Nghị định 78/2006/ND-CP

DECREE

PROVIDING FOR OFFSHORE DIRECT INVESTMENT

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 29, 2005 Investment Law;
At the proposal of the Minister of Planning and Investment,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Regulation scope

1. This Decree provides for offshore direct investment activities of investors in .

2. Offshore direct investment activities in oil and gas domains and some particular domains or in particular investment areas shall comply with the specific regulations of the Government.

3. Where a treaty to which is a contracting party contains provisions different from the provisions of this Decree, the provisions of such treaty shall apply.

Article 2.- Subjects of application

Investors in (hereinafter called investors) include:

1. Limited liability companies, joint-stock companies, partnerships and private enterprises, which have been granted business registration certificates under the Enterprise Law.

2. Enterprises established under the State Enterprise Law, which have not yet been re-registered under the Enterprise Law.

3. Foreign-invested enterprises established under the Foreign Investment Law, which have not yet been re-registered under the Enterprise Law and the Investment Law.

4. Enterprises of political organizations or socio-political organizations, which have not yet been re-registered under the Enterprise Law.

5. Cooperatives, unions of cooperatives, which are established under the Cooperative Law.

6. Medical, educational, scientific, cultural or sport service establishments/institutions and other service establishments conducting profitable investment activities.

7. Vietnamese business households and individuals.

Article 3.- Interpretation of terms

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

1. Offshore direct investment means the transfer of investment capital to foreign countries by investors so as to carry out investment activities and directly participate in the management of such investment activities in foreign countries.

2. Overseas economic organizations mean economic organizations established or registering business in foreign countries according to laws of the investment-receiving countries in order to conduct offshore investment activities, where investors partially or fully own the investment capital.

3. Valid dossiers mean dossiers with complete papers and declarations compliant with the provisions of law.

Article 4.- Conditions for offshore direct investment

In order to make offshore direct investment, investors defined in Article 2 of this Decree shall meet the following conditions:

1. Having offshore direct investment projects (hereinafter called investment projects).

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

3. Observing the provisions of law on management and use of state capital, for cases of using state capital for offshore direct investment.

4. Having been granted investment certificates by the Ministry of Planning and Investment.

Article 5.- Domains in which offshore direct investment is encouraged, banned or restricted

Based on the provisions of Article 75 of the Investment Law and the socio-economic situation in each period, the Prime Minister shall promulgate the lists of domains in which offshore direct investment is encouraged, banned or restricted.

Article 6.- Application of investment preferences

1. Where newly promulgated laws or policies render benefits or preferences which are higher than those previously enjoyed by investors, such investors shall be entitled to new benefits or preferences as from the effective dates of such new laws or policies.

2. Where benefits or preferences stated in the investment licenses or offshore direct investment permits granted to investors are higher than those they have enjoyed under current regulations, they shall continue enjoying the benefits or preferences stated in the investment licenses or offshore direct investment permits.

Article 7.- Offshore direct investment capital

Offshore direct investment capital may take one of the following forms:

1. Foreign currencies.

2. Machinery, equipment; supplies, raw materials, fuels, goods being finished or semi-finished products.

3. Value of industrial property rights, technical know-how, technological processes, technical services or intellectual property rights.

4. Other lawful assets.

Article 8.- Languages for use

Investment project dossiers and documents related to investment procedures sent to Vietnamese state agencies shall be made in Vietnamese or in both Vietnamese and a foreign language; in case of disparity between the Vietnamese version and the foreign language version, the Vietnamese version shall prevail.

Chapter II

COMPETENCE AND PROCEDURES FOR THE GRANT AND MODIFICATION OF INVESTMENT CERTIFICATES

Article 9.- Competence to approve investment

The Prime Minister shall approve investment for the following projects:

1. Projects of investment in banking, insurance business, financial, credit, journalism, radio or television broadcasting or telecommunications domains, which are funded with VND 150 billion or more of state capital, or VND 300 billion or more of capital of other economic sectors.

2. Investment projects defined in Clause 1 of this Article, which are funded with VND 300 billion or more of state capital, or VND 600 billion or more of capital of other economic sectors.

Article 10.- Competence to grant investment certificates

The Ministry of Planning and Investment shall grant investment certificates to the following investment projects:

1. Investment projects defined in Article 9 of this Decree, after they are approved by the Prime Minister.

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

Article 11.- Investment certificate-granting process

The grant of investment certificates shall go through the following processes:

1. The process of registration and grant of investment certificates, applicable to investment projects capitalized at less than VND 15 billion.

2. The process of examination and grant of investment certificates, applicable to investment projects capitalized at VND 15 billion or more.

Article 12.- Investment certificates and other forms of document

1. Principal contents of an investment certificate include:

a/ The name and address of the investor;

b/ The investment objectives and size of the investment project;

c/ The name of the country or territory receiving the investment project;

d/ The investment capital amount;

e/ The investment project execution term;

f/ The investment project execution schedule;

g/ Investment preferences and supports (if any).

2. The Ministry of Planning and Investment shall promulgate forms of the following documents: the registration of an investment project; the request for examination of an investment project; the explanation of an investment project; the request for modification of an investment certificate; the explanation of the request for modification of an investment certificate; the notice on execution of an investment project; the report on situation of operation of an investment project.

Article 13.- Process of registration and grant of investment certificates

1. An investment project dossier shall comprise:

a/ The written registration of the investment project.

b/ The notarized copies of the investment certificate, for investors being foreign-invested enterprises; the business registration certificate or the establishment decision or the paper of equal validity, for investors being organizations; the people’s identity card or passport, for investors being Vietnamese individuals; the investment license, for investors being foreign-invested enterprises which have been granted investment licenses prior to July 1, 2006 and have not yet been re-registered under the Investment Law or the Enterprise Law.

c/ The contract or written agreement with the partner on capital contribution or equity purchase or investment cooperation, for investment projects involving different investors.

d/ The written consent of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress on the offshore direct investment, for investors being limited liability companies, partnerships, joint-stock companies or cooperatives in cases of necessity as prescribed by enterprise law or cooperative law.

2. An investor shall submit to the Ministry of Planning and Investment three investment project dossier sets, including an original. The Ministry of Planning and Investment shall check the validity of the investment project dossier defined in Clause 1 of this Article. Where there’s a content which need to be clarified in relation to the investment project dossier, the Ministry of Planning and Investment shall, within five working days after receiving the dossier, send a written request to the investor for the latter’s clarification of the unclear content.

3. Within 15 working days after receiving a valid dossier, the Ministry of Planning and Investment shall grant an investment certificate and, at the same time, send copies thereof to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the econo-technical branch-managing ministry, the Ministry of Foreign Affairs and the People’s Committee of the province or centrally-run city (hereinafter collectively referred to as the provincial-level People’s Committee) where the investor is headquartered.

4. Where the investment project dossier is rejected, the Ministry of Planning and Investment shall send a written notice to the investor, clearly stating the reasons for the rejection.

Article 14.- Process of examining and granting investment certificates

1. An investment project dossier shall comprise:

a/ The written request for examination of the investment project;

b/ The notarized copies of the investment certificate, for investors being foreign-invested enterprises; the business registration certificate or the establishment decision or the paper of equal validity, for investors being organizations; the people’s identity card or passport, for investors being Vietnamese individuals; or the investment license, for investors being foreign-invested enterprises which have been granted investment licenses prior to July 1, 2006 and have not yet been re-registered under the Investment Law or the Enterprise Law.

c/ The written explanation on the investment project, covering the following contents: the investment objectives; the investment location; the investment capital amount; the investment capital sources; the use of Vietnamese laborers (if any); the use of raw materials from Vietnam (if any); the schedule for execution of the investment project;

d/ The contract or written agreement with the partner on capital contribution, equity purchase or investment cooperation, for investment projects involving different investors.

e/ The written consent of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress on the offshore direct investment, for investors being limited liability companies, partnerships, joint-stock companies or cooperatives in cases of necessity as prescribed by enterprise law or cooperative law.

2. An investor shall send to the Ministry of Planning and Investment 08 investment project dossier sets, including one original. The Ministry of Planning and Investment shall check the validity of the investment project dossier defined in Clause 1 of this Article.

3. Contents of examination of the investment project shall cover:

a/ The offshore direct investment conditions defined in Clauses 1, 2 and 3, Article 4 of this Decree;

b/ The legal status of the investor;

c/ The legality of the offshore direct investment capital;

d/ The schedule for execution of the investment project.

4. The process of examining and granting an investment certificate shall be effected as follows:

a/ Within three working days after receiving a valid dossier, the Ministry of Planning and Investment shall send written requests for comments, together with the investment project dossier, to the concerned ministries, branches and the provincial-level People’s Committee of the locality where the investor is headquartered.

b/ Within 15 working days after receiving the Planning and Investment Ministry’s written requests for comments, the requested agencies shall examine the investment project dossier and give their written comments on the project’s contents falling in their assigned state management domains; past this time limit, if the requested agencies give no written comments, they shall be considered as having approved the investment project dossier with regard to the contents falling in their respective assigned state management domains.

c/ For investment projects defined in Article 9 of this Decree, within 25 working days after receiving valid dossiers, the Ministry of Planning and Investment shall submit to the Prime Minister their written appraising opinions, enclosed with the investment project dossiers and written comments of the concerned agencies to the Prime Minister for consideration and decision.

Within five days after receiving the Prime Minister’s written approval, the Ministry of Planning and Investment shall grant investment certificates.

d/ For investment projects not defined in Article 9 of this Decree, within 30 days after receiving valid dossiers, the Ministry of Planning and Investment shall grant investment certificates.

e/ The copies of investment certificates shall be sent to the Ministry of Finance, the Ministry of Trade, the State Bank of , the econo-technical branch-managing ministries, the Ministry of Foreign Affairs and provincial-level People’s Committees of localities where investors are headquartered.

f/ Where investment project dossiers are rejected, the Ministry of Planning and Investment shall send written notices to investors, clearly stating the reasons for the rejection.

Article 15.- Modification of investment certificates

If wishing to adjust investment projects already granted investment certificates regarding the investment objectives, investment size, investment capital, investors, investment-receiving countries or investment project-execution durations, investors shall fill in the procedures for modification of their investment certificates according to the following processes:

1. The process of registration and modification of investment certificates, applicable to the following cases:

a/ The modified contents of the investment certificates are irrelevant to the investment scale and domain;

b/ The modified contents of the investment certificates are irrelevant to the investment domains defined in Clause 1, Article 9 of this Decree and the total investment capital, after being increased, shall not exceed VND 15 billion.

2. The process of examination and modification of investment certificates shall apply to the cases not defined in Clause 1 of this Article.

Article 16.- Process of registration and modification of investment certificates

1. An investment project dossier shall comprise:

a/ A written request for modification of the investment certificate;

b/ A contract on the assignment of investment capital and the legal dossier of the new party to the investment project (in case of assignment of investment capital).

c/ A notarized copy of the investment certificate.

d/ A written consent on the offshore direct investment of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress, for investors being limited liability companies, partnerships, joint-stock companies or cooperatives in cases of necessity as prescribed by enterprise law or cooperative law.

e/ A report on the operation of the investment project up to the time the investor files the written request for modification of the investment certificate.

2. The investor shall send to the Ministry of Planning and Investment three investment project dossier sets, including one original.

3. Where a content related to the investment project dossier needs to be clarified, within five working days after receiving the dossier, the Ministry of Planning and Investment shall send a written request to the investor for the latter’s explanation of such content.

4. Within 15 working days after receiving a valid dossier, the Ministry of Planning and Investment shall grant a modified investment certificate and, at the same time, send copies thereof to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the econo-technical branch-managing ministry, the Ministry of Foreign Affairs and the provincial-level People’s Committee of the locality where the investor is headquartered.

Where the investment project dossier is rejected, the Ministry of Planning and Investment shall send a written notice to the investor, clearly stating the reasons for the rejection.

Article 17.- Process of examination and modification of investment certificates

1. An investment project dossier shall comprise:

a/ A written request for modification of the investment certificate;

b/ A written explanation on the request for modification of the investment certificate;

c/ A contract on the assignment of investment capital and the legal dossier of the new party to the investment project (in case of the assignment of investment capital).

d/ A notarized copy of the investment certificate.

e/ A written consent on offshore direct investment of the members’ council, the managing board, the shareholders’ council or the cooperative members’ congress, for investors being limited liability companies, partnerships, joint-stock companies or cooperatives in cases of necessity as prescribed by enterprise law or cooperative law.

f/ A report on the situation of operation of the investment project up to the time the investor files the written request for modification of the investment certificate.

2. The investor shall send to the Ministry of Planning and Investment six investment project dossier sets, including one original.

3. Within three working days after receiving a valid dossier, the Ministry of planning and Investment shall send a written request for comments, enclosed with the investment project dossier, to concerned ministries and branches and the provincial-level People’s Committee of the locality where the investor is headquartered.

Within 15 working days after receiving the Ministry of Planning and Investment’s written comment requests, the requested agencies shall examine the investment project dossier and give their written comments on the contents falling in their respective assigned state management domains; past this time limit, if the requested agencies give no comments, they shall be considered as having approved the investment project dossier regarding the contents falling in their respective assigned state management domains.

4. The Ministry of Planning and Investment shall submit to the Prime Minister for decision the following cases:

a/ Adjustment of an investment project in terms of the investment domain or investment capital amount, as defined in Article 9 of this Decree.

b/ Adjustment of the investment domain or investment capital amount, for investment projects not defined in Article 9 of this Decree, which, after adjustment, will fall under the Prime Minister’s competence to approve the investment according to the provisions of Article 9 of this Decree.

5. For investment projects defined in Article 9 of this Decree, within 25 working days after receiving valid dossiers, the Ministry of Planning and Investment shall submit its appraising opinions together with the investment project dossiers and written comments of concerned agencies to the Prime Minister for consideration and decision.

Within five working days after receiving the Prime Minister’s written approval, the Ministry of Planning and Investment shall grant the modified investment certificates.

6. For investment projects not defined in Article 9 of this Decree, within 30 working days after receiving valid dossiers, the Ministry of Planning and Investment shall grant modified investment certificates.

7. The copies of modified investment certificates shall be sent to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the econo-technical branch- managing ministry, the Ministry of Foreign Affairs and the provincial-level People’s Committees of the localities where the investors are headquartered.

8. Where investment project dossiers are rejected, the Ministry of Planning and Investment shall send written notices to the investors, clearly stating the reasons for the rejection.

Article 18.- Use of profits for offshore investment

1. Where profits gained from an offshore investment project are used for reinvestment in such project, the relevant investment certificate must be modified by the Ministry of Planning and Investment in accordance with the provisions of this Decree.

2. Where profits gained from an offshore investment project are used for investment in another offshore investment project, the latter project must be granted an investment certificate by the Ministry of Planning and Investment in accordance with the provisions of this Decree.

Article 19.- Re-registration of investment projects

1. Investors shall not have to re-register their investment projects which have been granted the investment licenses or the offshore direct investment permits before the effective date of this Decree.

2. If wishing to re-register their investment projects, investors shall each send to the Ministry of Planning and Investment three investment-project dossier sets, including one original. Such a dossier shall comprise:

a/ A written request for re-registration of the investment project;

b/ A report on the situation of operation of the investment project up to the time the investor files a written request for re-registration of the investment project.

c/ A notarized copy of the investment license or the offshore investment permit.

3. When carrying out the re-registration procedures, the Ministry of Planning and Investment shall inscribe in investment certificates benefits and preferences which investors are entitled to under the provisions of law.

4. Within 15 working days after receiving valid dossiers, the Ministry of Planning and Investment shall grant investment certificates in replacement of the already granted investment licenses or investment permits.

Chapter III

EXECUTION OF INVESTMENT PROJECTS

Article 20.- Notification on execution of investment projects

1. Within 60 days after an investment project is approved under legal provisions of the investment-receiving country, the concerned investor shall send a written notice on the execution of the investment project together with the written approval of such investment project or the legal document of equal validity as prescribed by law of the investment-receiving country to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the econo-technical branch-managing ministry, the Ministry of Foreign Affairs, the State Bank of Vietnam and the provincial-level People’s Committee of the locality where the investor is headquartered.

2. A written notice on execution of an investment project shall have the following contents:

a/ The name and address of the head office of the overseas economic organization; the name and address of its branch or representative office (if any);

b/ The investment objectives and investment domain(s);

c/ The investment capital of the overseas economic organization; the investor’s capital portion;

d/ The information on the investor’s representative and the representative of the overseas economic organization, including their full names, permanent residence addresses (in Vietnam and in the foreign country), positions, people’s identity card or passport numbers.

3. In case of changes in the contents specified in Clause 2 of this Article, within 30 days after making such changes, the investor shall send a written notice thereon to the Ministry of Planning and Investment.

Article 21.- Time limit for execution of investment projects

1. If past 12 months after it is granted an investment certificate, an investment project is not approved by the investment-receiving country or past six months after it is approved by the competent agency of the investment-receiving country, the investment project has not yet been executed, the concerned investor must send a notice to the Ministry of Planning and Investment, clearly stating the reasons therefor and requesting the prolongation of the project execution term or the termination of the project.

2. Within 15 working days after receiving a written request for the prolongation of the investment project execution term or the termination of the investment project, the Ministry of Planning and Investment shall issue written approval or disapproval thereof and send it to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the econo-technical branch-managing ministry, the Ministry of Foreign Affairs and the provincial-level People’s Committee of the locality where the investor is headquartered.

3. The prolongation of the investment project-execution term may be effected no more than twice for not more than 6 months each time.

Article 22.- Reporting on the operation of investment projects

Annually, within six months after obtaining tax finalization reports or documents of equal validity under laws of the investment-receiving countries, investors shall send reports on the situation of operation of their investment projects, enclosed  with such reports or documents of equivalent legal value to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the econo-technical managing ministries and the provincial-level People’s Committees of the localities where the investors are headquartered.

Article 23.- Transfer of investment capital abroad

1. Investors may transfer investment capital abroad in order to carry out investment activities after fully satisfying the following conditions:

a/ They have been granted investment certificates;

b/ Their investment projects have been approved by competent state agencies of the investment-receiving countries according to laws of such countries.

2. The transfer of foreign currencies abroad before the grant of investment certificates for research into, and preparation of, investment projects shall comply with the provisions of law on foreign exchange management and relevant provisions of law.

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

Article 24.- Accounts for execution of investment projects

All transactions on the transfer of foreign currencies from Vietnam abroad or vice versa, which are related to investment projects, shall be conducted via a foreign currency account opened at a credit institution licensed to conduct foreign exchange activities in Vietnam and be registered with the State Bank of Vietnam.

Article 25.- Remittance of profits back to

1. Within six months after obtaining tax finalization reports or documents of equal validity under laws of the investment-receiving countries, investors must remit all profits and other incomes generated from their investment projects back to .

2. If wishing to prolong the term defined in Clause 1 of this Article, investors must send written requests to the State Bank of for consideration and decision, clearly stating the reasons therefor. The prolongation may be effected no more than twice for not more than six months each time.

Article 26.- Liquidation of investment projects

1. Right after the termination of investment projects, investors shall liquidate such projects according to laws of the investment-receiving countries.

2. Within six months after completing the liquidation of investment projects, investors shall remit back to all proceeds from the liquidation.

3. If wishing to prolong the term defined in Clause 2 of this Article, investors shall send written requests to the Ministry of Planning and Investment for consideration and decision, clearly stating the reasons therefor. The prolongation may be effected no more than twice for not more than six months each time.

Article 27.- Financial obligations

1. Investors shall fulfill all financial obligations towards the State of Vietnam in accordance with the provisions of law.

2. Where investment projects fall in the domains eligible for investment preferences, the levels of ’s enterprise income tax imposed on the profits transferred back to shall be the same as those applicable to domestic investment projects in the same investment domains.

3. Where the investment- receiving countries are countries or territories which have signed double taxation avoidance agreements with , the investors’ tax obligations towards the State of Vietnam shall comply with the provisions of such agreements.

4. Where the investment- receiving countries are countries or territories which have not yet signed double taxation avoidance agreements with , the enterprise income tax amounts already paid in such countries shall be deducted upon the calculation of enterprise income tax in .

5. The exemption of export tax for property brought to foreign countries for execution of investment projects shall comply with the provisions of law on import and export duties.

Article 28.- Responsibilities of investors towards laborers

1. Investors may directly or via job-placing organizations recruit Vietnamese laborers according to the provisions of the labor laws of and the investment-receiving countries.

2. Investors shall fill in all procedures prescribed by law for the sending of Vietnamese laborers abroad to work for investment projects; and concurrently guarantee the laborers’ legitimate interests; be responsible for solving all problems arising from the contracts on sending of Vietnamese laborers to work abroad for investment projects and relevant provisions of law.

Article 29.- Invalidation of investment certificates

An investment certificate shall be invalidated in the following cases:

1. Upon the expiration of the term stated in the certificate or of the investment term according to law of the investment-receiving country.

2. The investment project has not yet been executed past the time limit specified in Article 21 of this Decree.

3. The overseas economic organization is dissolved or bankrupt according to law of the investment-receiving country.

4. The investor is bankrupt or dissolved, which leads to the dissolution of the overseas economic organization or the assignment of the whole offshore investment capital to foreign organizations or individuals.

5. Past 12 months after obtaining tax settlement reports or documents of equal validity under law of the investment-receiving country, the investor still fails to make a report on the operation of the investment project according to the provisions of Article 22 of this Decree.

6. The investor violates the provisions of Vietnamese law or the law of the investment-receiving country, which leads to the invalidation of the investment certificate.

7. The investor requests in writing the termination of the investment project, which is approved by the Ministry of Planning and Investment.

Chapter IV

STATE MANAGEMENT OF OFFSHORE DIRECT INVESTMENT

management responsibilities

1. The Government shall perform the unified state management of offshore direct investment nationwide.

2. The Ministry of Planning and Investment shall take responsibility before the Government for performing the state management of offshore direct investment.

3. Ministries and ministerial-level agencies shall, within the ambit of their respective tasks and powers, have to perform the state management of offshore direct investment in the assigned domains.

Article 31.- Responsibilities of the Ministry of Planning and Investment

1. To assume the prime responsibility for, and coordinate with other ministries, branches and localities in, formulating strategies and orientations on offshore direct investment in each period.

2. To promulgate according to its competence or submit to competent authorities for promulgation legal documents on offshore direct investment.

3. To organize, carry out the registration, examination, grant, adjustment and withdrawal of investment certificates.

4. To assume the prime responsibility for, and coordinate with other ministries, branches and localities in, guiding, inspecting, supervising and, at the same time, solving problems in the implementation of legal provisions on offshore direct investment.

5. To coordinate with Vietnamese state agencies at home and abroad in supporting investors according to its competence.

6. To inspect, examine and supervise, according to its competence, the implementation of legal provisions on offshore direct investment; to settle complaints and denunciations, make commendations, or handle according to its competence violations in offshore direct investment activities.

7. Biannually and annually, to work with the Ministry of Finance, the State Bank of Vietnam, the Ministry of Trade, the Ministry of Labor, War Invalids and Social Affairs, the eco-technical branch-managing ministries, the Ministry of Foreign Affairs and relevant provincial-level People’s Committees for promptly handling investors’ proposals, promulgating according to its competence or suggesting necessary mechanisms, policies and solutions in order to raise the efficiency of offshore direct investment activities.

8. Annually, to sum up and report to the Prime Minister on the operation and socio-economic efficiency of offshore direct investment projects and, at the same time, send such reports to the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Labor, War Invalids and Social Affairs, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs, the relevant provincial-level People’s Committees and the General Statistics Office.

Article 32.- Responsibilities of the State Bank of

1. To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and concerned agencies in, elaborating and promulgating according to its competence or submitting to competent authorities for promulgation legal provisions, mechanisms and policies on credit and foreign exchange management related to offshore direct investment activities.

2. To give its opinions on issues related to capital sources and management of foreign exchange of investment projects at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To inspect, examine and supervise according to its competence activities of transferring abroad foreign currencies from and vice versa, which are related to offshore direct investment projects.

4. Biannually and annually, to issue a document assessing the situation of foreign currency transfer abroad from Vietnam and vice versa in relation to offshore direct investment projects and send it to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry of Labor, War Invalids and Social Affairs, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs, relevant provincial-level People’s Committees and the General Statistics Office.

Article 33.- Responsibilities of the Ministry of Finance

1. To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and the concerned ministries and branches in, elaborating and promulgating according to its competence or submitting to competent authorities for promulgation legal provisions, financial mechanisms and policies on offshore direct investment activities.

2. To give its opinions on financial matters related to offshore direct investment activities at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To give import or export duty exemption according to its competence for cases related to offshore direct investment activities which are entitled thereto according to the provisions of law.

4. To inspect, examine and supervise according to its competence the performance of financial obligations towards the State of Vietnam.

5. Biannually and annually, to make a sum-up, assessing the performance of financial obligations by investors towards the State of Vietnam and send it to the Ministry of Planning and Investment, the Ministry of Trade, the Ministry of Labor, War Invalids and Social Affairs, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs, the State Bank of Vietnam, relevant provincial-level People’s Committees and the General Statistics Office.

Article 34.- Responsibilities of the Ministry of Trade

1. To assume the prime responsibility for, and coordinate with the concerned ministries and branches in, elaborating and promulgating according to its competence or submitting to competent authorities for promulgation legal provisions, mechanisms and policies on trade, which are related to offshore direct investment activities.

2. To give its opinions on contents in the trade domain related to offshore direct investment activities at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To take responsibility for inspecting, examining and supervising according to its competence commercial activities related to offshore direct investment.

4. Biannually and annually, to issue a document assessing the trade situation related to offshore investment activities and send it to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Labor, War Invalids and Social Affairs, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs, the State Bank of Vietnam, relevant provincial-level People’s Committees and the General Statistics Office.

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

1. To assume the prime responsibility for, and coordinate with the concerned ministries and branches in, elaborating and promulgating according to its competence or submitting to competent authorities for promulgation legal provisions, mechanisms and policies on labor management and use relating to offshore direct investment activities.

2. To give its opinions on issues related to the sending of Vietnamese laborers to work abroad for investment projects, at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To inspect, examine and supervise according to its competence the sending of Vietnamese laborers to work abroad for investment projects.

4. Biannually and annually, to issue a document assessing the situation of sending Vietnamese laborers to work abroad for investment projects and send it to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs, the State Bank of Vietnam, the relevant provincial-level People’s Committees and the General Statistics Office.

Article 36.- Responsibilities of other ministries, ministerial-level agencies and Government-attached agencies

1. To coordinate with the Ministry of Planning and Investment in elaborating legal provisions, policies and plannings on offshore direct investment activities.

2. To give opinions on issues in their respective assigned state management domains related to offshore direct investment activities at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To conduct inspection, examination and supervision according to its competence with regard to issues in their respective assigned state management domains related to offshore direct investment activities.

4. Biannually and annually, the econo-technical branch-managing ministries shall issue documents assessing the offshore direct investment activities in their respective assigned state management domains and send them to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry of Labor, War Invalids and Social Affairs, the Ministry of Foreign Affairs, the State Bank of Vietnam, relevant provincial-level People’s Committees and the General Statistics Office.

Article 37.- Responsibilities of provincial-level People’s Committees

1. To coordinate with the concerned competent ministries and branches in guiding and supporting investors headquartered in their respective localities to strictly comply with the provisions of the Investment Law, this Decree and relevant provisions of law.

2. To give their opinions on contents falling under their management, which are related to investment projects of investors headquartered in their respective localities, at the request of the Prime Minister or the Ministry of Planning and Investment.

3. To inspect, examine and supervise according to their respective competence the performance of financial obligations towards the State of Vietnam by investors headquartered in their respective localities as well as the sending of Vietnamese laborers to work for investment projects.

4. Biannually and annually, to issue documents assessing the situation of offshore direct investment activities of investors headquartered in their respective localities and the situation of sending local laborers to work abroad for investment projects, and send them to the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Labor, War Invalids and Social Affairs, the econo-technical branch-managing ministries, the Ministry of Foreign Affairs and the General Statistics Office.

Article 38.- Supports for offshore investors

Overseas Vietnamese diplomatic missions shall act as major agencies in coordinating with foreign-based Vietnamese agencies and Vietnamese state management agencies in the country in supporting investors to observe legal provisions of foreign countries; protecting legitimate interests of offshore investors; proposing and requesting foreign authorities, via diplomatic channels, to create conditions and remove difficulties for investors in the course of execution of offshore investment projects.

Article 39.- Inspection and examination

The inspection and examination of investment projects shall comply with the provisions of inspection and examination law.

Article 40.- Handling of violations

Organizations and individuals violating the provisions of this Decree shall, depending on the nature and severity of their violations, be disciplined, administratively sanctioned or examined for penal liabilities; and pay compensation if causing damage according to the provisions of law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 41.- Implementation effect

1. This Decree shall take effect 15 days after its publication in “CONG BAO” and replace the Government’s Decree No. 22/1999/ND-CP of April 14, 1999, providing for offshore investment by Vietnamese enterprises.

2. Investment projects which have been granted investment certificates or offshore direct investment permits before the effective date of this Decree but have not yet been re-registered under the Investment Law shall continue operation and comply with the provisions of this Decree.

Article 42.- Implementation provisions

1. The Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the Ministry of Labor, War Invalids and Social Affairs, the State Bank of and the Ministry of Foreign Affairs shall have to guide the implementation of this Decree.

2. Ministers, heads of ministerial-level agencies, heads of the Government-attached agencies and presidents of provincial/municipal People’s Committees shall have to implement this Decree.