Decision No. 236/QD-TTg dated February 20, 2009 of the Prime Minister approving the scheme on promotion of Vietnam’s offshore investment

DECISION

APPROVING THE SCHEME ON PROMOTION OF VIETNAM’S OFFSHORE INVESTMENT

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2005 Investment Law;

Pursuant to the Government’s Decree No. 78/2006/ND-CP of August 9, 2006, on offshore direct investment;

At the proposal of the Minister of Planning and Investment in Report No. 273/TTr-BKH of January 12, 2009,

DECIDES:

Article 1. To approve the Scheme on promotion of Vietnam’s offshore investment with the following principal contents:

1. Objectives:

a/ To further promote offshore investment activities of enterprises established and operating in Vietnam for proactive international economic integration.

b/ To increase measures and create favorable conditions to promote Vietnam’s offshore investment.

c/ To effectively manage offshore investment activities of enterprises, especially state-owned ones.

2. Orientations:

a/ Offshore investment destinations

To continue tapping and promoting Vietnamese economic sectors’ investment advantages in such traditional markets as Laos, Cambodia, regional countries and the Russian Federation, to step by step expand investment in new countries and markets such as Latin America, Eastern Europe and Africa based on comparative advantages and capacities of Vietnamese economic sectors.

b/ Domains prioritized for offshore investment:

- To support offshore investment projects in the domains of energy, power generation, natural resources exploitation, especially exploration and exploitation of oil, gas and other minerals, and industrial crop plantation.

-To encourage and support offshore investment projects capable of meeting domestic demand for production materials.

3. Solutions to support offshore investment:

a/ To continue developing and completing the legal framework and policies on offshore investment to create favorable conditions for and guide entrepreneurs and enterprises to make safe and efficient offshore investment.

b/ To reform administrative procedures for offshore investment toward simplification, convenience and expansion of the category of projects subject to registration, reduced interference by administrative measures, even for state capital-funded projects, and increased autonomy and accountability of enterprises.

c/ To prescribe comprehensive and specific measures to encourage and support offshore investment, attaching importance to measures to supply information on investment environment and opportunities and protect the rights of investors in host countries.

Article 2. Organization of implementation

To implement the above objectives, orientations and solutions, the Prime Minister requests ministries and branches to perform the following tasks:

1. The Ministry of Planning and Investment:

a/ To organize the unified implementation of bilateral and multilateral treaties and agreements between Vietnam and other countries. To simultaneously negotiate and conclude investment promotion and protection agreements with countries and territories which are potential for Vietnamese investors.

b/ To assume the prime responsibility for, and coordinate with concerned ministries and branches in, elaborating and submitting to the Government in 2009 a decree amending and supplementing or replacing the Government’s Decree No. 78/2006/ND-CP of August 9, 2006, on offshore direct investment, towards simplifying investment procedures, expanding the category of projects subject to registration and specifying trades and domains in which offshore investment is encouraged, restricted or banned.

c/ To elaborate a list of key countries and territories in which offshore investment is encouraged together with incentive policies and support regimes.

d/ To assume the prime responsibility for, and coordinate with ministries, branches and localities in, studying and formulating offshore investment promotion programs suitable to each country or territory; and incorporating offshore investment promotion into the national investment promotion program.

e/ To assume the prime responsibility for, and coordinate with concerned ministries and branches; and Vietnam’s overseas diplomatic and investment missions in, studying and compiling documents on the investment laws, policies, environments and opportunities in a number of key countries and territories for supply to enterprises and management agencies at different levels.

f/ To assume the prime responsibility for promulgating the reporting regime applicable to enterprises making offshore investment and sanctioning and supervision measures for the implementation of the reporting regime; and the mechanism to supply information on investment partners of a number of countries and territories with investment potential and opportunities.

g/ To monitor and annually report to the Prime Minister on Vietnam’s offshore investment.

2. The Ministry of Finance:

a/ To elaborate and promulgate mechanisms on financial and investment credit incentives and support for Vietnamese enterprises investing in a number of key countries and territories and in investment projects in key domains and countries and territories for submission to the Prime Minister in 2009.

b/ To assume the prime responsibility for, and coordinate with concerned ministries and branches in, specifically guiding policies on credit and assurance of loan sources for offshore investment activities.

c/ To promulgate in the third quarter of 2009 a new circular to replace Circular No. 97/2002/TT-BTC of October 29, 2002, guiding the fulfillment of tax obligations by Vietnamese enterprises making offshore investment.

d/ To study and elaborate a scheme to establish Vietnam’s offshore investment support fund for submission to the Prime Minister in 2009.

e/ To assume the prime responsibility for, and coordinate with concerned ministries and branches in, negotiating and signing double taxation avoidance agreements with a number of countries and territories.

3. The State Bank of Vietnam:

a/ To assume the prime responsibility for, and coordinate with concerned ministries and branches in, studying and promulgating regulations on offshore indirect investment for submission to the Prime Minister in the third quarter of 2009.

b/ To elaborate and promulgate documents guiding foreign exchange management of institutional and individual residents making offshore investment (including direct and indirect investment) for report to the Prime Minister in the third quarter of 2009.

4. The Ministry of Industry and Trade:

To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, elaborating a list of domains and markets prioritized for investment; to coordinate with the Ministry of Finance in studying and working out mechanisms to support and promote projects in the domains and markets prioritized for investment, such as energy and mining.

5. The Ministry of Labor, War Invalids and Social Affairs:

a/ To elaborate cooperation mechanisms to facilitate Vietnamese enterprises in sending Vietnamese workers overseas for submission to the Prime Minister in 2009.

b/ To exchange and reach agreement on the inclusion of matters on labor safety and handling of labor-related violations in labor cooperation agreements between the Vietnamese Government and other governments with which Vietnam has cooperation and investment relations and report thereon to the Prime Minister in 2009.

6. The Ministry of Agriculture and Rural Development:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment in, elaborating a list of trades and markets prioritized for investment; to coordinate with the Ministry of Finance in elaborating and approving mechanisms and policies to support and promote projects in the domains and markets prioritized for investment and report them to the Prime Minister in 2009.

b/ To elaborate a strategy for expansion of Vietnam’s offshore agro-forestry investment for report to the Prime Minister in 2009.

c/ To attach importance to the implementation of investment projects under commitments with other countries.

7. The Ministry of Foreign Affairs:

a/ Based on signed bilateral treaties and agreements, diplomatic missions in countries and territories where Vietnamese enterprises make investment shall proactively support investors in settling arising problems in their operation, protect their lawful rights and create favorable conditions for the operation of Vietnamese investors in the host countries.

b/ To hold annual meetings of Vietnamese investors in the host countries and simultaneously support the foundation of Vietnamese Business Associations to develop investment of Vietnamese entrepreneurs in the host countries.

Article 3. Effect

This Decision takes effect on the date of its signing.

Article 4. Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and concerned units shall implement this Decision.

To assign the Ministry of Planning and Investment to supervise and urge ministries, branches and provincial-level People’s Committees to perform their assigned tasks and report thereon to the Prime Minister at the end of the fourth quarter of 2009. When arise matters falling beyond its competence, the Ministry of Planning and Investment shall report them to the Prime Minister for consideration and instruction.