Concession/Tactical Activities

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Investment Services in Concession Activities by Planning and Investment Sector

1. Scope of Investment One-Stop Service

1. Provide service on investment requests in concession activities determined in Article 15 of Investment Promotion Law 2009 i.e. Investments in electricity activities, mines, activities relating to rights in land concession, airlines, telecommunications, insurances and financial institutes.
2. Provide service on the application for establishing a representative office of foreign company.
3. Provide service on business visa, multiple-entry visa and stay permit card requests.
4. Provide service on the application for the change in enterprise legislation in concession activities.
5. Provide relevant investment information services, i.e. investment statistical data, investment regulations and others in relations to the office’s rights and roles.
6. Provide service on the draft for stamp making certificate for the concession enterprise and representative office.
7. Provide service on enterprise name reservation, enterprise registration certificate code, tax identity number and submit to responsible sections in the department for concession registration certificate issuance.
8. Provide service on corresponding letters for investors, hand over the concession certificate, hand over the representative office certificate and other documents.
9. Other services.

 2. Definition of State-owned Land Concession in the form of land rental or land concession.

-        Land rental: is an approval for organization, persons or legal entity to have rights in using state-owned land under the conditions and time frame with legitimate binding agreement.

-        Land concession: is an approval for persons or legal entity to have rights in using state-owned land under the conditions and time frame with legitimate binding agreement.

• State-owned land rental and concession consists of 2 forms:

1. Rental and concession in the form of providing services is the government authorizes its counterpart to operate activities on a service of, i.e.electricity, water supply, construction, telecommunication, public park, school, hospital, market, child’s playground, bus station, commodity transportation terminal, health fitness centre and others.
2. Commercial concession form (production)i.e.tree plantation land, agriculture land, hydro-power land, mineral land and other land types in accordance with the government allocation for business operations in line with relevant laws.

          Land concessionaires in relations with the use of natural resources, besides paying the concession fee, they must pay for the resources, taxes, customs, and other levies mas stipulated in the law and/or as per the contractual terms.

• Conditions of state-owned land concession for agricultural and forestry activities

Land concession for economic cultivation, forest rehabilitation, reforestation, industrial tree plantation, economic trees, non-timber forest products must be implemented in line with terms and conditions stipulated in Article 74 of Forest Law 2007.

• Time frame of state-owned land rental and concession

1. Short-term rental (maximum not more than 5 year and renewable);
2. Medium-term rental and concession (5 - 10 years and renewable);
3. Long-term rental and concession (10 years and above);

          The approving procedures in concession activity investments are of the roles and responsibilities of Planning and Investment Sector as determined in Article 15 (Concession activities) of newly amended Investment Promotion Law 2009, mainly the rights in land concession, minerals, hydro-powers, airlines, telecommunications, insurances and financial institutes, with the agreement from concerned sectors under the general investment approving processes as follows:

Investment approving procedures in concession of agricultural activities in connection with land, mines and electricity

1. Investors (domestic or foreign legal entity) submitted the request to OSS of Planning and Investment Sector;
2. OSS makes a referral to request comments from concerned sectors;
3. Concerned sectors make comments and submit to I-OSS (within 25 official working days);
4. OSS prepares CIP meeting, technicians report projects requesting approval or refusal in the Committee for Investment Promotion (CIP) meeting. Representatives from concerned sectors will participate in CIP meeting to share comments in projects.
5. In case CIP meeting agrees, the report will be submitted to Government for consideration,*projects not being agreed will be refused.
6. In case the meeting of Government or provincial authority agrees, there will be an announcement for negotiation of MOU or contract in the coming steps, depending on type of each project.

*if a project is not agreed, it will be refused.

7. - Agriculture activities in connection with land concession: The steps are initial the signing of MOU, then the signing of Project Development Agreement (PDA)/or the signing of Concession Agreement (CA).

- Mineral activities: The steps are the same as the steps of  contract signing for searching and exploration, then contract signing for excavation and processing.

- Electricity activities: The initial step is the signing of MOU, then the signing of Project Development Agreement (PDA) and the last step is the signing of Concession Agreement(CA).

• Negotiation of Contract or MOU:

• Must notice the investors within 2 official working days from the date receiving the announcement of agreement in order for the investors to come into the negotiation of MOU or contract.
• After being announced, the investors must inform PI Sector of date and time for negotiation within 10 official working days, if exceeding the stated date and time or if the investors do not come for negotiation within official working days from the date of notice announcement, it will be assumed that the investors renounce the rights in the investments.

Remarks: Conditions of entering into the agreement of each concession activity will be stipulated in MOU or exploration contract.