Quyết định 1099/QD-UBND

DECISION

POLICIES ON INVESTMENT INCENTIVES AND ASSISTANCE IN QUANG TRI PROVINCE

THE PEOPLE’S COMMITTEE OF QUANG TRI PROVINCE

Pursuant to the Law on Organization of the People’s Councils and the People’s Committees dated November 26, 2003;

Pursuant to the Law on Investment dated November 29, 2005;

Pursuant to the Law on Enterprises dated November 29, 2005;

Pursuant to the Government's Decree No. 108/2006/ND-CP dated September 22, 2006 on guidelines for some Article of the Law on Investment;

Pursuant to the Government's Decree No. 88/2006/ND-CP dated August 29, 2006 on business registration;

Pursuant to the Decree No. ND 24/2007/ND-CP dated February 14, 2007 on guidelines for the Law on Corporate income tax;

Pursuant to the Government's Decree No. 198/2004/ND-CP dated December 03, 2004 on collection of land levies and the Government's Decree No. 44/2008/ND-CP dated April 09, 2004 on amendments to Decree No. 198/2004/ND-CP;

Pursuant to the Government's Decree No. 142/2005/ND-CP dated November 14, 2005 on collection of land rents and water surface rents;

Pursuant to the Government's Decree No. 149/2005/ND-CP dated December 08, 2005 on guidelines for the Law on Export and import tax;

Pursuant to Resolution No. 03/2009/HĐND dated April 24, 2009 of the People’s Council of Quang Tri province;

At the request of Director of the Department of Planning and Investment or Quang Tri province,

DECIDES:

Article 1. Regulation on policies on investment incentives and assistance in Quang Tri province is promulgated together with this Decision.

Article 2. This Decision comes into force after 10 days from the day on which it is signed and replaces Decision no. 984/2005/QD-UBND dated May 25, 2005 of the People’s Committee of Quang Tri province on investment incentives in Quang Tri province

Article 3. Chief of Office of the People’s Committee of Quang Tri province, Departments and agencies of Quang Tri province, Presidents of the People’s Committees of districts, Director of Electricity Corporation of Quang Tri province, Directors of enterprises in Quang Tri province are responsible for the implementation of this Decision./.

REGULATION

POLICIES ON INVESTMENT INCENTIVES AND ASSISTANCE IN QUANG TRI PROVINCE

(Promulgated together with Decision No. 1099/QD-UBND dated June 08, 2009 of the People’s Council of Quang Tri province)

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. This document applies to Vietnamese and foreign investors who have projects of investment in Quang Tri province under the Law on Investment, organizations and individuals (hereinafter referred to as entities) involved in investment in Quang Tri province.

2. Projects of investment within Quang Tri province according to approved planning; The levels of incentives vary according to the fields and areas according to the investment incentive and assistance framework prescribed by law.

3. Apart from the benefits prescribed by the Government, projects of investment in industrial parks and Lao Bao Special Economic Zone are also eligible for investment incentives and assistance if the conditions in this document are satisfied.

4. Apart from the incentive policies prescribed by legislative documents of superior authorities, Quang Tri province only provide investment incentives and assistance in certain fields and areas in which investment is needed.

Article 2. Investment assurance.

Funding for investment incentives and assistance shall be provided after the project is put into operation. In case changes to policies investment incentives of Quang Tri province affect the lawful interest of the project, the project will receive the incentives and assistance written on the certificate of investment issued.

Article 3. List of fields eligible for investment incentives and assistance

Investors having projects of investment in the following fields within Quang Tri province are eligible for investment incentives and assistance:

1. Building material industry: construction of cement factories; new energy and renewable energy, information technology (software production, production of computers, telecommunication devices); wastewater treatment, pollutant treatment, and environment protection; manufacturing engineering (cars, ships, agriculture machinery, mechatronics, integrated equipment); chemical industry (basic chemicals, fertilizers, petrochemicals, pharmacy, cosmetics).

2. Infrastructure: investment in infrastructure of industrial complexes, trade villages, traffic works, postal and telecommunication infrastructure.

3. Processing of agriculture, forestry, and aquaculture products: processing of aquaculture products for export, products from rubber and coffee, production of traditional handicraft products for export such as brocade, wooden handicrafts, bamboo and rattan products.

4. Education, healthcare, sports, and traditional culture: construction of vocational training institutions, private schools, private hospitals, ecotourism establishments, parks having sports and entertainment activities.

5. Other services: investment in apartment buildings for workers in industrial parks, economic zones, transport service centers.

Article 4. Areas eligible for investment incentives and assistance

1. Disadvantaged areas: Hai Lang district, Trieu Phong district, Cam Lo district, Gio Linh district, Vinh Linh district.

2. Extremely disadvantaged areas: Huong Hoa district, Dakrong district, Con Co district (after the government issues a Decision to recognize it as an extremely disadvantaged area).

Chapter II

INCENTIVES AND ASSISTANCE IN QUANG TRI PROVINCE

Article 5. Land incentives

1. In Huong Hoa district and Dakrong district, annual land rents are 0.3% of annual land rents imposed by the People’s Committee of Quang Tri province.

2. In the plain and midland including Hai Lang district, Trieu Phong district, Cam Lo district, Gio Linh district, and Vinh Linh district, annual land rents re 0.45%; in mountainous communes of Cam Lo district, Gio Linh district, and Vinh Linh district, annual land rents are 0.3% of annual land rents imposed by the People’s Committee of Quang Tri province.

3. In Dong Ha district and Quang Tri town, annual lands rent are 0.45% of annual land rent imposed by the People’s Committee of Quang Tri province.

Article 6. Assistance in vocational training

Investors who hire at least 30 employees who have had permanent residences in Quang Tri province for at least 01 years, attend training courses at vocational training institutions inside and outside Quang Tri province, issued with basic vocational diplomas or higher, and have employment contracts with enterprises shall receive subsidies for training costs at VND 500,000 for each employee having basic vocational diploma and VND 1,000,000 for each employee having an intermediate vocational diploma or high-tech vocational diploma.

Every investor who wishes to receive subsidies must compile and send a list enclosed with documents to the Department of Labor, War Invalids and Social Affairs of Quang Tri province.

Article 7. Assistance in essential infrastructure outside the perimeters of projects

Projects that satisfy the conditions in Clause 1 and Clause 2 below shall receive subsidies for construction of essential infrastructure such as electricity, water supply, traffic works, communication works up to their perimeters.

1. For projects with investment of at least VND 50 billion:

1.1. Traffic: The state budget of Quang Tri province shall provide subsidies of up to VND 3 billion for construction of roads to the perimeter of projects according to designs, cost estimations, and financial statements approved by competent authorities  

1.2. Electricity system: Electricity Corporation of Quang Tri province shall invest in electricity system to perimeter of the projects on a case-by-case basis. Depending on the load of each project, electricity authority may even invest in low-voltage part and countering systems to sell electricity. Investors who invest in the electricity system themselves shall be given an incentive in the form of concessional interest rates for 03 years. However, this incentive shall not exceed VND 1 billion.

1.3. Water supply system: Quang Tri Water Supply and Construction Co. Ltd shall invest in water supply to perimeter of projects within the water supply network of the province. Investors who invest in water supply for projects outside the water supply network of the province system themselves shall be given an incentive in the form of concessional interest rates for 03 years. However, this incentive shall not exceed VND 1 billion.

1.4. Communications: Telecommunications Company shall invest in each specific project and is ready to satisfy demand for communications of investors.

1.5. Assistance in investment in environmental protection: Subsidy for sustainable and long-term environmental remediation protection systems (wastewater, exhaust gas, and other wastes) is 50% of total investment but not exceeding VND 1 billion.

2. With regard to projects that annually pay at least VND 15 billion to the budget of Quang Tri province, the People’s Committee of Quang Tri province shall request the People’s Council of the province to decide the specific level of investment assistance on a case-by-case basis.

Article 8. Assistance in land clearance

The People’s Committees of districts shall direct Land Clearance Councils of districts and relevant agencies to assist investors in following procedures for land clearance and compensation to commence their projects.

The costs of land clearance is primarily incurred by investors; the People’s Committee of Quang Tri province may request Standing Committee of the People’s Council to provide subsidies on land clearance costs depending on the characteristics and location of each project.

Chapter III

IMPLEMENTATION

Article 9. Assisting investors in making and commencing their projects

Agencies and local governments shall provide instructions and assists investors in following administrative procedures for investment. To be specific:

1. The Department of Planning and Investment:

Provide consultancy for the People’s Committee of the province on the following issues:

- Consult with other Departments and agencies, carry out preliminary assessment within 7 working days, and submit the investment policies to the People’s Committee of the province for decision;

- Receive applications for investment policies and applications for certificate of investment; instruct investors to follow necessary procedures for issuance of certificates of investment and execution of projects at other Departments and agencies (except for projects of investment in industrial parks, Lao Bao Special Economic Zone, tourist resorts);

- Assess the project of investment (if any) within 10 working days and request the People’s Committee of the province to consider issuing the certificate of investment;

- Monitor the implementation of this document; cooperate with relevant Departments and local agencies in resolving difficulties that arise during the course of implementation, report the cases beyond its competence and issues in dispute to the People’s Committee of the province for consideration.

2. Department of Natural Resources and Environment:

- Directly provide instructions and carry out procedures for use of mineral resources, land withdrawal, land allocation, land lease, issuance of certificate of land use rights, and environmental impact assessment;

- Take charge and cooperate with relevant Departments and local agencies in imposing annual land rents.

3. Department of Construction:

Directly provide instructions and carry out procedures for construction, including: planning certificates, assessment and approval for fundamental design, detailed planning, license for construction.

4. Department of Finance:

Determine land rents for FDI projects and domestic projects invested by organizations; Determine value of compensation and assistance in relocation. Provide instructions and carry out procedures for paying the costs of incentives and assistance prescribed by this document.

Plan annual budgets to implement policies on investment incentives in the province; provide guidance on payment for investors eligible for such incentives.

5. Department of Science and Technology:

Directly provide instructions and resolve issues related to science and technology for projects of investment to conform to applicable regulations.

6. Department of Labor, War Invalids and Social Affairs:

Manage issues pertaining to employment, benefits of employees; instruct investors to compile documents to receive assistance in vocational training.

7. Management boards of tourist resorts and industrial parks in Quang Tri province:

Directly instruct investors who have projects of investment in tourist resorts and industrial parks of Quang Tri province to follow procedures.

8. The People’s Committees of districts:

- Announce and manage approved planning; propose land areas related to projects in their districts;

- Instruct communes, villages to follow procedures for adjusting planning and use land according to internal democracy regulations within 10 days from the day on which investment policies are available. Organize compensation and relocation;

- Cooperate with other Departments in compensation, land clearance; issue certificates of planning, licenses for construction; determine land rents for projects under their management; assist investors under their management during the execution of projects and investment procedures;

- With regard to domestic projects whose investment is below VND 15 billion and not on the List of conditional fields, the People’s Committees of districts shall carry on procedures for approving investment.

9. Other Departments and agencies

Carry on necessary procedures to facilitate execution of investors’ projects.

Article 10. Assistance in information provision

The People’s Committees of Quang Tri province, Departments, agencies, and the People’s Committees of districts shall provide information about surveys, designs, compilation of project documents for investors free of charge.

Article 11. Time limit for issuing certificate of investment, land allocation, land lease

The People’s Committee of Quang Tri province, relevant Departments and local governments shall focus on completing procedures for issuance of certificates of investment, land allocation, and land lease as quickly as possible after receiving satisfactory documents.

Article 12. Responsibilities of investors

Every investor who wishes to receive investment incentives and assistance must follow effective procedures for investment infrastructural development. Investor shall determine the incentives and assistance to which they are entitled according to conditions for investment incentives prescribed by the State and this document. Investors shall follow procedures for receiving incentives and assistance at competent authorities of Quang Tri province.

Investors must execute their projects on schedule. If main items of a project are not commenced within 01 year from the issuance date of the certificate of investment, the certificate will be invalidated.

Chapter IV

IMPLEMENTATION

Article 13. Directors of Departments and other agencies of Quang Tri province; Presidents of the People’s Committees of districts, within the ambit of their competence and duties, have the responsibility to implement and instruct investors to implement this document.

The policies on incentives and assistance in this document apply to new projects of investment from its effective date./.