Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To promulgate together with this Decision the Regulation on management of construction investment projects of foreign-based Vietnamese representative missions and other agencies.

Article 2.- This Decision takes effect 15 days after its publication in "CONG BAO." All previous regulations which are contrary to the Regulation promulgated together with this Decision are annulled.

Article 3.- Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and concerned organizations and individuals shall implement this Decision.

Prime Minister
NGUYEN TAN DUNG

Article 1.- Scope and objects of regulation

1. Scope: State budget-funded investment activities of foreign-based Vietnamese representative missions and other agencies.

2. Objects: State budget-funded or state budget-originated investment projects on construction, renovation or upgrade of existing working offices; or on purchase of houses or land for the construction of working offices or dwelling houses for staff members (below collectively referred to as investment projects on construction of working offices).

Article 2.- Management principles

1. Investment projects on construction of working offices of foreign-based Vietnamese representative missions and other agencies must comply with this Regulation and Vietnam's relevant legal provisions;

When there are different provisions on the same matter, the provisions of this Regulation and laws of host countries where exist investment projects prevail.

2. For investment projects on construction of working offices of other foreign-based Vietnamese agencies, the Foreign Affairs Ministry's written opinions on their investment guidelines are required before consultation with concerned ministries, ministerial-level agencies, government-attached agencies or other central agencies.

Article 3.- Interpretation of terms

In this Regulation, the terms below are construed as follows:

1. Foreign-based representative missions of the Socialist Republic of Vietnam include diplomatic missions, permanent missions at inter-governmental international organizations and consulates. Representative missions shall perform the function of representing the Vietnamese State in relations with host countries and international organizations within the ambit of their tasks and powers prescribed by law.

2. Other foreign-based Vietnamese agencies mean foreign-based Vietnamese agencies set up by ministries, ministerial-level agencies, government-attached agencies or other central agencies on the basis of agreement with concerned countries, which do not belong to organizational structures of foreign-based representative missions of the Socialist Republic of Vietnam.

3. Investors mean foreign-based representative missions of the Socialist Republic of Vietnam (below referred to as foreign-based Vietnamese representative missions) and other foreign-based Vietnamese agencies or their managing agencies, which are assigned to directly manage and use capital for investment in the construction of works and manage and use works after investment in accordance with Vietnamese law and laws of host countries where exist investment projects.

Article 4.- Investment planning

1. Based on the State's strategic orientations and long-term plans on international cooperation relations, the Ministry of Foreign Affairs, ministries, ministerial-level agencies, government-attached agencies or other central agencies shall draw up long- and medium-term (five-year) plans on investment in construction of working offices of foreign-based Vietnamese representative missions and other agencies.

Ministries', ministerial-level agencies', government-attached agencies' or other central agencies' long- and medium-term plans on investment in construction of working offices are classified into the following two kinds:

a/ Separate working offices with investment managed by ministries, ministerial-level agencies, government-attached agencies or other central agencies;

b/ Sections within foreign-based Vietnamese representative missions with investment managed by the Ministry of Foreign Affairs.

2. The Ministry of Foreign Affairs shall assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the Ministry of Finance in, summing up long- and medium-term plans on investment in construction of working offices of foreign-based Vietnamese representative missions and other agencies, and submit them to the Prime Minister for approval.

3. Based on the Prime Minister-approved long- and medium-term plans on investment in construction of working offices of foreign-based Vietnamese representative missions and other agencies, ministries, ministerial-level agencies, government-attached agencies or other central agencies shall draw up annual plans on investment in construction of working offices according to their competence and current legal provisions.

Article 5.- Project formulation, evaluation and approval

1. Project formulation:

a/ Investment project-formulating investors shall fully comply with current legal provisions on the formulation, evaluation and approval of construction investment projects, taking into account opinions of competent bodies of host countries where exist the investment projects on construction location, house purchase/sale or construction prices and other issues relating to the projects.

b/ A dossier submitted for evaluation comprises both explanations and basic design. For house/land purchase projects under an investment project, a dossier submitted for evaluation and approval comprises only explanations.

2. Project evaluation and approval:

a/ For investment projects capitalized at USD 10 million or more each: ministries, ministerial-level agencies, government-attached agencies or other central agencies having investment projects on construction of working offices of foreign-based Vietnamese representative missions or other agencies shall assume the prime responsibility for evaluation and submit them to the Prime Minister for investment decision;

b/ For investment projects capitalized at under USD 10 million each: ministries, ministerial-level agencies, government-attached agencies or other central agencies having investment projects on construction of working offices of foreign-based Vietnamese representative missions or other agencies shall evaluate them and decide on the investment;

c/ The Ministry of Foreign Affairs shall, according to its competence, evaluate, and decide on investment in, projects of foreign-based Vietnamese representative missions and other agencies under its management;

d/ Ministries, ministerial-level agencies, government-attached agencies and other central agencies shall, according to its competence, evaluate and decide on investment in, projects of other foreign-based Vietnamese agencies under their respective management;

e/ Investment projects related to the purchase of houses or land for use as working offices of foreign-based Vietnamese representative missions or other agencies shall be approved after the in-principle agreement is reached between the investor and the seller on the house/land purchase and sale or the tentative house/land purchase (sale) price. The total investment capital of a project shall accurately be determined on the basis of the house/land purchase (sale) price indicated in the contract officially signed between the investor and the seller. The investor shall sign the house/land purchase/sale contract once the investment project is approved by a competent authority.

3. Necessary procedures may be finalized for projects which satisfy investment conditions for execution right in the year.

Article 6.- Design, cost estimation, land allocation and construction permit

1. Design:

a/ Construction investment projects must comply with the following designing steps: for projects capitalized at USD 10 million or more each, the designing steps include basic design, technical design and construction drawing design; for investment projects capitalized at under USD 10 million each, the designing steps include basic design and construction drawing design;

b/ The construction design must comply with the State's construction standards and construction technical regulations, except for cases subject to application of construction standards and construction technical regulations of the host country where exists the investment project;

c/ Construction design organizations (including Vietnam-based ones) are subject to author supervision throughout the construction process;

d/ For investment projects on house/land purchase: designing steps are not required but documents and drawings of project plans are required.

2. Cost estimation:

a/ The making, approval and management of cost estimates and total cost estimates comply with the law on management of work construction investment expenses. Particularly, estimate norms and unit prices must comply with regulations of host countries where exist investment projects;

b/ For house/land purchase projects: cost estimates and total cost estimates are not required; their management shall be based on the approved total investment capital and signed house/land purchase contracts.

3. Land allocation and construction permit application:

Matters related to land purchase or lease and construction permit application comply with regulations of host countries where exist investment projects.

4. Handling of arising problems:

In the course of construction, the investor shall, when necessary, consider and decide on adjustment of the design or cost estimate not resulting in changes in the scale of an approved work. When it is necessary to adjust the design or cost estimate resulting in changes in the scale or objectives, and the increase in the total investment capital, of an approved project, the investor shall report it to the investment decider for decision.

Article 7.- Selection of construction contractors

For construction investment projects, the selection of construction contractors complies with Vietnamese current law and laws of host countries where exist investment projects.

Article 8.- Construction

a/ Work construction management covers management of construction quality, management of construction progress, management of work construction volumes, management of labor safety at construction sites, and management of construction environment;

b/ Investors shall directly manage the construction; incapable investors may sign contracts to hire others to do some or all jobs of construction management.

Article 9.- Investment capital payment and settlement

1. Payment:

a/ For investment projects on house/land purchase: Capital shall be paid under contractual terms and Vietnamese law;

b/ For construction investment projects: Capital advance and payment must comply with Vietnamese law and laws of host countries where exist investment projects. Payment terms must be specified in the contract between the investor, the construction contractor and the equipment supplier;

c/ In case of foreign currency payment, the investor shall purchase from a bank, or request in writing the Ministry of Finance to supply, foreign currencies for payment.

2. Settlement:

Upon completion of a construction investment project or upon house/land purchase, investment capital for the completed project must be settled under the guidance of the Ministry of Finance.

Article 10.- Management responsibilities of concerned agencies

1. The Ministry of Foreign Affairs, ministries, ministerial-level agencies, government-attached agencies and other central agencies having other foreign-based Vietnamese agencies:

a/ To manage construction investment projects under their competence according to this Regulation and relevant legal provisions;

b/ The Ministry of Foreign Affairs shall manage construction investment activities of foreign-based Vietnamese representative missions;

c/ Ministries, ministerial-level agencies, government-attached agencies and other central agencies shall manage construction investment activities of other foreign-based Vietnamese agencies;

d/ To monitor, inspect, review, and guide investors under their management in, the execution of investment projects according to current regulations.

2. The Ministry of Foreign Affairs shall assume the prime responsibility for, and coordinate with the Ministries of Planning and Investment; Finance; and Construction in, guiding the implementation of the Regulation on management of construction investment projects of foreign-based Vietnamese representative missions and other agencies.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with concerned ministries in, guiding the payment and settlement of investment capital of construction investment projects of foreign-based Vietnamese representative missions and other agencies.

Article 11.- Organization of implementation

Annually, ministries, ministerial-level agencies, government-attached agencies and other central agencies having construction investment projects of other foreign-based Vietnamese agencies shall report on the implementation of this Regulation to the Ministry of Foreign Affairs for sum-up report to the Prime Minister.