The Government has recently issued Decree No.11/2021/ND-CP providing regulations on the allocation of sea areas to organisations and individuals for exploitation and use of marine resources.

The duration of sea area allocation is considered and decided in each specific case based on the request for sea area allocation and investment project. The maximum duration for sea area allocation must not exceed 30 years, which can be extended for many times, but the total extension period must not exceed 20 years.

With projects with more-than-30-year investment licences, the duration of sea area allocation will be considered at over 30 years, but it should not exceed the duration listed in the investment licences.

According to the Decree, when the sea area allocation duration expires while organisations or individuals want to continue exploiting marine resources, competent authorities should consider the allocation for them if they are able to show a valid marine resource exploitation document, and their use of the sea area in accordance with regulated planning.

Organisations and individuals with allocated sea areas have the right to use the areas for marine resource exploitation; propose the extension of allocation duration, the return of the sea areas, and the amendments and supplements to sea area allocation decisions; use information and data related to the allocated sea areas as provided by the law; receive compensation when competent state management agencies recover the sea areas for defence and security purposes; and complain or begin lawsuits when their legitimate interests are violated.

Regarding their obligations, organisations and individuals must use the allocated areas for proper purposes. They are not allowed to encroach the sea, violate the approved planning, destroy the sea ecosystem, and carry out activities that affect the nation’s defence, security, sovereignty and benefits. Additionally, they must not hinder basic surveys, inspections and scientific research activities.

The decree also defines financial issues related to sea area allocation. Accordingly, organisations and individuals must pay sea area use levies before they use the sea areas.