DECREE No. 06/2000/ND-CP OF MARCH 6, 2000 ON INVESTMENT COOPERATION WITH FOREIGN COUNTRIES IN THE DOMAINS OF MEDICAL EXAMINATION AND TREATMENT, EDUCATION AND TRAINING, AND SCIENTIFIC RESEARCH

THE GOVERNMENT

DECREES:

Chapter I

GENERAL PROVISIONS

1. This Decree provides for the cooperation in investment with foreign countries at the establish-ments for medical examination and treatment, education and training, and in scientific and technological activities.

2. The non-profit activities of cooperation with foreign countries stipulated in Clause 1 of this Article are not regulated by this Decree.

Article 2.- The cooperation in investment with foreign countries stipulated in this Decree covers the following domains:

a/ Conducting in-patient and out-patient medical examination and treatment services for foreigners and Vietnamese;

b/ Conducting laboratory tests, picture diagnosis, functional probe... collectively called sub-clinical services related to medical examination and treatment.

a/ Education at all levels and grades for foreigners currently on term assignments in Vietnam;

b/ Secondary general education for foreigners and Vietnamese;

c/ Secondary vocational education, teaching of foreign languages, job training for foreigners and Vietnamese;

d/ College, university and post-graduate education for foreigners and Vietnamese in various fields of science and technique, technology, natural sciences, economic management science and linguistics.

Conducting scientific research or services related to scientific research in the domains of science and technique, technology, natural sciences, economic management science and linguistics.

Article 3.- Cooperation in investment with foreign countries shall be carried out in the following forms:

a/ Setting up of hospitals, consulting rooms, sub-clinical establishments either as joint ventures or 100% foreign-owned establishments;

b/ Business cooperation contracts to conduct activities in medical examination and treatment and sub-clinical services.

(Hereafter collectively called in foreign-invested medical examination and treatment establishments).

a/ Setting up of educational and training establishments in the form of joint ventures to conduct activities mentioned at Points a, c and d, Clause 2, Article 2 of this Decree;

b/ Contract of business cooperation to conduct educational and training activities mentioned at Points a, c and d, Clause 2, Article 2 of this Decree;

c/ Setting up of educational and training establishments in the form of establishments with 100% foreign-owned capital to conduct activities mentioned at Points a, c and d, Clause 2, Article 2 of this Decree;

d/ Experimental setting up of educational and training establishments in the form of joint ventures or business cooperation contracts in Hanoi and Ho Chi Minh City to conduct activities mentioned at Point b, Clause 2, Article 2 of this Decree.

(Hereafter collectively called foreign-invested educational establishments).

a/ Setting up of scientific research institutes and centers or conducting services related to research in the domain of science and technique, technology, natural science, economic management science, and linguistics in the form of joint ventures or experimental setting up of establishments with 100% foreign-owned capital;

b/ Business cooperation contracts to conduct scientific research activities stipulated at Point a of this Clause.

(Hereafter collectively called foreign-invested scientific research establishments).

Article 4.- Competence in approving investment projects, the evaluation of the projects and granting of investment licenses shall conform with the provisions in Clauses 1 and 2, Article 93 and Clauses 1, 2 and 3, Article 94 of Decree No.12/CP of February 18, 1997 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam (hereafter called Decree No.12/CP).

Chapter II

FOREIGN-INVESTED MEDICAL EXAMINATION AND TREATMENT ESTABLISHMENTS

Article 5.- Vietnamese organizations allowed to cooperate in investment with foreign countries to set up foreign-invested medical examination and treatment establishments under the provisions of this Decree include:

1. Hospitals, polyclinical and specialized consulting rooms, and medical examination and treatment establishments which are Vietnamese non-business units having revenues;

2. Hospitals, polyclinical and specialized consulting rooms, and medical examination and treatment establishments of all economic sectors;

3. The subjects stipulated in Clauses 1, 3, 4 and 5, Article 2 of Decree No.12/CP.

1. Conditions for the setting up and operation of foreign-invested medical examination and treatment establishments:

a/ The setting up of medical examination and treatment establishments must be based on the need determined by the Ministry of Health, the planning of organization of the medical examination and treatment network and the targeted objects in the locality;

b/ The establishments must be staffed with capable managers and qualified doctors and other medical personnel as prescribed by the Vietnamese law;

c/ The methods used in diagnosis, treatment and caring for patients must be modern methods of high quality in order to ensure high efficiency and safety for patients;

d/ The establishments must be provided with material infrastructures and medical equipment and instruments meeting the requirements and ensuring quality and environmental hygiene;

e/ There must be a plan for cooperation in technology transfer and in training Vietnamese personnel.

2. The rights and obligations of the foreign-invested medical examination and treatment establishments shall conform with the legislation on private medical and pharmaceutical practice, the legislation on foreign investment in Vietnam and the current prescriptions of related Vietnamese legislation.

Article 7.- The directors, doctors and other medical personnel working at the foreign-invested medical examination and treatment establishments must fill all the conditions for medical practice prescribed by the legislation on private medical and pharmaceutical practice. The doctors and other medical personnel who have diplomas issued by foreign countries shall register under the guidance of the Ministry of Health in order to practice in Vietnam.

Article 8.- The dossier of application for investment license shall include documents prescribed in Articles 10, 13 and 27 of Decree No.12/CP, in which more clarification is needed for the following contents:

1. Scope of practice;

2. Projected number and structure of key doctors and medical personnel;

3. Material and technical bases, equipment and outfit.

Article 9.- Before going into operation, the foreign-invested medical examination and treatment establishments must register their practice with the Ministry of Health for the issuance of the certificate of qualification in criteria and practice conditions.

Chapter III

FOREIGN-INVESTED EDUCATIONAL ESTABLISHMENTS

Article 10.- The Vietnamese organizations allowed to cooperate in investment with foreign investors to set up foreign-invested educational establishments include:

1. Schools and other educational establishments in the national educational system;

2. The subjects stipulated in Clauses 1, 3, 4 and 5, Article 2 of Decree No.12/CP.

1. Conditions for the setting up and operation of foreign-invested educational establishments:

a/ Conforming with the planning of the educational and training network approved by the competent State agency;

b/ Having qualified teachers and lecturers as prescribed by the Vietnamese law;

c/ Having the material and technical bases, equipment and outfit suited to the level and extent of education and training;

d/ Having a program and curriculum of education conforming with the provisions of the Law on Education and other related regulations.

Where the foreign-invested educational establishment trains only foreigners, it has to register only the training program and curriculum with the competent State agency.

2. The rights and obligations of foreign-invested educational establishments shall conform with the prescriptions of the legislation on education and the legislation on foreign investment in Vietnam.

Article 12.- The dossier of application for Investment License of a foreign-invested educational establishment shall comprise the documents prescribed in Articles 10, 13 and 27 of Decree No. 12/CP of which the following contents must be further clarified:

a/ Objective, extent, program and time of training;

b/ System of recruitment of students, textbooks, teaching courses; presentation of material bases and means in service of education and training;

c/ Projected number and composition of principal teachers and lecturers;

d/ Stipulations on fees and other payments to the school;

e/ Registration of diplomas and certificates issued by the educational establishment.

1. Foreign-invested educational establishments can train only according to the extent, program, objects and time stipulated in the Investment License.

2. Foreign-invested educational establishments set up and operating in Vietnam must strictly observe prescriptions of the legislations on education and on foreign investment in Vietnam and related provisions of Vietnamese law.

Chapter IV

FOREIGN-INVESTED SCIENTIFIC RESEARCH ESTABLISHMENTS

Article 14.- Vietnamese organizations allowed to cooperate in investment with foreign countries to set up foreign-invested scientific research establishments under the provisions of this Decree include:

1. Research institutes, research centers and research establishments in science and technique, technology, natural science, science of economic management and linguistics which are non-business administrative unit;

2. Research institutes, research centers and research establishments in science and technique, technology, natural science, science of economic management and linguistics of all economic sectors.

3. The subjects mentioned in Clauses 1, 3, 4 and 5, Article 2 of Decree No. 12/CP.

1. Conditions for the setting up and operation of foreign-invested scientific research establishments:

a/ Conforming with the planning already approved by a competent State agency;

b/ Having qualified research specialists as prescribed by the Vietnamese law;

c/ Having material and technical bases and equipment suited to the form and extent of scientific research.

2. Rights and obligations of foreign-invested scientific research establishments shall conform with the Law on Foreign Investment in Vietnam and related provisions of the Vietnamese law.

Article 16.- The dossier of application for investment license of a foreign-invested scientific research establishment shall comprise documents stipulated in Articles 10, 13 and 27 of Decree No. 12/CP, of which the following contents must be further clarified:

1. Objective, extent, domain and form of scientific research;

2. Projected number and composition of the principal research specialists;

3. Material and technical bases, equipment and outfit.

Article 17.- In the process of their operations, the scientific organizations in cooperation with foreign countries and persons working in these scientific organizations must comply with prescriptions of Vietnamese law.

Chapter V

ENCOURAGEMENT TO AND PREFERENCE IN INVESTMENT

Article 18.- The medical examination and treatment establishments, the educational and training establishments and the scientific research establishments set up and operating under the provisions of this Decree shall have the legal status according to the Law on Foreign Investment in Vietnam, are entitled to financial autonomy and to assume their own responsibility before law for their activities.

1. Foreign-invested establishments for medical examination and treatment, education and scientific research shall have to fulfill their tax and financial obligations like other foreign-invested enterprises and shall enjoy encouragement and preferences in investment according to the Law on Foreign Investment in Vietnam and related prescriptions of Vietnamese law.

2. Foreign-invested medical examination and treatment establishments educational establishments and scientific research establishments are entitled to the 10% income tax rate throughout their term of operation, are exempt from income tax for four years after they begin to make business profits; and income tax reduction by 50% for the four sub-sequent years.

3. Foreign-invested medical examination and treatment establishments and educational establishments and scientific research establishments shall enjoy income tax exemption for eight years after they begin to make business profits if they meet one of the following conditions:

a/ They invest in the geographical areas eligible to investment encouragement stipulated in Decree No. 10/1998/ND-CP of January 23, 1998 of the Government;

b/ The foreign investor commits himself/herself to transfer without indemnity the fixed assets to the Vietnamese State after concluding his/her activities.

Article 20.- The foreign investor shall be reimbursed 100% of the income tax he/she has paid on the profit used for expanded reinvestment or intensive reinvestment in the existing establishment or for new investment as stipulated in Article 2 of this Decree.

Article 21.- Foreign-invested medical examination and treatment establishments, educational establishments and scientific research establishments are entitled to a 5% tax rate in transferring their profits abroad.

Article 22.- The projects of investment in the domains of medical examination and treatment, education and training, and scientific research as stipulated in this Decree shall enjoy the lowest rate of land rent according to the current stipulations.

Article 23.- Foreign-invested establishments for medical examinations and treatment, education and scientific research are assured balance of foreign currency throughout their term of operation as stipulated by the Vietnam State Bank.

Chapter VI

INVESTMENT COOPERATION WITH FOREIGN COUNTRIES BY VIETNAMESE ORGANIZATIONS WHICH ARE NON-BUSINESS UNITS HAVING REVENUES

Article 24.- A Vietnamese non-business unit having revenues cooperating in investment with foreign countries is allowed to use the assigned assets to contribute to the capital as prescribed by the legislation on foreign investment in Vietnam; the assets used for cooperation in investment with foreign countries are allowed to change to the regime of business cost-accounting under the guidance of the Ministry of Finance.

Article 25.- The Vietnamese non-business unit having revenues shall be responsible only within the assets allowed for cooperation in investment with foreign countries.

Article 26.- The recruitment of laborers who are State public servants for work at foreign-invested medical examinations and treatment establishments educational establishments and scientific research establishments and the regimes toward the laborers shall conform with the prescriptions of the labor legislation.

Chapter VII

STATE MANAGEMENT

Article 27.- The Ministry of Planning and Investment, the related ministries and branches, the People�s Committees of the provinces and centrally-run cities shall, within their functions and tasks, perform State management over the foreign-invested medical examinations and treatment establishments, educational and training establishments and scientific research establishments as stipulated in Articles 95, 96, 97 and 98 of Decree No. 12/CP.

Article 28.- The Ministry of Health, the Ministry of Education and Training, the Ministry of Science, Technology and Environment, the Ministry of Labor, War Invalids and Social Affairs and the related ministries and branches shall carry out the function of specialized State management over the foreign-invested medical examination and treatment establishments, educational and training establishments and scientific research establishments; issue and guide the implementation of policies and regulations on medical examination and treatment, education and training, and scientific research.

1. The Ministry of Health, the Ministry of Education and Training, the Ministry of Science, Technology and Environment, the Ministry of Labor, War Invalids and Social Affairs and the related ministries and branches shall conduct specialized inspection and control over the foreign-invested medical examinations and treatment establishments, educational establishments and scientific research establishments.

In their process of specialized inspection and control, the Ministry of Health, the Ministry of Education and Training, the Ministry of Science, Technology and Environment, the Ministry of Labor, War Invalids and Social Affairs and the related ministries and branches have the right:

a/ To request that the inspected establishments supply necessary documents and create conditions for the specialized control and inspection;

b/ To handle according to their competence or make recommendations to the competent State agencies to handle violations as prescribed by law.

2. The foreign-invested medical examination and treatment establishments, educational establishments and scientific research establishments must abide by the decisions on specialized inspection and control; have the right to lodge complaints as prescribed by Vietnamese legislation on complaints and denunciations.

Chapter VIII

IMPLEMENTATION PROVISIONS

1. This Decree takes effect 15 days after its signing.

2. The ministers, the heads of ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the People�s Committees of the provinces and centrally-run cities shall have to implement this Decree.

On behalf of the Government
Prime Minister
PHAN VAN KHAI