Decision No. 1601/QD-TTg of October 29, 2012, approving scheme to improve efficiency of management work of current foreign investment in Vietnam

DECISION

APPROVING SCHEME TO IMPROVE EFFICIENCY OF MANAGEMENT WORK OF CURRENT FOREIGN INVESTMENT IN VIETNAM

THE PRIME MINISTER

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

Pursuant to the Investment Law No. 59/2005/QH11 dated November 29, 2005;

Pursuant to the Ordinance on Foreign Exchange No. 28/2005/PL-UBTVQH11 dated December 13, 2005 of the National Assembly Standing Committee;

Pursuant to Decree No. 108/2006/ND-CP dated September 22, 2006 detailing the implementation of a number of articles of the Investment Law;

Pursuant to Decree No. 160/2006/ND-CP dated December 28, 2006 detailing the implementation of the Ordinance on Foreign Exchange;

Pursuant to Directive No.1617/CT-TTg dated September 19, 2011 on strengthening the implementation and reorganization of the management of foreign direct investment in the future;

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

DECIDES:

Article 1. Approving the Scheme "Improving the efficiency of the management of foreign direct investment flows into Vietnam" with the following contents:

I. OBJECTIVE

Improving the efficiency of the management of foreign direct investment capital flows into Vietnam in order to achieve the following objectives:

- Improving the investment environment, boosting and raising the quality and efficiency of foreign direct investment in accordance with Strategic orientation of socio-economic development of Vietnam for the period 2011 - 2020 to encourage economy with the foreign investment capital to develop under the plan and ensure compliance with the other objectives of development and macro-economic stability.

- Completing the mechanism of state management on the management of foreign direct investment capital flows to enhance the coordination between the Ministries, sectors and localities in monitoring activities of foreign direct investment capital flows.

- Completing the legal framework on the management of foreign direct investment capital flows into Vietnam.

- Improving the efficiency of inspection and monitoring of capital flows in and out, promptly and accurately building database on foreign direct investment capital flows to meet the requirements of the analysis, forecasting and policy planning and administration of the foreign exchange market, s reasonable stability of payment balance, and increasing of foreign exchange reserves.

II. TASK AND SOLUTION

1. Studying characteristics and nature of foreign investment capital flows into Vietnam (including contributed capital flow, foreign and domestic loan capital flows …) and the capital flow transferred abroad of capital invested enterprises commonly understood as foreign direct investment capital flows.

2. Completing the legal framework related to the management of foreign direct investment flows:

a) Making agreement upon the concept of direct and indirect investment in the legal normative documents: Specifying the concept of direct and indirect investment to group and manage the foreign capital flows, on that basis supplementing, clarifying and agreeing in the legal normative documents to complete the legal framework for foreign investors upon investment in the Vietnamese market.

b) Supplementing or modifying the provisions on the order and procedures for investment, money transfer in and out related to the foreign direct investment capital flows: Researching and reviewing the Investment Law and the guiding documents to amend and supplement provisions on the constituent elements of foreign direct investment capital, the time to transfer money for capital contribution, the time to transfer contributed capital, cost-accounting mechanism of project preparation before licensing, ... to create a complete legal framework for foreign investors in the process of project implementation simultaneously enhancing the coordination ability among the Ministries, sectors and localities in the management and monitoring of foreign investment capital flows.

c) Supplementing or modifying the provisions of the borrowing and debt repayment of foreign direct investment enterprises in the direction of unifying mechanism, loan and repayment management policies at home and abroad of foreign direct investment enterprises to ensure prudent foreign debt management and process of safe and efficient debt ratio, and the domestic and foreign debt of the foreign-invested enterprises within the total investment of projects approved in the investment certificate.

3. Strengthen reporting mechanisms and data statistics:

a) Raising the capacity of synthesis and exploitation of information and data through the standardization of statistical norms; strengthening reporting system, data statistics data through the system of credit institutions, the FDI enterprises. Developing reporting system in the direction of information technology applications, reducing workload and handwork.

b) Developing mechanisms of data comparison between the reporting sources (credit institutions and FDI enterprises) in order to ensure the accuracy of the data.

c) Developing mechanisms for coordination and information sharing between ministries and sectors to legislate responsibilities of state management agencies and effectively increase coordination and implementation of the management of FDI inflows.

d) Studying and developing sanctions for non-compliance of reporting and statistical regime of related objects in the report of data on FDI flows.

4. Strengthening the inspection, examination, monitoring and inter-sectoral coordination:

a) To strengthen the legal basis for the inspection, examination and monitoring to the extent relating to the management of FDI flows as promulgating legal normative documents stipulating the inspection, monitoring and assessment of foreign direct investment ...

b) Work of inspection, examination and monitoring of FDI capital flows should focus on implementation through periodic and irregular inspection on the operation of money transfer for capital contribution, profit transfer, payment transfer related to foreign direct investment operation

c) Inter-sectoral coordination: Organizing inter-sector inspection teams for the operation of FDI enterprises regularly or irregularly to assess the actual developments of FDI flows to have appropriate policy mechanisms.

III. IMPLEMENTATION ORGANIZATION

1. Responsibilities of the State Bank of Vietnam:

a) Assuming the prime responsibility and coordinating with relevant Ministries and sectors to complete the legal ground related to the monitoring of cash flows of foreign-invested enterprises (including capital contribution flow in cash, the domestic and foreign loan flows).

b) Assuming the prime responsibility for elaborating the monitoring mechanism of the total domestic and foreign loan of the foreign-invested enterprises in relation to the total invested capital of the enterprises.

c) Assuming the prime responsibility for studying, supplementing in order to complete the reporting system through credit institutions to ensure the aggregation of data of foreign direct investment capital flows quickly, promptly and correctly.

2. Responsibility of the Ministry of Planning and Investment:

a) Assuming the prime responsibility and coordinating with relevant ministries and sectors to review, assess and improve the legal framework on foreign direct investment in Vietnam, making agreement upon legal ground on grouping foreign investors and procedures for investment, licensing process, project transfer, regulation on contributed capital structure (tangible capital, intangible capital, capital in cash, the loan rate / contributed capital) in the process of granting investment certificate to sum up detailed statistic data of foreign direct investment capital flows into Vietnam promptly and accurately.

b) Assuming the prime responsibility and coordinating with relevant Ministries, sector and localities to build inter-sectoral coordination mechanisms in the management of foreign direct investment into Vietnam in general and statistical and monitoring work of foreign direct investment capital flows into Vietnam in particular.

c) Assuming the prime responsibility and coordinating with Ministries, sectors and localities to build effective information system on foreign direct investment capital flows into Vietnam in order to meet the analytical needs analysis, forecasting and policy making.

d) Assuming the prime responsibility and coordinating with Ministries, sectors and localities to build inter-sectoral coordination mechanisms in examination, monitoring and assessing investment and management of foreign direct investment operation into Vietnam.

3. Responsibility of the Ministry of Finance:

a) Directing the General Department of Customs to assume the prime responsibility and coordinating with the relevant agencies to build data monitoring system on the import and export of foreign-invested enterprises and data of direct investment capital flows into Vietnam in the form of capital contribution by goods, machinery and equipment.

b) Implementing solutions to control the pricing transfer activities of foreign-invested enterprises for the areas under the State management function.

4. Responsibility of the Ministry of Science and Technology:

Assuming the prime responsibility and coordinating with the relevant ministries and sectors to deploy the solution in the project "Improving the efficiency of technology transfer of foreign direct investment'' after it has been approved by the Prime Minister.

5. Responsibilities of People's Committees of centrally-affiliated provinces and cities:

a) Proactively coordinating with the Ministry of Planning and Investment to complete the legal ground related to statistics, control and management of foreign direct investment into Vietnam.

b) Proactively coordinating with the Ministry of Planning and Investment and relevant agencies to implement the mechanism of statistic data report on foreign direct investment operation into Vietnam of foreign-invested enterprises under its management to promptly and accurately monitor and control the foreign direct investment flows in and out of the territory of Vietnam.

c) Closely coordinating with the Ministry of Planning and Investment, the relevant Ministries and sectors in the implementation of the inspection, examination and monitoring of compliance with the law, the regulation on statistic reporting for enterprises with foreign investment capital under their management areas.

Article 2.This Decision takes effect from the date of its signing.

Article 3. Ministers, heads of ministerial-level agencies, heads of the agencies under the Government, Chairmen of the People's Committees of centrally-affiliated provinces and cities are liable to execute with results this Decision. /.