Decree No. 96/2007/ND-CP detailing and guiding the implementation of certain provisions of the Cinema Law

DECREE

Detailed regulations and guidance on implementing certain provisions of the Cinema Law

_______________________

THE GOVERNMENT

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

Based on the Cinema Law dated June 29, 2006;

Considering the proposal of the Minister of Culture, Sports and Tourism.

DECREE:

Article 1. Scope and regulated subjects

1. This Decree provides detailed regulations and guidance for implementing Articles 5, 6, 11, 12, 14, 24, 31, 33, 34, 35, 38, 41, and 53 of the Cinema Law.

2. This Decree applies to organizations and individuals participating in cinema activities, and those related to cinema activities in Vietnam.

Article 2. Policy on modernizing the film industry (detailed regulations and guidance for Clause 1, Article 5)

1. Investment in building modern indoor and outdoor studios according to the approved planning scheme of the film industry by competent authorities.

2. Modernize technology and invest in special effects equipment and synchronized technical equipment to ensure sufficient conditions for producing films using modern technology, meeting international technical standards for images and sound, ensuring artistic creativity to enhance production capacity and improve the quality of film products.

3. Investment in building, renovating, and equipping modern stereophonic projection systems for cinemas according to the approved planning scheme of the film industry by competent authorities.

4. The Ministry of Culture, Sports and Tourism shall coordinate with relevant ministries and sectors to develop plans to implement Clauses 1, 2, and 3 of this Article; establish plans for developing the scale of film production and distribution so that Vietnamese films account for at least 30% of the total number of films screened in cinemas and at least 40% of the total number of films broadcast on television networks.

Article 3. Policy encouraging organizations and individuals to participate in cinema activities (detailed regulations and guidance for Clause 2, Article 5)

1. The State purchases all or part of the ownership rights of films with high ideological and artistic value produced by film establishments based on the quality assessment by the Central Film Classification Council; the purchase price is determined and approved by the Price Appraisal Council according to current laws.

2. Film establishments enjoy tax benefits on value-added tax, corporate income tax, and export duties when producing films according to the laws on taxes.

3. Enterprises and public institutions constructing cinemas for business purposes or other film-related facilities are allocated land or leased land according to the laws on land.

4. Film establishments are exempt from stamp duty when registering land use rights and property ownership according to the laws.

5. Provincial People's Committees (hereinafter referred to as Provincial People's Committees) are responsible for adjusting local land use planning, prioritizing land funds for film establishments; implementing policies and incentives to encourage organizations and individuals to participate in film activities within their jurisdiction.

6. The Ministry of Finance, in collaboration with the Ministry of Culture, Sports and Tourism and relevant ministries and sectors, shall guide the implementation of the provisions of Clause 2 of this Article.

Article 4. Investment policy through target programs for film development (detailed regulations and guidance for Clause 3, Article 5)

1. Funding investment to create large-scale and high-artistic-value film products as follows:

a. Organizing activities to set thematic directions aligned with historical events and major developments of the nation;

b. Producing films.

2. Investing in scientific research in the film industry as follows:

a. Research projects aimed at improving the quality of creation and enhancing the social impact of film works;

b. Applying advanced science and technology;

c. Studying domestic and international film markets.

3. Training and nurturing human resources:

a. Improving the quality of training at national specialized film schools, developing standard curricula, investing in teaching and learning equipment, and professionalizing in artistic, technical, economic, and production management aspects, film distribution, and promotion.

b. Sending qualified staff and outstanding students abroad for training in arts, technology, production management, film distribution, and promotion in countries with developed film industries.

c. Emphasizing postgraduate training to supplement and develop a team of leading scientists in the field of film.

4. The Ministry of Culture, Sports and Tourism shall coordinate with relevant ministries and sectors to develop target programs for film development according to Clause 3 of Article 5 of the Cinema Law and Clauses 1, 2, and 3 of this Article, to be submitted to the Prime Minister for approval.

Article 5. Policy on commissioned film production (detailed regulations and guidance for Clause 4, Article 5)

1. The State commissions the production of feature films on children's topics, historical traditions, ethnic minorities; documentary films, scientific films, and animated films.

2. The procedures and formalities for producing commissioned films are carried out according to the provisions of Article 12 of this Decree.

3. The Ministry of Culture, Sports and Tourism shall coordinate with the Ministry of Planning and Investment and the Ministry of Finance to develop plans for commissioned film production as stipulated in Clause 1 of this Article.

Article 6. Policy on film distribution funding (detailed regulations and guidance for Clause 5, Article 5)

1. The State ensures costs for film screenings serving political, social, diplomatic, children's, and military forces' needs in mountainous, island, remote, ethnic minority areas, and other rural regions.

2. The State ensures 100% funding for film screenings and organizing film festivals serving political, social, and diplomatic purposes during national holidays and significant events.

3. The State ensures funding for organizing and participating in national and international film festivals organized by the Ministry of Culture, Sports and Tourism according to point a, Clause 1, Article 41 of the Cinema Law.

Article 7. Policy on allocating land for cinema construction in urban planning (detailed regulations and guidance for Clause 6, Article 5)

1. Competent authorities approving urban planning must allocate land for cinema construction in central locations and appropriate construction ratios in accordance with population growth.

2. Film establishments constructing cinemas benefit from preferential policies as stipulated in Clause 4, Article 3 of this Decree.

The provincial People's Committee is responsible for creating conditions for film establishments to implement the provisions set forth in Clause 2 of this Article.

Article 8. Establishment and operation of the Film Development Support Fund (provisions detailing and guiding implementation of Article 6)

1. The Film Development Support Fund shall be established by the Prime Minister for use in the following activities:

a. Awarding films with high ideological and artistic value and significant social impact according to the Fund’s charter and operational regulations;

b. Supporting the production of experimental art films and debut films based on the advice of the Literary Script Review Board under the Ministry of Culture and Information;

c. Supporting investment in script creation, organizing creative camps, sending artists on field trips, hosting scientific seminars, supporting training for capable staff and outstanding students to study abroad in cinema, promoting Vietnamese films overseas to encourage and promote the development of the national film industry.

2. The Film Development Support Fund established pursuant to Clause 1 of this Article shall be formed from the following sources:

a. Initial capital support from the state budget when establishing the Fund from the cultural and information affairs fund. Annually, based on the effectiveness of its operations, the Fund will be considered for state budget support in accordance with the State Budget Law.

b. Voluntary contributions and sponsorships from domestic and foreign organizations, individuals, and other lawful income sources;

c. Revenue from selling films that have been state-subsidized or commissioned (if applicable).

3. The Minister of Culture and Information shall draft the charter for the organization and operation of the Film Development Support Fund and submit it to the Prime Minister for approval.

Article 9. Prohibited acts in film activities (provisions detailing and guiding implementation of Clause 1 and Clause 2 of Article 11)

1. Images, sounds, dialogue, or writing that defame, insult the national emblem, flag, anthem, or ethnic and national symbols; demeaning ethnic groups or religions.

2. Images, sounds, dialogue, or writing depicting brutal beatings, torture, murder, encouraging criminal behavior, except where such depictions are intended to criticize or denounce evil within the context of the film.

3. Images, sounds, dialogue, or writing with pornographic, obscene, promiscuous, or incestuous content contrary to societal customs and practices.

4. Images, sounds, dialogue, or writing that show tolerance or agreement with social vices, causing feelings of panic or delusion regarding supernatural or demonic forces.

5. Naming films in a manner that causes offense or vulgarity.

6. Images, sounds, dialogue, or writing containing illegal content not covered by Clauses 2, 3, 4, and 5 of this Article, except where such depictions are intended to criticize or denounce these behaviors.

Article 10. Organization and operation of film public service units (provisions detailing and guiding implementation of Clause 2 of Article 12)

1. Film public service units have functions and responsibilities to serve state management or provide public services in the film sector as prescribed by law.

2. Conditions, procedures, formalities, authority for establishment, restructuring, and autonomy and responsibility for fulfilling tasks, organizational structure, staffing, and finance of film public service units shall be carried out in accordance with current laws.

3. Film public service units as stipulated in Clause 1 of this Article, depending on their functions and responsibilities, shall carry out the following activities:

a. Producing films at the request of the managing public service unit; producing commissioned films, except in cases where the project producer of commissioned films uses state funds to select film production enterprises according to Clause 3 of Article 24 of the Cinema Law;

b. Importing internal circulation films to meet their work requirements;

c. Screening and storing films for state management or public service provision.

Article 11. Conditions regarding the statutory capital for operating film production (provisions detailing and guiding the implementation of point a, Clause 2, Article 14)

The statutory capital is 1,000,000,000 VND (one billion VND), confirmed in writing by the competent authority.

Article 12.Procedures and processes for selecting and organizing commissioned film production using state budget funds (provisions detailing and guiding the implementation of Clauses 3, 4, and 5, Article 24)

1. The selection process, results of literary script selection, and the commissioned film production enterprises using state budget funds must be announced through mass media to ensure fairness and objectivity.

2. Procedures and processes for selecting literary scripts:

a. The project investor for commissioned film production using state budget funds must announce on mass media about the topic, requirements of the film production project to be implemented in the next financial year, and the conditions and procedures for organizations and individuals to submit scripts for selection within a period of 90 days from the date of announcement;

b. The project investor for commissioned film production using state budget funds must announce the results of literary script selection based on the advisory opinions of the Literary Script Review Board established in accordance with the provisions of this Clause;

c. Organizations and individuals have the right to submit literary scripts to the project investor for commissioned film production using state budget funds and must pay the script review fee according to current laws on fees and charges.

3. The Literary Script Review Board for commissioned films using state budget funds:

a. The project investor for commissioned film production using state budget funds must establish a Literary Script Review Board;

b. The Literary Script Review Board must consist of at least nine members, including representatives of the competent state management agencies for cinema, the project investor, screenwriters, directors, and other relevant parties.

4. The selection of film production enterprises for commissioned projects using state budget funds shall be conducted in accordance with the Bidding Law based on the following criteria:

a. Scene scripts and implementation plans;

b. List of main participants in the film;

c. Total budget estimate for the film;

d. Technical equipment serving the project;

đ. Financial capacity;

e. Production plan and schedule;

g. Capital loan conditions.

5. The film production contract for commissioned projects using state budget funds must be documented in writing between the project investor and the film production enterprise, the main contents of the contract include:

a. Name, address, bank account of the parties involved in the contract;

b. Film name, film material, main content, and artistic and ideological outcomes that must be achieved;

c. Rights and responsibilities of the project investor and the contract performer, including rights and responsibilities related to film copyright and intellectual property rights of the project investor and the film production enterprise;

d. Place and method of contract performance;

đ. Value of the contract and payment methods;

e. Contract performance schedule;

g. Liability for breach of contract and dispute resolution;

h. Acceptance time, submission time for film approval;

i. Other agreements.

6. The Ministry of Culture - Information shall detail the procedures and processes for selecting literary scripts as stipulated in Clause 2 and issue regulations on the organization and operation of the Literary Script Review Board as stipulated in Clause 3 of this Article.

Article 13. Household units engaged in small-scale film copying, reproduction, sale, and rental using less than ten workers regularly (provisions detailing and guiding the implementation of Clause 2, Article 31)

1. Household units engaged in small-scale film copying, reproduction, sale, and rental using less than ten workers regularly must register their business at the district-level business registration office.

2. Conditions for engaging in film copying, reproduction, sale, and rental include:

a. Having a lawful place of use;

b. Having equipment to check film content and technical quality.

3. Household units engaged in small-scale film copying, reproduction, sale, and rental using less than ten workers regularly must comply with the provisions on film copying, reproduction, sale, and rental as stipulated in Clause 2, Article 28, and Clause 2, Article 29 of the Cinema Law.

Article 14. Proportion and time for screening Vietnamese films, hours for screening films for children under 16 years old on cinema systems (provisions detailing and guiding the implementation of Clause 4, Article 33)

1. Cinemas must screen Vietnamese films during national holiday film seasons, serving political, social, and diplomatic tasks as prescribed by the Ministry of Culture - Information.

2. The proportion of screenings of Vietnamese feature films must reach at least 20% of the total number of screenings, and these films must be screened during the time period from 18:00 to 22:00 daily, and may also be screened at other times.

3. Screening hours for films for children under 16 years old at cinemas must end before 22:00.

Article 15. Activities of mobile film projection units (provisions detailing and guiding the implementation of Clause 1 and 2, Article 34)

1. The State invests in film projection machines or other film projection equipment for mobile film projection teams in mountainous areas, islands, remote regions, and other rural areas.

2. The State equips specialized motorized transportation means for mobile film projection teams belonging to provinces.

3. Costs for film screenings in mountainous areas, islands, remote regions, ethnic minority areas, and other rural areas are implemented according to the Government's regulations on regions and areas.

4. The Ministry of Culture - Information, in collaboration with the Ministry of Finance, will lead the development of a proposal to implement the provisions of Clauses 1, 2, and 3 of this Article.

Article 16. Proportion and time for broadcasting Vietnamese films, films for children under 16 years old on television systems (provisions detailing and guiding the implementation of Clause 2, Article 35)

1. The implementation of broadcasting Vietnamese films during national holiday film seasons, serving political, social, and diplomatic tasks on the national television system is carried out according to the regulations of the Ministry of Culture - Information.

2. The proportion of broadcast time for Vietnamese feature films by each television station must reach at least 30% of the total broadcast time for films, and these films must be broadcast during the time period from 20:00 to 22:00 daily, and may also be broadcast at other times.

3. The duration of film broadcasting for children under 16 years old must be at least 5% of the total broadcasting time; the broadcasting hours for films intended for children under 16 years old must end before 10 PM daily.

Article 17. Competence to issue film distribution permits (provisions detailing and guiding the implementation of point a and b, Clause 1, Article 38)

1. The Ministry of Culture, Sports and Tourism shall issue film distribution permits for:

a. Feature films produced or imported by domestic film production units, except in cases stipulated in Clause 3 of this Article;

b. Documentary films, scientific films, animated films produced or imported by central film production units;

c. Films produced through cooperation, service provision, joint production with foreign organizations and individuals.

2. Provincial People's Committees shall issue film distribution permits for documentary films, scientific films, animated films produced or imported by local film production units.

3. Provincial People's Committees shall be authorized to issue feature film distribution permits when, in the preceding year, local film production units meet the following conditions:

a. Producing at least ten permitted feature films;

b. Importing at least forty permitted feature films.

If these two conditions are not met in a given year, the provincial People's Committee will lose the authority to issue feature film distribution permits in the following year.

4. Annually, from December 25 to December 31, based on the number of permitted feature films produced and imported by local film production units in that year, the Ministry of Culture, Sports and Tourism shall inform the provincial People's Committees whether they have the necessary conditions to issue feature film distribution permits in the following year.

Article 18. Procedures and formalities for organizing film festivals and screening foreign films in Vietnam (provisions detailing and guiding the implementation of Clause 1, Article 41)

1. Specialized and thematic film festivals:

a. Ministries, ministerial-level agencies, government agencies, provincial People's Committees, and the Film Association, when organizing specialized and thematic film festivals, must submit a request for organization and festival regulations to the Ministry of Culture, Sports and Tourism;

b. Within thirty days from the date of receiving complete and valid documents, the Ministry of Culture, Sports and Tourism shall respond in writing with approval, stating reasons if disapproved.

2. Conditions, procedures, and formalities for organizing screenings of foreign films in Vietnam:

a. Vietnamese organizations and individuals, and foreign organizations and individuals permitted to organize screenings of foreign films in Vietnam for non-commercial purposes;

b. Application documents for screening foreign films in Vietnam according to Clause 3, Article 41 of the Cinema Law and Vietnamese subtitles, film copies; application forms prescribed by the Ministry of Culture, Sports and Tourism;

c. Organizations and individuals organizing screenings of foreign films in Vietnam must pay film review fees as prescribed by laws on fees and charges;

d. Within fifteen working days from the date of receiving complete and valid documents as prescribed in point b, Clause 2 of this Article, the Ministry of Culture, Sports and Tourism shall respond in writing with approval, stating reasons if disapproved.

Article 19. Issuing certificates of eligibility for film production enterprises (provisions detailing and guiding the implementation of Clause 2, Article 14)

1. The issuance of certificates of eligibility for film production enterprises as prescribed in Article 14 of the Cinema Law.

2. Film production enterprises established and operating before January 1, 2007, must complete the procedures for obtaining a certificate of eligibility within one year from the effective date of this Decree.

Article 20. Handling violations of cinema laws (provisions detailing and guiding the implementation of Article 53)

1. Individuals who violate provisions of the law in cinema activities shall be subject to disciplinary action, administrative penalties, or criminal prosecution depending on the nature and severity of the violation; if damage is caused, compensation must be provided as prescribed by law.

2. Organizations that violate provisions of the law in cinema activities shall be subject to administrative penalties depending on the nature and severity of the violation; if damage is caused, compensation must be provided as prescribed by law.

3. Administrative penalties for violations in cinema activities shall be implemented in accordance with the regulations on administrative penalties in cultural and information activities.

Article 21. Effectiveness

1. This Decree shall take effect fifteen days after its publication in the Official Gazette.

2. This Decree replaces Decree No. 48/CP dated July 17, 1995 on organization and operation of cinema, Decree No. 26/2000/NĐ-CP dated August 3, 2000 amending and supplementing certain articles of Decree No. 48/CP dated July 17, 1995 on organization and operation of cinema, and abolishes the provisions of Articles 5, 6, 7, 8, and 9 of Chapter II on circulation and business of film reels and video discs in the Regulation on Cultural Activities and Public Cultural Services Business issued together with Decree No. 11/2006/NĐ-CP dated January 18, 2006 of the Government.

Article 22. Responsibilities for guiding and implementing this Decree

1. The Minister of Culture, Sports and Tourism shall guide the implementation and organize the enforcement of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of provincial People's Committees, and organizations and individuals participating in cinema activities, and those related to cinema activities in Vietnam shall be responsible for enforcing this Decree./.