Resolution No. 59/2007/NQ-CP dated November 30, 2009 of the Government on a number of solutions to problems in construction investment activities and reform of some administrative procedures applicable to enterprises

RESOLUTION

ON A NUMBER OF SOLUTIONS TO PROBLEMS IN CONSTRUCTION INVESTMENT ACTIVITIES AND REFORM OF SOME ADMINISTRATIVE PROCEDURES APPLICABLE TO ENTERPRISES

Over the past time, the Government has concentrated efforts on directing the implementation of measures to tackle existing problems in order to speed up capital construction investment activities. In general, ministries, branches, localities and units have made strenuous efforts in implementing investment and construction plans, creating a positive change in investment and construction activities. However, many difficulties still exist in investment and construction activities; and the disbursement of investment capital, especially for projects and works invested with state budget capital, investment credit capital or government bond capital remains slow.

The above situation has affected the implementation of socio-economic development plans in 2007 and subsequent year.

In addition to the delayed overcoming of weakness in investment and construction management, the above situation is attributed to overlapping and inappropriate provisions in legal documents on investment and construction.

In order to promptly remedy this situation and accelerate the implementation and disbursement of capital for investment projects with a view to fulfilling socio-economic development tasks, the Government resolves:

I. A NUMBER OF SOLUTIONS TO PROBLEMS IN INVESTMENT AND CONSTRUCTION

A. SOLUTIONS RELATED TO LAND AND MINERAL EXPLORATION AND EXPLOITATION:

1. Conditions for land allocation or land lease for investment projects:

a) For investigation, survey and measurement to determine land areas for formulation of investment projects for which a plan on compensation for ground clearance is required:

Presidents of provincial-level People’s Committees shall permit project investors, who have obtained investment undertakings, registered investment or been granted investment certificates, to cone to the project-covered areas to conduct survey and measurement of land areas for formulation of the projects, if their projects are compatible with local socio-economic development plannings, plannings and plans on the use of land in the areas under projects, construction plannings, branch plannings or products plannings.

Presidents of district-and commune-level People’s Committees and inhabitants in areas under projects shall create conditions for investors to conduct survey and measurement in order to determine land areas for formulation of investment projects in accordance with decisions of provincial-level People’s Committee presidents.

b) For the work of compensation for ground clearance:

After investment projects have been accepted and approved in accordance with legal provisions on investment, the district-level compensation, support and resettlement council or the land fund development organization may come to the project-covered areas to carry out jobs related to the elaboration of plans on compensation, support and ground clearance for the projects. These plans shall be adjusted later after the projects’ technical designs have been formulated and serve as a basis for provincial-level People’s Committees to issue decisions on land recovery. The Ministry of Natural Resources and Environment shall guide the order of and procedures for the elaboration of plans on compensation, support and resettlement for projects in accordance with this Resolution.

Project owners may be advanced an amount of capital to cover expenses for compensation and ground clearance at the proposal of the district-level compensation, support and resettlement council or the land fund development organization. The Ministry of Finance shall guide the order of and procedures for advance payment to project investors for compensation and ground clearance work, as well as the levels of advance.

2. Grant of permits for mineral exploration and exploitation activities:

a) In order to simplify administrative procedures, to assign the Ministry of Natural Resources and Environment to assume the prime responsibility for, and coordinate with concerned ministries and branches in, providing guidance on the integration of contents of the mineral survey permit into the mineral exploration permit and contents of the mineral processing permit into the mineral exploitation permit or investment certificate to be granted to enterprises.

b) To assign provincial/municipal People’s Committees to assume the prime responsibility for, and coordinate with concerned ministries and branches in, zoning off and approving areas where mineral activities are prohibited or suspended, serving as a basis for the grant of permits to organizations and individuals wishing to conduct mineral activities.

B. SOLUTIONS RELATED TO INVESTMENT PROCEDURES AND MANAGEMENT OF INVESTMENT PROJECTS ON THE CONSTRUCTION OF WORKS:

1. Elaboration of environmental impact assessment reports:

In the first quarter of 2008, the Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Construction and concerned agencies in, reviewing the list of projects for which environmental impact assessment reports must be elaborated and, at the same time, renovating procedures for elaborating these reports and their contents in order to create favorable conditions for investors, especially for projects on dwelling houses and urban centers.

2. Procedures for approval of fire prevention and fighting plans:

The Ministry of Public Security shall assume the prime responsibility for, and coordinate with the Ministry of Construction and concerned ministries and branches in reviewing regulations on procedures for evaluation and approval of fire prevention and fighting plans. The evaluation and approval of these plans must ensure requirements on fire prevention and fighting while simplifying procedures through the publicization of fire prevention and fighting regulations and application of post-inspection measures, except for particular works with strict requirements on fire prevention and fighting, avoiding obstruction to the execution of projects.

3. Contents of and procedures for appraisal of basic designs:

a) The Ministry of Construction shall review current regulations on contents of and procedures for appraisal of basic designs (in the Government’s Decree No. 16/2005/ND-CP dated February 7, 2005, on management of investment projects on the construction of works and Decree No. 112/2006/ND-CP dated September 26, 2006, amending and supplementing Decree No. 16/2005/ND-CP) with a view to settling problems and difficulties arising in the appraisal and approval of investment projects, ensuring the simplification of, and remedying of inconsistencies among, relevant legal documents to suit the country’s practical conditions and meet international integration requirements; propose the Government to amend or supplement these decrees in December 2007.

b) For ODA-funded projects: Pending the amendment of relevant documents on basic designs, preliminary designs may be used instead of basic designs in accordance with international practice and donors’ regulations.

4. Grant of investment certificates to domestic investment projects:

a) The Ministry of Planning and Investment shall coordinate with concerned agencies and localities in evaluating the grant of investment certificates in the past time; study and amend relevant procedures and formalities and study the necessity of investment certificates; in cases in which such an investment certificate is considered unnecessary, the Ministry shall report them to the Government for the latter to propose the National Assembly to amend the Investment Law in the direction of abolishing investment certificates for domestic investment projects or providing for types of projects requiring investment certificates according to their nature.

b) For domestic construction investment projects funded with state budget capital, investment decisions or investment approval papers issued by competent agencies are concurrently investment certificates.

C. BIDDING SOLUTIONS:

1. For urgent projects to be implemented in the national interest, for security or energy safety, the Prime Minister shall, at the request of line-management ministers or presidents of provincial-level People’s Committees, approve a list of projects for which appointment of contractors (including consultancy contractors) is permitted and authorize ministers or provincial-level People’s Committee presidents to decide on the appointment of contractors in accordance with law.

2. Appointment of consultancy contractors in some domains:

a) To allow ministers and provincial-level People’s Committee presidents to appoint capable consultancy contractors to formulate socio-economic development strategies and plannings. The appointment of contractors must comply with regulations. Funds for the formulation of these strategies and plannings shall be allocated from the source of capital for non-business economic affairs.

b) For investment projects in domains where only one capable consultancy unit is available, to allow ministers and provincial-level People’s Committee presidents to appoint contractors to provide survey and designing consultancy for the formulation of investment projects. The appointment of contractors must comply with regulations.

D. SOLUTIONS RELATED TO MANAGEMENT OF WORK-CONSTRUCTION EXPENSES:

1. In order to speed up the disbursement of capital for underway investment projects on the construction of works which have been approved before the effective date of the Government’s Decree No. 99/2007/ND-CP dated June 13, 2007, on management of work-construction expenses, if considering it necessary, the persons competent to decide on investment may consider and decide on the application of the provisions of this Decree.

2. The Ministry of Planning and Investment shall coordinate with the Ministry of Finance in allocating adequate capital to ministries, branches and localities for investment preparation; and, at the same time, permit ministers, heads of ministerial-level agencies and presidents of provincial-level People’s Committees to adjust investment preparation capital and investment execution capital, in case investment preparation capital is insufficient.

II. REFORMING A NUMBER OF ADMINISTRATIVE PROCEDURES APPLICABLE TO ENTERPRISES

1. In December 2007, the Ministry of Public Security shall issue guidelines on procedures for carving enterprise seals without requiring seal-carving permits. The registration of seals, deposit of seal specimens and certification of seal specimen registration with state agencies comply with current regulations. The Ministry of Public Security shall coordinate with the Ministry of Home Affairs and the Government Office in drafting a decree on simplifying administrative procedures in some domains, amending and supplementing the Government’s Decree No. 58/2001/ND-CP dated August 24, 2001 on management and use of seals.

2. The Ministry of Planning and Investment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in:

a) Guiding the registration of newly established enterprises and tax identification numbers within 5 working days, ensuring the principle that enterprise founders and state management agencies strictly and uniformly abide by the provisions of the Enterprise Law under which enterprise founders shall make declarations and take legal responsibility for the accuracy and truthfulness of information declared in business registration dossiers.

b) Integrating the contents of business registration and tax identification number registration in a single dossier set to be submitted to provincial/municipal Planning and Investment Services; guiding provincial-level business registration agencies to use tax identification numbers as business registration numbers, for enterprises set up from April 1, 2008 onwards; to combine business registration numbers with tax identification numbers into enterprise codes.

3. In the fourth quarter of 2008, the Ministry of Planning and Investment shall basically complete the building of a national database on business registration and the connection of the business registration network in order to protect enterprises’ names throughout the country and carry out online business registration on a trial basis.

4. In the first quarter of 2008, the Ministry of Finance shall completely review tax payment procedures and tax declaration forms in order to amend and supplement current regulations, ensuring their completeness, simplicity, comprehensibility and enforceability for further reforming administrative procedures in tax collection and payment.

III. ORGANIZATION OF IMPLEMENTATION

1. The Ministry of Planning and Investment shall monitor and inspect the implementation of this Resolution and promptly report arising difficulties and problems to the Prime Minister; and quarterly, report the implementation results to the Prime Minister.

2. The Ministry of Justice shall coordinate with concerned ministries and branches in reviewing legal documents related to domains stated in this Resolution which need to be amended or supplemented for submission to the Government and the National Assembly for addition to its legislative program. The omnibus law-making technique may be applied.

3. Ministries, branches and local administrations shall strictly comply with directing documents of the Government and the Prime Minister and Directive No. 836/2007/CT-TTg dated July 2, 2007, on enhancing the management of investment with state capital in the second half of 2007, in order to remove difficulties and speed up the disbursement of investment capital and the construction of works, maintain a high growth rate and strive to successfully fulfill the 2007 socio-economic development tasks and targets; and, at the same time, prepare for the implementation of socio-economic development plans in 2008 and subsequent years.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People’s Committees shall implement this Resolution.