Quyết định 69/2009/QD-TTg

DECISION

ESTABLISHING DINH AN ECONOMIC ZONE, IRA VINH PROVINCE, AND PROMULGATING ITS OPERATION REGULATION

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Government's Decree No. 108/ 2006/ND-CP of September 22, 2006, detailing and guiding the Investment Law;
Pursuant to the Government's Decree No. 29/ 2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones;
At the proposal of the Minister of Planning and Investment and the president of the People's Committee of Tra Vinh province.

DECISIONS

Article 1. To establish Dinh An economic zone. Tra Vinh province, with an area of 15.403.7 ha in the first phase.

Article 2. To promulgate together with this Decision the Operation Regulation of Dinh An economic zone. Tra Vinh province.

Article 3. This Decision takes effect on June 22, 2009.

Article 4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and the president of the People's Committee of Tra Vinh province shall implement this Decision.

OPERATION REGULATION

OF DINH AN ECONOMIC ZONE, TRA VINH PROVINCE
(Promulgated together with the Prime Ministers Decision No. 69/2009/QD-TTg of April 27, 2009)

Chapter 1

GENERAL PROVISIONS

Article 1. This Regulation provides for the development scope, scale and objectives, the organization and operation of, and specific mechanisms and policies for, Dinh An economic zone. Tra Vinh province (below referred to as Dinh An EZ).

Article 2.

1. Dinh An EZ. a delimited geographical area within the national territory and under the national sovereignty, is a separate economic space with a favorable and equal investment and business environment, covering functional sub-zones, socio-technical infrastructure facilities and public service and utility facilities. It applies stable and long-term incentive policies and favorable management mechanisms helping investors feel secure in developing the production and trade in goods and the provision of services within an increasingly improved legal framework.

2. Dinh An EZ embraces communes and villages south of road 914 in Tra Cu and Duyen Hai districts, including Dinh An commune, villages west of national highway 53 and south of provincial road 914 of Ham Tan and Dai An communes, and villages south of provincial road 914 of Don Chau and Don Xuan communes (Tra Cu district), villages of Ngu Lac and Truong Long Hoa communes, and the whole of Long Vinh, Long Khanh. Dong Hai, Dan Thanh and Long Toan communes and Duyen Hai township of Duyen Hai district. The EZ's total area is 39,020 ha.

In the first phase, the EZ has an area of 15,403.7 ha, embracing land areas south of provincial road 914 and north and east of Quan Chanh Bo canal, including Dinh An commune, villages west of national highway 53 and south of provincial road 914 of Dai An and Ham Giang communes, and villages south of provincial road 914 of Don Chau and Don Xuan communes (Tra Cu district), villages south of provincial road 914 of Ngu Lac, Dan Thanh, Long Toan and Truong Long Hoa communes, and Duyen Hai township, of Duyen Hai district.

Article 3. Dinh An EZ's major development objectives:

1. To tap to the utmost advantages in natural conditions and the economic, political and geographical location in domestic and international trading and services, and promote the socio­economic development of Tra Vinh province, coastal areas and the entire Mekong River delta, contributing to narrowing the gap between this region and other regions in the country.

2. To build and develop Dinh An EZ with key industries associating the sea with power production, steel refinement, petrochemistry, shipbuilding and other allied industries; to develop a tourist site with unique tourist products, port economy, a port-linked non-tariff sub-zone and an urban residential zone.

3. To generate jobs, train, and improve the quality of, human resources, and increase laborer incomes.

4. The first phase's objectives are to implement basic infrastructure facilities and develop branches and domains on an area of 15,403.7 ha. Specifically, to build channels for large-tonnage ships to enter Hau river and other traffic works, and infrastructure of industrial parks and other functional sections; to build Bien Dong (East Sea) tourist site under planning; to build and upgrade Duyen Hai township into a town, and Dinh An township, and develop urban residential spots for step by step forming a modem and civilized new urban center suitable to the economic zone; and to build other infrastructure facilities and develop related branches and domains.

5. In subsequent phases, to develop the EZ's other sections to complete its development by 2021 -2030. To step by step restructure the economy in Dinh An EZ and continue building and developing its infrastructure. To implement the detailed planning and further invest in infrastructure construction and production and business activities in the industrial park, tourist site, service center and non-tariff sub-zone.

Article 4. The Government encourages and protects Vietnamese organizations and individuals of all economic sectors and overseas Vietnamese and foreign investors to participate in investment, production and business activities in Dinh An EZ in the areas of commercial operation of infrastructure, industrial development, urban development, seaport, trading, services, tourism, recreation and entertainment, finance-banking, transportation, insurance, education and training, culture, physical training and sports, science and technology, healthcare, housing, i mport and export, and other production and business activities in accordance with Vietnamese law and treaties to which Vietnam is a contracting party.

Chapter 2

SPECIFIC PROVISIONS

Section 1. ORGANIZATION AND OPERATION OF DINH AN EZ

Article 5.

1. Dinh An EZ has two main functional sub-zones: a non-tariff sub-zone and a tariff sub-zone.

- The non-tariff sub-zone is identified in the general construction planning. It is separated from the tariff sub-zone within Dinh An HZ and inland Vietnam by fences with entry/exit gates and doors to ensure the control by concerned functional agencies. Located in the sub-zone is a customs office that inspects, supervises, and carries out customs procedures for. goods brought out of and into the sub-zone. There are neither residential spots nor permanent or temporary residents (even foreigners) in the non-tariff sub-zone.

- The tariff sub-zone is the remaining section of Dinh An EZ that embraces other functional sections, such as Duyen Hai power center, a port and port service section, an industrial park, a tourist, recreation and entertainment resort, a section tor aquaculture and forest, a residential spot, an urban center and an administrative center.

The size and location of each functional section is identified in the Prime Minister-approved general planning on the construction of Dinh An EZ.

2. The Dinh An EZ Management Board may hire foreign consultancy companies to join in formulating detailed plannings on functional sub-zones and sections, such as the urban center, the non-tariff sub-zone, the tourist site and others, in compliance with the general planning on the construction of Dinh An EZ.

Article 6.

The non-tariff sub-zone accommodates the following production and business activities:

1. Transiting, receiving, transshipping and transporting goods from the country abroad and vice versa.

2. Producing, processing, re-processing and assembling imports and exports and goods for consumption within the zone.

3. Trade in goods, including import, export, transportation from or to border gate, temporary import for re-export, distribution, shops and retail department stores.

4. Trade in services, including classification, packaging, transportation, delivery and receipt of goods in transit, preservation, warehousing, bonded warehouses, post and telecommunications, finance, banking, transportation, insurance, recreation and entertainment, and restaurants.

5. Trade promotion, including fairs and exhibitions, showrooms, branches and representative offices of domestic and foreign companies, financial and banking institutions, and other commercial activities.

Article 7.

1. Goods and service exchange relations between the non-tariff sub-zone and foreign parties are regarded as trading and exchange relations between foreign parties. Businesses operating in the non-tariff sub-zone may export abroad and import from abroad all goods and services not banned from import or export under Vietnamese law. Goods imported from abroad into the non-tariff sub-zone or goods exported abroad from the non-tariff sub-zone are not liable to import duty or export duty (except goods mentioned in Clause 2, Article 14 of this Regulation).

2. The duration for goods to be stored in the non-tariff sub-zone is not restricted.

Article 8. Goods brought out of and into the non-tariff sub-zone within Dinh An EZ must comply with the laws on customs and import duty and export duty and state policies on management of imports and exports, and are eligible for the most convenient customs procedures.

Article 9.

1. Goods and service exchange relations between the non-tariff sub-zone and the tariff sub-zone within Dinh An EZ and inland Vietnam are subject to regulations on exchange relations between foreign parties and Vietnam and must comply with the current laws on customs and import duty and export duty.

2. Investors in goods and service production and trading activities in the tariff sub-zone within Dinh An EZ and inland Vietnam may import from the non-tariff sub-zone only goods and services neither banned nor restricted from import under Vietnamese law and sell into the non-tariff sub-zone goods and services not banned from export under Vietnamese law.

Article 10. Foreign investors are allowed to provide international telecommunications services exclusively reserved for Dinh An EZ at charge rates to be decided by themselves according to Vietnam's international integration commitments.

Section 2. USE OF LAND IN DINH AN EZ

Article 11.

1. The People's Committee of Tra Vinh province shall allocate in one-off all land and water surface areas exclusively reserved for building and developing functional sections and the non-tariff sub-zone within Dinh An EZ under the general planning on the construction of Dinh An EZ approved by the Prime Minister and the detailed planning on the construction of functional sections within Dinh An EZ approved by the People's Committee of Tra Vinh province, to the Dinh An EZ Management Board for organizing construction and development The People's Committee of Tra Vinh province shall direct the recovery of land and water surface areas planned for the construction of functional sections within Dinh An EZ.

2. The People's Committee of Tra Vinh province shall direct the recovery of land and water surface areas under the approved detailed land-use plan which are used for the remaining functional sections or for other purposes within Dinh An EZ in order to allocate these areas under the approved detailed land-use plan lo the Dinh An EZ Management Board for organizing the Dinh An EZ construction and development.

3. The People's Committee of Tra Vinh province shall direct the People's Committees of Tra Cu and Duyen Hai districts to collaborate with the Dinh An EZ Management Board in paying ground clearance compensations for the land and water surface areas which have been recovered by competent state agencies for allocation to the Dinh An EZ Management Board for re-allocation or lease under the land law to users and for resettlement of households having land recovered.

The Dinh An EZ Management Board shall manage and efficiently use allocated special-use land and water surface funds for proper purposes according lo the general planning on the construction of Dinh An EZ approved by the Prime Minister and the detailed construction planning as well as land use planning and plans approved by the People's Committee of Tra Vinh province.

4. In case land is re-allocated or leased not through auctioning land use rights or bidding for land-using projects:

Based on land prices and levels of land use levy and land rent exemption or reduction prescribed by the People's Committee of Tra Vinh province and pursuant to the investment and land laws, the Dinh An EZ Management Board shall decide on the level of special-use land and water surface use levy; special-use land and water surface rent; level of exemption or reduction of special-use land and water surface use levy; and level of exemption or reduction of special-use land and water surface rent for each investment project with a view to promoting investment.

5. In case land is re-allocated with land use levy collection or land is leased through auctioning land use rights or bidding for land-using projects:

Based on financial plans and land prices approved by the People's Committee of Tra Vinh province, the Dinh An EZ Management Board shall decide to re-allocate land and lease land and water surface, for which ground clearance compensations have been paid, to users under the land law.

6. Investors being domestic organizations and individuals and overseas Vietnamese may be allocated or leased land. Investors being foreign organizations and individuals may be leased land for implementing investment projects in Dinh An EZand have rights and obligations correspondiiig to the applied form of land allocation or lease under the land law.

Article 12. Before building production and business works, functional sections' mlrastmctuie facilities, technical infrastructure facilities and public service and utility works within Dinh An EZ. investors shall submit permission application dossiers to the Dinh An EZ Management Board under the construction law. Within 7 working days after receiving a complete and valid dossier, the Dinh An EZ Management Board shall examine the dossier, make decision and issue a written reply to investors.

In the course of building works or facilities, any discovered historical-cultural relics shall be handled under the Law on Cultural Heritage.

Article 13. The construction of production and business works, functional sections' infrastructure facilities, technical infrastructure facilities and public service and utility works within Dinh An EZ shall be managed under the construction law.

Section 3.  TAX POLICIES

Article 14.

1. Imports and exports are not liable to import duty or export duty in the following cases:

a/ Goods imported from abroad or other non-tariff zones into the non-tariff sub-zone within Dinh An EZ and used only in the non-tariff sub-zone;

b/ Goods exported abroad from the non-tariff sub-zone;

c/ Goods transferred or sold from the non-tariff sub-zone to another or to export processing enterprises within Vietnamese territory;

d/ Goods not liable to export duty originating from inland Vietnam which are brought into the non-tariff sub-zone (except goods mentioned in Clause 2 of this Article).

2. Export duty-liable goods originating from the tariff sub-zone within Dinh An EZ or inland Vietnam which are brought into the non-tariff sub-zone for export abroad but are not produced, processed, re-processed or assembled into products in the non-tariff sub-zone are liable to export duty.

3. Goods of foreign origin outside the list of goods banned or restricted from import which are imported from the non-tariff sub-zone into the tariff sub-zone within Dinh An EZ or inland Vietnam are liable to import duty.

4. Goods produced, processed, re-processed or assembled from imported raw materials or parts in the non-tariff sub-zone, when being imported into the tariff sub-zone within Dinh An EZ or inland Vietnam, are liable to import duty on the volume of imported raw materials or parts constituting those goods.

Article 15. Goods and services produced and sold in the non-tariff sub-zone and goods and services imported from abroad into the non-tariff sub-zone are not liable to value-added tax. Goods and services brought from inland Vietnam and the tariff sub-zone within Dinh An EZ into the non-tariff sub-zone are eligible for the value-added tax rate of 0%. Goods and services brought from the non-tariff sub-zone into inland Vietnam or the tariff sub-zone within Dinh An EZ are liable to value-added tax under current regulations.

Article 16.

1. Excise tax-liable goods and services produced and sold in the non-tariff sub-zone or imported from abroad into the non-tariff sub-zone are not liable to excise tax (except excise-liable goods under separate provisions of the excise tax law).

2. Excise tax-liable goods and services brought from the non-tariff sub-zone into the tariff sub-zone within Dinh An EZ or inland Vietnam are liable to excise tax.

Article 17. Production raw materials, supplies and goods which are imported from abroad by domestic and foreign organizations or individuals conducting goods and service production and trading activities in the non-tariff sub-zone but have not yet been used up and substandard products of commercial value may be sold into the tariff sub-zone within Dinh An EZ or inland Vietnam after customs procedures have been completed and import duty has been paid under current regulations.

Chapter 3

IMPLEMENTATION PROVISIONS

Article 18. Other provisions related to state management; operation, rights and obligations of domestic and foreign organizations and individuals conducting goods and service production and trading activities and infrastructure construction and commercial operation enterprises; investment support and modes of raising capital for socio-technical infrastructure development; and entry, exit and residence within Dinh An EZ which are not mentioned in this Regulation comply with the Government's Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding the Investment Law, the Government's Decree No. 29/ 2008/ND-CP of March 14, 2008, on industrial parks, export-processing zones and economic zones, relevant provisions of the laws on investment, enterprises, cooperatives, customs, land, construction, trade, labor, environmental protection, and tax, other relevant laws, and treaties to which Vietnam is a contracting party.

Article 19. Domestic organizations and individuals that have conducted goods and service production and trading activities within Dinh An EZ before the promulgation of this Regulation and fully satisfy the prescribed conditions are entitled to incentives for the remaining duration like domestic and foreign organizations and individuals that conduct goods and service production and trading activities within Dinh An EZ under this Regulation.