Laws of Vietnam

THE MINISTER OF PLANNING AND INVESTMENT

Pursuant to the November 12, 1996 Law on Foreign Investment in Vietnam and the 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam;

Pursuant to the Government's Decree No. 24/2000/ND-CP of July 31, 2000 detailing the implementation of the Law on Foreign Investment in Vietnam and Decree No. 27/2003/ND-CP of March 19, 2003 amending and supplementing a number of articles of Decree No. 24/2000/ND-CP;

Pursuant to the Industrial Parks, Export- Processing Zones and High-Tech Parks Regulation issued together with the Government's Decree No. 36/CP of April 24, 1997;

Pursuant to the Government's Decree No. 61/2003/ND-CP of June 6, 2003 defining the functions, tasks, powers and organizational structure of the Ministry of Planning and Investment;

Pursuant to the Prime Minister's Decision No. 233/1998/QD-TTg of December 1, 1998 on decentralization and authorization of the granting of investment licenses for foreign direct investment projects;

Pursuant to the Prime Minister's Decision No.108/2003/QD-TTg of June 5, 2003, establishing, and promulgating the Regulation on operation of, Chu Lai Open Economic Zone, Quang Nam province;

Pursuant to the Prime Minister's Decision No.184/2003/QD-TTg of September 8, 2003 on the establishment of the Management Board of Chu Lai Open Economic Zone, Quang Nam province;

At the proposal of the People's Committee of Quang Nam province in Report No.1687/TTr-UB of September 15, 2003,

DECIDES:

1. The Management Board of Chu Lai Open Economic Zone (hereinafter called the Management Board) shall act as the main body guiding investors to invest in industrial parks and/or export processing zones of Chu Lai Open Economic Zone, operating according to the Industrial Parks, Export-Processing Zones and High-Tech Parks Regulation issued together with the Government's Decree No.36/CP of April 24, 1997 in the geographical area of Chu Lai Open Economic Zone.

The investment project dossiers shall be compiled under the guidance of the Ministry of Planning and Investment.

2. To authorize the Management Board to receive and appraise the project dossiers; grant, adjust and withdraw investment licenses and to manage the activities of projects on foreign investment in industrial parks and/or export-processing zones in Chu Lai Open Economic Zone, prescribed in this Decision.

Article 2.- The investment projects for which the Management Board is authorized to grant investment licenses must satisfy the following conditions:

1. Being in compatible with the planning, rules and regulation on operation of Chu Lai Open Economic Zone, which have been approved by competent authorities.

2. Being projects in the fields of industries and industrial services, which are capitalized at up to USD 40 million each, excluding Group A projects defined in Article 114 of Decree No.24/2000/ND-CP of July 31, 2000, and amended and/or supplemented in Clause 26, Article 1 of the Government's Decree No.27/2003/ND-CP of March 19, 2003.

3. Their equipment, machinery and technologies satisfy the current regulations; in case if failing to meet those regulations, they must be approved by competent State bodies managing such economic-technical branches.

4. Satisfying the requirements on environmental protection, labor safety and fire as well as explosion prevention and fighting.

Article 3.- The consideration of granting of investment licenses according to the procedures of registration for granting of investment licenses or the procedures of appraising the granting of investment licenses shall be effected by the Management Board in close coordination with the provincial/municipal Services of Planning and Investment and the local functional bodies as provided for in Articles 104, 105, 106, 107 and 108 of Decree No.24/2000/ND-CP of July 31, 2000 and amended, supplemented in Clauses 22 and 23, Article 1 of Decree No.27/2003/ND-CP of March 19, 2003.

The Management Board shall have to formulate the Regulation on working coordination with the local functional bodies, submitting it to the People's Committee of Quang Nam province for approval and notifying it to the Ministry of Planning and Investment.

1. The Management Board shall organize the appraisal and decide by itself the granting of investment licenses for the following projects:

- Export-processing enterprises having the investment capital of up to USD 40 million;

- Industrial manufacturing enterprises having the investment capital of up to UDS 10 million and industrial service enterprises having the investment capital of up to USD 5 million, and satisfying the regulations in Article 2 of this Decision.

2. The time limit for the Management Board to appraise and grant an investment license shall be 15 working days after receiving the project dossier, excluding the time the investors amend and/or supplement the dossiers of application for investment license at the Management Board's request.

All requests of the Management Board for investors to amend and/or supplement the dossiers of application for granting of investment licenses or adjusted licenses shall be implemented within 7 working days after the receipt of the project dossiers.

3. For investment projects not covered by the regulations in Clause 1 of this Article, before issuing decisions, the Management Board shall have to send the project summaries to the Ministry of Planning and Investment; gather comments of ministries and branches on matters falling under their respective competence.

The ministries and branches which are asked for their comments on the projects, including cases of adjusting investment licenses, shall have to answer in writing within 7 working days after the receipt of the project dossiers; past the above-said time limit, the projects shall be considered being agreed upon if no written comments are given.

Article 5.- The investment licenses shall be compiled according to set forms under the guidance of the Ministry of Planning and Investment

Within 7 working days after granting the investment licenses or adjusted licenses, the Management Board shall send the investment licenses or adjusted licenses to the Ministry of Planning and Investment, the People's Committee of Quang Nam province (the originals) and the Finance Ministry, the Trade Ministry, the economic- technical branch managing ministry and the concerned State management bodies (the copies)

Article 6.- For projects for which the Management Board is not authorized to grant investment licenses, after receiving the dossiers, the Management Board shall keep one dossier set (the copy) and send all the rest, enclosed with its comments on the projects, to the Ministry of Planning and Investment in order to organize the appraisal and grant the investment licenses according to the provisions in Articles 109 and 114 of the Government's Decree No.24/2000/ND-CP of July 31, 2000 and Decree No.27/2003/ND-CP of March 19, 2003.

1. The Management Board shall guide the investors to implement the projects; exercise the State management over activities in the industrial parks and export-processing zones in Chu Lai Open Economic Zone according to the provisions in the Industrial Parks, Export-Processing Zones and High-Tech Parks Regulation issued together with the Government's Decree No.36/CP of April 24, 1997.

2. The Management Board shall adjust investment licenses for investment projects which it was authorized to license within the authorized investment capital limit.

3. Cases on which the Management Board shall decide with the consent of the Ministry of Planning and Investment:

- Where the investment license adjustment results in the excess of the authorized capital level, the change in objectives or addition of objectives of projects on the list of fields with conditional investment.

- Where the Vietnamese parties reduce the legal capital contribution rate in cases of joint ventures or transformation from joint-ventures to investment with 100% foreign capital.

- Where foreign-invested enterprises dissolve or the business cooperation contracts terminate ahead of time.

4. The Management Board shall decide to dissolve the enterprises and withdraw the investment licenses according to current regulations.

Article 8.- Quarterly, biannually and annually, the Management Board shall sum up the granting of investment licenses, the adjustment of investment licenses, the situation of activities of enterprises in the industrial parks and export-processing zones within the scope of its management and send reports thereon to the Ministry of Planning and Investment and the People's Committee of Quang Nam province.

Article 9.- The Ministry of Planning and Investment shall create all favorable conditions for the Management Board to perform the authorized tasks and inspect the performance thereof strictly according regulations, and take responsibility before law and the Government for the authorization prescribed in this Decision.

Article 10.- This Decision takes implementation effect 15 days after its publication in the Official Gazette.

Minister of Planning and Investment
VO HONG PHUC