CHAPTER V:  STATE MANAGEMENT OVER FOREIGN INVESTMENT

Article 54

The content of State management over foreign investment includes:

1. Building strategies, plans, schemes and policies for foreign investment;

2. Promulgating statutory instruments on foreign investment activities;

3. Guiding branches [and] localities in the performance of activities related to foreign investment co-operation;

4. Issuing [and] revoking Investment Licenses;

5. Regulating the co-ordination among State authorities in the management of foreign investment activities; [and]

6. Checking, inspecting [and] overseeing foreign investment activities.

Article 55

The Government shall effect uniform State management over foreign investment in Vietnam.

The Government shall regulate the assessment for issuing Investment Licenses [and] the registration for issuing Investment Licenses; [and] shall, based on socio-economic development plans [and] schemes, and the field, nature and scale of an investment project, decide on the delegation of the authority to issue Investment Licenses to People's Committees of provinces [and] cities directly under the Central Authority; [and] shall regulate the issuance of Investment Licenses with respect to projects that invest in Industrial Zones [and/or] Export Processing Zones.

Article 56

The Ministry of Planning and Investment shall be the State authority in charge of management of foreign investment [and] shall assist the Government in the management of foreign investment activities in Vietnam.

The Ministry of Planning and Investment shall have the following duties and powers:

1. Preside over the preparation and presentation to the Government of strategies [and] plans for attracting foreign investment capital; draft laws [and] policies on foreign investment; co-ordinate with [other] Ministries, Ministerial-Level Authorities and Organs directly under the Government in [performing] State management of foreign investment; [and] guide the People's Committees of provinces and cities directly under the Central Authority as to the implementation of laws and policies on foreign investment;

2. Prepare [and] compile lists of foreign investment projects; provide guidance on investment formalities; [and] perform State management over investment promotion and consulting activities;

3. Accept investment projects and preside over the assessment [and] issuance of Investment Licenses for investment projects that fall under [its] authority;

4. Act as the focal authority for the resolution of issues that arise during the course of formulating, developing [and] implementing foreign investment projects;

5. Evaluate the socio-economic efficiency of foreign investment activities; [and]

6. Check [and] inspect the performance of foreign investment activities in Vietnam in accordance with the provisions of law.

Article 57

Ministries, Ministerial-Level Authorities and Organs directly under the Government shall perform State management of foreign investment in accordance with [their] functions and powers:

1. Co-ordinate with the Ministry of Planning and Investment in formulating laws, policies [and] plans relating to foreign investment;

2. Prepare plans [and] lists of projects of their branch for inviting foreign capital investment; [and] organize investment campaigns and promotions;

3. Participate in the assessment of investment projects;

4. Provide guidance [and] solution to the formalities relating to the implementation of investment projects;

5. Check [and] inspect the activities of Enterprises With Foreign Capital Investment and parties to Business Co-operation Contracts in the fields for which [they are] responsible; [and]

6. Perform other duties within their authority as provided by law.

Article 58

The People's Committees of provinces and cities directly under the Central Authority shall perform State management of foreign investment in [their] geographical territories in accordance with their functions and powers:

1. Based on the approved socio-economic development plan, prepare and announce lists of foreign investment projects invited to [their] localities; [and] organize investment campaigns and promotions;

2. Participate in the assessment of foreign investment projects in [their] localities;

3. Accept investment projects, assess and issue Investment Licenses to foreign investment projects in [their] localities in accordance with the Government?s [authority] delegation;

4. Resolve the administrative formalities relating to the formulation, development [and] implementation of investment projects within their scope of authority;

5. Perform State management over the production and business activities of Enterprises With Foreign Capital Investment and parties to Business Co-operation Contracts in [their] geographical territories; [and]

6. Check [and] inspect the activities of Enterprises With Foreign Capital Investment [and] parties to Business Co-operation Contracts.

Article 59

The parties or one of the parties or the Foreign Investor shall submit to the Investment License issuing authority an application dossier for the issuance of an Investment License in accordance with the regulations of the Government.

Article 60

Within a time period of forty five (45) days with respect to projects that require an assessment for the issuance of an Investment License, [or] thirty (30) days with respect to projects that require a registration for the issuance of an Investment License, as from the date of receipt of a properly [prepared] dossier, the Investment License issuing authority shall consider the application and notify the investor of [its] decision. An approval decision shall be notified in the form of an Investment License.

The Investment License shall be concurrently a Certificate of Business Registration.

Article 61

Joint Venture Contracts, Business Co-operation Contracts, enterprise charters, [and] changes in the business objectives, scale of production and proportion of contribution to Legal Capital must be approved by the State Authority in charge of management of foreign investment.

Article 62

Ministries, Ministerial-Level Authorities, Organs directly under the Government and People's Committees of the provinces [and] cities directly under the Central Authority are responsible for resolving, within a time period of thirty (30) days of the date of receipt of the properly [prepared] dossier, the formalities relating to the development of investment project implementation.

Article 63

Enterprises [and] individuals who attain excellent achievements in [their] business [and] production activities, [or] make a substantial contribution to the tasks of construction and development of the country, are awarded in accordance with the provisions of law. Foreign Investors, Enterprises With Foreign Capital Investment, parties to Business Co-operation Contracts, organizations, individuals, officials, public servants [and] State authorities that violate [any of] the provisions of the law on foreign investment, shall be dealt with in accordance with the provisions of law depending on the extent of [their] violation.

Article 64

1. An inspection of an enterprise activities must be conducted in strict accordance with the [given] function [and] authority and complies with the provisions of law.

2. A financial inspection shall not be conducted more than once per year in respect of an enterprise.
Extemporaneous inspections may only be conducted when there is a basis to deem that the enterprise has violated the law.

There must be a decision from the competent person for an inspection to be conducted. Upon completion of an inspection, there must be an inspection minutes [and] conclusions. The Head of the inspection delegation is responsible for the contents of the inspection minutes and conclusions.

The person who issues a decision of inspection that contravenes the law, or who takes advantage of an inspection to generate personal benefits, pesters [or] harasses the [inspected] enterprise activities shall be, depending on the extent of the violation, disciplined or put under investigation for criminal liability; if causing damage, [he/she] must pay compensation in accordance with the provisions of law.

3. Foreign Investors, Enterprises With Foreign Capital Investment, parties to Business Co-operation Contracts, organizations [and] individuals have the right to lodge complaints [and] initiate legal proceedings against [any] decisions and acts of officials, public servants [and] State authorities that contravene the law, harass [and/or] create difficulties. The filing of complaints, initiation of legal proceedings and handling of such complaints [and] legal proceedings shall be conducted in accordance with the provisions of law.

Source: Vietnam ministry of planning and investment-MPI (MPI website)