Survey, extraction and processing of natural resources, minerals and petroleum.

1. ACIA

National Treatment, Senior Management and the Board of Directors shall not apply to any measure relating to mining and quarrying investments, including but not limited to the following areas: : (i) Investigation, exploration and exploitation of minerals; (ii) Exploiting and processing precious and rare minerals and raw materials; (iii) Exploiting and processing rare minerals, metals, rare raw materials, exploiting clay to produce building materials; high-quality sand mining for the production of construction and engineering glass; (iv) Projects to exploit precious or rare minerals must be approved by the Government of Vietnam; (v) Mineral activities related to special, toxic, precious and rare minerals including basic geological investigation, exploration, extraction and processing.

National Treatment and Senior Management Personnel and the Board of Directors shall not apply to any measure relating to oil and gas activities conducted within Vietnam. Investment in oil and gas activities will have to be approved by the Government of Vietnam.

2. EVFTA:

Appendix 8-C: Viet Nam may adopt or maintain any measure relating to the operation of an enterprise as defined in points 1(e) and 1(m) of Article 8.2 (Definitions). which is inconsistent with paragraph 2 of Article 8.5 (National Treatment), provided that the measure is not inconsistent with the commitments set out in Annex 8-B (Vietnam’s Schedule of Specific Commitments).

Appendix 8-B

– Exploiting crude oil and natural gas[1](ISIC rev3.1:111, 112): uncommitted

– Mining of metal ores (ISIC rev3.1:1310, 1320): uncommitted

– Mining and other quarrying (ISIC rev 3.1:1410): uncommitted

3. CPTPP:

a) Appendix NCM I-VN-31: Mining

Foreign investment in the mining sector minerals will not be approved unless competent authorities of Vietnam find the project to bring net benefits to Vietnam. This decision will be made on the basis of the following factors (Foreign investors in addition to not having to comply with all the criteria to obtain a mining license):

– The impact of the investment project on the level and nature of economic activity in Vietnam, including impacts on jobs, the use of equipment, components and services manufactured in Vietnam and export from Vietnam;

– The extent and importance of the Vietnamese party involved in the investment project;

–  The impact of investment projects on productivity, economic efficiency, technology development and product innovation in Vietnam;

–  The impact of the investment project on competition in the same industry or sectors in Vietnam;

–  The compatibility of the investment project with the national industrial, economic and cultural policy, taking into account the industrial, economic and cultural policy objectives granted by the Government or the legislature proposed by the province and may be significantly affected by the investment project;

– Contribution of investment projects to Vietnam’s competitiveness in the world market.

b) Appendix NCM I-VN-32: Petroleum

Vietnam Oil and Gas Group (PetroVietnam) is the only enterprise permitted to explore and exploit oil and gas. To carry out oil and gas activities in Vietnam, a contract with PetroVietnam is required. Sub-contracts can be signed with foreign contractors, but priority is given to Vietnamese organizations and individuals.

The performance of oil and gas contracts and the transfer of such contracts to other parties must be approved by the Prime Minister. In some special cases [2], the following activities need to be approved by the Prime Minister: i) extension of exploration term or term of oil and gas contract; and ii) suspension of the period, not exceeding 3 years, in case the parties to the petroleum contract agree to stop the exercise of certain rights and obligations under the petroleum contract in the event that it is not possible to perform the contract immediately.

PetroVietnam has the priority right to buy part or the whole of the oil and gas contract to be transferred.

Foreign investors are only allowed to provide flight operations services for oil and gas activities through joint venture contracts with Vietnamese companies.

–    Mineral Law 2010

–    Decree No. 158/2016/ND-CP dated November 29, 2016 of the Government detailing the implementation of a number of articles of the Minerals Law.

(i)  Commitments in this section do not include activities: supply of materials, equipment and chemicals, base services, boat services, daily life services, flight services;

(ii) The commitments in this section do not affect the right of the Government of Vietnam to put in place the necessary regulations and procedures for the management of oil and gas related activities within its territory or its rights. Vietnamese jurisdiction in accordance with Vietnam’s rights and obligations under GATS.

Particularly for VKFTA, EVFTA: Allowing the establishment of joint ventures with foreign capital contribution not exceeding 51%. Allowing the establishment of enterprises with 100% foreign investment capital.