PM clears up permit process for foreign contractors
HA NOI — In order to smooth the process of issuing permits for foreign contractors doing business in Viet Nam, the Prime Minister has issued a decision to streamline the procedures.
The decision is aimed at helping foreign contractors easily operate in Viet Nam by improving co-ordination between ministries of Public Security, Finance and banks, said Hoang Tho Vinh, deputy director of the Construction Ministry’s Construction Department.
Under the decision each ministry will be given a more clearly defined role in the approval process:
The Construction Ministry will be in charge of consulting, granting licences and managing project quality.
The Trade Ministry will consider import and export licences for construction equipment and materials to be used during construction.
The Ministry of Public Security will examine the operation of foreign contractors and supply immigration visas.
The Finance Ministry will be responsible for tax and accounting policies.
Banks will open accounts for the contractors to help transfer money to foreign countries.
Past regulations did not require as much co-ordination among relevant ministries as this decision, said Vinh.
The decision also makes other stipulations:
Foreign contractors are now allowed to work in Viet Nam only after being granted a contract certificate from an authorised Vietnamese agency.
Foreign contractors must obey Vietnamese law and related international conventions that Viet Nam has joined.
In cases where domestic contractors can complete the construction, there will be no need to organise international bidding. As for projects requiring foreign resources, the foreign contractors will be required to prove their ability.
In order to receive licences, foreign contractors must meet certain conditions including joint-bidding with a Vietnamese contractor or committing to hire Vietnamese subcontractors, excepting the Prime Minister’s approval.
State authorities will issue licences to contractors within 20 days of receiving the proper documentation and after the contractors pay the necessary charges set by the Finance Ministry.
The decision also outlines procedures for penalising violators such as revoking licences, temporarily or permanently suspending construction operations in Viet Nam, and providing compensation for losses. — VNS
