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					DECREE No. 27/2003/ND-CP OF MARCH 19, 2003 AMENDING AND SUPPLEMENTING A
 NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE No. 24/2000/ND-CP OF
  JULY 31, 2000 DETAILING THE IMPLEMENTATION OF THE LAW ON FOREIGN
                          INVESTMENT IN VIETNAM
                                       THE GOVERNMENT
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the November 12, 1996 Law on Foreign Investment in Vietnam and the June 9, 2000 Law
Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam;
At the proposal of the Minister of Planning and Investment,
                                             DECREES:
Article 1.- To amend and supplement a number of articles and Appendix 1 of the Government’s
Decree No. 24/2000/ND-CP of July 31, 2000 detailing the implementation of the Law on Foreign
Investment in Vietnam (hereinafter referred to as Decree No. 24/2000/ND-CP) as follows:
1. Article 1 is amended and supplemented as follows:
“Article 1.- Scope of application:
This Decree details the implementation of the November 12, 1996 Law on Foreign Investment in
Vietnam, the June 9, 2000 Law Amending and Supplementing a Number of Articles of the Law on
Foreign Investment in Vietnam (hereinafter referred collectively to as the Law on Foreign Investment
in Vietnam).
This Decree governs foreign direct investment activities in Vietnam, including activities of introducing
capital in cash or any other assets by foreign investors into Vietnam for directly conducting production
and/or business activities in order to earn profits in the forms prescribed by the Law on Foreign
Investment in Vietnam.
All foreign direct investment activities in Vietnam must comply with the provisions of the Law on
Foreign Investment in Vietnam, this Decree and other legal documents.”
2. Clause 2 of Article 2 is amended and supplemented as follows:
“2. Domestic medical examination and treatment, educational, training and scientific research
establishments which satisfy the conditions prescribed by the Government.”
3. Article 6 is amended and supplemented as follows:
“Article 6.- The form of business cooperation contract
1. A business cooperation contract is a document concluded between two or more parties for
investment and business in Vietnam, which defines the responsibility of and the division of business
results to, each party, without setting up a new legal person.
Foreign-invested enterprises are entitled to cooperate with foreign organizations and/or individuals to
perform business cooperation contracts.
2. Business cooperation contracts in the field of prospection, exploration and exploitation of oil and
gas as well as a number of other natural resources in the form of production-sharing contract shall
comply with relevant law provisions and the Foreign Investment Law.”
4. Article 11 is amended and supplemented as follows:
       - To add the following second paragraph to Clause 1:
“Joint-venture enterprises include enterprises with 100% foreign capital already established in
Vietnam which enter into joint ventures with the subjects defined at Points b, c and e, Clause 2 of this
Article.”
       - To amend Section e and add Section f, Clause 2 as follows:
                                                   1
“e/ Joint venture enterprises;
f/ Enterprises with 100% foreign capital.”
5. Article 21 is amended and supplemented as follows:
“Article 21.- Form of enterprises with 100% foreign investment capital
1. Enterprises with 100% foreign investment capital are those under the ownership of foreign investors
and established in Vietnam by foreign investors who manage the enterprises themselves and take
responsibility for the business results.
       Enterprises with 100% foreign investment capital already established in Vietnam are entitled to
cooperate with one another and/or with foreign investors to establish new enterprises with 100%
foreign investment capital in Vietnam.
2. Enterprises with 100% foreign investment capital are established in form of limited liability
companies, which have the legal person status under the Vietnamese laws, are set up and operate from
the date they are granted the investment licenses.”
6. Article 31 is amended and supplemented as follows:
“Article 31.- Reorganization of enterprises
1. The division, separation, merger, consolidation of enterprises, the change of investment forms
(hereinafter referred collectively to as reorganization of enterprises) must be approved by the
investment-licensing agencies according to the following contents and procedures:
       a/ “Enterprise division” means the division of the whole capital in cash and assets of a foreign-
invested enterprise (called divided enterprise) to establish two or a number of new enterprises (called
dividing enterprises).
        b/ “Enterprise separation” means the transfer of part of capital in cash and assets of a foreign-
invested enterprise (called separated enterprise) to establish two or a number of new enterprises (called
separating enterprises).
        c/ “Enterprise merger” means the transfer of the whole capital in cash and assets of one or a
number of foreign-invested enterprises (called merged enterprises) to another foreign-invested
enterprise (call merging enterprise) for merger into the latter.
       d/ “Enterprise consolidation” means the consolidation of the whole capital in cash and assets of
two or a number of foreign-invested enterprises (called consolidated enterprises) to form a new
foreign-invested enterprise (called consolidating enterprise).
       e/ “Change of investment forms” means the transformation of a project already granted
investment license in one form prescribed by the Foreign Investment Law into another investment
form prescribed by the Foreign Investment Law.”
        The reorganization of enterprises must be consented by the Managing Boards (for joint-venture
enterprises), or foreign investors (for enterprises with 100% foreign capital), or business cooperation
parties (for business cooperation contracts).
        Reorganized enterprises shall have to compile dossiers according to the provisions in Clauses 2
and 3 of this Article and submit them to the investment licensing agencies for readjustment of their
investment licenses and/or establishment of new foreign-invested enterprises according to the
provisions of the Foreign Investment Law. In cases they are converted into Vietnamese enterprises,
they shall have to make registration according to one of enterprise types specified in Clause 1, Article
2 of this Decree.
2. A dossier applying for the reorganization of an enterprise includes:
       a/ An application for reorganization of the enterprise;
       b/ The dossier on capital transfer (for cases of capital transfer);

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       c/ The resolution of the Managing Board of the joint-venture enterprise or the decision of the
investor (for enterprises with 100% foreign capital);
       d/ The new enterprise’s charter (except the case of conversion into a Vietnamese enterprise) or
the amended and supplemented enterprise charter;
       e/ The joint-venture contract of the new enterprise or the amended and supplemented joint-
venture contract;
       f/ The contract on merger or consolidation between enterprises;
       g/ The report on the enterprise’s operation and financial status before the reorganization;
       h/ The exposition on the reorganization of the enterprise;
       i/ The documents related to the land use right;
       j/ Other documents when requested by the investment licensing agencies.
3. The exposition on the enterprise reorganization shall contain the following principal contents:
        a/ Name and address of the representative at law; names and addresses of the enterprises before
and after the enterprise reorganization;
       b/ Production and business objectives;
       c/ The labor employment plan;
        d/ The plan on settlement of the rights and obligations of the enterprises before and after the
enterprise reorganization;
       e/ The time limit for the enterprise reorganization.
4. Decisions on enterprise reorganization shall be notified to the creditors and laborers within 15 days
after they are approved.
5. Within 30 working days after the receipt of complete and valid dossiers, the investment licensing
agency shall issue a decision to approve the enterprise reorganization in form of granting the
investment license. In case of disapproval, the investment licensing agency must clearly justify in
writing the reasons therefor. In cases where reorganized enterprises satisfy the conditions prescribed in
Article 105 of this Decree, the procedures for registering for the investment licensing shall be carried
out.”
7. Article 32 is amended and supplemented as follows:
“Article 32.- Inheritance of rights and obligations after the enterprise reorganization
1. After being reorganized and granted the investment licenses, the new enterprises shall inherit all the
rights and obligations of the former enterprises, unless otherwise agreed upon by the involved parties
and approved by the investment licensing agencies. These rights and obligations shall be exercised and
performed according to the plans on settlement of enterprise rights and obligations stated in the
enterprise reorganization expositions defined in Clause 3, Article 31 of this Decree.
2. Depending on fields, geographical areas, scales and conditions of investment by the reorganized
enterprises, the preferences for enterprises after their reorganization shall be automatically applied
according to the corresponding provisions of current law.
3. The reorganized enterprises shall publicly announce the establishment and operation termination
according to the provisions in Articles 27 and 28 of this Decree.”
8. Article 46 is amended and supplemented as follows:
       - Point b, Clause 1 is amended and supplemented as follows:
“b/ The production projects other than the project types specified in Clauses 2 and 3 of this Article.”
       - Point d, Clause 2 is amended and supplemented as follows:

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“d/ Production enterprises in industrial parks.”
       - Point d, Clause 3 is amended and supplemented as follows:
“d/ Enterprises developing infrastructure in industrial parks, export processing zones and hi-tech
parks; export-processing enterprises in the production field.”
       - To add the following paragraph to the end of Clause 3:
“Preferences provided for at Point a, Clause 3 of this Article shall not apply to production projects in
industrial parks with the product export percentage of under 50%, except for cases where the said
projects satisfy two of the conditions prescribed at Points a, b and e, Clause 2 of this Article.”
       - To add following Clause 7:
“7. In cases where foreign-invested enterprises or business cooperation contracts invest in many fields
and/or many geographical areas with different preferential enterprise income tax rates and make
separate accounting, they shall be entitled to preferences according to each field or geographical area.
In cases where they cannot make separate accounting, the preferences shall apply according to the
investment capital ratio.”
9. Clause 2 of Article 48 is amended and supplemented as follows:
“2. The projects mentioned in Clause 2, Article 46 of this Decree shall enjoy the enterprise income tax
exemption as follows:
a/ Production enterprises in industrial parks having a product export percentage of under 50% and
failing to satisfy the conditions prescribed at Points a, b and e, Clause 2 of Article 46, shall enjoy the
enterprise income tax exemption for 2 years after their business activities yield profits.
b/ The projects not mentioned at Point a, Clause 2 of this Article shall enjoy enterprise income tax
exemption for 2 years after the profits are generated from their business activities and 50% reduction
for the subsequent 3 years.”
10. Article 57 is amended and supplemented as follows:
       - Clauses 5 and 6 are amended and supplemented as follows:
“5. Foreign-invested enterprises and business cooperation parties investing in projects on the list of
fields in which investment is particularly encouraged or in geographical areas with particularly
difficult socio-economic conditions specified in Appendix enclosed with this Decree shall be exempt
from import tax on production raw materials, supplies and assembly parts for 5 years after the
commencement of production.
6. Foreign-invested enterprises and business cooperation parties investing in the production of
mechanical, electrical and/or electronic assembly parts and spare parts shall be exempt from import tax
on production raw materials, supplies and assembly parts for 5 years after the commencement of
production.”
       - To add the following Clause 10 to the end of Article 57:
“10. The Ministry of Trade shall coordinate with the concerned ministries and branches in
promulgating documents guiding the detailed classification of raw materials, supplies and assembly
parts, which are exempt from import tax for 5 years after the commencement of production as
specified in Clauses 5 and 6 of this Article.”
11. Article 59 is amended and supplemented as follows:
“Article 59.- Import tax calculation prices
Prices for calculation of import tax on import goods shall comply with the provisions in Article 1 of
the Government’s Decree No. 60/2002/ND-CP of June 6, 2002 prescribing the determination of tax
calculation prices of import tax according to the principles of the Agreement on Implementation of
Article 7 of the General Agreement on Tariff and Trade.”

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12. Clauses 1 and 3 of Article 67 are amended and supplemented as follows:
“1. Foreign-invested enterprises and foreign business cooperation parties are entitled to purchase
foreign currencies at the banks licensed to deal in foreign currencies so as to meet their current
transactions and other permitted transactions according to the legislation on foreign exchange
management.”
“3. The Vietnamese Government secures the support in balancing foreign currencies for foreign-
invested enterprises and business cooperation parties investing in infrastructure construction and a
number of other important projects in cases where the banks licensed to deal in foreign currencies fail
to fully meet the foreign currency demands mentioned in Clause 1 of this Article.”
13. Paragraph 1, Clause 2 of Article 81 is amended and supplemented as follows:
“2. The value of the transferred technologies used for capital contribution shall be agreed upon by the
parties.”
14. Clause 1 of Article 83 is amended and supplemented as follows:
“1. Foreign-invested enterprises and business cooperation parties are entitled to directly recruit
Vietnamese and foreign laborers according to the provisions of the labor legislation.”
15. Article 84 is amended and supplemented as follows:
“Article 84.- Wages paid to Vietnamese laborers
The minimum wage level and wages of Vietnamese laborers working in foreign-invested enterprises
and business cooperation parties shall comply with the regulations of the Ministry of Labor, War
Invalids and Social Affairs and be paid in Vietnam dong.”
16. Article 85 is amended and supplemented as follows:
“Article 85.- Land lease and payment of land rent and land use tax
1. Foreign-invested enterprises and business cooperation parties shall be leased land by the
Vietnamese State for execution of investment projects and shall have to pay land rents according to the
regulations of the Finance Ministry.
2. In cases where Vietnamese parties contribute capital with the value of the right to use the land,
which has been transferred by other parties or assigned by the State with the collection of land use
levy, and the already paid money amounts for the transfer or land use levy amounts do not originate
from the State budget, such land shall not have to be converted into leased land. The Vietnam parties
shall have to pay land use tax according to the current law provisions.”
17. Article 88 is amended and supplemented as follows:
“Article 88.- Competence to decide on land lease
The provincial-level People’s Committees shall decide the land lease to foreign-invested projects
according to the provisions of the land legislation.”
18. Article 89 is amended and supplemented as follows:
“Article 89.- Compensation, ground clearance and land lease dossiers
1. In case of land lease by the Vietnamese State, the People’s Committees of the provinces where exist
investment projects shall have to organize the compensation, ground clearance and complete the land
lease procedures. The expenses for compensation and ground clearance shall be accounted into the
projects’ investment capital. The provincial-level People’s Committees shall negotiate with the
enterprises which are leased land on the financial sources for effecting the compensation and ground
clearance.
2. Where the Vietnamese party contributes capital with the land use right value, it shall have to make
the compensation, clear the ground and complete the procedures for the land use right. The expenses


                                                   5
for the compensation and ground clearance shall be accounted into the contributed capital of the
Vietnamese party or agreed upon by the involved parties.
3. The compensation unit price shall comply with the common regulations of the State.
4. For investment projects licensed by the provincial-level People’s Committees, the land lease
consideration shall be carried out simultaneously with the investment licensing consideration.
5. For investment projects licensed by the Ministry of Planning and Investment, the land-related
documents enclosed with dossiers of application for investment licenses shall include the following
contents:
       a/ The location and area of the land plot to be used;
        b/ The land rent rate proposed by the provincial-level People’s Committees on the basis of the
land rent bracket set by the Finance Ministry;
       c/ The compensation and ground clearance plan.
6. Land lease and sub-lease procedures and dossiers shall comply with the guidance of the Ministry of
Natural Resources and Environment.”
19. Article 92 is amended and supplemented as follows:
“Article 92.- Mortgage of land use right value and assets affixed to land
1. Foreign-invested enterprises may mortgage the land use right value and assets affixed to land during
the land lease or sublease terms at the Vietnamese credit institutions licensed to operate in Vietnam
according to the provisions of law in the following cases:
        a/ The foreign-invested enterprises have already paid the land rent for many years, if the paid
land lease term remains for at least 5 years;
       b/ The joint-venture enterprises to which the Vietnamese parties contribute capital with the
land use right value, if the duration of capital contribution with the land use right remains for at least 5
years.
2. The mortgaged land use right value includes expenses for compensation and ground clearance and
paid land rent minus the land rent already paid for duration in which the land was used.
3. The dossiers and procedures for mortgaging land use right value shall comply with the guidance of
the Ministry of Natural Resources and Environment and the State Bank of Vietnam.”
20. Article 95 is amended and supplemented as follows:
“Article 95.- Appraisal of planning and architectural schemes
For investment projects in the field of construction of bridges, roads, air fields and ports; industrial
projects of group A; infrastructures of industrial parks, export processing zones and hi-tech parks;
urban centers, tourist resorts and entertainment and recreation centers; works for art performance;
advertisement works; residential houses, hotels, offices and apartments; schools; hospitals; and sport
facilities, their investment license application dossiers must be enclosed with the projects’ general
ground planning drawings.
The appraisal of the projects’ planning and architectural scheme shall be implemented in the process
of appraising the investment projects.”
21. Clause 1 of Article 98 is amended and supplemented as follows:
“1. The investors are held responsible before the Vietnamese law for the quality and safety of
construction works; fire and explosion prevention and fighting; environmental protection; labor safety
and sanitation during the period of project construction as well as throughout their use duration.”
22. Article 105 is amended and supplemented as follows:
       - Point b, Clause 1 is amended and supplemented as follows:

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“b/ They are in line with the approved branch development or product plannings. In cases where such
plannings are not yet approved, consents of the branch-managing ministries are required.”
       - Clause 2 is amended and supplemented as follows:
“2. Apart from the conditions prescribed in Clause 1 of this Article, the projects subject to investment
licensing registration shall have to satisfy one of the following conditions:
a/ Having the export product rate of 80% or more;
b/ Investing in industrial parks outside group A but on the list of fields in which investment is
particularly encouraged or the list of fields in which investment in encouraged;
c/ Belonging to the production fields with the investment capital of up to USD 5 million.”
23. Article 106 is amended and supplemented as follows:
“Article 106.- Registration for granting of investment licenses
1. A dossier of registration for granting of investment license includes:
a/ An application of registration for investment licensing;
b/ The joint-venture contract and charter of the joint-venture enterprise or the charter of the enterprise
with 100% foreign capital or the business cooperation contract;
c/ The documents certifying the legal status and financial situation of the parties.
 2. The dossier of registration for investment licensing shall be made in 5 sets, including at least 1
original, which shall all be submitted to the investment licensing agency.
3. The investment-licensing agency shall examine dossiers of application for investment-licensing
registration and grant investment licenses without having to consult opinions of any other agencies if
all the conditions and procedures prescribed in Articles 105 and 106 of this Decree are satisfied.
4. Within 15 working days after the receipt of valid dossiers, the investment-licensing agency shall
notify its decisions on approval in form of investment licenses.
5. The Ministry of Planning and Investment shall promulgate documents guiding the compilation of
project dossiers of registration for investment licensing.”
24. Clause 2 of Article 112 is amended and supplemented as follows:
“2. The ministries, branches and provincial-level People’s Committees shall consult with the Ministry
of Planning and Investment before promulgating according to their respective competence legal
documents related to foreign direct investment activities; in case of divergence of opinions, it must be
reported to the Prime Minister for consideration and decision. The provincial-level People’s
Committees must not promulgate regulations on tax and financial preferences as well as other
preferences which are beyond their competence.”
25. Article 113 is amended and supplemented as follows:
“Article 113.- Coordination of State management activities
1. The ministries, branches, provincial-level People’s Committees and investment-licensing agencies
in the banking, insurance, securities and legal consultancy fields shall exercise the State management
and observe the coordination regime in the work of managing foreign investment activities.
2. The provincial-level People’s Committees shall have to promptly handle matters falling under their
respective competence and guide enterprises to operate in strict compliance with provisions of their
investment licenses and law. In the course of handling, if the ministries, branches and provincial-level
People’s Committees have divergent opinions on the same matter, they must report such to the Prime
Minister for consideration and decision.
3. The Ministry of Planning and Investment shall sum up and provide information on the foreign
investment situation to the ministries, branches and provincial-level People’s Committees, periodically

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work according to the briefing regime with the Ministry of Finance, the Ministry of Trade, the
Ministry of Natural Resources and Environment, the State Bank and the concerned provincial-level
People’s Committees in order to handle in time arising matters as well as proposals of foreign-invested
enterprises, business cooperation parties and put forward policies and measures to improve the
investment environment.”
26. Point a, Clause 1 of Article 114 is amended and supplemented as follows:
“1. The Prime Minister shall decide on group A projects, including:
a/ Projects, regardless of their investment capital amounts, in various fields:
- Construction of infrastructures in industrial parks, export-processing zones, hi-tech parks, urban
centers; BOT, BTO and BT projects;
- Seaport and airport construction and business; sea shipping and air transport business;
- Petroleum activities;
- Postal and telecommunications services;
- Publication; printing service (except for projects on printing of technical documents, packages, goods
labels, common patterns on textile and garment products, leather shoes), press; radio and television;
advertising services in association with advertisement distribution, cinematographical activities; art
performance; dealing in games with prizes; medical examination and treatment establishments; general
education and training at college, university, postgraduate and equivalent levels; scientific research;
production of curative medicines for human use;
- Insurance, finance, audit and expertise;
- Prospection and exploitation of precious and rare natural resources;
- Construction of residential houses for sale;
- Defense and security projects.”
27. Clause 2 of Article 115 is added with following sections d and e:
“d/ Projects in the field of culture, education and training;
e/ Construction and commercial operation of department stores.”
28. Clause 1 of Article 116 is amended and supplemented as follows:
“1. To base themselves on the approved socio-economic development plans to coordinate with the
concerned ministries and branches in working out and publicly announcing the planning and the list of
projects calling for foreign investment capital in their respective localities after reaching agreement
with the Ministry of Planning and Investment; to organize the investment mobilization and
promotion.”
29. Article 117 is amended and supplemented as follows:
       - Point a, Clause 1 is amended and supplemented as follows:
“1. The Ministry of Planning and Investment shall act as the main body in settling matters arising in
the process of promoting, forming, deploying and executing investment projects, including:
a/ Guiding and coordinating with the ministries, branches and provincial-level People’s Committees in
drawing up the planning, plans and lists of national projects calling for foreign investment; working
out programs and plans on investment promotion; proposing the appointment of their officials and
setting up of representative offices of the investment promotion organizations in regions and countries
with potentials of investment in Vietnam to the Prime Minister; conducting investment promotion
activities.”
       - To add following Clause 3:


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“3. The Ministry of Planning and Investment shall join and coordinate with the Ministry of Justice in
regularly revising legal documents concerning foreign investment activities, proposing to the
competent agencies amendments and/or supplements to or annulment of legal documents contrary to
the provisions of the foreign investment legislation and other legal documents of higher legal effect.”
30. Clause 3 of Article 121 is amended and supplemented as follows:
“3. The current regulations which are more preferential than the previous corresponding regulations
shall automatically be applied. The investment-licensing agencies shall, at the requests of investors,
readjust investment licenses to entitle the investors to the preferences as from the effective date of the
current legal documents providing for such preferences.”
31. Clause 3 of Article 123 is amended and supplemented as follows:
“3. The criteria, conditions and procedures for commendation shall comply with the Government’s
regulations on emulation and commendation.”
32. Points a and b, Clause 1 of Article 3; Point a, Clause 2, Point b, Clause 3 and Point a, Clause
4 of Article 46; Clause 4 of Article 48; Clause 8 of Article 57; Clause 4 of Article 79; Clause 3 of
Article 81; Clauses 2 and 4 of Article 82; Clause 2 of Article 87; Article 90; Clause 3 of Article
113; and Point c, Clause 1 of Article 117 are amended and supplemented as follows:
        - At Points a and b, Clause 1 of Article 3; Point a, Clause 2, Point b, Clause 3 and Point a,
Clause 4 of Article 46; Clause 4 of Article 48; and Clause 8 of Article 57, the phrase “the list of
projects in which investment is particularly encouraged” is replaced by the phrase “the list of fields in
which investment is particularly encouraged,” and the phrase “the list of projects in which investment
is encouraged” is replaced by the phrase “the list of fields in which investment is encouraged”;
      - At the ending paragraph in Clause 4 of Article 79, the phrase “the General Department of
Customs” is replaced by the phrase “the Ministry of Finance”;
       - At the ending paragraph in Clause 3 of Article 81; Clauses 2 and 4 of Article 82; and Point c,
Clause 1 of Article 117, the phrase “the Ministry of Science, Technology and Environment” is
replaced by the phrase “the Ministry of Science and Technology”;
      - In Clause 2 of Article 87 and Clause 3 of Article 113, the phrase “the General Land
Administration” is replaced by the phrase “the Ministry of Natural Resources and Environment”;
       - In Article 90, the term “time limits” is replaced by the term “time points.”
33. Appendix 1 of Decree No. 24/2000/ND-CP is amended and supplemented by the Appendix
enclosed with this Decree.
Article 2.- Implementation provisions
1. This Decree takes effect 15 days after it is published on the Official Gazette. The previous
stipulations contrary to this Decree are all hereby annulled.
2. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the
Government and the presidents of the People’s Committees of the provinces and centrally-run cities
shall have to guide the implementation of this Decree.
                                            APPENDIX I
I. LIST OF FIELDS IN WHICH INVESTMENT IS PARTICULARLY ENCOURAGED
- Production or processing with 80% or more of the products for export;
- Processing of agricultural products, forest products (excluding timber) or aquatic products from
domestic raw materials, with 50% of the products for export;
- Production of new varieties and breeds with high quality and economic efficiency;
- Agricultural farming, forestation, aquaculture;


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- Manufacture of high-class steel, alloys, non-ferrous metals, special metals, steel casts, porous iron;
metallurgy of pig iron;
- Manufacture of machines, equipment, detail assemblies in fields of oil and gas exploitation, mining,
energy; manufacture of large-size lifting and lowering equipment; manufacture of machine tools for
working metals and metallurgical equipment;
- Manufacture of medical instruments for use in analytical technology and extracting technology in
medicine;
- Manufacture of equipment for testing toxins in foodstuffs;
- Production of new materials, rare and precious materials; application of new bio-technologies; new
technologies for manufacture of information and telecommunication equipment;
- Production of information technology products;
- Hi-tech industries;
- Investment in research and development (R & D) which accounts for 25% of turnover;
- Manufacture of waste-treating equipment;
- Pollution treatment and environmental protection, waste treatment;
- Production of antibiotics raw materials;
- Investment under BOT, BTO or BT contracts.
II. LIST OF FIELDS IN WHICH INVESTMENT IS ENCOURAGED
- Exploration, exploitation and intensive processing of minerals;
- Production or processing with 50% or more of products for export;
- Production or processing with 30% or more of the products for export and with the use of large
percentages of domestic raw materials and materials (valued at from 30% or more of the production
cost);
- Fields with regular employment of 500 laborers or more;
- Processing of farm produce, forest products (excluding timber from domestic natural forests), aquatic
products from domestic raw material sources;
- Preservation of foods; post-harvest preservation of farm produce;
- Development of petro-chemical industry; construction and operation of oil and gas pipelines, depots,
ports;
- Manufacture of precision mechanical tools, safety check and inspection equipment; manufacture of
molds for metal and non-metal products;
- Manufacture of medium- and high-voltage electric equipment;
- Manufacture of diesel engines through advanced technologies and techniques; manufacture of
dynamic and hydraulic machines and spare parts, compressors;
- Manufacture of automobile and motorbike spare parts; manufacture and assembly of construction
equipment, machines and vehicles; manufacture of technical equipment for transport service;
- Shipbuilding; manufacture of ship propellers, equipment and spare parts for freighters and fishing
ships;
- Manufacture of information and telecommuni-cations equipment;
- Manufacture of electronic components and equipment;
- Manufacture of agricultural and forestry equipment, spare parts and machines, irrigation and
drainage equipment;

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- Manufacture of textile and garment equipment;
- Production of assorted insecticide raw materials;
- Production of assorted insecticides, plant protection drugs and veterinary drugs with a domestic
added value ratio of 40% or more;
- Production of base chemicals, pure chemicals, dyes and special-use chemicals;
- Production of cleansing raw materials, chemical additives;
- Production of special-type cement, composite materials, sound-proof, electric-insulated and heat-
resistant materials, wood substitute composite materials, refractory materials, construction plastic,
glass fibers;
- Production of light construction materials;
- Production of paper pulp;
- Production of silk, assorted yarns and special fabric for industrial use;
- Production of high-class raw materials for production of export footwear and garments;
- Production of high-class packages for export goods;
- Production of raw materials of medicines and curative drugs for human use up to the international
GMP standards;
- Improvement and development of energy sources;
- Mass transit;
- Construction and renovation of bridges, land roads, railways, airports, harbors, railway stations and
car terminals;
- Construction of water plants, water supply and drainage systems;
- Construction- commercial operation of infrastructures of industrial parks, export processing zones
and hi-tech parks.
- Technical services for agriculture, forestry and fishery.
Ordinal   Province/City    Section A: Geographical areas with           Section B: Geographical areas with
number                     particularly difficult socio-economic        difficult socio-economic conditions
                                        conditions
   1      Ha Giang        All districts and provincial capital
   2      Cao Bang        All districts and provincial capital
   3      Lai Chau        All districts and provincial capital
   4      Lao Cai         All districts and provincial capital
   5      Son La          All districts and provincial capital
   6      Bac Kan         All districts and provincial capital
   7      Tuyen Quang     All districts and provincial capital
   8      Lang Son        All districts and provincial capital
   9      Yen Bai         All districts and provincial capital
  10      Thai Nguyen     All districts, provincial capital and Thai
                          Nguyen city
  11      Bac Giang       All districts and provincial capital
  12      Vinh Phuc       Districts: Lap Thach, Tam Duong and          Districts not in Section A
                          Binh Xuyen
  13      Phu Tho         All districts, provincial capital and Viet


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                    Tri city
14   Hoa Binh       All districts and provincial capital
15   Bac Ninh                                                  Districts: Que Vo, Yen Phong, Gia
                                                               Binh, Luong Tai and Thuan Thanh
16   Ha Noi                                                    Soc Son district
17   Ha Tay                                                    Districts: Ba Vi, My Duc, Phuc Tho,
                                                               Quoc Oai, Thach That and Ung Hoa
18   Quang Ninh     Districts: Ba Che, Binh Lieu, Dam Ha,      Yen Hung district and provincial towns
                    Hai Ha, Hoanh Bo, Tien Yen, Dong           of Cam Pha and Uong Bi
                    Trieu and Mong Cai provincial capital
19   Hai Phong                                                 Districts: Vinh Bao and Tien Lang
20   Hai Duong      Chi Linh district                          All districts not included in Section A
21   Hung Yen                                                  All districts and provincial capital
22   Thai Binh                                                 All districts and provincial capital
23   Ha Nam                                                    All districts and provincial capital
24   Nam Dinh                                                  All districts and Nam Dinh city
25   Ninh Binh      Districts: Nho Quan, Yen Mo and Gia        Tam Diep provincial town and all
                    Vien                                       districts not in Section A
26   Thanh Hoa      Districts: Lang Chanh, Thuong Xuan,        Districts not in Section A
                    Quan Hoa, Ba Thuoc, Ngoc Lac, Nhu
                    Xuan, Cam Thuy, Thach Thanh, Quan
                    Son and Muong Lat
27   Nghe An        Districts: Ky Son, Tuong Duong, Con        Cua Lo provincial town and districts not
                    Cuong, Quy Chau, Que Phong, Quy            in Section A
                    Hop, Nghia Dan, Anh Son, Tan Ky,
                    Thanh Chuong and Do Luong
28   Ha Tinh        All districts                              Ha Tinh provincial capital
29   Quang Binh     All districts                              Dong Hoi provincial capital
30   Quang Tri      Quang Tri provincial capital and all       Dong Ha provincial town
                    districts
31   Thua Thien -   All districts                              Hue City
     Hue
32   Da Nang                                                   Rural district of Hoa Vang and urban
                                                               districts of Thanh Khe, Ngu Hanh Son
                                                               and Lien Chieu
33   Quang Nam      All districts and Hoi An provincial town   Tam Ky provincial capital
34   Quang Ngai     All districts                              Quang Ngai provincial capital
35   Binh Dinh      All districts                              Quy Nhon city
36   Phu Yen        All districts                              Tuy Hoa provincial capital
37   Khanh Hoa      Districts: Khanh Son and Khanh Vinh        Districts not in Section A
38   Binh Thuan     All districts                              Phan Thiet provincial capital
39   Ninh Thuan     All districts                              Phan Rang provincial capital
40   Kon Tum        All districts and provincial capital
41   Gia Lai        All districts and provincial capital
42   Dak Lak        All districts and Buon Ma Thuot city
43   Lam Dong       All districts, provincial towns and Da
                    Lat city

                                                    12
  44      Dong Nai        Districts: Dinh Quan, Tan Phu and
                          Xuan Loc
  45      Binh Phuoc      All districts and provincial capital
  46      Binh Duong                                             Districts: Ben Cat, Phu Giao, Tan Uyen
                                                                 and Dau Tieng
  47      Tay Ninh        All districts                          Tay Ninh provincial capital
  48      Ho Chi Minh                                            Districts: Can Gio and Cu Chi
          City
  49      Ba Ria - Vung                                          Districts: Long Dat and Xuyen Moc
          Tau
  50      Long An         All districts                          Tan An provincial capital
  51      Dong Thap       All districts and provincial capital
  52      Tien Giang      All districts and provincial capital   My Tho city
  53      Ben Tre         All districts and provincial capital
  54      Vinh Long       All districts and provincial capital
  55      Tra Vinh        All districts and provincial capital
  56      An Giang        All districts and Long Xuyen City
  57      Can Tho         All districts and provincial towns     Can Tho city
  58      Soc Trang       All districts and provincial towns
  59      Bac Lieu        All districts and provincial towns
  60      Ca Mau          All districts and provincial towns
  61      Kien Giang      All districts and provincial towns

IV. LIST OF FIELDS WITH CONDITIONAL INVESTMENT
1. Conditions on investment form:
1.1. Investment only in form of business cooperation contracts and the Vietnamese parties are
specialized units licensed to conduct business in the following fields:
       - Establishment of public telecommunications networks, provision of telecommunications
services; commercial provision of domestic and international mail services;
       - Press, radio and television activities.
1.2. Investment only in form of business cooperation contracts or joint-venture enterprises:
       - Exploitation and processing of oil, gas, rare and precious minerals;
      - Air, rail and sea transport; mass transit, construction of harbors and airports (excluding BOT,
BTO and BT projects);
       - Provision of maritime and aviation services;
        - Culture (excluding projects for printing of technical documents, packages, goods labels,
patterns on textile and garment products, leather shoes; drawing of cartoon scenes with computer-aid
drawing techniques; entertainment, recreation and sport centers);
       - Forestation (excluding the indirect forestation through Vietnamese organizations, households
and individuals assigned or leased land under productive or protective forests by the State and
provided supports in capital, seedlings, techniques, fertilizers by investors, that shall collect and
purchase products under contracts);
       - Tour business;
       - Production of industrial explosives;
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       - Consulting services (excluding technical consultancy);
2. Conditions that projects must be linked to the investment in creation of raw material sources:
       - Dairy production and processing;
       - Vegetable oil and cane sugar production;
       - Timber processing (excluding projects using imported timber).
3. Projects for investment in import services or domestic distribution services and projects for offshore
fishing and marine product exploitation shall comply with the Prime Minister’s regulations.
V. LIST OF FIELDS NOT LICENSED FOR INVESTMENT
1. Projects which are detrimental to the national security, defense and public interests.
2. Projects which cause harms to the historical and cultural monuments, Vietnamese fine traditions and
customs.
3. Projects which cause harms to the ecological environment; projects on treatment of hazardous
wastes brought from overseas into Vietnam.
4. Production of toxic chemicals or use of hazardous agents banned under international treaties.




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