DECISION No.386-TTg OF JUNE 7, 1997 TO ASSIGN THE LICENSING OF FOREIGN DIRECT INVESTMENT PROJECTS

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

Pursuant to the Law on Foreign Investment in Vietnam of November 12, 1996;

Pursuant to Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam;

DECIDES:

Article 1.- To assign the licensing of foreign direct investment projects under the Law on Foreign Investment in Vietnam of November 12, 1996 to the following People�s Committees of the provinces and cities directly under the Central Government (provincial People�s Committees for short):

1. The municipal People�s Committee of Hanoi.

2. The municipal People�s Committee of Ho Chi Minh City

3. The municipal People�s Committee of Hai Phong.

4. The municipal People�s Committee of Da Nang.

5. The provincial People�s Committee of Ba Ria - Vung Tau

6. The provincial People�s Committee of Dong Nai.

7. The provincial People�s Committee of Binh Duong.

8. The provincial People�s Committee of Quang Ninh.

Article 2.- The provincial People�s Committees listed in Article 1 of this Decision shall have to receive and evaluate project dossiers and grant investment licenses to foreign direct investment projects stated in Article 3 of this Decision.

Article 3.- The foreign direct investment projects to be licensed by the provincial People�s Committees must meet the following conditions:

1. To comply with the overall development plan of the technical- economic branch, the already approved general socio-economic development plan and the plan of the locality.

2. To have an investment capital of up to 10 million USD for investment projects in Hanoi and Ho Chi Minh cities or up to 5 million USD for investment projects in other provinces and cities, except for projects specified in Article 4 of this Decision.

3. To have a percentage of products for export as stipulated by the Ministry of Planning and Investment in each period.

4. Foreign invested enterprises and foreign business cooperation parties shall ensure their own need in foreign currency(ies).

5. Equipment, machinery and technologies must comply with current regulations; if not, they must be approved in writing by the competent agency that manages economic-technical branch before investment licenses are granted.

6. To meet the requirements on environmental protection, labor safety and prevention and fight against fires and explosives.

Article 4.- The licensing of projects is not assigned to the provincial People�s Committees for the following projects:

1. Projects of group A as prescribed in Article 93 of Decree No. 12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

2. Projects in the following fields:

- Oil and gas prospection, exploitation and services.

- Power generation.

- Construction of sea ports, airfields, highways and railways.

- Cement, metallurgy, production of sugar, liquor, beer and cigarettes.

3. Projects in industrial zones, export processing zones and hi-tech parks.

1. Investment project dossiers shall be made according to the guidance of the Ministry of Planning and Investment.

2. The project evaluation shall be carried out in accordance with the provisions in Articles 83, 92, 94, 96 and 100 of Decree No.12-CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam.

The provincial People�s Committee shall have to consult the Ministries and branches on the issues which come under their competence but are not yet specified.

The Ministries and branches which are consulted on projects, including supplements and amendments, shall have to reply in writing within 7 days after receipt of the written inquiry of the provincial People�s Committee. Past this time limit, if they receive no reply in writing, the project shall be deemed to be approved.

3. The investment license shall be drafted according to the form issued by the Ministry of Planning and Investment.

Within 7 days after granting the investment license, the provincial People�s Committee shall send the original investment license to the Ministry of Planning and Investment and copies of it to the Office of the Government, the Ministry of Finance, the Ministry of Trade and the Ministry that manages the economic-technical branch.

Article 6.- The provincial People�s Committee may supplement and amend investment licenses of the projects under its licensing competence as assigned.

Any supplement or amendment beyond its decentralized competence can be made only after it is approved in writing by the Ministry of Planning and Investment.

Article 7.- Every quarter, six months and year, the provincial People�s Committee shall make a wrap-up report on the granting, supplementing and amending of investment licenses and send it to the Office of the Government and the Ministry of Planning and Investment.

Article 8.- Basing itself on the actual situation, the Ministry of Planning and Investment may propose the Prime Minister to decide to adjust the assignment conditions and make addition or addiction to the list of provinces and cities directly under the Central Government assigned to grant investment licenses.

Article 9.- This Decision takes effect from July 1, 1997.

The Ministers, the Heads of the ministerial-level agency, the heads of the agencies attached to the Government and the Presidents of the People�s Committees of the aforesaid provinces and cities directly under the Central Government shall have to implement this Decision.

The Prime Minister

VO VAN KIET