Decree No. 124/2017/ND-CP dated November 15, 2017 of the Government on prescribing offshore investment in petroleum activities

DECREE

Prescribing offshore investment in petroleum activities[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant the November 26, 2014 Investment Law;

Pursuant to the November 26, 2014 Law on Management and Use of State Capital Invested in Production and Business at Enterprises;

Pursuant to the June 18, 2014 Law on Public Investment;

At the proposal of the Minister of Industry and Trade;

The Government promulgates the Decree prescribing offshore investment in petroleum activities.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree prescribes investors’ offshore investment in petroleum activities.

2. This Decree does not regulate offshore investment in petroleum projects in the form prescribed at Point d, Clause 1, Article 52 of the Investment Law.

3. Investors making offshore investment in petroleum activities must comply with the Investment Law, this Decree and other relevant laws. In case this Decree and other decrees prescribe the same matter differently, the former will prevail.

Article 2.Subjects of application

This Decree applies to state management agencies, investors, and agencies and organizations related to offshore investment in petroleum activities.

Article 3.Interpretation of terms

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

1. Petroleum activities means activities of oil and gas prospecting and exploration, oilfield development and oil and gas exploitation, including also those carried out by investors to directly serve these activities such as formulating petroleum projects and commercializing oil and gas exploited under petroleum projects.

2. Petroleum contract means a written document signed between a representative of a petroleum resource owner and an investor or other partners then the investor participates in the contract through acquiring contract-participating interests or in another form in accordance with the law of the investment-receiving country or territory (below collectively referred to as host country).

3. Operator means a legal person that is established by an investor participating in an overseas petroleum project in accordance with law, established under the agreement between the investor and its partner, hired or designated by the investor overseas, or an individual who is designated or hired by the investor to carry out petroleum activities in such project under the agreement between involved parties and the law of the host country.

4. Operating company means an organization established by an investor under Article 17 of this Decree and relevant laws to prepare for investment in, carry out activities to formulate, or operate and implement, an overseas petroleum project in accordance with the law of the host country or international petroleum practices.

5. Offshore investment capital means the whole amount of money and assets transferred abroad by an investor to acquire the right to participate in, or contribute capital to, a project and the amount of shared profits the investor retains for reinvestment in the project. The recovered capital (cost) amount remitted home by the investor will be cleared against the total capital amount transferred abroad to determine the investor’s offshore investment capital at a certain point of time.

6. Profit of an investor means the volume of oil and gas the investor receives as after-tax profit under a petroleum contract, or the amount of dividends the investor receives under a joint-venture contract or from the joint-stock company, or after-tax remuneration and bonuses of the investor under a service contract, after subtracting the project’s irrecoverable expenses allocated in the period, and other profits (if any) under a petroleum contract.

7. Direct representative of the owner at an enterprise with 100% state-held charter capital is a person who is appointed by a competent state agency to the Members’ Council or as the company president to perform the powers and responsibilities of the representative of the state owner at the enterprise.

8. National Foreign Investment Portal is the portal which is used to carry out procedures for granting and modifying investment registration certificates and offshore investment registration certificates; publishing and updating legal documents, policies, processes and conditions on investment applicable to foreign investors, foreign-invested economic institutions carrying out business investment activities in Vietnam and organizations and individuals making offshore investment. The domain name of the National Foreign Investment Portal is dautunuocngoai.gov.vn or fdi.gov.vn.

9. National offshore investment database is a collection of data and information on offshore investment projects nationwide which are stored and managed within the national system of information on foreign investment in Vietnam and Vietnam’s offshore investment. Information stored in the national offshore investment database is original information on offshore investment projects.

10. National system of information on foreign investment in Vietnam and Vietnam’s offshore investment is a system of specialized information on foreign investment and offshore investment which is developed and operated by the Ministry of Planning and Investment in coordination with other agencies to send, receive, store and display or otherwise process data in order to serve the state management of offshore investment.

11. Valid dossier means a dossier containing sufficient documents in sufficient copies which are fully filled in in accordance with the Investment Law and this Decree and made according to the forms issued by the Ministry of Planning and Investment.

Article 4.Offshore investment capital

Offshore investment capital may take the following forms:

1. Foreign-currency amounts on accounts at licensed credit institutions or purchased from licensed credit institutions or foreign exchange from other lawful sources in accordance with law.

2. Vietnam dong in conformity with Vietnam’s law on foreign exchange management.

3. Machinery, equipment, supplies, raw materials, fuels, and goods being semi-finished products and finished products.

4. Value of industrial property rights, technical know-hows, technological processes, technical services, intellectual property rights and brands.

5. Other lawful assets.

Article 5.Outbound transfer of foreign currencies, goods, machinery and equipment for market research, opportunity seeking and investment preparation

1. An investor may transfer abroad, before acquiring an offshore investment registration certificate, foreign-currency amounts from its/his/her (principal) foreign-currency account, goods, machinery and equipment to carry out market research, opportunity seeking and investment preparation activities, including:

a/ Market and investment opportunity research;

b/ Field survey;

c/ Documentary research;

d/ Collecting and purchasing documents and information relating to selection of petroleum projects;

dd/ Synthesizing, assessing and appraising the project, including selecting and hiring consultants to assess and appraise the project;

e/ Holding and participating in holding scientific seminars and symposiums;

g/ Establishing and operating the institutions prescribed in Article 17 of this Decree, operating representative offices, liaison offices, branches, executive offices or other forms of presence in accordance with the law of the host country in relation to the preparation for and formation of petroleum projects;

h/ Investigating and collecting information serving acquisition and merger transactions, making deposits or providing financial guarantee in other forms, and paying expenses or charges at the request of the company seller or in accordance with the law of the host country;

i/ Negotiating petroleum contracts;

k/ Purchasing or hiring assets to support the formation of overseas petroleum projects;

l/ Paying expenses which are due within 60 days after the petroleum contract comes into force;

m/ Other necessary activities.

2. Foreign-currency transfer limits under Clause 1 of this Article

a/ The foreign-currency transfer limit is USD 500,000 (five hundred thousand), which shall be included in the total offshore investment capital;

b/ In case the investor is an enterprise with 100% state-held charter capital or a subsidiary of an enterprise with 100% state-held charter capital, the implementation of a transaction prescribed in this Clause with a value exceeding USD 500,000 (five hundred thousand) must be approved by the State Bank of Vietnam after obtaining opinions of the owner-representing agency;

c/ In case the investor which is an enterprise with 100% state-held charter capital or a subsidiary of an enterprise with 100% state-held charter capital conducts a transaction with a value not exceeding USD 500,000 (five hundred thousand), the owner’s direct representative at the enterprise shall make a written commitment to the owner-representing agency that the outbound transfer of foreign currencies is for the purpose specified in Clause 1 of this Article and take responsibility before law for his/her commitment;

d/ For investors other than those prescribed at Points b and c of this Clause, the implementation of a transaction prescribed in Clause 1 of this Article with a value exceeding USD 500,000 (five hundred thousand) must be approved by the State Bank of Vietnam.

3. The delivery of goods, machinery and equipment abroad under Clause 1 of this Article must comply with the export, customs and technology laws.

4. Before obtaining an offshore investment registration certificate, an investor may conduct transactions with a value not exceeding USD 2 (two) million to participate in international bidding or provide guarantee in other forms before conducting official negotiations with partners such as making deposits or providing financial guarantee in other forms as required by the bid solicitor or host country.

a/ In case the investor is an enterprise with 100% state-held charter capital or a subsidiary of an enterprise with 100% state-held charter capital, the implementation of a transaction prescribed in this Clause with a value exceeding USD 2 (two) million must be approved by the State Bank of Vietnam after obtaining opinion of the owner-representing agency;

b/ In case the investor which is an enterprise with 100% state-held charter capital or a subsidiary of an enterprise with 100% state-held charter capital conducts a transaction with a value not exceeding USD 2 (two) million, the owner’s direct representative at the enterprise shall make a written commitment to the owner-representing agency that the outbound transfer of foreign currencies is for the purpose prescribed in this Clause and take responsibility before law for his/her commitment;

c/ For investors other than those prescribed at Points a and b of this Clause, the implementation of a transaction prescribed in this Clause with a value exceeding USD 2 (two) million must be approved by the State Bank of Vietnam;

d/ The process and procedures for the State Bank of Vietnam to approve investors’ requests for transfer of foreign currencies abroad under Clauses 2 and 4 of this Article must comply with Article 7 of this Decree.

Article 6.Principles of outbound transfer of foreign currencies before grant of offshore investment registration certificates

1. The foreign-currency amount an investor transfers abroad before obtaining an offshore investment registration certificate shall be included in the total offshore investment capital and transferred via a foreign-currency account at a Vietnamese credit institution.

2. When registering foreign-currency transactions related to offshore investment activities, an investor shall register with the State Bank of Vietnam the foreign-currency amount it has transferred abroad before obtaining an offshore investment registration certificate for such amount to be included in the investor’s total offshore investment capital.

3. When effecting the outbound transfer of foreign currencies for an investor that has not yet obtained an offshore investment registration certificate, the concerned credit institution shall request the investor to provide appropriate dossiers, documents and evidence for consideration, examination and storage so as to ensure that the investor’s transfer of foreign currencies abroad before obtaining an offshore investment registration certificate to pay for investment preparation activities complies with the Investment Law and this Decree; and report to the State Bank of Vietnam on the investor’s foreign-currency transfer transactions conducted via the foreign-currency account opened at the credit institution before the investor obtains an offshore investment registration certificate.

4. After the investor obtains an offshore investment registration certificate for its/his/her project, the above foreign-currency account of the investor shall be used as the investment capital account and registered with the State Bank of Vietnam in accordance with law. All collection and spending transactions related to the transfer of foreign currencies abroad before the investor obtains an offshore investment registration certificate shall be conducted via such account.

5. The State Bank of Vietnam shall guide in detail this Article.

Article 7.Order, procedures and dossiers of request for approval of outbound transfer of foreign currencies in the cases prescribed in Clauses 2 and 4, Article 5 of this Decree

1. A dossier must comprise:

a/ A request for approval of outbound transfer of foreign currencies, containing the investor’s explanation about the need to transfer foreign currencies abroad before obtaining an offshore investment registration certificate;

b/ The owner-representing agency’s opinion (applied to the cases prescribed at Point b, Clause 2 and Point a, Clause 4, Article 5 of this Decree);

c/ A duplicate or a certified copy or a copy enclosed with the original of the business registration certificate or another document or paper of equivalent validity.

2. Order of approval of outbound transfer of foreign currencies before obtaining an offshore investment registration certificate

a/ The investor may submit directly or send by post to the State Bank of Vietnam 1 dossier set prescribed in Clause 1 of this Article;

b/ In case the dossier is incomplete, within 3 working days after receiving it, the State Bank of Vietnam shall request in writing the investor to supplement the dossier;

c/ Within 10 working days after receiving a complete dossier, the State Bank of Vietnam shall consider and approve or disapprove the outbound transfer of foreign currencies. In case of disapproving the transfer, the State Bank of Vietnam shall issue a notice clearly stating the reason.

Article 8.Languages used in offshore investment dossiers

1. Investment project dossiers, documents and reports sent to Vietnamese state agencies shall be made in Vietnamese.

2. In case an investment project dossier contains foreign-language documents, the investor shall submit valid copies of such foreign-language documents together with their Vietnamese translations.

3. In case documents included in an investment project dossier are made in both Vietnamese and a foreign language, the Vietnamese version shall be used to carry out investment-related administrative procedures.

Chapter II

INVESTMENT POLICY DECISION, INVESTMENT DECISION AND PROCEDURES TO APPLY FOR OFFSHORE INVESTMENT REGISTRATION CERTIFICATES

Article 9.Dossier of application for offshore investment registration certificates

1. A dossier of application for an offshore investment registration certificate must comprise:

a/ A dossier of application for an offshore investment registration certificate shall be made in accordance with Clause 1, Article 55 of the Investment Law, for projects subject to offshore investment policy decision by the National Assembly or the Prime Minister, or with Clause 2, Article 59 of the Investment Law, for projects not subject to offshore investment policy decision;

b/ A tax agency’s written certification of the investor’s performance of tax liabilities as of the time of submission of the investment project dossier as prescribed in Clause 5, Article 58 of the Investment Law.

2. Another document certifying the legal status of the investor as prescribed in the Investment Law is any of the following papers: investment license or investment certificate or investment registration certificate, for investors being foreign-invested enterprises in Vietnam, or business registration certificate or establishment decision.

3. For an offshore investment project of an enterprise with 100% state-held charter capital, the offshore investment decision prescribed at Point e, Clause 1, Article 55 of this Investment Law may be any of the following documents:

a/ The owner-representing agency’s written approval permitting the investor to implement the offshore investment project, containing the following principal contents: investor; investment objective, scale, form and location; total investment capital, capital raising plan, capital source structure, project implementation schedule; and investment efficiency targets;

b/ Internal appraisal report on the offshore investment project proposal, which serves as a basis for the owner-representing agency to issue the written approval prescribed at Point a of this Clause.

4.  A document determining the location of the investment project, which may be any of the following papers:

a/ Petroleum contract or investment agreement with partners or agreement on acquisition of participating interests or acquisition of part or the whole of the company;

b/ Investment license or document of equivalent validity of the host country;

c/ Bid-winning notice for participation in the project.

5. The investor shall take responsibility before law for the accuracy and truthfulness of documents and contents of investment registration made to carry out offshore investment procedures in accordance with the Investment Law and this Decree.

Article 10.Dossiers, order and procedures for the National Assembly to decide on offshore investment policy

The dossier, order and procedures for the National Assembly to decide on offshore investment policy must comply with Article 56 of the Investment Law, this Decree and other relevant legal documents.

Article 11.Dossiers, order and procedures for the Prime Minister to decide on offshore investment policy and for grant of offshore investment registration certificates

1. An investor shall send 8 sets of the dossier of application for an offshore investment registration certificate (including 1 original set) to the Ministry of Planning and Investment and, at the same time, register information on the national information system on foreign investment in Vietnam and Vietnam’s offshore investment.

2. The Ministry of Planning and Investment shall receive the dossier if it comprises sufficient documents as prescribed in this Decree and has been registered on the national information system on foreign investment in Vietnam and Vietnam’s offshore investment, except cases in which the project’s documents are classified as secret and must comply with the law on protection of state secrets.

3. The Ministry of Planning and Investment shall examine the validity of the dossier. If the dossier is invalid or has some contents which need clarification, within 5 working days after receiving it, the Ministry of Planning and Investment shall notify such in writing to the investor for supplementing the dossier.

4. The Ministry of Planning and Investment shall send the dossier to the Ministries of Industry and Trade; Finance; and Labor, War Invalids and Social Affairs; the State Bank of Vietnam and the provincial-level People’s Committee of the locality where the investor is headquartered to seek the latter’s appraisal opinions within the time limit prescribed in Clause 2, Article 55 of the Investment Law.

5. The consulted agencies shall give their written opinion on the contents falling under their state management to the Ministry of Planning and Investment within the time limit prescribed in Clause 3, Article 55 of the Investment Law. Past this time limit, if a consulted agency gives no written opinion, it shall be considered having approved the investment project dossier regarding the contents under its state management.

6. The Ministry of Planning and Investment shall perform appraisal work and make an appraisal report for submission to the Prime Minister with the contents and within the time limit prescribed in Clause 4, Article 55 of the Investment Law.

7. Within 10 working days after receiving the Ministry of Planning and Investment’s appraisal report, the Prime Minister shall decide on offshore investment policy under Clause 5, Article 55 of the Investment Law.

8. For an offshore investment project of an enterprise with 100% state-held charter capital, after obtaining the offshore investment policy decision, the owner-representing agency shall decide on offshore investment in accordance with Article 29 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises, this Decree and the enterprise’s organization and operation charter. In case the enterprise is a subsidiary of an enterprise with 100% state-held charter capital (parent company), the parent company shall decide on offshore investment in accordance with its charter and financial regulation and relevant laws.

9. Within 5 working days after receiving the decisions prescribed in Clauses 7 and 8 of this Article, the Ministry of Planning and Investment shall grant an offshore investment registration certificate to the investor and, at the same time, send copies of the certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

10. In case the Prime Minister disapproves the offshore investment policy, within 3 working days after receiving the notice of disapproval, the Ministry of Planning and Investment shall issue a notice of refusal to grant an offshore investment registration certificate, clearly stating the reason to the investor.

Article 12.Dossiers, order and procedures for grant of offshore investment registration certificates for projects not subject to offshore investment policy approval

1. An investor shall send 3 sets of the dossier of application for an offshore investment registration certificate (including 1 original set) to the Ministry of Planning and Investment and, at the same time, register information on the national information system on foreign investment in Vietnam and Vietnam’s offshore investment.

2. The Ministry of Planning and Investment shall receive the dossier if it comprises sufficient documents as prescribed in this Decree and has been registered on the national information system on foreign investment in Vietnam and Vietnam’s offshore investment, except cases in which the project’s documents are classified as secret and must comply with the law on protection of state secrets.

3. The Ministry of Planning and Investment shall examine the validity of the dossier. If the dossier is invalid or has some contents which need clarification, within 5 working days after receiving it, the Ministry of Planning and Investment shall notify such in writing to the investor for supplementing the dossier.

4. The investor shall commit to arranging foreign-currency amounts by itself or must have a licensed credit institution’s commitment to arranging foreign-currency amounts for offshore investment activities. In case the investor registers to transfer abroad a foreign-currency amount equivalent to VND 20 billion or more and the project is other than that prescribed in Article 54 of the Investment Law, the Ministry of Planning and Investment shall consult in writing the State Bank of Vietnam in accordance with Clause 3, Article 58 of the Investment Law. The State Bank of Vietnam shall give its opinion to the Ministry of Planning and Investment within 7 working days after receiving the latter’s written request. Past this time limit, if the State Bank of Vietnam gives no opinion, it shall be considered having approved the investment project dossier regarding the contents under its state management.

5. The Ministry of Planning and Investment shall grant an offshore investment registration certificate within the time limit prescribed in Clause 3, Article 59 of the Investment Law; and, at the same time, send copies of the certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

6. In case the dossier is unqualified for grant of an offshore investment registration certificate, the Ministry of Planning and Investment shall issue a notice of refusal to grant an offshore investment registration certificate, clearly stating the reason to the investor.

Article 13.Shortening of the time for appraisal and grant of certificates of offshore investment registration certificates for projects subject to offshore investment policy decision by the National Assembly

In case an investor needs to participate in or implement a project before obtaining an offshore investment registration certificate under the procedures prescribed in Article 10 of this Decree as requested by the host country or prescribed in the bidding dossier for project participation or in other similar cases, the investor shall make a request and the appraisal and grant of an offshore investment registration certificate shall be carried out as follows:

1. The investor shall submit to the Ministry of Planning and Investment a petroleum project dossier as prescribed in Clause 1, Article 55 of the Investment Law and this Decree, enclosed with a document stating the reason for requesting the shortening of the time for appraisal and grant of an offshore investment registration certificate.

2. The Ministry of Planning and Investment shall examine the validity of the dossier. If the dossier is invalid or has some contents which need clarification, within 2 working days after receiving it, the Ministry of Planning and Investment shall notify such in writing to the investor for supplementing the dossier.

3. Within 3 working days after receiving a complete dossier prescribed in Clause 1 of this Article, the Ministry of Planning and Investment shall report and propose the Prime Minister to form a State Appraisal Council.

4. Within 30 working days after its formation, the State Appraisal Council shall appraise the dossier and make an appraisal report containing the contents prescribed in Clause 4, Article 55 of the Investment Law.

5. Within 5 working days after its appraisal meeting, the State Appraisal Council shall propose the Prime Minister to consider and submit to the National Assembly for making offshore investment policy decision. The submission dossier must comply with Clause 4, Article 56 of the Investment Law.

6. For an offshore investment project of an enterprise with 100% state-held charter capital or a subsidiary of an enterprise with 100% state-held charter capital, within 5 working days after receiving the National Assembly’s notice of approval of investment policy, the Prime Minister shall make an investment decision under Article 29 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises.

7. Within 3 working days after receiving the National Assembly’s notice of approval of investment policy and the Prime Minister’s investment decision prescribed in Clause 6 of this Article, the Ministry of Planning and Investment shall grant an offshore investment registration certificate to the investor and, at the same time, send copies of such certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

8. In case the National Assembly disapproves offshore investment policy, within 3 working days after receiving the notice of disapproval of offshore investment policy, the Ministry of Planning and Investment shall issue a notice of refusal to grant an offshore investment registration certificate, clearly stating the reason to the investor.

Article 14.Shortening of the time for appraisal and grant of offshore investment registration certificates for petroleum projects subject to offshore investment policy decision by the Prime Minister

In case an investor needs to participate in or implement a project before obtaining an offshore investment registration certificate under the procedures prescribed in Article 11 of this Decree as required by the host country or prescribed in the bidding dossier for project participation or in other similar cases, the investor shall make a request and the appraisal and grant of an offshore investment registration certificate shall be carried out as follows:

1. The investor shall submit to the Ministry of Planning and Investment a petroleum project dossier as prescribed in Clause 1, Article 55 of the Investment Law and this Decree, enclosed with a document stating the reason for requesting the shortening of the time for appraisal and grant of an offshore investment registration certificate.

2. The Ministry of Planning and Investment shall examine the validity of the dossier. If the dossier is invalid or has some contents which need clarification, within 2 working days after receiving it, the Ministry of Planning and Investment shall notify such in writing to the investor for supplementing the dossier.

3. Within 3 working days after receiving a complete dossier as prescribed in Clause 1 of this Article, the Ministry of Planning and investment shall send the dossier to the Ministries of Industry and Trade; Finance; and Labor, War Invalids and Social Affairs; the State Bank of Vietnam and the provincial-level People’s Committee of the locality where the investor is headquartered to seek their appraisal opinions.

4. The consulted agencies shall give their written opinions on the contents falling under their state management to the Ministry of Planning and Investment within 3 working days after receiving the investment project dossier. Past this time limit, if a consulted agency gives no written opinion, it shall be considered having approved the investment project dossier regarding the contents under its state management.

5. Within 15 days after receiving a complete dossier as prescribed in Clause 1 of this Article, the Ministry of Planning and Investment shall appraise the dossier and submit to the Prime Minister an appraisal report containing the contents prescribed in Clause 4, Article 55 of the Investment Law.

6. Within 5 working days after receiving the Ministry of Planning and Investment’s appraisal report, the Prime Minister shall decide on offshore investment policy.

7. For an offshore investment project of an enterprise with 100% state-held charter capital, within 3 working days after receiving the Prime Minister’s notice of approval of investment policy, the owner-representing agency shall decide on offshore investment in accordance with Article 29 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprises or the enterprise’s organization and operation charter. In case the enterprise is a subsidiary of an enterprise with 100% state-held charter capital (parent company), the parent company shall decide on offshore investment in accordance with its charter and financial regulation and relevant laws.

8. Within 2 working days after receiving the decisions prescribed in Clauses 6 and 7 of this Article, the Ministry of Planning and Investment shall grant an offshore investment certificate to the investor and, at the same time, send copies of the certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

9. In case the Prime Minister disapproves the offshore investment policy, within 3 working days after receiving the notice of disapproval, the Ministry of Planning and Investment shall issue a notice of refusal to grant an offshore investment registration certificate, clearly stating the reason to the investor.

Article 15.Modification of offshore investment registration certificates

1. When wishing to change the contents of an offshore investment project concerning the investor implementing the project; location, objectives or scale of investment; investment capital, investment capital sources, investment schedule, investment incentives, or use of profits for project implementation, the investor shall submit a dossier for modification of the offshore investment registration certificate to the Ministry of Planning and Investment.

2. A dossier of request for modification of an offshore investment registration certificate of a petroleum project must comply with Clause 2, Article 61 of the Investment Law and this Decree.

3. Another equivalent document certifying the legal status of the investor prescribed at Point b, Clause 1, Article 61 of the Investment Law may be any of the following papers: investment license or investment certificate or investment registration certificate, for investors being foreign-invested enterprises in Vietnam, or business registration certificate or establishment decision.

4. The Ministry of Planning and Investment shall modify the offshore investment registration certificate within 15 days after receiving a valid dossier as prescribed in Clause 2 of this Article.

5. For projects subject to offshore investment policy decision, when adjusting their contents prescribed in this Article, the Ministry of Planning and Investment shall carry out procedures for offshore investment policy decision before modifying offshore investment registration certificates in accordance with the Investment Law and this Decree.

6. In case the investor’s request for modification of offshore investment registration certificate makes the project subject to investment policy decision in accordance with the Investment Law, the Ministry of Planning and Investment shall carry out procedures for overseas investment policy decision before modifying the offshore investment registration certificate in accordance with the Investment Law and this Decree.

7. The Ministry of Planning and Investment shall send copies of the certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

Article 16.Shortening of the time for appraisal, examination and modification of offshore investment registration certificates

In case an investor needs to perform jobs pending modification of the offshore investment registration certificate according to the procedures prescribed in Article 15 of this Decree as required by the host country or prescribed in the petroleum contract or resolution of investors participating in the petroleum project, the investor shall make a request and the appraisal and grant of an offshore investment registration certificate shall be carried out as follows:

1. In case the project is subject to offshore investment policy decision by National Assembly or Prime Minister or the investor’s request for modification of the offshore investment registration certificate make the project subject to offshore investment policy decision by National Assembly or Prime Minister:

a/ The investor shall send to the Ministry of Planning and Investment a dossier of request for modification of the investment registration certificate for the petroleum project as prescribed in Clause 2, Article 61 of the Investment Law and this Decree, enclosed with a document stating the reason for requesting the shortening of the time for appraisal, examination and modification of the offshore investment registration certificate;

b/ The Ministry of Planning and Investment shall carry out procedures for investment policy decision under Articles 13 and 14 of this Decree:

c/ Within 2 working days after receiving the National Assembly’s or Prime Minister’s notice of approval and a competent agency’s decision on adjustment of the investment project in accordance with Article 29 of the Law on Management and Use of State Capital Invested in Production and Business at Enterprise or the enterprise’s charter and financial regulation, the Ministry of Planning and Investment shall modify the offshore investment registration certificate and, at the same time, send copies of the modified certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered;

d/ In case the National Assembly or Prime Minister disapproves the adjustment of the offshore investment project, within 3 working days after receiving the National Assembly’s or Prime Minister’s notice of disapproval, the Ministry of Planning and Investment shall issue a notice of refusal to modify the offshore investment registration certificate, clearly stating the reason to the investor.

2. For a petroleum project not subject to offshore investment policy decision

a/ The investor shall send to the Ministry of Planning and Investment a dossier prescribed at Point a, Clause 1 of this Article;

b/ Within 5 working days after receiving a valid dossier, the Ministry of Planning and Investment shall consider and modify the investor’s overseas investment registration certificate and, at the same time, send copies of the modified certificate to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

Chapter III

IMPLEMENTATION OF PETROLEUM PROJECTS

Article 17.Establishment of new legal persons

1. In order to prepare for investment in or implement an overseas petroleum project, an investor may establish or jointly establish an operating company in Vietnam, the host country or a third country in accordance with relevant law, the petroleum contract and commonly accepted practices of the international petroleum industry.

2. In case the investor decides to establish an operating company which will act on its behalf to participate in or implement an overseas petroleum project, the name of the operating company shall be written in the offshore investment registration certificate. The operating company may use the offshore investment registration certificate for activities related to the implementation of the petroleum project.

3. The investor shall take responsibility for observance of the offshore investment registration certificate and relevant laws in project implementation.

Article 18.Transfer of petroleum projects

1. Investors may transfer part or the whole of petroleum projects in conformity with petroleum contracts, laws of the host countries, this Decree and commonly accepted practices of the international petroleum industry. The authority competent to decide on the transfer of a petroleum project is the authority competent to decide on investment in such project.

2. Before transferring the whole of a petroleum project, the investor shall carry out procedures to terminate and liquidate offshore investment projects in accordance with the Investment Law and this Decree. Before terminating the project and transferring the whole investment capital amount to the foreign investor, the investor shall send a notice thereof to the State Bank of Vietnam

3. In case the transfer of a petroleum project generates a profit, the investor shall pay taxes in accordance with relevant laws.

Article 19.Contribution of capital to implement petroleum projects

1. Investors shall contribute investment capital in the following forms:

a/ Contributing capital in response to the call of the project operator;

b/ Contributing capital to the joint-venture operating company or operating company;

c/ Purchasing shares of a company that owns part or the whole of the petroleum project;

d/ Contributing capital as loans to the operating company.

dd/ Other forms as prescribed by the law of the host country or decided by the Prime Minister.

2. Investors shall contribute capital to implement overseas petroleum projects within the offshore investment capital limits stated in their offshore investment registration certificates (including changes in already registered offshore investment capital amounts). In case investors earn incomes from investment in projects, they shall declare and pay income tax (if any) thereon in accordance with the tax law.

Article 20.Outbound transfer of investment capital

1. An investor may transfer capital abroad to carry out investment activities when meeting the following conditions:

a/ The investor has obtained an offshore investment registration certificate, except the case prescribed in Clauses 1 and 4, Article 5 of this Decree;

b/ The petroleum project has been approved by a competent state agency of the host country. In case the host country’s law does not require investment licensing or approval, the investor must have documents proving the right to carry out investment activities in the host country;

c/ The investor has a capital account as prescribed in Article 63 of the Investment Law;

d/ The investor takes responsibility for outbound transfer of investment capital, ensuring that the transfer is conducted for a proper purpose, within the prescribed time limit and in compliance with the petroleum contract, share sale and purchase contract, etc.;

dd/ The investor transfers investment capital abroad via its offshore direct investment capital account after obtaining the State Bank of Vietnam’s certification of registration of foreign exchange transactions related to offshore investment under Article 21 of this Decree.

2. The State Bank of Vietnam shall guide in detail foreign exchange management with regard to outbound transfer of foreign currency amounts to carry out activities prescribed in this Article.

Article 21.Dossiers and procedures for registration of foreign exchange transactions related to offshore investment

1. A dossier of registration of foreign exchange transactions must comprise:

a/ A written registration for foreign exchange transactions, made according to the form issued by the State Bank of Vietnam;

b/ A copy issued from the original register or a certified copy or a copy enclosed with the original of the investment certificate or offshore investment certificate or offshore investment registration certificate. In case the investor submits a copy enclosed with the original for comparison, the comparing person shall certify the accuracy of the copy against the original;

c/ A foreign-language copy and its Vietnamese translation (containing the investor’s certification of their accuracy) of the notice of approval or investment license granted by a competent authority of the host country or document approving the right to carry out investment activities in the host country in accordance with the law of the host country;

d/ A licensed credit institution’s written certification of the investor’s opening of an investment capital account, clearly stating the account number and type of foreign currency;

dd/ A licensed credit institution’s written certification of the money amount the investor has transferred abroad before obtaining an offshore investment registration certificate to pay expenses for activities to formulate the overseas investment projects in accordance with law, in case the investor has transferred capital abroad before obtaining an offshore investment registration certificate;

e/ Written explanation about the need to transfer abroad investment capital in Vietnam dong, in case of transferring Vietnam-dong investment capital abroad.

2. Procedures for registering foreign exchange transactions with the State Bank of Vietnam

a/ The investor may submit directly or send by post to the State Bank of Vietnam 1 set of the dossier of registration of foreign exchange transactions as prescribed in Clause 1 of this Article;

b/ In case the dossier is incomplete, within 5 working days after receiving it, the State Bank of Vietnam shall request in writing the investor to supplement the dossier;

c/ Within 10 working days after receiving a complete dossier, the State Bank of Vietnam shall certify or refuse to certify transaction registration. In case of refusal, it shall send a written reply clearly stating the reason to the investor.

Article 22.Registration and notification of change of foreign exchange transactions related to offshore investment in petroleum activities

1. An investor shall register with the State Bank of Vietnam upon occurrence of changes in foreign exchange transactions against the contents of the written registration of foreign exchange transactions issued by the State Bank of Vietnam in the following cases:

a/ Change of the investor implementing the offshore investment project; change of the investor’s name;

b/ Change of the type of foreign currency of the investment capital account, change of the institution where the investment capital account is opened;

c/ Increase or decrease in the investor’s investment capital in cash (except cases of using profits or recovered capital amounts for investment in the overseas project);

d/ Change in the investor’s schedule of outbound transfer of investment capital in case the amount transferred in the period is larger than the amount to be transferred under the schedule certified by the State Bank of the Vietnam.

2. Dossiers and order of carrying out procedures for registering change of foreign exchange transactions related to offshore investment

a/ A registration dossier must comprise:

- A written registration, made according to the form issued by the State Bank of Vietnam;

- A written certification of the balance on the investor’s investment capital account, the money amount already transferred abroad and the amount transferred back to Vietnam by the time the change occurs, issued by the licensed credit institution where the investor opens its investment capital account;

- A copy issued from the original register or a certified copy or a copy enclosed with the original of the modified offshore investment registration certificate. In case the investor submits a copy and presents the original for comparison, the comparing person shall certify the accuracy of the copy against the original.

b/ Within 30 days after having its offshore investment registration certificate modified by the Ministry of Planning and Investor and before effecting the change prescribed at Point b, c or d, Clause 1 of this Article, the investor shall carry out procedures for registering change of foreign exchange transactions with the State Bank of Vietnam as follows:

- The investor may submit directly or send by post to the State Bank of Vietnam 1 set of the dossier of registration for change of foreign exchange transactions as prescribed at Point a of this Clause;

- In case the dossier is incomplete, within 5 working days after receiving it, the State Bank of Vietnam shall request in writing the investor to supplement the dossier;

- Within 10 working days after receiving a complete dossier, the State Bank of Vietnam shall certify or refuse to certify registration of change of foreign exchange transactions. In case of refusal, it shall send a written reply clearly stating the reason to the investor.

3. Within 30 days after changing the name of its overseas investment project or its account number, except the case prescribed at Point b, Clause 1 of this Article, the investor shall send to the State Bank of Vietnam and the licensed credit institution where it opens the investment capital account a notice thereof, enclosed with a copy of the modified offshore investment registration certificate (if any).

Article 23.Raising capital for petroleum projects and provision of loan guarantee for project implementation

1. Vietnamese investors may authorize execution companies to raise capital from financial and credit institutions (at home or abroad) for project implementation corresponding to their contribution rates to the projects.

2. For investment projects for which execution companies are established and in case projects’ assets need to be pledged or mortgaged as collateral for loans as required by financial or credit institutions, investors may carry out legal procedures for the operating companies to borrow such loans.

3. In case financial and credit institutions require investors’ guarantee, Vietnamese investors shall provide guarantee corresponding to their contribution rates to the projects.

Article 24.Inbound transfer of recovered capital (cost) amounts and profits of overseas investment projects

1.  Inbound transfer of capital (cost) amounts recovered from overseas investment projects

a/ When determining the investment capital amount already transferred abroad at a certain point of time, an investor may subtract the capital (cost) amount recovered from its overseas investment project and transferred back to Vietnam, provided it has reported in writing the transfer to the Ministry of Finance, the Ministry of Planning and Investment and the State Bank of Vietnam.

b/ In case the total amount of investment capital already transferred abroad for a petroleum project which has an offshore investment registration certificate is smaller than the registered level, the investor may retain the amount of capital (cost) recovered from the project and the amount of recovered capital after paying taxes (in accordance with regulations of the host country) for investment in such project or the investor’s other petroleum projects which have offshore investment registration certificates.

2. Inbound transfer of profits

a/ For an overseas petroleum project which is carried out by many partners, the investor shall reach agreement on the profit sharing mechanism, specifying the time and rates of sharing profits and dividends earned annually, in order to protect the interests of itself and the State;

b/ Within 6 months from the date of issuance of a tax finalization statement or a paper of equivalent legal validity as prescribed by the law of the host country, the investor shall transfer back to Vietnam the whole profits and other incomes earned from the overseas investment project. If failing to do so, the investor shall make a report to the Ministry of Planning and Investment and the State Bank of Vietnam. The time limit for inbound profit transfers may be extended twice at most with each extension not exceeding 6 months and subject to written approval by the Ministry of Planning and Investment;

c/ The investor may retain the shared profits (for joint ventures) or after-tax profits (for projects without foreign partners’ capital contributions) earned from an overseas investment project to re-invest in such project (contributing capital directly or lending capital to the project if having not yet reached the registered offshore investment capital) or other projects which have offshore investment registration certificates, if the owner-representing agency so approves. In case the investor is an enterprise with 100% state-held charter capital, pending the inbound transfer of profits, the investor will not be required to regulate profits as prescribed but shall give explanations thereon in its financial statement in case of oversight and monitoring by the owner-representing agency and other relevant agencies.

3. In case the investor fails to transfer to Vietnam recovered capital (cost) amounts, amounts left after paying taxes, and profits under Point b, Clause 1, and Clause 2 of this Article, it shall send a written notice thereof to the Ministry of Planning and Investment, the Ministry of Finance and the State Bank of Vietnam and the owner-representing agency before June 30 every year.

Article 25.Handling of irrecoverable expenses of projects

An investor may allocate expenses with reasonable and valid dossiers and documents to its production and business expenses as follows:

1. The investors’ own expenses

a/ Expenses for acquiring the right to participate in an overseas petroleum project (signature commission, deposit-based commission or similar expenses) which are not acknowledged as the project’s costs or cannot be wholly recovered shall be allocated in one of the following forms:

- The investor may gradually allocate expenses for acquiring the right to participate in the petroleum project over 5 years at most from the date of paying such expenses.

- The investor may gradually allocate these expenses based on the oilfield devaluation assessment result (recoverable oil and gas deposits and oil prices) at every year-end. The to-be-allocated expenses shall be accounted as the investor’s expenses and may be reversed in case the oilfield’s deposit value increases but must not exceed the expenses already paid for acquiring the right to participate in the petroleum project.

b/ Management and administrative expenses shall be allocated as follows:

- The investor may carry forward the whole amount of management and administrative expenses which have been paid directly by the investor but are not allowed to be acknowledged as the overseas petroleum project’s costs, except for those directly related to the project, which are called by the project operator on a periodical or an annual basis.

- Expenses to be carried forward include:

+ Expenses for investment preparation or formulation of the project (charges for reading documents; travel, meeting and negotiation expenses; charges for establishing a legal person to participate in the project as required by the host country, etc.).

+ Expenses for the project management and assistance office.

- Such expenses may be allocated over 5 years at most from the year of arising.

2. For prospecting and exploration projects

a/ At the end of a prospecting and exploration period, if no commercial discovery is made in the area under the contract and no decision to extend the prospecting and exploration period is issued, all expenses arising in the prospecting and exploration period shall be carried forward and allocated into the investor’s production and business costs over 5 years at most after the date the prospecting and exploration period expires under the petroleum contract or the date the investment decider permits the termination of the project.

b/ In case a prospecting and exploration project makes commercial discovery but economic benefits can be attainted only from the development investment (look-forward) period and the investor opts for continued investment, the whole or part of prospecting and exploration expenses which have incurred and approved by the investment decider but cannot be recovered shall be carried forward and allocated to the investor’s production and business costs over 5 years at most from the date the petroleum project enters the development period.

In case the oilfield’s value increases and the petroleum project attains higher economic benefits or the investor is permitted by the host country to wholly or partially recover the prospecting and exploration expenses arising in the prospecting and exploration period, the investor shall refund the expenses already allocated corresponding to the increase in economic efficiency compared to the value determined at the time of starting to allocate expenses or the amount of expenses allowed to be recovered by the host country, which, however, must not exceed the expense amount previously allocated from the project.

c/ Expenses allowed to be carried forward and allocated under Points a and b of this Clause include:

- Expenses directly related to oil and gas prospecting and exploration activities under the project;

- Contributions under the petroleum contract which are not accounted as recoverable expenses.

3. For development and exploitation projects

a/ In case the early exploitation result, output updating reports, and costs and efficiency of an investment project show that such project cannot bring about economic benefits as stated in the approved development plan (for full cycle), the project’s prospecting, exploration and exploitation expenses not yet recovered shall be allocated into the investor’s production and business costs over 5 years at most, starting from the year preceding the year of issuance of the output updating report but the to-be-allocated amount must not exceed the decrease in the oilfield’s value. In case the oilfield’s value increases, the expense amount already allocated shall be reversed as expenses but the reversed amount must not exceed the amount already allocated from the date the investment decider issues a decision on the expense allocation plan;

b/ Expenses allowed to be allocated under Point a of this Clause include:

- Expenses directly related to oil and gas prospecting, exploration, development and exploitation activities under the project;

- Contributions under the petroleum contract which, however, are not accounted as recovered expenses.

4. In case prospecting and exploration expenses cannot be recovered under Clauses 2 and 3 of this Article and have been covered by the Oil and Gas Prospecting and Exploration Fund in accordance with law, the investor may not allocate into its production and business costs such  expenses.

5. The Ministry of Finance shall guide the implementation of this Article.

Article 26.Accounting

1. Investors may apply to their petroleum projects an accounting system which conforms to provisions of the petroleum contracts, agreements with project operators and regulations of the host countries.

2. The accounting and monitoring of investment costs by investors in their account books must comply with Vietnam’s accounting law.

Article 27.Taxes and financial obligations in Vietnam

1. Investors shall declare and pay taxes in accordance with this Article and current laws on enterprise income tax, personal income tax, value-added tax, import duty and export duty.

2. In case a Vietnamese offshore investor establishes or invests in an overseas organization to carry out petroleum activities in another country and such organization is liable to income tax or a tax with a nature similar to income tax (including also tax on shared dividends and profits), when determining the payable income tax amount in Vietnam, the tax amount which has been paid overseas by the investor or by the organization or a partner for the investor shall be subtracted, with the subtracted amount not exceeding the income tax amount calculated at the tax rate prescribed by Vietnamese law at the time such tax amount arises. The tax amount on the profit earned from the offshore investment project which is reduced or exempted under the law of the host country shall also be subtracted when determining the payable income tax amount in Vietnam.

3. Investors shall fulfill financial obligations in accordance with Vietnamese law.

4. Recovered capital amounts and incomes of investors under petroleum contracts in a period shall be used as a basis for investors to declare and perform financial obligations in Vietnam (if any).

5. For petroleum contracts under which investors’ (shared) revenues are not separated into recovered capital amounts and incomes, investors shall additionally register with the Ministry of Finance a mechanism for identifying their revenues so as to serve the state management and fulfillment of financial obligations in Vietnam (if any).

Article 28.Stabilization of policies toward laborers directly engaged in overseas petroleum projects

1. For laborers who are assigned by an investor to work permanently at an overseas petroleum project-implementing organization under an agreement between the investor and its partner and whose salaries, bonuses, allowances and insurance premiums are accounted into the project’s taxable expenses before such amounts are transferred to the investor for payment to laborers, the laborers shall enjoy salaries, bonuses and allowances under their labor contracts and agreements with the investor (employer). The investor may apply a foreign-currency salary table to these laborers, which also serves as a basis for paying social insurance, health insurance, unemployment insurance and other compulsory social contributions in accordance with Vietnam’s law.

2. For laborers who are assigned by an investor to work permanently at an overseas petroleum project-implementing organization under an agreement between the investor and its partner and whose allowances and compulsory unemployment insurance under Vietnamese law are not accounted into the project’s taxable expenses, the investor shall deduct from its production and business costs and the laborers shall set aside an amount from their personal incomes to pay social insurance, health insurance, unemployment insurance and other compulsory social contribution in accordance with Vietnamese law. The insurance premiums and benefits of laborers must correspond to their salaries before they are assigned to work overseas or the region-based minimum wage level in Vietnam, in case the laborers’ salaries used as a basis for performing social contribution obligations have not been determined yet. Investors are encouraged to negotiate with their partners for the latter to pay social contributions for laborers in accordance with the laws of the host countries or transfer such amounts to investors for paying contributions in Vietnam.

3. Social insurance, health insurance, unemployment insurance and other compulsory social contributions prescribed by Vietnamese law for laborers assigned by investors to work permanently at overseas petroleum project-executing organizations are similar to those applied to holders of equivalent positions in Vietnam.

Article 29.Service hiring and procurement

Investors may select contractors to provide services and procure supplies, equipment and vehicles for their petroleum projects in accordance with the laws of Vietnam and the host country.

Article 30.Liquidation of offshore investment projects

1. Right after its investment project terminates, an investor shall liquidate such project in accordance with the petroleum contract and the law of the host country.

2. Within 6 months from the date of issuance of the tax finalization statement or another document of equivalent legal validity under the law of the host country, the investor shall transfer to Vietnam all proceeds from the liquidation of the investment project.

3. If wishing to extend the time limit prescribed in Clause 2 of this Article, at least 60 days before such time limit expires, the investor shall make a written request clearly stating the reason and send it to the Ministry of Planning and Investment for consideration and decision. Within 15 working days after receiving the investor’s request, the Ministry of Planning and Investment shall issue a written reply on the extension of the time limit for inbound transfer of proceeds from the liquidation of the investment project. Such extension may be granted only once and must not exceed 6 months.

4. Within 60 days after completing the liquidation of the overseas investment project and transfer of the whole proceeds from the liquidation (if any) to Vietnam, the investor shall carry out procedures to terminate the offshore investment project under Article 31 of the Investment Law.

Article 31.Termination of offshore investment projects

1. Investors shall carry out procedures to terminate offshore investment projects in the cases prescribed in Clause 1, Article 62 of the Investment Law.

2. Expiration of the operation duration of a project prescribed at Point b, Clause 1, Article 62 of the Investment Law means the case when the operation duration of an investment project expires under the petroleum contract or the law of the host country and the investor is not allowed to continue with investment activities.

3. Investors shall submit 1 set of the dossier of request for invalidation of offshore investment registration certificate comprising:

a/ A request for invalidation of offshore investment registration certificate, made according to the form issued by the Ministry of Planning and Investment;

b/ The original offshore investment registration certificate and the modified offshore investment registration certificate (if any);

c/ The original or a certified copy of the decision on termination of the offshore investment project, issued by the investment decider prescribed in the Investment Law and this Decree;

d/ A certified copy of the document proving the investor’s completion of the liquidation of the project under Article 30 this Decree;

4. Investors shall take responsibility before law for the accuracy and truthfulness of dossiers of request for invalidation of offshore investment registration
certificate.

5. The Ministry of Planning and Investment shall examine the validity of the dossier. In case the dossier is invalid or has some contents which need clarification, within 5 working days after receiving the dossier, the Ministry of Planning and Investment shall issue a written request for the investor to supplement the dossier.

6. Within 15 days after receiving a valid dossier, the Ministry of Planning and Investment shall issue a decision to invalidate and revoke the offshore investment registration certificate; and, at the same time, send copies of such decision to the Ministries of Industry and Trade; Finance; Foreign Affairs; and Labor, War Invalids and Social Affairs, the State Bank of Vietnam, and the provincial-level People’s Committee of the locality where the investor is headquartered.

7. In case of terminating an offshore investment project under Point d, Clause 1, Article 62 of the Investment Law, before terminating the project and transferring the whole overseas investment capital amount to a foreign investor, the investor shall notify such to the State Bank of Vietnam.

8. In case of terminating an offshore investment project under Point d or e, Clause 1, Article 62 of the Investment Law but the investor does not request invalidation of the offshore investment registration certificate, the Ministry of Planning and Investment shall decide to invalidate the offshore investment registration certificate and send the decision to the investor and relevant state management agencies.

In case the investor wishes to continue implementing the offshore investment project, it shall carry out procedures to apply for an offshore investment registration certificate in accordance with the Investment Law and this Decree.

9. In case of terminating an offshore investment project under Point g, Clause 1, Article 62 of the Investment Law, the investor shall liquidate the project and carry out procedures to invalidate the offshore investment registration certificate.

Chapter IV

STATE MANAGEMENT OF OFFSHORE INVESTMENT IN PETROLEUM ACTIVITIES

Article 32.Powers and responsibilities of state management agencies

Ministries, ministerial-level agencies, Government-attached agencies, provincial-level People’s Committees and overseas Vietnamese representative missions shall perform the functions of state management, inspection and examination of offshore investment in petroleum activities in accordance with the Investment Law and Chapter V of the Government’s Decree No. 83/2015/ND-CP of September 25, 2015, on
offshore investment.

Article 33.Reporting on offshore investment

1. State management agencies shall make reports under Clauses 1 and 2, Article 72 of the Investment Law.

2. Investors shall make reports under Clause 3, Article 72 of the Investment Law and Article 20 of the Government’s Decree No. 83/2015/ND-CP of September 25, 2015, on offshore investment.

Chapter V

IMPLEMENTATION PROVISIONS

Article 34.Effect

1. This Decree takes effect on January 1, 2018, and replaces the Government’s Decree No. 121/2007/ND-CP of July 25, 2007, on offshore direct investment in petroleum activities and Decree No. 17/2009/ND-CP of February 16, 2009, amending and supplementing a number of articles of Decree No. 121/2007/ND-CP.

2. Transitional provisions

In case their granted investment licenses or offshore investment certificates specify an expiration date, if investors wish to continue their investment activities (without changing other contents of investment projects) after such date, they shall request the Ministry of Planning and Investment to consider re-granting an offshore investment registration certificate.

Article 35.Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies, and provincial-level People’s Committee chairpersons shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC