submit a notification of implementation of the investment project along with a copy of the approval document or an equivalent legal document to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, the State Bank of Vietnam, and the People's Committee of the province where the investor's headquarters is located.

2. The notification of implementation of the investment project shall include the following contents:

a) Name and address of the headquarters of the economic organization in the host country; name and address of branch offices or representative offices (if any).

b) Investment objectives and sectors.

c) Capital investment of the economic organization in the host country; the portion of capital contributed by the investor.

d) Information about the investor's representative and the representative of the economic organization in the host country, including: full name, permanent address (in Vietnam and abroad), position, national identity card number or passport number.

3. In cases where there are changes to the contents specified in Clause 2 of this Article, within thirty days from the date of change, the investor must submit a notification of the changes to the Ministry of Planning and Investment.

Article 21. Time Limit for Implementing Investment Projects

1. If, more than twelve months from the date of issuance of the Certificate of Investment, the investment project has not been approved by the host country, or if, more than six months from the date of approval by the competent authority of the host country, the project has not commenced, the investor must submit a document explaining the reasons and requesting an extension of the implementation period or requesting termination of the investment project to the Ministry of Planning and Investment.

2. Within fifteen working days from the date of receipt of the request for an extension of the implementation period or the request for termination of the investment project, the Ministry of Planning and Investment shall issue a document approving or disapproving the extension of the implementation period or approving the termination of the investment project, and simultaneously send it to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Industry and Trade, the Ministry of Foreign Affairs, and the People's Committee of the province where the investor's headquarters is located.

3. The extension of the implementation period of the investment project may be granted no more than twice, each time not exceeding six months.

Article 22. Report on the Operation Status of Investment Projects

Annually, within six months from the date of receiving the final tax settlement report or an equivalent legal document according to the laws of the host country, the investor shall submit a report on the operation status of the investment project along with the final tax settlement report or an equivalent legal document according to the laws of the host country to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the relevant economic and technical management ministry, and the People's Committee of the province where the investor’s main office is located.

Article 23. Transfer of Investment Capital Abroad

1. The investor may transfer investment capital abroad to carry out investment activities after meeting the following conditions:

a) Having been issued an Investment Certificate.

b) The investment project has been approved by the competent authority of the host country according to the laws of the host country.

2. The transfer of foreign currency abroad before obtaining an Investment Certificate for research and preparation of the investment project shall be carried out in accordance with the laws on foreign exchange management and other relevant laws.

3. The transfer of investment capital abroad must comply with the provisions of the laws on foreign exchange management, export, technology transfer, and other relevant laws.

Article 24. Account for Implementing Investment Projects

All transactions involving the transfer of foreign currency from Vietnam to abroad and vice versa related to investment projects must be conducted through a foreign currency account opened at a credit institution authorized to operate foreign exchange in Vietnam and registered with the State Bank of Vietnam.

Article 25. Repatriation of Profits

1. Within six months from the date of receiving the final tax settlement report or an equivalent legal document according to the laws of the host country, the investor must repatriate all profits and other income from the investment project to Vietnam.

2. In case of a need to extend the time limit specified in Clause 1 of this Article, the investor must submit a written request detailing the reasons to the State Bank of Vietnam for consideration and decision. The extension can be granted up to two times, each not exceeding six months.

Article 26. Liquidation of Investment Projects

1. Immediately upon completion of the investment project, the investor must liquidate the investment project in accordance with the laws of the host country.

2. Within six months from the date of completing the liquidation of the investment project, the investor must repatriate all proceeds from the liquidation of the investment project.

3. In case of a need to extend the time limit specified in Clause 2 of this Article, the investor must submit a written request detailing the reasons to the Ministry of Planning and Investment for consideration and decision. The extension can only be granted once and not exceeding six months.

Article 27. Financial Obligations

1. The investor is responsible for fulfilling all financial obligations to the Government of Vietnam as stipulated by law.

2. In cases where the investment project falls under preferential investment areas, the corporate income tax rate applicable to the repatriated profit in Vietnam shall be the same as the corporate income tax rate applied to domestic investment projects in the same field.

3. If the host country is a state or territory that has signed a Double Taxation Avoidance Agreement with Vietnam, the investor's tax obligations to the Government of Vietnam shall be implemented according to the provisions of that Agreement.

4. If the host country is a state or territory that has not signed a Double Taxation Avoidance Agreement with Vietnam, the corporate income tax paid in the host country will be deducted when calculating the corporate income tax in Vietnam.

5. The exemption from export duties for assets taken abroad to implement the investment project shall be carried out in accordance with the laws on export duties and import duties.

Article 28. Investor's Responsibility towards Workers

1. The investor may directly or through employment agencies recruit Vietnamese workers in accordance with Vietnamese labor laws and the receiving country’s investment regulations.

2. The investor must fully comply with all procedures stipulated by law for sending Vietnamese workers abroad to work at investment projects; ensure the legitimate rights of Vietnamese workers abroad; be responsible for resolving issues arising from contracts for sending Vietnamese workers abroad to work at investment projects and other relevant legal provisions.

Article 29. Termination of Effectiveness of Investment Certificate

The Investment Certificate terminates its effectiveness in the following cases:

1. Expiration of the term specified on the Investment Certificate or expiration of the investment period according to the receiving country’s laws.

2. Failure to commence the investment project within the time limit prescribed in Article 21 of this Decree.

3. Dissolution or bankruptcy of the foreign economic organization according to the receiving country’s laws.

4. Bankruptcy or dissolution of the investor leading to the dissolution of the foreign economic organization or the transfer of the entire foreign investment capital to foreign organizations or individuals.

5. More than twelve months have passed since the date of submission of the final tax report or equivalent legal document according to the receiving country’s laws without the investor submitting a report on the project’s operation status as stipulated in Article 22 of this Decree.

6. Violation of Vietnamese laws or the receiving country’s laws leading to the termination of the Investment Certificate’s effectiveness.

7. The investor requests to terminate the investment project and such request is approved by the Ministry of Planning and Investment.

Chapter IV

STATE MANAGEMENT OF FOREIGN DIRECT INVESTMENT

Article 30. State Management Responsibilities

1. The Government uniformly manages state affairs concerning foreign direct investment nationwide.

2. The Ministry of Planning and Investment is responsible before the Government for managing state affairs concerning foreign direct investment.

3. Ministries and agencies at the level of ministries within their respective duties and authorities are responsible for managing state affairs concerning foreign direct investment in assigned sectors.

Article 31. Responsibilities of the Ministry of Planning and Investment

1. Lead and coordinate with ministries, sectors, and localities in formulating strategies and orientations for foreign direct investment for each period.

2. Issue or submit to competent authorities for issuance legal regulations on foreign direct investment within their authority.

3. Organize and implement registration, examination, issuance, adjustment, and revocation of Investment Certificates.

4. Lead and coordinate with ministries, sectors, and localities in guiding, inspecting, supervising, and resolving difficulties in implementing foreign direct investment laws.

5. Coordinate with domestic and foreign Vietnamese state agencies to support investors within their authority.

6. Inspect, audit, supervise the implementation of foreign direct investment laws within their authority; resolve complaints, accusations, commendations, and handle violations in foreign direct investment activities within their authority.

7. Regularly every six months and annually, work with the Ministry of Finance, State Bank of Vietnam, Ministry of Trade, Ministry of Labor, Invalids and Social Affairs, Economic and Technical Management Ministry, Ministry of Foreign Affairs, People's Committees of provinces concerned to promptly address investors' recommendations, issue or propose necessary mechanisms, policies, and solutions to improve the efficiency of foreign direct investment activities.

8. Annually, compile and report

Article 32. Responsibilities of the State Bank of Vietnam

1. Lead and coordinate with the Ministry of Planning and Investment and related agencies in formulating and issuing legal regulations, mechanisms, and policies on credit and foreign exchange management related to foreign direct investment activities within their authority or submit to competent authorities for issuance.

2. Provide opinions on issues related to capital sources and foreign exchange management of investment projects when requested by

3. Inspect, audit, and supervise within their authority the activities of transferring foreign currency from Vietnam to abroad and vice versa related to foreign direct investment projects.

4. Regularly every six months and annually, the State Bank of Vietnam shall issue evaluations of the situation of transferring foreign currency from Vietnam to abroad and vice versa related to foreign direct investment projects to the Ministry of Planning and Investment, Ministry of Finance, Ministry of Trade, Ministry of Labor, Invalids and Social Affairs, Economic and Technical Management Ministry, Ministry of Foreign Affairs, People's Committees of provinces concerned, and General Statistics Office.

Article 33. Responsibilities of the Ministry of Finance

1. Lead and coordinate with the Ministry of Planning and Investment, related ministries, and sectors in formulating and issuing legal regulations, mechanisms, and policies on finance related to foreign direct investment activities within their authority or submit to competent authorities for issuance.

2. Provide opinions on issues related to the financial sector concerning foreign direct investment activities when requested by

3. Implement tax exemptions on exports and imports within their authority for cases related to foreign direct investment activities exempted from export and import taxes according to the law.

4. Inspect, audit, and supervise within their authority the fulfillment of financial obligations by investors to the Vietnamese State.

5. Regularly every six months and annually, the Ministry of Finance shall issue compilations and evaluations of the situation of fulfilling financial obligations by investors to the Vietnamese State to the Ministry of Planning and Investment, Ministry of Trade, Ministry of Labor, Invalids and Social Affairs, Economic and Technical Management Ministry, Ministry of Foreign Affairs, State Bank of Vietnam, People's Committees of provinces concerned, and General Statistics Office.

Article 34. Responsibilities of the Ministry of Trade

1. To take the lead and coordinate with the Ministry of Planning and Investment and relevant ministries and sectors in drafting and promulgating legal regulations, mechanisms, and policies related to trade concerning direct foreign investment activities within their respective authorities or submitting them for approval by competent authorities.

2. To provide comments on contents related to trade concerning direct foreign investment activities when requested by competent authorities.

3. To be responsible for inspecting, auditing, and supervising trade activities related to direct foreign investment within their respective authorities.

4. To issue periodic evaluations every six months and annually regarding the situation of trade related to direct foreign investment activities and send these evaluations to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Labor, Invalids and Social Affairs, the Ministry managing economic and technical sectors, the Ministry of Foreign Affairs, the State Bank of Vietnam, provincial People's Committees concerned, and the General Statistics Office.

Article 35. Responsibilities of the Ministry of Labor, Invalids and Social Affairs

1. To take the lead and coordinate with the Ministry of Planning and Investment and relevant ministries and sectors in drafting and promulgating legal regulations and mechanisms, policies related to labor management and utilization concerning direct foreign investment activities within their respective authorities.

2. To provide comments on issues related to sending Vietnamese workers abroad to work at investment projects when requested by competent authorities.

3. To inspect, audit, and supervise the sending of Vietnamese workers abroad to work at investment projects within their respective authorities.

4. To issue periodic evaluations every six months and annually regarding the situation of sending Vietnamese workers abroad to work at investment projects and send these evaluations to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry managing economic and technical sectors, the Ministry of Foreign Affairs, the State Bank of Vietnam, provincial People's Committees concerned, and the General Statistics Office.

Article 36. Responsibilities of Other Ministries, Agencies Equivalent to Ministries, and Other Government Agencies

1. To coordinate with the Ministry of Planning and Investment in drafting legal regulations, policies, and plans related to direct foreign investment activities.

2. To provide comments on issues under their respective administrative management concerning direct foreign investment activities when requested by competent authorities.

3. To inspect, audit, and supervise issues under their respective administrative management concerning direct foreign investment activities within their respective authorities.

4. To issue periodic evaluations every six months and annually regarding the situation of direct foreign investment activities under their respective administrative management and send these evaluations to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Foreign Affairs, the State Bank of Vietnam, provincial People's Committees concerned, and the General Statistics Office.

Article 37. Responsibilities of Provincial People's Committees

1. To coordinate with relevant ministries and sectors according to their respective authorities in guiding and supporting investors whose headquarters are located in the locality to comply with the provisions of the Investment Law, this Decree, and other relevant laws.

2. To provide comments on issues under their respective administrative management concerning investment projects of investors whose headquarters are located in the locality when requested by competent authorities.

3. To inspect, audit, and supervise the fulfillment of financial obligations of investors whose headquarters are located in the locality towards the Vietnamese State and the sending of local workers abroad to work at investment projects within their respective authorities.

4. To issue periodic evaluations every six months and annually regarding the situation of direct foreign investment activities of investors whose headquarters are located in the locality and the situation of sending local workers abroad to work at investment projects and send these evaluations to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Labor, Invalids and Social Affairs, the Ministry managing economic and technical sectors, the Ministry of Foreign Affairs, and the General Statistics Office.

Article 38. Supporting foreign investors

The Vietnamese diplomatic agencies abroad shall be responsible for coordinating with other Vietnamese agencies abroad and domestic state management agencies to support foreign investors in complying with the laws of the host country; protect the legitimate rights and interests of foreign investors; and through diplomatic channels, propose and recommend the host government to provide support, create favorable conditions, and resolve difficulties for investors during the implementation of overseas investment projects.

Article 39. Inspection and Supervision

The inspection and supervision of investment projects shall be carried out in accordance with the laws on inspection and supervision.

Article 40. Handling Violations

Organizations and individuals who violate the provisions of this Decree shall be subject to disciplinary action, administrative penalties, or criminal liability pursued, depending on the nature and severity of the violation; if damage is caused, compensation must be provided in accordance with the law.

Chapter V

IMPLEMENTING PROVISIONS

Article 41. Effective Date

1. This Decree shall take effect fifteen days from the date of publication in the Official Gazette and shall replace Government Decree No. 22/1999/NĐ-CP dated April 14, 1999, concerning overseas investment by Vietnamese enterprises.

2. Investment projects that have been granted Investment Licenses or have approval documents for direct overseas investment before the effective date of this Decree but have not re-registered under the Investment Law shall continue to operate and implement this Decree's provisions.

Article 42. Implementation Clauses

1. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Industry and Trade, the Ministry of Labor, Invalids and Social Affairs, the State Bank of Vietnam, and the Ministry of Foreign Affairs shall be responsible for guiding the implementation of this Decree.

2. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial and centrally governed city People's Committees are responsible for implementing this Decree./.