Chỉ thị 1617/CT-TTg

DIRECTIVE

STRENGTHENING OF IMPLEMENTATION AND CORRECTING OF MANAGEMENT OF FOREIGN DIRECT INVESTMENT IN THE COMING DAYS

On April 07, 2009, the Government issued the Resolution No.13/NQ-CP on orientations, measures of attraction and management of foreign direct investment capital in the coming days (hereinafter referred to as Resolution 13/NQ-CP) The implementation of the Resolution in past time has contributed to create the positive changes in the activities of foreign investment (FDI). In 2010, although the international and domestic economic situation is more complicated, but foreign investment activities still have achieved positive results in the following aspects: disbursement capital, export, budget remittance, jobs creation, contributing to improve the balance of payments and complete the objectives and tasks of the social and economic development plan for stage from 2006 to 2010.

However, besides the achievements, unsound issues in attraction and management of foreign investment in the past time are delayed to overcome. Status of granting investment certificates not in compliance with planning is still taking place in some localities, especially in the projects of golf course, reforestation, steel production, minerals mining. Many projects have not been verified, examined carefully the technical criteria, technology, environment, employment ... leading to the projects’ quality is not high, lack of link between FDI and domestic enterprises. In addition, the inspection and supervision of the obligations of investors on the capital contribution schedule, capital mobilization, and construction activities as well as, environment, technology transfer, implementation of obligations with employees and financial obligations toward the State is not good, lack of coordination between ministries, branches, and localities. On the other hand, the weakness of infrastructure, particularly power shortages and inadequacies of the system of ports and related infrastructure, the serious shortage of trained labor resources, engineers and personnel managers continue to be barriers to foreign investment activities.

To continue to promote, improve the efficiency of the implementation of Resolution No.13/NQ-CP, the Prime Minister requests the ministers, heads of ministerial-level agencies, Governmental agencies, Chairmen of the People's Committees of provinces and cities under central government thoroughly and focus on implementing the following tasks:

I. OBJECTIVES AND ATTRATIVE ORIENTATION, FDI MANAGEMENT OF THE PERIOD 2011-2020

1. To improve the quality, efficiency of FDI in accordance with the orientation of strategy of economic - social development of Vietnam 2011 – 2020 by encouraging foreign-invested economy developed according to planning; prioritize to attract projects with environmentally friendly, modern technology, use efficiently the natural resources, minerals, land, facilitate and strengthen links with domestic enterprises; focus on attracting areas of support industry, industry serving agriculture and services with the advantage, with high knowledge content, information technology; service of science and technology, education and training, infrastructure development; and attract selectively producing, processing industry, high-tech industry, power industry, metallurgy, chemicals; prioritize development of projects having products with competitive advantage, the products able to participate in production networks and global value chains.

Restrict the projects that are invested in non-manufacturing sector, increasing trade deficit, energy consumption, mining not associated with processing. No to issue investment certificates for the projects using waste energy, natural resources, using outdated technology, causing environmental pollution.

2. Improve the effectiveness and efficiency of State management for foreign investment activity to ensure the quality of this activity in the new situation.

3. Perfect the mechanism of state management on foreign investment to increase, improve coordination effect between the Ministry of Planning and Investment and concerned ministries, branches and People's Committees of provinces and cities directly under the Central Government in the whole process of granting the certificate of investment, project management, inspection, and supervision of investment activities.

II. SOME KEY SOLUTIONS

1. Formulate policies of investment incentives appropriate to the foreign investment attracting orientation in period 2011 to 2020.

2. Improve the quality and effectiveness of planning from the formulation, appraisal, and approval to the planning management.

3. Perfect and improve efficiency of decentralization mode of foreign investment management, including the decentralization of investment certificates, management of foreign investment activities and management decentralization of a number of areas (environment, land, construction and minerals, technology, commerce, education and training, health) in the direction of decentralization, but must ensure the strict management, efficiency, associated with the implementation of the mechanism of inspection and supervision.

4. Improve efficiency of foreign investment capital flow management (capital transfer into Vietnam, loans, repayment of foreign loans, loans from domestic credit institutions of foreign-invested enterprises).

5. Research, develop, and perfect mechanisms and policies to limit and prevent the prices making of foreign-invested enterprises.

6. Strengthen state management on foreign investment activities, particularly the inspection, examination and supervision in accordance with the law regulations on investment and specialized legislation for foreign investment projects of large scale using of  many lands, the projects mining natural resources, minerals, trading real estate, using much energy, potentially causing environmental pollution ...; review and handle in accordance with legal provisions for the projects delayed to implement or not implemented; inspect and supervise activities of the agency granting investment certificates in the issuance, amendment and revocation of investment certificates and perform state management functions for foreign investment activities in the area in accordance with the law regulations.

7. Improve the quality of verification, grant, and amendment of investment certificate following the principles:

- Observe the master plan on the development of social - economic areas; plan the economic - social overall development of provinces and cities directly under the Central Government, plan development of branches, sectors, and major products.

- Observe the process and procedures for issuing, amending investment certificate (license granting conditions and consulting verification opinions of the related ministries and branches).

- To attach special importance to consider and evaluate the economic - social benefits of the projects, especially issues related to technology, ecological environment, human resource development, impact on communities, linkages with domestic enterprises, markets, partners ...

- Strengthen the coordination between the agencies granting investment certificates and the Ministry of Planning and Investment and the ministries managing branches in the process of project verification.

8. Promulgate criteria and technical standards for use as the basis for the grant of investment certificates and monitoring, inspection and supervision (minimum investment rates for projects using many lands; standards on science, technology, environment; standards and conditions for exploitation of mineral resources).

III. IMPLEMENTATION ORGANIZATION

1. The ministries, ministerial-level agencies, People's Committees of provinces and centrally-run cities (hereinafter referred to as the local People's Committees), within the functions and tasks assigned to grasp thoroughly content of this Directive to the subordinate units and organize to carry out the work as assigned:

a) Ministry of Planning and Investment:

- Presides over and coordinates with concerned ministries and branches, local People's Committees to build scheme orienting improvement of efficiency to attract, use and manage foreign investment in period 2011 - 2020, including propose specifically orientation of investment incentive policy by sector and investment areas, completed in the second quarter in 2012.

- Presides over and coordinates with concerned ministries and branches, local People's Committees to build scheme to improve quality and efficiency of state management for the planning, completed in the second quarter in 2012.

- Presides over and coordinates with the Ministry of Finance, Ministry of Industry and Trade and local People's Committees to build scheme to prevent and curb the price making by foreign-invested enterprises, completed in the fourth quarter in 2011.

- Presides over and coordinates with concerned ministries and branches to review, synthesize, and publish the specific conditions for investment project with conditions, completed in the third quarter in 2012.

- Presides over and coordinates with concerned ministries and branches, local People's Committees to issue the mechanism of coordination between ministries, branches, and localities in managing foreign investment activities, completed in the second quarter in 2012.

- Presides over and coordinates with concerned ministries and branches to study the scheme to build system of synchronous, modern infrastructure, completed in the fourth quarter in 2011.

b) Ministry of Industry and Trade:

- Presides over and coordinates with the Ministry of Planning and Investment and local People's Committees in formulating a scheme improving investment quality and efficiency of state management and foreign investment orientation in the branches of support industry, power, and trade in period 2011 - 2020, completed in May 2012.

- Presides over and coordinates with concerned ministries and branches to develop plans to strengthen state management for granting certificate of origin, completed in May 2012.

- Reviews the production plannings and publicizes orientation to attract foreign investment by branches, sectors and localities/regions, territories.

c) Ministry of Finance:

- Presides over and coordinates with the Ministry of Planning and Investment and the Ministry of Industry and Trade to propose measures of incentives, supporting investors in replacing measures required to remove according to the WTO commitments of Vietnam, completed in May 2012.

- Coordinates with the Ministry of Planning and Investment, the local People's Committees in the inspection and supervision of the disbursement and efficiency of business and production of large-scale projects, using many lands, completed in fourth quarter in 2011.

d) Ministry of Construction:

Presides over and coordinates with the Ministry of Natural Resources and Environment, Ministry of Planning and Investment and local People's Committees in formulating a scheme of investment quality and efficiency of state management and foreign investment orientation in the sector of real estate business in period 2011 - 2020, completed in May 2012.

đ) Ministry of Natural Resources and Environment:

- Presides over and coordinates with the Ministry of Planning and Investment, Ministry of Industry and Trade and the local People's Committees to build scheme improving the efficiency of state management in the areas of land, environment, and use of natural resource, minerals of foreign investment projects, completed in May 2012.

- Reviews and adjusts, additionally formulates national technical regulations on the environment, completed in the first quarter in 2012.

e) Ministry of Science and Technology:

Presides over and coordinates with the Ministry of Planning and Investment to build scheme improving the efficiency of technology transfer by foreign-invested projects, completed in May 2012.

g) Ministry of Labour - Invalids and Social Affairs:

- Presides over and coordinates with the Ministry of Education and Training, Ministry of Planning and Investment and local People's Committees to build scheme improving the quality of human resources of the foreign investment sector in period 2011 - 2020, completed in May 2012.

- Presides over and coordinates with concerned agencies to assess the implementation of policies aimed at improving the quality of resources.

- Promptly implements the scheme "Renovation and development of vocational training toward 2020."

- Continues to direct the implementation of Decision No.1129/QD-TTg August 18, 2008 of the Prime Minister promulgating the plan of implementing Directive No.22-CT/TW June 05, 2008 of the Secretariat on strengthening the leadership and direction for the development of progressive and stable, harmonious labor relations in the enterprises.

- Coordinates with ministries, branches to focus on the implementation of Resolution No.31/2009/QD-TTg February 24, 2009 by the Prime Minister on approving the project of propaganda, dissemination and education of labor laws for workers and employers in the types of enterprise and submit to the Prime Minister for issuing program of propaganda, dissemination of law in period 2013 - 2015.

h) Ministry of Education and Training:

Presides over and coordinates with the Ministry of Labor - Invalids and Social Affairs, Ministry of Planning and Investment and local People's Committees to build the scheme improving the efficiency of FDI in the field of education - training in period 2011 - 2020, completed in May 2012.

i) Ministry of Health:

Presides over and coordinates with the Ministry of Planning and Investment and local People's Committees to build the scheme improving quality and efficiency of state management and FDI orientation in the health sector in period 2011 - 2020, completed in May 2012.

k) Ministry of Transport:

Presides over and coordinates with concerned ministries, branches, and the local People's Committees in formulating a scheme to attract foreign investment in traffic infrastructure development in period 2011 - 2020, completed in May 2012.

l) Ministry of Agriculture and Rural Development:

Presides over and coordinates with concerned ministries, branches, and the local People's Committees in formulating a scheme to attract foreign investment in the sectors of agro - forestry - fishery in period 2011 - 2020, completed in May 2012.

m) State Bank of Vietnam:

Presides over and coordinates with the Ministry of Finance, Ministry of Planning and Investment and local People's Committees to build scheme improving the management efficiency of foreign investment capital, completed in May 2012.

n) People's Committees of provinces and cities directly under the Central Government:

- Perfects and promulgates mechanisms of coordination among function agencies in the verification, issuance, amendment and revocation of investment certificates and state management for foreign investment activities in the localities, completed in the first quarter in 2012.

- Presides over and reviews planning and publicizes FDI orientation by locality/region, territory in period 2011 - 2020, completed in 2012.

- Inspects and monitors closely agencies granting investment certificates in compliance with processes and procedures of granting investment certificates, the implementation of the obligations and responsibilities of State management agencies in the localities during the project implementation (land assignment, lease, land clearance, and implementation of construction activities).

- Directs the function agencies to consider carefully the process of appraisal and granting of investment certificates; strengthen the inspection of and supervision over the implementation of the projects granted the investment certificates, ensuring the projects implemented in accordance with schedule, the commitment and the law; avoid overlapping treatment, lack of consistency among function agencies in the area.

- Proactively detects and handles problems that may cause complaints, disputes, and timely coordinates with the Ministry of Planning and Investment, Ministry of Justice and other concerned ministries, branches, agencies for early settlement and not letting the problems happen complexly.

- In case of disputes and lawsuits with investors, local People's Committee is the contact point in charge of the settlement (including cases that the investors sue to international arbitration).

- Presides over and coordinates with the Ministries of: Natural Resources and Environment, Planning and Investment, Finance, Agriculture and Rural Development to issue regulations on the minimum investment rates/ha for investment projects requiring to use large land area, especially agricultural land for rice cultivation.

o) The concerned ministries and branches, within their functions and duties consider the issuance of criteria, technical standards for use as the basis for the grant of investment certificates and inspection and monitoring of the compliance with this provision of the enterprises/FDI projects (standard on science, technology, environment; standards and conditions for exploitation of mineral resources ...).

2. The ministries, branches and People's Committees of provinces and cities directly under central authority shall report the results of performance to the Prime Minister as scheduled, and to the Ministry of Planning and Investment for synthesis and propose policy directions to improve the efficiency of attracting, managing and using FDI capital in period 2011 - 2020 submitting to the Prime Minister.

3. The Ministry of Planning and Investment shall monitor and synthesize the performance situation and timely reports to the Prime Minister issues arising in the implementation of this Directive.