Quyết định 11/2005/QD-TTg

Decision No.11/2005/QD-TTg of the Prime Minister of Government, promulgating the Regulation on Lao Bao special trade-economic zone, Quang Tri province

Nội dung toàn văn Decision No.11/2005/QD-TTg of the Prime Minister of Government, promulgating the Regulation on Lao Bao special trade-economic zone, Quang Tri province


THE PRIME MINISTER OF GOVERNMENT
 -------

SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
----------

No.11/2005/QD-TTg

Hanoi, January 12, 2005

DECISION

PROMULGATING THE REGULATION ON LAO BAO SPECIAL TRADE-ECONOMIC ZONE, QUANG TRI PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Agreement on Economic, Cultural, Scientific and Technical Cooperation between the Government of the Socialist Republic of Vietnam and the Government of the Lao People’s Democratic Republic for the 1996-2000 period and subsequent years;
At the proposal of the Minister of Trade and the President of the People’s Committee of Quang Tri province,

DECIDES:

Article 1. To issue together with this Decision the Regulation on Lao Bao special trade-economic zone, Quang Tri province.

Article 2. This Decision takes effect 15 days after its publication in the CONG BAO and replaces the Prime Minister's Decision No. 219/1998/QD-TTg dated November 12, 1998 and Decision No. 08/2002/QD-TTg dated January 11, 2002 promulgating the Regulation on Lao Bao economic and trade development encouragement zone, Quang Tri province.

Article 3. The Ministers of Trade; Defense; Planning and Investment; Finance; Transport; Construction; and Public Security, the other ministers, the heads of the ministerial-level agencies, the heads of the Government-attached agencies and the President of the People's Committee of Quang Tri province shall have to implement this Decision.

 

PRIME MINISTER




Phan Van Khai

REGULATION

ON LAO BAO SPECIAL TRADE - ECONOMIC ZONE
(Issued together with the Prime Minister’s Decision No. 11/2005/QD-TTg dated January 12, 2005)

Chapter I

GENERAL PROVISIONS

Article 1. Regulation scope

This Regulation provides for the import and export of goods and services; the entry, exit, residence and travel; the preferential investment, construction and tax policies and other relevant matters in Lao Bao special trade-economic zone, hereinafter referred to as Lao Bao TEZ for short.

Article 2. Application subjects

This Regulation applies to:

1. Organizations and individuals conducting business activities in Lao Bao TEZ;

2. Individuals residing and traveling in Lao Bao TEZ.

Article 3. Geographical boundary of Lao Bao TEZ

Lao Bao TEZ is a region which has its geographical boundary determined to be within the national territory and sovereignty, but constitutes a separate trade-economic space, encompassing Lao Bao and Khe Sanh district towns and the communes of Tan Thanh, Tan Long, Tan Lien, Tan Lap and Tan Hop of Huong Hoa district, Quang Tri province.

Article 4. Objectives of the establishment of Lao Bao TEZ

Lao Bao TEZ is set up in order to:

1. Further enhance economic and trade cooperation between the Socialist Republic of Vietnam and the Lao People's Democratic Republic as well as other neighboring countries;

2. Exploit economic interests through regional cooperation mechanisms so as to boost socio-economic development in Central Vietnam and contribute to the development and international economic integration of the whole country.

3. Experimentally apply a number of new economic management mechanisms pending the application thereof nationwide when conditions permit;

4. Create an attractive environment for foreign investment; exploit to the utmost the existing advantages; develop production and services of all types; speed up export and expand markets.

5. Generate jobs and boost the training and raising of quality of human resources.

6. Build a mountainous urban center, create a motive-force economic zone and contribute to speeding up economic restructuring in Quang Tri province.

Article 5. Encouragement and protection policies

The Government of the Socialist Republic of Vietnam encourages and protects the legitimate rights and interests of domestic and foreign investors that invest and/or do business in Lao Bao TEZ in the domains of urban and infrastructure development investment; industrial development; goods trading, service provision and other business activities in accordance with the provisions of Vietnam's laws and international treaties which Vietnam has signed or acceded to.

Article 6. Rights of organizations and individuals that invest and/or do business in Lao Bao TEZ.

Organizations and individuals that invest and/or do business in Lao Bao TEZ, apart from their entitlements prescribed by Vietnam's laws and international treaties which Vietnam has signed or acceded to, shall also have the rights to:

1. Enjoy preferences prescribed in this Regulation;

2. Use infrastructure and public-utility works as well as common services for Lao Bao TEZ such as traffic roads, technical infrastructure system, lighting electricity, water and electricity supply, communications and information at charges agreed upon with enterprises dealing in infrastructure.

3. Transfer land-use rights and/or assets attached to land within land-lease or – sublease duration in accordance with law provisions and the land-use purposes of invested projects. In cases where there is any change in the projects' initial investment purposes, the transfer of land-use rights and/or assets attached to land shall be effected only after it is approved by competent agencies.

4. Mortgage the land-use right value and/or assets attached to land within the land-lease or - sublease duration at Vietnamese or international credit institutions operating in Vietnam according to current provisions of Vietnam's laws.

Article 7. Capital sources for development of Lao Bao TEZ

1. Lao Bao TEZ shall be developed with the following main capital sources:

a/ The State budget capital apportioned within the annual budget estimates provided as target support for the construction of important works and infrastructure necessary for the operation of Lao Bao TEZ;

b/ The State's development investment credit capital;

c/ Capital of domestic enterprises and population through direct investment projects, issuance of project bonds, advance capital of subjects wishing to use infrastructures and capital in the form of co-financing credit;

d/ Foreign capital, including foreign direct investment, covering the forms of build-operate-transfer (BOT), build-transfer (BT), build-transfer-operate (BTO); capital of credit institutions; capital of foreign organizations and individuals.

2. Technical and social infrastructure works of Lao Bao TEZ shall be included in the List of projects calling for official development assistance (ODA) capital.

Chapter II

GOODS AND SERVICE IMPORT AND EXPORT

Article 8. Exchange of goods and services between Lao Bao TEZ and domestic market

1. The relations of goods and service exchange between Lao Bao TEZ and domestic market shall be considered import-export relations;

2. At the border-gate between Lao Bao TEZ and the inland, there shall be a customs office to perform goods inspection and supervision according to current law provisions.

Article 9. Customs procedures at Lao Bao TEZ

1. Goods banned from import and/or export and goods in service of national security, when being introduced into Lao Bao TEZ from foreign countries and vice versa via the border-gate between Lao Bao TEZ and Laos, shall be subject to the customs office's supervision;

2. Goods, transport means, luggage and foreign exchange brought into Lao Bao TEZ from the inland and vice versa via the border-gate between Lao Bao TEZ and the inland must go through all customs procedures and be subject to the customs office's inspection and supervision according to current provisions of Vietnam's legislation on export and import goods;

3. Farm produce turned out by residents and goods produced and/or processed in Lao Bao TEZ without using raw materials or components imported from foreign countries, when being imported into Vietnam's inland, shall be exempt from customs procedures;

4. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the People's Committee of Quang Tri province in, providing detailed guidance on customs procedures at Lao Bao TEZ, ensuring that the customs clearance procedures are clear and convenient, thus meeting requirements for production and business investment of Lao Bao TEZ.

Article 10. Import and export at Lao Bao TEZ

1. Organizations and individuals doing business in Lao Bao TEZ may import and export goods of all categories, except goods on the list of those banned from import and/or export as provided for by Vietnam's laws;

2. The import and export of goods on Vietnam's list of those banned from import and/or export but not on Laos' list or international lists must be permitted by the Prime Minister.

3. The import and export of goods on the list of those subject to conditional import and/or export or restricted business shall be carried out under the guidance of the Ministry of Trade.

Article 11. Processing, temporary import for re-export, transshipment, transit and transportation at Lao Bao TEZ

1. Goods processed, temporarily imported for re-export and transshipped in, or transiting through, Lao Bao TEZ shall comply with current provisions of Vietnam's laws on processing, temporary import for re-export, transshipment and transit as well as international treaties which Vietnam has signed or acceded to;

2. The transportation of goods between Lao Bao TEZ and Lao trade-economic zones as well as Laos shall comply with relevant agreements concluded between the Vietnamese Government and the Lao Government as well as current regulations of each country.

Article 12. Goods banned from circulation in Lao Bao TEZ

Goods on the following lists are banned from circulation in Lao Bao TEZ:

1. Goods banned from import and/or export according to Vietnam's laws;

2. Goods banned from circulation according to Vietnam's laws.

Article 13. Goods managed under separate regulations

Goods managed under separate regulations in Lao Bao TEZ include:

1. Gifts;

2. Removed assets;

3. Appliances of diplomatic missions or international organizations currently operating in Vietnam as well as luggage of people entitled to diplomatic immunity.

Chapter III

ENTRY, EXIT, RESIDENCE, TRAVEL

Article 14. Entry and exit of Lao citizens residing in provinces bordering on Quang Tri province

1. Citizens of the Lao People's Democratic Republic (hereinafter called Lao citizens for short), who reside in provinces bordering on Quang Tri province, shall be allowed to travel in and out of Lao Bao TEZ with their border identity cards or border laisser-passers, issued by Lao competent agencies. The temporary residence duration in Lao Bao TEZ must not exceed 07 days.

2. In cases where the above-stated Lao citizens are invited by agencies or organizations based in Quang Tri province to travel to other places in Quang Tri province, the inviting agencies or organizations shall have to send written requests to Quang Tri province's Police Department for the issuance of travel permits. A travel permit is only valid for single travel for no more than 05 days and shall not be extended.

Article 15. Entry into, exit from, residence and temporary residence in Lao Bao TEZ

1. Foreigners and overseas Vietnamese entering Lao Bao TEZ for market study, work or investment and business activities and members of their families shall be granted multiple visas for durations suitable to their working, investment and business periods in Lao Bao TEZ according to the provisions of Vietnam's legislation on entry and exit;

2. The residence and temporary residence in Lao Bao TEZ shall comply with the regulations of Quang Tri province's Police Department;

3. The Ministry of Public Security shall guide Quang Tri province's Police Department to implement the provisions of Clause 1 and Clause 2 of this Article.

Article 16. Vietnamese citizens' travel in and out of Lao Bao TEZ

1. Vietnamese citizens shall be free to enter and exit Lao Bao TEZ via designated border-gates.

2. In cases where Vietnamese citizens go abroad through Lao Bao TEZ, they must strictly comply with Vietnam's legislation on entry and exit.

Article 17. Registration of motorized vehicles at Lao Bao TEZ

1. Motorized transport means of organizations and individuals that are engaged in investment and/or business activities and have their head-offices officially registered at Lao Bao TEZ shall be registered with number plates exclusively used for Lao Bao TEZ;

The Ministry of Public Security shall guide the registration and grant of number plates and management of motorized transport means according to this provision;

2. In cases where motorized transport means registered with Lao Bao TEZ number plates circulate outside Lao Bao TEZ, they shall be subject to the management by competent police offices like foreign motorized transport means transiting Vietnam. All cases where vehicles bearing Lao Bao TEZ number plates illegally circulate outside Lao Bao TEZ shall be handled according to law provisions.

3. In cases where motorized transport means registered with Lao Bao TEZ number plates are sold into the inland, the sale thereof must comply with Vietnam's current regulations on goods import and tax must be fully paid as prescribed by laws;

4. Motorized vehicles with right-wheel drive are permitted to travel in and out of Lao Bao TEZ for cargo and passenger transportation between Lao Bao TEZ and Laos as well as other neighboring countries; when means of such type enter Vietnam's inland, they must comply with international treaties which Vietnam has signed or acceded to.

Chapter IV

PREFERENTIAL POLICIES

Article 18. Investment preferences

1. Foreign-direct investment projects and domestic investment projects in Lao Bao TEZ shall be approved according to the process of registration for granting investment licenses.

2. All investment projects in Lao Bao TEZ shall enjoy maximum preferences applicable to geographical areas meeting with particular socio-economic difficulties according to the provisions of the 1996 Law on Foreign Investment in Vietnam, the 2000 Law Amending and Supplementing a Number of Articles of the Law on Foreign Investment in Vietnam, the 1998 Law on Domestic Investment Promotion (amended), the Value Added Tax Law, the Law on Special Consumption Tax, the 2003 Law on Enterprise Income Tax and other preferences under international treaties which Vietnam has signed or acceded to. In cases where legal documents provide for different preferential levels for one case, the highest preferential level shall apply.

3. Lao Bao TEZ shall enjoy infrastructure construction investment preferences like border-gate economic zones;

4. Organizations and individuals that have merits in calling for investment capital from capital sources other than the State budget for investment in socio- economic works in Lao Bao TEZ shall enjoy a certain commission amount allocated from the local budget according to the regulations of the Ministry of Finance after the investment projects are put into operation and turn out products for circulation on domestic and overseas markets.

Article 19. Geographical area-based preferences

Trade and service activities in Lao Bao TEZ shall be entitled to preferences under policies on economic development in mountainous regions, offshore islands, deep-lying and remote areas and ethnic minority regions according to the Government's current regulations.

Article 20. Preferences on enterprise income tax

Investment projects in Lao Bao TEZ shall enjoy exemption of enterprise income tax for 04 years after taxable incomes are generated, a 50% reduction of the payable tax amounts for the subsequent 9 years, and the tax rate of 10% for the following years.

Article 21. Preferences on personal income tax

People working in Lao Bao TEZ, who are payers of personal income tax according to law provisions, shall enjoy a 50% reduction of the payable tax amounts.

Article 22. Preferences on value added tax and special consumption tax

1. Goods and services produced and/or consumed in Lao Bao TEZ and goods and services imported from foreign countries into Lao Bao TEZ shall not be subject to value added tax;

2. Goods and services brought from Vietnam's inland into Lao Bao TEZ shall enjoy the value added tax rate of 0%; goods and services brought from Lao Bao TEZ into Vietnam's inland for consumption shall be subject to value added tax as prescribed by laws;

3. Goods and services subject to special consumption tax, which are produced and consumed in Lao Bao TEZ, and goods and services subject to special consumption tax, which are imported from foreign countries into Lao Bao TEZ, shall not be subject to special consumption tax;

4. Goods and services subject to special consumption tax brought from Lao Bao TEZ into Vietnam's inland shall be subject to special consumption tax as prescribed by laws.

Article 23. Preferences on import tax and export tax

1. Goods originating from Vietnam's inland and goods imported into Lao Bao TEZ from foreign countries shall be exempt from import tax and export tax;

2. Goods produced, processed, recycled or assembled in Lao Bao TEZ, when being exported to foreign countries, shall be exempt from export tax;

3. For goods produced, processed, recycled or assembled in Lao Bao TEZ with the use of raw materials and/or components imported from foreign countries, when being imported into Vietnam's inland, the import tax shall be paid only for the part of imported raw materials and/or components constituting such goods; in cases where raw materials and/or components imported from foreign countries are not used, when such goods are imported into Vietnam's inland, the import tax shall not be paid.

4. Goods originating from Laos, which are imported into Vietnam's inland from Lao Bao TEZ, shall enjoy the import tax reduction according to Vietnam's current law provisions and the international treaties signed between the two Governments;

5. Domestic and foreign tourists, when entering Lao Bao TEZ, may purchase duty-free goods (goods outside the list of those banned from import) to bring inland with a value not exceeding VND 500,000/person/entry/day. If the goods value exceeds VND 500,000, goods owners must pay import tax for the excessive amounts according to Vietnam's law provisions.

Article 24. Credit preferences

Enterprises of all economic sectors, engaged in investment, production and/or business activities in Lao Bao TEZ, shall be considered for State credit loans by the Development Assistance Fund according to the Vietnamese Government's current regulations on the State's development investment credit.

Article 25. Transfer of business losses

Organizations and individuals engaged in goods production and/or trading, or service provision, foreign-invested enterprises and foreign parties to business cooperation contracts operating in Lao Bao TEZ, that, after making the final settlement with tax offices, suffer from losses, shall be allowed to carry forward such losses to the subsequent years, and these loss amounts shall be deducted from their taxable incomes. The loss-carrying duration shall not exceed 05 years.

Article 26. Preferences on land and dwelling houses

1. Organizations and individuals that have investment projects in Lao Bao TEZ shall be exempt from land rents for the first 11 years as from the date of signing land-lease contracts and, from the 12th year on, enjoy the land rents equal to 30% of the rents applicable to mountainous districts of Quang Tri province;

2. Vietnamese, overseas Vietnamese, foreigners residing in Vietnam and foreign investors may invest in building dwelling houses for sale or lease; invest in building infrastructure for lease or transfer the right to use land on which infrastructures have been built, and buy dwelling houses in Lao Bao TEZ according to law provisions;

3. The whole acreage of land and water surface already planned for investment in the development of Lao Bao TEZ shall be assigned in the lump to Lao Bao TEZ Management Board. Lao Bao TEZ Management Board shall pay compensation and organize ground clearance according to law provisions for

re-allotting or leasing land to investors. The allotment and lease of land to every specific project shall be decided by Lao Bao TEZ Management Board according to current law provisions, which shall bear responsibility for the efficient use of allotted land and water surface fund. The land rents shall be based on the rent levels issued by the People's Committee of Quang Tri province;

4. Before building works in Lao Bao TEZ, enterprises and organizations must send dossiers of application to Lao Bao TEZ Management Board. Lao Bao TEZ Management Board shall have to reply within 07 working days after receiving complete and valid dossiers; in cases of refusal, it must clearly state the reasons therefor;

The management of construction projects in Lao Bao TEZ shall comply with the State's current regulations.

Chapter V

IMPLEMENTATION OF FINANCIAL- ACCOUNTING REGIMES

Article 27. Implementation of financial- accounting regimes

Organizations and individuals operating in Lao Bao TEZ shall comply with financial-accounting regimes according to Vietnam's current law provisions.

Article 28. Transaction and payment currencies

The sale, purchase, payment, transfer and other transactions between organizations and individuals operating in Lao Bao TEZ shall be made in Vietnam dong, Lao kip and freely convertible foreign currencies as prescribed by Vietnam State Bank.

Chapter VI

STATE MANAGEMENT

Article 29. Lao Bao TEZ Management Board

1. Lao Bao TEZ Management Board shall be set up under the Prime Minister's decision (at the proposals of the President of the People's Committee of Quang Tri province and the Minister of Home Affairs) to perform the uniform and concentrated management overall investment and economic development activities in Lao Bao TEZ;

2. Lao Bao TEZ Management Board is a State management agency which has the legal person status, seal bearing the national emblem, payrolls and operation funds allocated by the State budget and is a main planning unit entitled to separately balance capital construction capital from the State budget source;

3. The head of Lao Bao TEZ Management Board shall be appointed by the Prime Minister. Its deputy heads shall be appointed by the President of the People's Committee of Quang Tri province;

4. The Ministries of Trade; Defense; Public Security; Construction; Transport; Planning and Investment; and Natural Resources and Environment, the General Department of Tourism and concerned agencies shall, within their functions, tasks and powers, coordinate with the People's Committee of Quang Tri province in authorizing and guiding Lao Bao TEZ Management Board to effectively realize the one-door management mechanism on spot.

Article 30. Responsibilities of the People's Committee of Quang Tri province

The People's Committee of Quang Tri province shall have the responsibility:

1. To direct the formulation and submission to the Prime Minister or competent authorities for approval of overall and detailed development plannings and the Charter on operation of Lao Bao TEZ;

2. To direct the management of projects according to approved plannings and authorize Lao Bao TEZ Management Board to approve development investment projects and annual plans on capital construction investment in Lao Bao TEZ;

3. To assume the prime responsibility for, and coordinate with concerned ministries and branches in, organizing the management and administration of operation of Lao Bao TEZ;

4. To direct Lao Bao TEZ Management Board to fulfill the tasks prescribed in this Regulation;

5. To decide on the exemption and/or reduction of land rents and the provision of support in expenses for training laborers in Lao Bao TEZ according to current law provisions;

6. To direct the People's Committee of Huong Hoa district and specialized agencies of the province to coordinate with Lao Bao TEZ Management Board in carrying out measures to ensure security, social order and safety, create favorable conditions for operations of enterprises in Lao Bao TEZ and effectively combat smuggling, dealing in smuggled goods and other illegal trading acts in the province related to the operation of Lao Bao TEZ;

7. To make written agreement with the administration of Laos's Savannakhet province on principles for coordinated management and administration of operation of Lao Bao TEZ and Den Savane trade zone on the basis of current law provisions of each country and in compatibility with the special friendship between the two peoples.

Article 31. Tasks and powers of Lao Bao TEZ Management Board

Lao Bao TEZ Management Board shall perform tasks and powers prescribed for provincial-level Industrial Park Management Boards, Border-Gate Economic Zone Management Boards and the provisions of this Regulation; and have the following tasks and powers:

1. To formulate overall and detailed development plannings and the Charter on operation of Lao Bao TEZ for the People's Committee of Quang Tri province to submit them to the Prime Minister or competent authorities for approval and organize the implementation thereof according to approved plannings;

2. To make lists of investment projects and annual capital construction investment plans for submission to competent authorities for approval and organize the implementation thereof;

3. To grant and withdraw business registration certificates, investment licenses, licenses for establishment of representative offices and branches of foreign traders or tourist enterprises, investment preferences certificates, goods origin certificates and other certificates according to authorization of competent State agencies in Lao Bao TEZ;

4. To allot or lease land and water surface to investors for the implementation of investment projects according to current law provisions;

5. To formulate and submit price, charge and fee brackets to competent State agencies for promulgation and implementation in Lao Bao TEZ according to current law provisions;

6. To act as a main unit in settling issues arising in the course of formulating and implementing projects on investment, business and operation in Lao Bao TEZ;

7. To assume the prime responsibility for, and coordinate with local administrations and concerned agencies in, ensuring that all activities in Lao Bao TEZ are carried out in accordance with this Regulation and the Charter on operation of Lao Bao TEZ;

8. To perform tasks of managing and using investment sources in Lao Bao TEZ, manage projects funded with the State budget capital in Lao Bao TEZ in strict accordance with regulations;

9. To organize, deploy, recommend, negotiate and promote trade, investment and tourism at home and abroad;

10. To coordinate with Den Savane Trade Zone Management Board (the Lao People's Democratic Republic) so as to ensure that these two trade-economic zones are developed in strict accordance with current agreements between the Socialist Republic of Vietnam and the Lao People's Democratic Republic as well as current agreements between Quang Tri province and Savannakhet province.

Article 32. Coordination in State management in Lao Bao TEZ

The concerned ministries and agencies shall perform the functions of State management over Lao Bao TEZ and authorize Lao Bao TEZ Management Board to perform functions and tasks under their competence in the fields of investment, construction, planning, natural resources and environment management, urban management and development, labor management, import- export and some other domains according to law provisions and this Regulation.

For domains where Lao Bao TEZ Management Board is not authorized, the ministries, branches and People's Committee of Quang Tri province shall perform the functions of State management over Lao Bao TEZ by organizing their attached units in Lao Bao TEZ in order to perform their tasks and exercise their powers, aiming to create favorable conditions for operation of investors and enterprises in Lao Bao TEZ.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 33. Implementation organization

1. Other provisions related to operation of organizations and individuals in Lao Bao TEZ not provided for in this Regulation shall comply with equivalent provisions of the Commercial Law, the Law on Foreign Investment in Vietnam, the Law on Domestic Investment Promotion, the Enterprise Law, the Land Law, other legal documents and international treaties which Vietnam has signed or acceded to.

2. In cases where the National Assembly, the National Assembly Standing Committee, the Government or the Prime Minister issues legal documents providing for higher preferences, such preferences shall automatically apply to Lao Bao TEZ.

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        Decision No.11/2005/QD-TTg of the Prime Minister of Government, promulgating the Regulation on Lao Bao special trade-economic zone, Quang Tri province
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        Lĩnh vựcDoanh nghiệp, Đầu tư
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