Rights and obligations of contractors according to the Law on Petroleum 1993 of Vietnam

Specifically, according to the Law on Petroleum 1993 of Vietnam, the contractors shall have the following rights:  

- To enjoy preferences and guarantees as provided for by Vietnamese law;

- To use gathered specimen, data and information for petroleum activities;

- To recruit laborers for performance of jobs under petroleum contracts on the basis of prioritizing the recruitment of Vietnamese laborers;

- To hire subcontractors in accordance with the provisions of this Law and international practices in the petroleum industry;

- To be exempt from import tax on equipment and supplies necessary for petroleum activities and be exempt from re-export tax when the imported equipment are not installed at fixed places or when the supplies are not used up according to the provisions of Vietnamese laws;

- To own their petroleum shares after fulfilling the financial obligations towards the Vietnamese State;

- To export their petroleum shares as agreed upon in the petroleum contracts.

- To recover investment capital as agreed upon in the petroleum contracts;

- The contractors being foreign organizations and individuals may transfer their investment capital and profits earned in the process of petroleum activities abroad according to the provisions of the Law on Foreign Investment in Vietnam.

Concurrently, the contractors shall have the following obligations:

- To comply with the Vietnamese law;

- To fulfill the commitments inscribed in the petroleum contracts;

- To pay assorted taxes, fees according to the provisions of Vietnamese laws;

- To transfer technologies, to train, employ Vietnamese cadres and workers and ensure the laborers’ interests;

- To apply measures for environmental protection;

- To report on their petroleum activities to competent State management bodies and Vietnam Petroleum Corporation;

- To supply documents for inspection teams;

- To clear the works and remove equipment and means upon termination of petroleum activities at the requests of competent State management agencies;

- To sell on the Vietnamese market part of the petroleum under their respective ownership when so requested by the Vietnamese Government.

These contents are specified in Articles 28 and 30 of the Law on Petroleum 1993 of Vietnam, effective from September 01, 1993.

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