Decision 12/2022/QD-TTg stipulating the order, procedures and competence to issue Objection Letters, No-Objection Letters for private sector operations in Vietnam of international financial institutions

DECISION

Stipulating the order, procedures and competence to issue Objection Letters, No-Objection Letters for private sector operations in Vietnam of international financial institutions

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Pursuant to the Law on Organization of the Government dated June 19, 2015; the Law dated November 22, 2019, Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the Law on Treaties dated April 09, 2016;

Pursuant to the Law on the State Bank of Vietnam dated June 16, 2010;

Pursuant to the Government’s Decree No. 123/2016/ND-CP dated September 01, 2016, defining the functions, tasks, powers and organizational structure of ministries and ministerial-level agencies;

Pursuant to the Government’s Decree No. 16/2017/ND-CP dated February 17, 2017, defining the functions, tasks, powers and organizational structure of the State Bank of Vietnam;

At the proposal of the Governor of the State Bank of Vietnam;

The Prime Minister promulgates the Decision stipulating the order, procedures and competence to issue Objection Letters, No-Objection Letters for private sector operations in Vietnam of international financial institutions.

Chapter I
GENERAL PROVISIONS

Article 1. Scope of regulation and subjects of application

1. This Decision stipulates the order, procedures and competence of relevant Vietnamese ministries, agencies and international financial institutions to issue Objection Letters (OL), No-Objection Letters (NOL) for private sector operations in Vietnam of international financial institutions in order to exercise Vietnam's rights and obligations under treaties to which Vietnam is a contracting party.

2. This Decision does not apply to the settlement of disputes, lawsuits or other problems arising after the issuance of an OL or NOL.

3. This Decision applies to relevant ministries, agencies and international financial institutions related to the process of issuing OL or NOL for private sector operations in Vietnam of international financial institutions.

Article 2. Interpretation of terms

1. An application for a no-objection certificate (NOL) means a request from international financial institutions to relevant Vietnamese ministries and agencies regarding Vietnam's no objection to private sector activities in Vietnam. of international financial institutions.

2. An OL or an NOL means a letter containing Vietnam's objection or no objection to an NOL application.

3. International financial institutions include those of which Vietnam is a member or with which it has signed international treaties providing that such international financial institutions will not sponsor private sector operations in the territory of a member state if such state expresses objection.

4. Private sector operations mean financing, lending, capital contribution, trade financing, guarantee, technical assistance and other activities not contrary to domestic law provisions conducted by international financial institutions involved in the private sector, without government guarantee of Vietnam.

5. Managing agencies mean ministries, ministerial-level agencies and Government-attached agencies that play the role of representatives at international financial institutions or the agencies in charge of signing international treaties with international financial institutions.

Chapter II

PRINCIPLES, ORDER, PROCEDURES FOR ISSUANCE OF OL OR NOL

Article 3. Principles of OL or NOL issuance

1. OL or NOL shall be issued in compliance with the law provisions and the guidelines, policies, decisions and socio-economic development plans of Vietnam over time.

2. The OL or NOL only expresses Vietnam's objection or no objection to each private sector operation of international financial institutions entering Vietnam at the time of issuance.

3. The NOL is not a license, written approval of investment policy or implied sponsorship of Vietnam for private sector operations of international financial institutions. No objection does not give rise to any responsibility and obligation of the Government or State agencies of Vietnam under international and Vietnamese laws.

The operations of international financial institutions and other related parties in Vietnam, after being granted an NOL, must comply with international commitments, current Vietnamese laws, and agreements among concerned parties.

Article 4. Order and procedures for OL or NOL issuance

1. A managing agency shall receive, summarize and evaluate the NOL application submitted by any international financial institution as prescribed in this Decision.

2. In cases where the received application meets the requirements according to the list of information specified in Appendix I of this Decision, the managing agency shall consult with the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Foreign Affairs, the Ministry of Public Security, the Ministry of National Defense, the State Bank of Vietnam and other ministries and agencies related to the field mentioned in the application within 07 working days from the date it was received.

The concerned ministries and agencies shall give their opinions in writing regarding the NOL application at the request of the managing agency within 10 working days from the date the managing agency sends the written request.

3. In cases where the received application does not satisfy the requirements according to the list of information specified in Appendix I to this Decision, the managing agency shall request additional information from the international financial institution. Such international financial institution shall provide complete and accurate information and documents at the request of the managing agency.

After receiving the complete application according to the list of information specified in Appendix I to this Decision, the managing agency shall process the application following the procedures specified in Clause 2 of this Article.

4. Based on the opinions of relevant ministries and agencies, the managing agency shall follow the below order:

a) The managing agency shall decide on the signing and issuance of the OL or NOL on the basis of considering the opinions of the concerned ministries and agencies;

b) The managing agency shall report to the Prime Minister for consideration and decision on assigning the managing agency to sign and issue an OL or NOL in case of receiving objection opinions from the concerned ministries or agencies or the NOL application from the international financial institution is inconsistent with the principles specified in Article 3 of this Decision.

Forms of an OL and an NOL are respectively specified in Appendices II and III of this Decision.

Article 5. Principles of coordination between ministries, agencies and international financial institutions

1. The managing agency and concerned ministries, agencies and international financial institutions are responsible for fully, effectively and timely coordinating with each other in the process of handling NOL applications on the basis of absolutely protecting Vietnam's legitimate rights and interests, complying with Vietnam's international commitments and law provisions.

2. Within the scope of their functions, tasks and powers, the concerned ministries and agencies shall give opinions on the NOL applications at the request of the managing agency and in accordance with the provisions of this Decision.

The opinions should clearly state whether or not they oppose private sector operations. In cases where the concerned ministries or agencies have objections, the reasons must be clearly stated.

3. The international financial institution shall coordinate with the managing agency as prescribed in this Decision and take responsibility for the accuracy of the information provided to the managing agency and concerned ministries and agencies.

The international financial institution should clearly state in the NOL application that it has understood and accepted the principles of issuing an OL or NOL as prescribed in Article 3 of this Decision.

Article 6. Responsibilities of managing agencies

1. To assume the prime responsibility for, and coordinate with relevant ministries, agencies and international financial institutions in:

a) Receiving, processing, evaluating and giving opinions on the NOL application as prescribed in this Decision;

b) Summarizing and reporting to the Prime Minister for consideration and opinions in cases where the concerned ministries and agencies have objections as prescribed in Clause 4, Article 4 of this Decision;

c) Periodically summarizing and reporting to the Prime Minister in December every year on the number, size, type and fields of private sector operations in Vietnam of international financial institutions.

2. Decide on the signing and issuance of OL or NOL, or report to the Prime Minister in accordance with the provisions of this Decision.

Article 7. Duties and powers of the concerned ministries and agencies

1. Coordinating with the managing agency in giving opinions on the NOL application in accordance with the provisions of this Decision.

2. Coordinating with the managing agency in requesting international financial institutions to supplement and clarify information on the NOL application (if necessary).

Chapter III
ORGANIZATION OF IMPLEMENTATION

Article 8. Terms of implementation

1. This Decision takes effect from the date of signing for promulgation.

2. Ministers, Heads of the ministerial-level agencies, Heads of the Government-agencies, Chairpersons of People's Committees of provinces and municipalities, and the concerned international financial institutions shall be responsible for implementing this Decision.

* All Appendices are not translated herein.