THE PRIME MINISTER SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
No.
141/2005/QD-TTg
Ha Noi, 14 June 2005
DECISION
On the establishment and issuance of the Regulation on the operation of
Nhon Hoi Economic Zone, Binh Dinh Province
THE PRIME MINISTER
Pursuant to the Law on the Organization of the Government dated 25 December 2001;
Pursuant to Resolution No. 39-NQ/TW dated 16 August 2004 of the Politburo;
Pursuant to the Decision No. 148/2004/QD-TTg dated 13 August 2004 of the Prime Minister on the main orientation for socio-economic development of the Key Economic Region of Central Vietnam until 2010 and vision until 2020;
At the proposal of the Minister of Planning and Investment,
DECIDES:
Article 1. To establish Nhon Hoi Economic Zone, Binh Dinh Province.
Article 2. To issue with this Decision the Regulation on the operation of Nhon Hoi Economic Zone, Binh Dinh Province.
Article 3. This Decision shall come into effect 15 days after its publication in the Government’s Official Gazette.
Article 4. Ministers, heads of ministerial level agencies, heads of Governmental agencies, the Chairman of the People's Committee of Binh Dinh Province and the Chairman of Nhon Hoi Economic Zone Administration shall be responsible for the implementation of this Decision.
PRIME MINISTER
(Signed and sealed)
Phan Van Khai
THE PRIME MINISTER SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
REGULATION ON THE OPERATION OF
NHON HOI ECONOMIC ZONE, BINH DINH PROVINCE
(Issued with Decision No. 141/2005/QD-TTg dated 14 June 2005
of the Prime Minister)
Chapter I
GENERAL PROVISIONS
Article 1. This Regulation prescribes the operation of and a number of policies for and the state management over Nhon Hoi Economic Zone, Binh Dinh Province (hereinafter abbreviated to Nhon Hoi EZ); rights and obligations of domestic and foreign organizations and individuals who produce or trade goods or services, and of enterprises who invest to build and operate the infrastructure in Nhon Hoi EZ.
Article 2.
1. Nhon Hoi EZ is a zone with delimited geographic boundaries within the national territory and under the national sovereignty but having a separate economic space, with a favourable and equal investment and business environment, including the functional zones, socio-technical infrastructure facilities, service and public facilities, with longlasting stable preferential and incentive policies and generous management mechanism creating favourable conditions for domestic and foreign investors to feel secure in investing in development of production and trade of goods and services.
2. Nhon Hoi EZ is located in Phuong Mai Peninsula, Binh Dinh Province, with a natural land area of about 12,000 hectares, encompassing the communes of Nhon Hoi, Nhon Ly, Nhon Hai, Area 9 of Hai Cang Ward, Quy Nhon City, part of the communes of Phuoc Hoa, Phuoc Son, Tuy Phuoc District and part of the communes of Cat Tien, Cat Chanh, Cat Hai, Phu Cat District; being geographically defined in the approximate co-ordinates from 13045’ to 14001’ North and from 109011’ to 109017’ East and bordered by Ba Mountain, Cat Hai Commune, Phu Cat District to the north; East Sea (South China Sea) to the south and east; and Thi Nai Lagoon to the west.
Article 3. Main development objectives of Nhon Hoi EZ:
1. Constructing and developing Nhon Hoi EZ to become a multi-functional and diversified general economic zone with focus the following:
a) Developing large-scaled industries including: agricultural, forestry and fishery processing, construction material production, ship building and repairing, petrochemistry, electronic and electric apparatuses, textile, leather and garment for export;
b) Constructing and operating transiting warehouses in association with building and operating effectively Nhon Hoi Port deep seaport and its logistic service facilites in order to, together with National Road 19, Border Gates of Duc Co and Bo Y, create an important gateway to the sea for the Southern Central Region and Central Highlands of Vietnam and the Greater Mekong Subregion;
c) Constructing the new urban area of Nhon Hoi, service and urban areas of Cat Tien and Nhon Ly and giving priority to developing eco-tourist areas in association with lagoons, mountains and sea in Nhon Hoi EZ to become the national tourist area with the role as one of the tourist centers of the coastal Southern Central Vietnam.
2. Speeding up the construction and development progress of the Nhon Hoi EZ alongside with Chu Lai Open Economic Zone, Dung Quat Economic Zone and Van Phong Economic Zone so that after 2010, these zones will become a chain of tightly-linked economic zones and gradually become the nuclei for growth and urban, industrial, service and tourist centers of the Southern Central Region and the Key Economic Region of Central Vietnam; and Nhon Hoi EZ being an important hub of international exchanges, contributing to the expansion of the market of the Central Region and Central Highlands of Vietnam, and then being the bridge to the market of Northeastern Cambodia, Southern Laos and Central Thailand;
3. Creating employment, promoting the training for and improving the quality of human resources of the region, contributing to the production of high quality, well-branded and competitive commodities;
4. Effectively exploiting the advantages of natural features, geo-political location of international and domestic trade exchanges and services to speed up socio-economic development of the southern Central Region, gradually narrowing the gap in economic development among the regions in the country.
Article 4. The Government of the Socialist Republic of Vietnam encourages and protects Vietnamese organizations or individuals of all economic sectors, Vietnamese setttling abroad and foreign organizations and individuals to make investment and do business in Nhon Hoi EZ in such fields as: building and operating infrastructure of industrial zone and urban areas, industrial and urban development, commerce, finance, banking, service, tourism, transportation, insurance, entertainment and recreation, education and training, healthcare, housing, seaport, goods exportation and importation and other production or trading activities in compliance with the provisions of this Regulation and other provisions of the laws of Vietnam and the international treaties which Vietnam has signed or acceded to.
Article 5.
1. Domestic economic organizations, households and individuals, Vietnamese setttling abroad, foreign organizations and individuals, foreign-invested enterprises and business cooperation parties in accordance with the Law on Foreign Investment in Vietnam who produce or trade goods or services (hereinafter generally called the goods and services producing and trading enterprises) in Nhon Hoi EZ shall be entitled:
a) To be assigned the land use right, lease or sub-lease the land with built-in technical infrastructure in Nhon Hoi EZ from the enterprises who invest to build and operate the infrastructure in accordance with the corresponding provisions of the law regulations on land to build the factory buildings and architectural facilities serving the production and trade of goods and services;
b) To lease or buy the factory buildings or warehouses ready built in Nhon Hoi EZ to serve production and trade of goods and services under the contracts signed with the enterprises who invest to build and operate the infrastructure;
c) To use with payment of use fee the technical infrastructure, service and public facilities in Nhon Hoi EZ including the road network, seaport, power supply, water supply, water drainage, post and telecommunications, water and waste treatment, etc. and other shared services in Nhon Hoi EZ under the contracts signed with the enterprises who invest to build and operate the infrastructure;
d) To enjoy the investment preferences provided for in this Regulation;
e) To enjoy other legal rights and interests in accordance with the provisions of the law regulations on land, encouragement of domestic and foreign investment and other legal documents of the Vietnamese laws and the international treaties which Vietnam has signed or acceded to.
2. The enterprises who produce or trade goods or services in Nhon Hoi EZ shall be obliged:
a) To observe the provisions of this Regulation, the detailed planning of the functional zones already approved by the competent governmental agencies and the provisions in the Certificate of Investment Registration, Certificate of Investment Preference or Investment Licence, Business Registration Certificate, Charter of the enterprise; use the land allocated, leased or sub-leased for the right purpose;
b) To facilitate the enterprises who invest to build and operate the infrastructure to repair, maintain and upgrade the infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in the land areas used by the organizations and individuals in Nhon Hoi EZ;
c) To pay the land rent or sub-rent, the amount of leasing or purchasing the factory buildings or warehouses, the fee of using the infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ to the enterprises who invest to build and operate the infrastructure under the signed contracts;
d) To perform the obligations related to taxation, customs, environmental protection and other obligations as stipulated by laws;
e) To register for operation at Nhon Hoi EZ Administration (NEZA) in case of being domestic economic organizations, households or individuals who invest in production or trade in Nhon Hoi EZ;
f) To submit monthly, quarterly and annual reports on operational status on a periodical basis to NEZA.
Article 6.
1. Domestic economic organizations, Vietnamese settling abroad, foreign organizations and individuals, foreign-invested enterprises who invest to build and operate the infrastructure of the functional zones, the technical infrastructure and service and public facilities (hereinafter generally called the infrastructure building and operating enterprises) in Nhon Hoi EZ shall be entitled:
a) To be leased or allocated the land with or without payment of land use fee by NEZA in accordance with the corresponding provisions of the law regulations on land to build and operate the infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ;
b) To assign the land use right, sub-lease the land with built-in technical infrastructure in Nhon Hoi EZ to domestic organizations or individuals, Vietnamese settling abroad, foreign organizations and individuals, foreign-invested enterprises and business cooperation parties in accordance with the Law on Foreign Investment in Vietnam for the purpose of investing in production or trade of goods or services in Nhon Hoi EZ in accordance with the corresponding provisions of the law regulations on land;
c) To receive the fees of using the infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ built by the infrastructure building and operating enterprises under the contracts signed with the lessee;
d) To build factory buildings or warehouses in Nhon Hoi EZ for sale or lease;
e) To assess the price of sub-leasing the land with built-in technical infrastructure, the fees of using the technical infrastructure and service and public facilities upon agreement by NEZA; to assess the price of leasing or selling the factory buildings or warehouses and service fees;
f) To be allowed to sub-lease part or the whole of the land areas not yet leased to domestic economic organizations, Vietnamese settling abroad, foreign organizations and individuals or foreign-invested enterprises who have adequate financial capability and investment calling experience so that these organizations can sub-lease the land or call for investment in accordance with the corresponding provisions of the law regulations on land;
g) To enjoy other legal rights and interests as stipulated by laws.
2. The enterprises who invest to build and operate infrastructure in Nhon Hoi EZ shall be obliged:
a) To build infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ in compliance with the approved detailed planning and design and on the approved schedule.
In case the land allocated with or without payment of land use fee or leased by NEZA in accordance with the corresponding provisions of the law regulations on land to implement the investment project to build the infrastructure of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ has not been used for 12 consecutive months or has been used 24 months later than the fixed schedule in the investment project as from the date of taking over the land at the project site, the land will be taken back by NEZA without any compensation for land unless any extension being allowed by NEZA.
b) To repair, maintain the infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ to secure the quality of those facilities;
c) To observe the provisions of this Regulation and the detailed planning of the functional zones already approved by the competent governmental agencies; and to use the allocated or leased land for the right purpose;
d) To perform obligations related to taxation, customs and other obligations as stipulated by laws;
e) To submit monthly, quarterly and annual reports on operational status on a periodical basis to NEZA.
Chapter II
ORGANIZATION AND OPERATION OF NHON HOI EZ HOI EZ
Article 7.
1. Nhon Hoi EZ consists of two main functional zones: Non-tariff Zone and Tariff Zone.
The Non-tariff Zone of Nhon Hoi EZ is the zone defined in the General Planning as being associated with part of the deep-water seaport of Nhon Hoi (non-tariff port).
The Tariff Zone is the remaining area of Nhon Hoi EZ other than the Non-tariff Zone. The Tariff Zone includes other functional zones such as industrial zone, export processing zone, entertainment and recreation area, service and tourist area, urban and residential areas, and administrative area.
The scale and location of each functional zone is defined in the General Planning of Nhon Hoi EZ approved by the Prime Minister.
2. In order to ensure the quality of the long-term development planning which satisfies the requirement for international economic integration, NEZA is allowed to hire foreign consultant companies to formulate the detailed planning of the functional zones such as urban area and Non-tariff Zone.
Article 8.
1. The Non-tariff Zone of Nhon Hoi EZ is the zone defined in the General Planning of Nhon Hoi EZ and the detailed land use planning.
2. The Non-tariff Zone is isolated from the Tariff Zone in Nhon Hoi EZ and the inland of Vietnam by a wall fence system with gateways and entrances and exits securing the control of the concerned functional agencies. The Non-tariff Zone has a customs office to supervise, inspect and handle the customs procedures for the outward and inward goods. In the Non-tariff Zone, there is neither residential area nor inhabitants who live permanently or temporarily (also for foreigners).
3. The operation of the Non-tariff Zone includes the main forms of production and business such as:
a) Producing, processing, recycling, assembling export or import goods and goods served on the spot;
b) Trading in goods (including export and import, border-gate shift, temporary import for re-export, distribution, retail shops and supermarkets, duty-free shops and supermarkets);
c) Trading in services (classification, packing, transport and forwarding transit goods, preservation, storage, bonded warehousing, post and telecommunications, finance, banking, transportation, insurance, entertainment and recreation, restaurants serving food and drinks);
d) Trade promotion (fairs and exhibitions, showrooms, branches or representative offices of domestic and foreign companies and financial and banking organizations) and other trade activities.
Article 9.
1. The exchange of goods and services between the Non-tariff Zone and foreign countries and among the economic organizations in the Non-tariff Zone shall comply with the regulations on exchange relations among foreign countries without any customs procedures. The economic organizations operating in the Non-tariff Zone shall be allowed to export to or import from foreign countries all the goods or services which are not banned by the laws of Vietnam from being exported or imported.
2. The duration of storing goods in the Non-tariff Zone is unlimited.
3. Foreign vessels shall be allowed to directly enter the Non-tariff port of Nhon Hoi Port for loading or discharging with no immigration procedures for crewmembers, only immigration procedures for vessels being done at Buoy Zero.
Article 10.
1. The exchange of goods and services between the Non-tariff Zone and the Tariff Zone (except the export processing zone) in Nhon Hoi EZ and the inland of Vietnam shall comply with the regulations on exchange relations between foreign countries and Vietnam and shall comply with the current provisions of the law regulations on customs and export and import tax. The exchange of goods and services between the Non-tariff Zone and the export processing zone in Nhon Hoi EZ shall comply with the regulations on exchange relations among foreign countries.
2. Domestic and foreign organization and individuals who produce or trade goods or services in the Tariff Zone of Nhon Hoi EZ and the inland of Vietnam shall only be allowed to import from the Non-tariff Zone the goods or services which are not banned or restricted from being imported by the State of Vietnam and shall be allowed to sell to the Non-tariff Zone the goods or services which are not banned from being exported by the State of Vietnam.
3. Goods shall be allowed to circulate freely between the Tariff Zone and the inland of Vietnam.
Article 11.
1. Goods being exported or imported in the following cases shall not be subject to export or import tax:
a) Goods imported into the Non-tariff Zone from abroad;
b) Goods exported abroad from the Non-tariff Zone;
c) Goods brought into or sold to the export processing zone or export processing enterprises in the inland of Vietnam from the Non-tariff Zone;
d) Goods not subject to export tax originating from the inland of Vietnam brought into the Non-tariff Zone (except goods described at clause 2 of this Article);
2. Goods subject to export tax originating from the Tariff Zone in Nhon Hoi EZ and the inland of Vietnam brought into the Non-tariff Zone to export abroad without being produced, processed, recycled or assembled to become finished products in the Non-tariff Zone shall be imposed with export tax and subject to export procedures in accordance with the current regulations and the inspection and supervision of the Customs Office.
3. Goods originating from abroad and not included in the list of goods banned or restricted from being imported imported from the Non-tariff Zone into the Tariff Zone (except for the export processing zone) in Nhon Hoi EZ and the inland of Vietnam shall be imposed with import tax and subject to import procedures in accordance with the current regulations and the inspection and supervision of the Customs Office.
4. Goods produced, processed, recycled or assembled in the Non-tariff Zone using raw materials or components imported from abroad when being imported into the Tariff Zone (except for the export processing zone) in Nhon Hoi EZ and the inland of Vietnam shall be only imposed with import tax for the portion of raw materials or components imported from abroad to compose those products and shall be subject to import procedures in accordance with the current regulations and the inspection and supervision of the Customs Office.
5. Goods or services produced or comsumed in the Non-tariff Zone and goods or services imported into the Non-tariff Zone from abroad shall not be subject to value added tax. Goods or services brought into the Non-tariff Zone from the inland of Vietnam or the Tariff Zone in Nhon Hoi EZ shall be subject to the value added tax rate of 0%. Goods or services brought into the inland of Vietnam or the Tariff Zone (except for the export processing zone) in Nhon Hoi EZ from the Non-tariff Zone shall be subject to value added tax at the rate prescribed in the current regulations.
6. Goods or services subject to special consumption tax produced or consumed in the Non-tariff Zone or imported into the Non-tariff Zone from abroad shall not be imposed with special consumption tax.
7. Goods or services subject to special consumption tax brought ino the Tariff Zone (except for the export processing zone) in Nhon Hoi EZ and the inland of Vietnam from the Non-tariff Zone shall be imposed with special consumption tax.
8. Raw materials for production or supplies or goods imported from abroad by domestic and foreign organizations and individuals who produce or trade goods or services in the Non-tariff Zone but not being used up and substandard products of some commercial value shall be allowed to be sold to the Tariff Zone (except for the export processing zone) in Nhon Hoi EZ and the inland of Vietnam after customs procedure is completed and import tax is paid in accordance with the current regulations.
9. The investment projects to produce goods for export and to transport transit goods shall comply with the general regulations.
Chapter III
INVESTMENT PREFERENCES
Article 12.
1. Domestic and foreign organizations and individuals are entilted to choose and implement the investment projects in Nhon Hoi EZ (except the projects included in the list of sectors prohibited from investment or projects adversely affecting the national security, socio-cultural development or causing serious environmental pollution as prescribed by the laws of Vietnam). Any conditional investment projects in the Tariff Zone (outside the Non-tariff Zone) in Nhon Hoi EZ shall comply with the current regulations.
2. Foreign investment in the construction of the infrastructure of the Non-tariff Zone and Nhon Hoi Port is encouraged.
Article 13. Investment projects in Nhon Hoi EZ shall be entitled to enjoy the preferences applicable to the specially difficult areas prescribed in the Law on Foreign Investment in Vietnam, the Law on Encouragement of Domestic Investment, the Law on Business Income Tax and other law regulations.
Article 14.
1. All the investment projects of domestic and foreign organizations and individuals in Nhon Hoi EZ shall be entitled to enjoy the business income tax rate of 10% applied in 15 years as from the date of commencement of business operation and enjoy an exemption of business income tax for the first four years from when taxable income arises and a reduction of 50% of the amount of business income tax payable for 9 subsequent years; enjoy preferences on other taxes applicable to the specially difficult areas prescribed in the Law on Foreign Investment in Vietnam, the Law on Encouragement of Domestic Investment, other law regulations on taxation and other preferences in accordance with the treaties which Vietnam has signed or acceded to.
2. All the investment projects of domestic and foreign organizations and individuals in Nhon Hoi EZ shall be entitled to enjoy the exemption of import tax for 5 years as from the date of commencement of production for the raw materials, supplies, components and semi-products which have not been produced domestically or the quality standards of which are unsatisfactory.
3. 50% of the amount of personal income tax payable shall be reduced for those who have high income, including Vietnamese and foreigners working in Nhon Hoi EZ.
4. Apart from the preferences enjoyable provided for in this Regulation, the following investment projects of domestic and foreign organizations and individuals shall be entitled to the business income tax rate of 10% for all the duration of the project implementation:
a) Projects in hi-tech sectors matching the provisions prescribed at clause 2 of Article 5 of the Regulation on hi-tech park issued with Decree No. 99/2003/ND-CP dated 28 August 2003 of the Government;
b) Projects having large scale and key significance to the development of a sector or field or to the socio-economic development of the whole region after being approved by the Prime Minister.
Article 15. Domestic enterprises of all economic sectors implementing investment projects of production or business in Nhon Hoi EZ being subjects to enjoy the State’s preferential credit types shall comply with the current law regulations on the State’s credit for investment and development.
Article 16. Domestic economic organizations, Vietnamese settling abroad, foreigners permanently residing in Vietnam, foreign-invested enterprises, foreign organizations and individuals shall be allowed to invest in building residential houses for sale or lease; invest in building infrastructure of the functional zones for lease or sub-lease or assign the right to use the land with built-in infrastructure in Nhon Hoi EZ in accordance with the corresponding provisions of the law regulations on land. Vietnamese settling abroad shall be allowed to buy residential houses in association with the land use right in Nhon Hoi EZ.
Article 17. The policy on single prices of goods, services and land rent shall be applied to all organizations and individuals producing or trading in Nhon Hoi EZ, regardless of whether they are domestic or foreign.
Chapter IV
Land use in Nhon Hoi EZ
Aricle 18.
1. The whole land and water surface area planned for investment to build and develop industrial zones, export processing zone, port and port logistic service area and Non-tariff Zone in Nhon Hoi EZ determined in the General Planning of Nhon Hoi EZ approved by the Prime Minister and the detailed land use planning approved by the People’s Committee of Binh Dinh Province shall be handed over at one time to NEZA for implementation of construction and development.
The People’s Committee of Binh Dinh Province shall direct the withdrawal of the land areas planned for the construction of the industrial zone, export processing zone port and port logistic service area and Non-tariff Zone in Nhon Hoi EZ.
2. The People’s Committee of Binh Dinh Province shall direct the withdrawal of the land and water surface areas in accordance with the approved detailed land use plan for the land and water surface areas used for the remaining functional zones and other purposes in Nhon Hoi EZ in order to hand over to DEZA in accordance with the approved yearly and five-year detailed land use plans of Nhon Hoi EZ in order to implement the construction and development of Nhon Hoi EZ.
3. The People’s Committee of Binh Dinh Province shall direct NEZA to coordinate with the local authorities to implement the compensation for and clearance of the land and re-settlement of the households whose land areas are withdrawn (for the land and water surface areas already withdrawn by the competent governmental agencies) in order to hand over NEZA to re-allocate the land with or without payment of the land use fee or lease the land to those who have the demand to use the land in accordance with the corresponding provisions of the law regulations on land.
NEZA shall be responsible to manage and use effectively the source of land and water surface areas handed over for the right purpose of land use and in accordance with the General Planning of Nhon Hoi EZ approved by the Prime Minister and the land use detailed planning or plan approved by the People’s Committee of Binh Dinh Province.
4. In case of the land being re-allocated or leased without auction of land use right or bidding of land using projects:
Based on the land tariff and the exemption and reduction rate of land use fee and the exemption and reduction rate of land rent promulgated by the People’s Committee of Binh Dinh Province and other law regulations on encouragement of domestic and foreign investment, NEZA shall decide the rates of land and water surface use fee, land rent; the rates of exemption and reduction of land water surface use fee and exemption and reduction of land and water surface rent subject to specific investment project in order to ensure investment encouragement.
5. In case of the land being re-allocated with payment of land use fee or leased through auction of land use right or bidding of land using projects:
Based on the financial plan and the land tariff approved by the People’s Committee of Binh Dinh Province, NEZA shall decide to re-allocate the land areas of which the compensation and clearance have been done to those who have the demand to use the land in accordance with the corresponding provisions of the law regulations on land.
6. Domestic organizations and individuals, and Vietnamese settling abroad shall be allocated or leased the land; foreign organizations and individuals, foreign-invested enterprises and business cooperation parties in accordance with the Law on Foreign Investment in Vietnam shall be leased the land to implement investment projects in Nhon Hoi EZ and have the rights and obligations corresponding to the form of land allocation or lease in accordance with the corresponding provisions of the law regulations on land.
Article 19. The State shall assist in investing to build the infrastructure facilities as far as the boundary of the functional zones in Nhon Hoi EZ; assist in compensating for and clearing the land in the functional zones and resettling the households whose land areas are withdrawn; assist in investing to build the concentrated waste water and waste treatment plants of the functional zones in accordance with the national target programmes of investment assistance.
Article 20.
1. Before building facilities serving production or trading, infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ, domestic and foreign organizations and individuals shall have to submit the application documents to NEZA for approval in accordance with the law regulations on construction. Time limit for NEZA to consider and decide shall be at most 7 working days as from the date of receipt of complete documents.
2. The management of the construction of facilities serving production or trading, infrastructure facilities of the functional zones, the technical infrastructure and service and public facilities in Nhon Hoi EZ shall be executed in accordance with the law regulations on construction.
Chapter V
other policies
Article 21.
1. The State shall reserve funds from the central budget and preferential credit to assist in investing to develop the necessary and important socio-technical infrastructure and service and public facilities ensuring the operation and development of Nhon Hoi EZ.
2. The disbursement of the capital construction funds to build socio-technical infrastructure and service and public facilities prescribed at clause 1 of this Article shall be managed and balanced among the expenditures for development investment from the central budget in accordance with the target programmes and in compliance with the Law on the State Budget.
3. The following modes of capital mobilization are allowed for the purpose of investment in and development of Nhon Hoi EZ:
a) Within the first 15 years as from the validity of this Decision, reserving annually from the State Budget the funds not less than the total budget revenue in the area of Nhon Hoi EZ to meet the demand of investment to develop the important socio-technical infrastructure and service and public facilities which serve Nhon Hoi EZ in general in accordance with the target programmes;
b) Issuing the Government Bonds for the investment projects to build the large-scaled infrastructure having key role to the development of Nhon Hoi EZ in accordance with the regulations on issuance of the Government Bonds in mobilizing funds for investment.
c) Giving priority to the use of ODA funds and preferential credit funds for the construction of the necessary socio-technical infrastructure and service and public facilities of Nhon Hoi EZ and other assistances;
d) Allowing attraction of investment capital under the forms of BOT, BT, BTO or other forms in accordance with the current regulations;
e) Allowing mobilization of funds from the land source in accordance with the law regulations on land to invest in developing the socio-technical infrastructure and service and public facilities which serve Nhon Hoi EZ in general;
f) Mobilizing direct investment capital from domestic and foreign organizations and individuals; funds advanced by those who have the demand to use the infrastructure or funds from the enterprises who have function of building and operating technical infrastructure facilities; expanding the form of co-financing credit of the credit organizations and monilizing all the capital sources under other forms in accordance with the law regulations.
Article 22. The state-owned commercial banks, joint-stock commercial banks, banks in joint-venture with foreign partners and other credit organizations which are established and operate in accordance with the Law on Credit Organizations shall be allowed to open branches in Nhon Hoi EZ to perform the credit functions in Vietnamese Dong and foreign currencies for the economic operations in Nhon Hoi EZ in accordance with the current regulations.
Article 23.
The purchase and sale, payment, assignment and other transaction relations among the economic organizations or individuals in the Non-tariff Zone shall be executed in the freely convertible currencies via the account numbers opened with the bank. The normal purchase and sale for the purpose of daily life shall be paid in Vietnamese Dong.
Article 24.
1. Foreigners, Vietnamese settling abroad who work or make investment or do business in Nhon Hoi EZ and their family members shall be granted multiple exit-entry visas with the validity compatible with their terms or duration of working, investing or trading in Nhon Hoi EZ and shall be allowed to reside or temporarily reside for a limited time in Nhon Hoi EZ.
2. Foreign tourists who arrive directly at the seaport of Nhon Hoi EZ by ship under contracts with domestic travel companies shall be handled by the Immigration Office in respect of immigration procedures at the port and shall be allowed to go ashore for sightseeing and touring in Nhon Hoi EZ.
The Ministry of Public Security shall provide guidelines for the implementation of clauses 1 and 2 of this Article.
3. NEZA shall be entitled to issue the work permit to foreigners and Vietnamese settling abroad who come to work or make investment or do business in Nhon Hoi EZ in compliance with the regulations of Vietnamese laws.
The Ministry of Labour - War Invalids and Social Affairs shall provide NEZA with guidelines for the implementation of the issuance of the work permit prescribed in this Article.
Article 25.
1. The State shall assist in promoting investment in Nhon Hoi EZ and publicize the investment environment of Nhon Hoi EZ to the potential investors at home and abroad.
2. NEZA and the concerned governmental agencies shall perform renovation of administrative procedures related to the fields of management of land, investment, construction, bidding, taxation, customs, workforce and enterprise management in Nhon Hoi EZ.
3. NEZA shall coordinate with the local authorities to organize the dissemination and education of awareness for the local officials and people about the position and role of Nhon Hoi EZ in order to attract their support to and participation in the process of construction and development of Nhon Hoi EZ.
Article 26.
Organizations and individuals who have merits in mobilizing official development assistance, direct foreign investment projects or domestic investment projects in Nhon Hoi EZ shall be awarded in accordance with the regulation issued by the People’s Committee of Binh Dinh Province after receiving the consent of the Ministry of Finance.
Chapter VI
STATE MANAGEMENT OVER NHON HOI EZ
Article 27.
The Ministries of Planning and Investment, Finance, Trade, Construction, Transportation, the State Bank of Vietnam, Vietnam National Administration of Tourism and the concerned agencies shall issue the guiding regulations on the operations of the functional zones in Nhon Hoi EZ subject to the scale of their functions and tasks and powers.
Article 28.
1. NEZA shall be established under the Prime Minister's decision at the proposal of the Chairman of the People’s Committee of Binh Dinh Province and the Minister of Home Affairs.
2. NEZA is a State management agency directly under the People’s Committee of Binh Dinh Province to perform the concentrated and unified management over the operations in the fields of investment, construction and development in Nhon Hoi EZ in accordance with the Operation Regulation, planning, plan and schedule already approved by the competent governmental agencies.
3. NEZA has the legal person status, an account number and a seal bearing the National emblem, its head office, its personnel and funds for non-productive operations and development investment provided from the budget of Binh Dinh Province annually; and is a planning and budget unit whose development investment capital shall be allocated from the central budget.
4. The Chairman of NEZA shall be appointed by the Prime Minister at the proposal of the Chairman of the People’s Committee of Binh Dinh Province and the Minister of Home Affairs. The Deputy Chairpersons shall be appointed by the Chairman of the People’s Committee of Binh Dinh Province.
Article 29.
NEZA shall perform the tasks and powers prescribed for the provincial-level industrial zone management boards, border-gate economic zone management boards and prescribed in this Regulation. NEZA has the following tasks and powers:
1. To preside over and coordinate with the functional agencies to formulate the General Planning for the People’s Committee of Binh Dinh Province to submit to the Prime Minister for approval; to formulate the detailed planning of the functional sub-zones, detailed planning and plan on using land in Nhon Hoi EZ to submit to the People’s Committee of Binh Dinh Province for approval; and to organize the management and dissemination, guidance, check and inspection of the implementation of the Operation Regulation and the planning or plan already approved by the competent governmental agencies.
2. To draw up the list of investment projects and plan on annual development investment capital to submit to the competent agency(ies) for approval and organizing the implementation thereof.
3. To grant, amend and withdraw the Business Registration Certificate, Permit of Establishment of trade representative offices or branches of foreign organizations and business people; Investment Licence, Certifcate of Investment Preference; Work Permit for foreigners, Vietnamese settling abroad who come to work or make investment or do business; Certificate of Origin for goods originated from Nhon Hoi EZ; to appraise and approve the environmental impact assesssment report or endorse the environmental standard satisfaction registration document of investment projects in Nhon Hoi EZ, and to handle other licences or permits as authorized by the competent governmental agencies.
4. To allocate the land with or without payment of land use fee, lease the land or water surface to organizations and individuals who have the demand to use land in Nhon Hoi EZ for the right purpose in accordance with the corresponding provisions of the law regulations on land.
5. To elaborate and submit price and fee rate brackets which shall be applied in Nhon Hoi EZ to the competent agencies for consideration and promulgation in accordance with the law regulations.
6. To act as a body in prime charge of settling problems arising in the course of formulation, development and implementation of investment projects, business and operation in Nhon Hoi EZ.
7. To coordinate with the local authorities and the concerned agencies in ensuring that all activities in Nhon Hoi EZ comply with this Operation Regulation and the planning or plan already approved by the competent governmental agencies.
8. To perform the task of managing and using the sources of development investment capital in the area of Nhon Hoi EZ, and to manage the construction projects using the State budget funds in Nhon Hoi EZ in compliance with the current regulations.
9. To organize, implement, introduce and negotiate on investment, trade and tourism promotion at home and abroad; to prepare the programmes of investment, trade and tourism promotion to submit to the competent agency(ies) for approval and implement thereof.
10. To submit periodical reports to the concerned ministries and branches and the People’s Committee of Binh Dinh Province on the implementation situation of the planning and plan on construction and development of Nhon Hoi EZ.
11. To perform other tasks assigned by the People’s Committee of Binh Dinh Province by time-period.
Article 30.
The People’s Committee of Binh Dinh Province shall be responsible:
1. To organize the formulation of the General Planning of Nhon Hoi EZ to submit to the Prime Minister for approval and approve the detailed planning of the functional sub-zones in Nhon Hoi EZ.
2. To approve the detailed planning and plan on using of land in Nhon Hoi EZ; withdraw and hand over the land to NEZA to implement the construction and development of Nhon Hoi EZ in accordance with the provisions at clauses 1 and 2 of Article 18 of this Regulation.
3. To promulgate the land tariff and the exemption or reduction rate of the land use fee; the exemption or reduction rate of the land rent in Nhon Hoi EZ in case of re-allocating or leasing the land without auction of land use right or bidding of land using projects, and to approve the financial and pricing plan in case of auction of land use right or bidding of land using projects.
4. To perform state management over the investment projects in Nhon Hoi EZ in compliance with the approved planning; to authorize NEZA to approve the domestic investment projects within its authority; to submit for approval or approve within its authority the list of development investment projects and the annual plan on investment capital for development in Nhon Hoi EZ.
5. To promulgate the specific preferential and incentive policies in accordance with the current regulations in order to give priority to recruit and use the local employees; to assist in vocational training for the local workforce; to create favourable conditions for the local workforce to work for the enterprises in Nhon Hoi EZ; to encourage and attract the highly professional and well skilled labourers to come to work in Nhon Hoi EZ from other places; to assist in building residential houses for workers; to assist in building the resettlement areas; to assist in investing to build the system of socio-technical infrastructure and service and public facilities in compliance with the regulations of the Law on the State Budget; to assist in investment and trade promotion; and to assist in compensation for and clearance of the land to speed up the process of investment in and development of Nhon Hoi EZ.
6. To direct the People’s Committee of Quy Nhon City and the People’s Committees of Tuy Phuoc and Phu Cat Districts to execute the compensation for and clearance of the land and direct the provincial functional agencies to coordinate with NEZA in applying the measures to ensure the security, social order and safety, creating favourable conditions for the operations of the enterprises in Nhon Hoi EZ.
7. To provide NEZA with funds for administrative and non-productive operations and development investment from the budget of Binh Dinh Province in accordance with the annual plan.
8. To direct the provincial functional agencies to coordinate with and facilitate NEZA to implement fully the provisions of this Regulation; to coordinate with the concerned ministries and branches to organize the management over Nhon Hoi EZ for its fast and sustainable development.
Article 31.
1. The ministries, ministerial level agencies, governmental agencies and the People’s Committee of Binh Dinh Province, within their scope of functions, tasks and powers, shall perform the task of state management in respect of sector, field or administrative territory over Nhon Hoi EZ; authorize and provide guidelines to NEZA to perform a number of state management tasks in construction investment, management of natural resources and environment, urban management and development, management of land, employees, exportation and importation and other fields in accordance with the law regulations and this Regulation on the basis of operation under "single contact and on the spot" principle in order to create favourable conditions for the investment and business activities of the domestic and foreign organizations and individuals in Nhon Hoi EZ.
2. For the fields not decentralized or authorized to NEZA, the ministries, ministerial level agencies, governmental agencies and the People’s Committee of Binh Dinh Province shall perform their function of state management over Nhon Hoi EZ by means of establishing their directly dependent units in Nhon Hoi EZ and shall have coordination regulations with NEZA to perform their authorized competence.
Article 32.
The Customs Office of Nhon Hoi EZ shall execute the supervision and management over the goods circulating between the Tariff Zone, the Non-tariff Zone and foreign countries and the goods circulating between the Non-tariff Zone and the remaining areas in the territory of Vietnam.
Chapter VII
IMPLEMENTATION PROVISIONS
Article 33.
The other provisions related to the activities, rights and obligations of the domestic and foreign organizations and individuals producing or trading goods or services and the enterprises building and operating infrastructure in Nhon Hoi EZ not prescribed in this Regulation shall comply with the corresponding provisions of the Law on Foreign Investment in Vietnam, Law on Encouragement of Domestic Investment, Business Law, State-owned Business Law, Cooperative Law, Law on Customs, Law on Land, Commercial Law and other law documents on taxation and law regulations of Vietnamese laws and the international treaties which Vietnam has signed or acceded to.
Article 34.
The preferences given to the domestic and foreign organizations and individuals producing or trading goods or services in Nhon Hoi EZ in accordance with this Regulation shall be allowed to apply to domestic and foreign organizations and individuals who have produced or traded goods or services in the area of Nhon Hoi EZ before the date of issuance of this Regulation for the remaining preferential duration as from the date of validity of this Regulation.
PRIME MINISTER
(Signed and sealed)
Phan Van Khai