Chương 1 Nghị định 51/1999/NĐ-CP: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1.- Scope of regulation

This Decree regulates the following investment activities:

1. Investment in setting up new production and business establishments of different economic sectors;

2. Investment in production lines, expansion of production scale and renewal of technologies, including: investment in setting up new workshops; installation of new production lines; installation of new equipment and facilities to supplement the existing ones; installation of new equipment and machinery to partially or fully replace equipment and machinery of the existing production lines;

3. Investment in the improvement of environment and ecology; relocation of production establishments out of the urban areas; development of services in support of research and development, experimenting establishments and laboratories in service of scientific research;

4. Purchase of shares from the equitized State enterprises and joint-stock companies and contribution of capital to enterprises of different economic sectors;

5. Investment in the forms of Build- Operate- Transfer (BOT); Build- Transfer-Operate (BTO); and Build- Transfer (BT) contracts.

Article 2.- Objects of application

The Law on Domestic Investment Promotion shall apply to:

1. Limited liability companies;

2. Joint-stock companies;

3. Partnerships;

4. Private enterprises;

5. Cooperatives, unions of cooperatives;

6. State enterprises;

7. Private, people-funded and semi-public education and training establishments; private and people-funded medical establishments; and national culture establishments, lawfully established and operating;

8. Enterprises of political organizations, socio-political organizations and occupational societies, which have registered their business according to the provisions of law;

9. Individuals and business groups established and operating under Decree No. 66-HDBT of March 2, 1992 of the Council of Ministers (now the Government).

10. Vietnamese citizens, overseas Vietnamese and foreigners permanently residing in Vietnam who buy shares from or contribute capital to Vietnamese enterprises.

Article 3.- Laws applicable to investment by overseas Vietnamese

1. The overseas Vietnamese making investment under the Law on Domestic Investment Promotion include people with Vietnamese nationality and people of Vietnamese origin, who permanently reside and earn their living overseas.

2. Overseas Vietnamese may select either the Law on Foreign Investment in Vietnam or the Law on Domestic Investment Promotion for their investment projects in Vietnam, but each project is entitled to either of the two said laws.

3. Enterprises set up by overseas Vietnamese, enterprises set up jointly by Vietnamese citizens and overseas Vietnamese shall comply with the Law on Enterprises and the Law on Cooperatives.

Article 4.- Laws applicable to investment by foreigners permanently residing in Vietnam

1. Foreigners permanently residing in Vietnam and investing in the country under the Law on Domestic Investment Promotion are those with foreign citizenship and those without any nationality, who permanently reside and earn their living in Vietnam.

2. Foreigners permanently residing in Vietnam may select either the Law on Foreign Investment in Vietnam or the Law on Domestic Investment Promotion for their investment projects, but each project is only entitled to either of the two said laws.

3. Enterprises set up by foreigners permanently residing in Vietnam, enterprises set up jointly by Vietnamese citizens and foreigners permanently residing in Vietnam and enterprises set up jointly by Vietnamese citizens, overseas Vietnamese and foreigners permanently residing in Vietnam shall comply with the Law on Enterprises and the Law on Cooperatives.

Article 5.- Competence to decide the share purchase and capital contribution by foreign investors

1. Foreigners may contribute capital or purchase shares with a value of not more than 30% of the charter capital of concerned Vietnamese enterprises in the branches, trades and domains on the list ratified for each period by the Prime Minister, at the proposal of the Minister of Planning and Investment.

2. The capital contribution and share purchase by foreign investors with a value of not more than 30% of the charter capital of concerned State enterprises on the list ratified by the Prime Minister are stipulated as follows:

a/ For the centrally-run enterprises, the Finance Minister shall decide;

b/ For the locally-run enterprises, the presidents of the People’s Committees of the provinces and centrally-run cities shall decide at the proposal of the directors of the provincial/municipal Planning and Investment Services.

3. The capital contribution or share purchase by foreign investors with a value of not more than 30% of the charter capital of enterprises of other economic sectors, which belong to those branches, trades and domains defined in the list already ratified by the Prime Minister shall be effected under contracts signed between the foreign investors and concerned enterprises. In this case, enterprises shall have to notify in writing to the agencies that have granted them the business registration certificates within 15 days after contributing capital or purchasing shares.