THE PRIME MINISTER OF GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
No. 102/2006/QD-TTg | Hanoi, May 15, 2006 |
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Political Bureau's Resolution No. 39-NQ/TW of August 16, 2004 on socio-economic development and defense and security maintenance in the northern and coastal Central Vietnam till 2010.
At the proposals of the Minister of Planning and Investment in Report No. 2831/TTr-BKH of April 21, 2006, and of the People's Committee of Thanh Hoa province in Report No. 4628/TTr-UBND of November 9, 2005,
DECIDES:
Article 1.- To establish Nghi Son economic zone in Thanh Hoa province.
Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."
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PRIME MINISTER
Phan Van Khai
ON OPERATION OF NGHI SON ECONOMIC ZONE, THANH HOA PROVINCE
(Promulgated together with the Prime Minister's Decision No. 102/2006/QD-TTg of May 15, 2006)
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2. Nghi Son EZ covers 12 communes of Hai Binh, Xuan Lam, Tinh Hai, Hai Yen, Mai Lam, Hai Thuong, Hai Ha, Nghi Son, True Lam, Truong Lam, Tung Lam, and Tan Truong of Tinh Gia district, Thanh Hoa province, with a total land area of 18,611.8 ha and geographical boundaries determined as follows:
- To the North, it borders on Nguyen Binh and Binh Minn communes (Tinh Gia district);
- To the South, it borders on Quynh Luu district (Nghe An province);
- To the East, it borders on the East Sea;
- To the West, it borders on Nhu Thanh district.
Article 3.- Major development objectives of Nghi Son EZ:
1. To build Nghi Son EZ into a dynamic development zone, a key development point to the South of the northern key economic region, and at the same time a bridge linking northern with central and southern Vietnam, with the markets of southern Laos and northeastern Thailand, creating a motive force to spur the fast socio-economic development of Thanh Hoa and nearby provinces and narrow the development gap between this region and the northern key economic region and the whole country.
2. To build and develop Nghi Son EZ into a multi-sector and multi-domain general economic zone, centering on heavy industry and basic industries such as petrochemical industry, high-grade steel casting and rolling industry, mechanical engineering industry, seagoing ship-building and -repairing industry, power industry, building-material production industry, consumer goods production industry, goods processing industry and exports... in association with the construction and efficient exploitation of Nghi Son seaport. To formulate spearhead products of high quality and competitiveness, high-grade services; to boost export; to expand to regional and world markets.
3. To create more jobs, to boost training and raise the quality of human resources; to step by step form a high-quality human resource training center in the region.
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1. Investors who invest in production and business in Nghi Son EZ shall have the following rights:
a/ To be transferred the rights to use land, rent land, re-rent land with technical infrastructures being built in Nghi Son EZ by enterprises which have invested in the construction and commercial operation of infrastructures under the provisions of land law for the construction of workshops and architectural works in service of goods production and trading as well as service provision;
b/ To rent or purchase pre-constructed workshops, warehouses in Nghi Son EZ in service of goods production and trading and/or service provision under contracts signed with infrastructure-building and -dealing enterprises;
c/ To use with payment technical infrastructures, service and public works in Nghi Son EZ, including systems of traffic roads, seaports, electricity supply, water supply and drainage, information and communications, waste treatment and other general services... under contracts signed with infrastructure-building and -dealing enterprises;
d/ To enjoy investment preferences and other legitimate interests under the provisions of this Regulation and the provisions of investment, land and tax laws and other legal documents of Vietnam and as well as the provisions of treaties to which Vietnam is a contracting party.
2. Investors investing in goods production and trading and/or service provision in Nghi Son EZ shall have the obligations:
a/ To abide by the provisions of this Regulation, the detailed planning on functional quarters, which have been already approved by competent state bodies; to use the assigned, rented or re-rented land for proper purposes;
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c/ To pay land rents, re-rented land rents, money for hiring or purchase of workshops, warehouses, for the use of infrastructures in functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ to infrastructure-building and -dealing enterprises under signed contracts;
d/ To observe the regime of reporting on activities on the monthly, quarterly and annual basis to the Nghi Son EZ Management Board;
e/ To fulfill tax, customs, environmental protection and other obligations according to the provisions of law.
a/ To be leased or allocated land by the Nghi Son EZ Management Board with the collection of land use levies according to the corresponding provisions of land law for construction and commercial operation of all or a number of infrastructures in the functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ;
b/ To be transferred the rights to use land, to lease land, to sublease land on which technical infrastructures have been already constructed in Nghi Son EZ to investors for investment in goods production and trading or service provision in Nghi Son EZ according to the corresponding provisions of land law;
c/ To collect charges for the use of infrastructures in the functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ, which are invested by infrastructure-building and -dealing enterprises under contracts signed with lessees.
d/ To build workshops, warehouses, storing yards in Nghi Son EZ for sale or lease;
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f/ To permit investors, excluding subjects defined at Point d, Clause 4, Article 3 of the Investment Law, that have financial capabilities and experience in calling for investment capital, to rent or re-rent a part or the whole of unleased land areas for sublease and call for investment capital according to the corresponding provisions of land law;
g/ To enjoy investment preferences and other legitimate interests under the provisions of this Regulation and the provisions of investment, land and tax laws as well as other legal documents of Vietnam and the provisions of treaties to which Vietnam has signed or acceded.
2. The enterprises investing in the construction of and dealing in infrastructures in Nghi Son EZ shall have the obligations:
a/ To build infrastructures in the functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ according to the detailed planning, designs and schedules, which have been already approved by competent authorities.
In cases where the land is allocated with the collection of land use levies or leased by the Nghi Son EZ Management Board under the corresponding provisions of land law for execution of investment projects for construction and commercial operation of technical infrastructures, service and public facilities in Nghi Son EZ but is left unused for 12 consecutive months or the land use schedule is 24 months behind the schedule stated in the investment projects, after the land is handed over on the field but the Nghi Son EZ Management Board does not permit the extention, the Nghi Son EZ Management Board shall propose the competent bodies to decide to recover the land without land compensation;
b/ To renovate, maintain infrastructures in the functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ in order to ensure their quality.
c/ To abide by the provisions of this Regulation, the detailed planning on the functional quarters, which have been already approved by competent bodies; to use the allocated or leased land for proper purposes;
d/ To observe the regime of monthly, quarterly and annual reporting to the Nghi Son EZ Management Board;
e/ To fulfill tax, customs and other obligations under the provisions of law.
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ORGANIZATION AND OPERATION OF NGHI SON EZ
2. To ensure the quality of the long-term development planning in compatibility with
requirements of international economic integration, the Nghi Son EZ Management Board is allowed to hire foreign consultancy companies to participate in planning the general ground of Nghi Son EZ along the direction of civilization and modernity.
2. The non-tariff zone is separated from other functional quarters in Nghi Son EZ and inland Vietnam by a system of fencing walls with gates and entrances, ensuring the control by relevant functional bodies. In the non-tariff zone, there is a customs office controlling goods brought in and out. In the non-tariff zone, no people (including foreigners) reside permanently or temporarily.
3. Activities in the non-tariff zone shall cover the following major production and business forms:
a/ Production, processing, re-processing, assembly of export goods, import goods and goods for on-spot consumption;
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c/ Service business (sorting, packing, transportation and forwarding of transit goods, preservation, storage, bonded warehouses, post and telecommunications, finance, banking, transport, insurance, entertainment and recreation, restaurants);
d/ Trade promotion (trade fair and exhibition, product display stores, branches and representative offices of domestic and foreign companies, financial-banking institutions) and other commercial activities.
2. The keeping of goods in the non-tariff zone is not temporally restricted.
3. Foreign ships are allowed to directly enter the non-tariff zone of Nghi Son port for goods loading and unloading, without having to carry out the entry and exit procedures for people but only the procedures for ships at buoy Zero.
2. Investors being domestic or foreign organizations or individuals that invest in goods production and trading or service provision in the tariff zone in Nghi Son EZ and inland Vietnam can only import from the non-tariff zone goods and services not subject to import ban or restriction and sell into the non-tariff zone goods and services not banned from export by Vietnam.
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a/ Goods imported from overseas or from other non-tariff zones into the non-tariff zone in Nghi Son EZ;
b/ Goods exported from the non-tariff zone to foreign countries;
c/ Goods sold from the non-tariff zone to export-processing zones or export processing enterprises in the Vietnamese territory;
d/ Goods not liable to export tax and originating from inland Vietnam, which are brought into the non-tariff zone (except for goods defined in Clause 2 of this Article).
2. Goods liable to export tax and originating from the tariff zone in Nghi Son EZ and inland Vietnam, which are brought into the non-tariff zone for export to foreign countries without going through production, processing, re-processing or assembly into finished products in the non-tariff zone must be subject to export tax and export procedures according to current regulations and to the customs inspection and supervision.
3. Goods originating from overseas and not on the list of goods banned or restricted from import, which are brought from the non-tariff zone into the tariff zone in Nghi Son EZ and inland Vietnam, shall be subject to import tax and import procedures according to current regulations and to the customs inspection and supervision.
4. Goods produced, processed, re-processed or assembled in the non-tariff zone without the use of raw materials and components imported from foreign countries, when being imported into the tariff zone in Nghi Son EZ and inland Vietnam, shall be exempt from import tax; in cases where imported raw materials and components are used, when they are imported into the tariff zone in Nghi Son EZ and inland Vietnam, the import tax shall be paid only for the volume of imported raw materials and components constituting such products and goods, the import procedures must be carried out according to current regulations and the products and goods must be subject to the customs inspection and supervision.
5. Goods and services produced and consumed in the non-tariff zone and those imported from foreign countries into the non-tariff zone shall not be subject to value added tax. Goods and services imported from inland Vietnam and the tariff zone in Nghi Son EZ into the non-tariff zone shall be entitled to the application of the value added tax rate of 0%. Goods and services brought from the non-tariff zone into inland Vietnam and the tariff zone in Nghi Son EZ shall be liable to value added tax at the currently prescribed tax rates.
6. Goods and services liable to special consumption tax, which are produced and consumed in the non-tariff zone or imported from foreign countries for consumption in the non-tariff zone, shall not be liable to special consumption tax (except goods which, according to separate regulations, are subject to special consumption tax under the provisions of the special consumption tax law).
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8. Production raw materials and supplies, which are imported from foreign countries by investors being domestic and foreign organizations or individuals conducting activities of investment in goods production and trading or service provision in the non-tariff zone but are not used up, and second-rate products which still have commercial value, can be sold into the tariff zone in Nghi Son EZ and inland Vietnam after the customs procedures are completed and the import tax is paid under the current regulations.
9. Investment projects for production of import goods and transportation of transit goods shall comply with the general provisions.
2. Foreign investors are encouraged to invest in the construction of infrastructures in the non-tariff zone and Nghi Son port.
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3. Apart from the preferences prescribed in this Regulation, the following investment projects of investors being domestic or foreign organizations or individuals in Nghi Son EZ shall enjoy the enterprise income tax rate of 10% throughout the duration of project execution:
a/ Projects in the hi-tech domain satisfying the regulations in Clause 2, Article 5 of the Government's Decree No. 99/2003/ND-CP of August 28, 2003, promulgating the Regulation on Hi-Tech Parks.
b/ Large-scale projects of important significance for branch or domain development or regional socioeconomic development after they are approved by the Prime Minister.
USE OF LAND IN NGHI SON ECONOMIC ZONE
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2. The People's Committee of Thanh Hoa province shall direct the recovery of the land and water surface areas which, according to the approved detailed land use planning, shall be used for the remaining functional quarters and for other purposes in Nghi Son EZ, for allocation to the Nghi Son EZ Management Board according to the approved annual and five-year land use plans of Nghi Son EZ for organization of the construction and development of Nghi Son EZ.
3. The People's Committee of Thanh Hoa province shall direct the Nghi Son EZ Management Board to coordinate with the local administration in making compensations, conducting ground clearance and resettlement for households whose land has been recovered (for the land and water surface areas already recovered by competent state bodies) for allocation to the Nghi Son EZ Management Board for re-allocation with the collection of land use levies, reallocation without the collection of land use levies and land lease to persons with land use demands according to the corresponding provisions of the land law.
The Nghi Son EZ Management Board shall have to manage and efficiently use the allocated land and water surface fund for proper land use purposes and in accordance with the general planning on Nghi Son EZ already approved by the Prime Minister and the detailed land use planning and plan approved by the People's Committee of Thanh Hoa province.
4. For cases of land re-allocation and land lease without going through auction of land use rights or bidding for projects involving land use: On the basis of land prices and land rent exemption or reduction levels; the land use levy exemption or reduction level set by the People's Committee of Thanh Hoa province and the provisions of investment and land laws, the Nghi Son EZ Management Board shall decide on the land and water surface rent or use levy levels; the land and water surface rent or use levy exemption or reduction level according to each investment project with a view to encouraging investment.
5. For case of land re-allocation with the collection of land use levies and land lease in form of land use right auction or bidding for projects involving land use: On the basis of the financial plan and prices approved by the People's Committee of Thanh Hoa province, the Nghi Son EZ Management Board shall decide to re-allocate and lease the land and water surface for which compensations have been paid and ground clearance has been carried out to persons with use demands according to the provisions of land law.
6. Investors being domestic and foreign organizations and individuals, that are entitled to rent land for execution of investment projects for production and business in Nghi Son EZ, shall have the rights and obligations correspondingly applicable to form of land allocation or land lease under the provisions of land law.
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2. The management of construction of facilities in service of production and business, infrastructures of the functional quarters, technical infrastructures, service and public facilities in Nghi Son EZ shall comply with the provisions of law on construction.
2. The capital construction investment capital for construction of socio-economic and technical infrastructures, service and public facilities specified in Clause 1 of this Article shall be balanced with the development investment support expenditures of the central budget under target programs according to the provisions of the State Budget Law.
3. The following modes shall be permitted for use to mobilize capital for investment in and development of Nghi Son EZ:
a/ Prioritizing the use of ODA capital and preferential credit capital sources for investment in the construction of socio-technical infrastructures, necessary service and public facilities of Nghi Son EZ and other technical supports;
b/ Attracting investment capital in forms of BOT, BT, BTO and other forms in accordance with current provisions of law;
c/ Mobilizing capital from land funds according to the provisions of land law for investment in development of socio-technical infrastructures in common service of Nghi Son EZ.
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e/ Mobilizing capital from other lawful sources for investment.
The Ministry of Public Security shall guide the Police Department of Thanh Hoa province to implement this.
2. The Nghi Son EZ Management shall be allowed to grant work permits to foreigners and overseas Vietnamese working or conducting activities of investment in production and business in Nghi Son EZ according to the provisions of labor law.
The Ministry of Labor, War Invalids and Social Affairs shall guide the Nghi Son EZ Management Board to implement this.
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2. The Nghi Son EZ Management Board and relevant state bodies shall reform administrative procedures related to the domains of investment, land, construction, bidding, tax, customs, labor management and enterprise management in Nghi Son EZ.
3. The Nghi Son EZ Management Board shall coordinate with the local administration in organizing propagation and ideological education for local cadres and people on Nghi Son EZ in order to gain their support and their participation in the construction and development of Nghi Son EZ.
STATE MANAGEMENT OF NGHI SON ECONOMIC ZONE
2. The Nghi Son EZ Management Board is a state management body attached to the People's Committee of Thanh Hoa province, performing the concentrated and unified management in the fields of construction investment and economic development in Nghi Son EZ according to its Operation Regulation, planning, plan and schedule already approved by competent state bodies.
3. The Nghi Son EZ Management Board shall have its legal person status, accounts and seals bearing the national emblem, have its headquarters, full-time staff, non-business operation funding and development investment capital allocated by the state budget according to annual plans.
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1. To formulate the general planning on Nghi Son EZ for the People's Committee of Thanh Hoa province to submit to the Prime Minister for approval; formulate the detailed plannings on the functional quarters, the detailed plannings and plans on use of land in the economic zone and submit them to the president of the People's Committee of Thanh Hoa province for approval; to manage, propagate, guide, examine and inspect the implementation of the Operation Regulation, the general planning, the detailed plannings and plans already approved by competent state bodies.
2. To make lists of investment projects and annual plans on investment in capital construction and submit them to competent bodies for approval and organize the implementation thereof.
3. To verify projects, to issue, adjust and withdraw investment certificates, business registration certificates with regard to cases of setting up enterprises in Nghi Son EZ; permits to set up trade representative offices and branches of foreign organizations and traders; investment preference certificates; work permits granted to foreigners and overseas Vietnamese working or conducting production and/or business activities; certificates of origin of goods in Nghi Son EZ; verify and approve reports on assessment of environmental impacts or certify the registration of attainment of environment standards of investment projects in Nghi Son EZ and other permits as well as certificates under the guidance of competent state bodies.
4. To allocate land with the collection of land use levies, to lease land and/or water surface to investors having demands to use land in Nghi Son EZ in accordance with the use purposes and the corresponding provisions of land law.
5. To formulate tables of charge and fee rates for application in Nghi Son EZ and submit them to competent bodies for consideration and promulgation according to the provisions of law.
6. To act as coordinator in settling issues arising in the course of formulating, deploying and executing production and business investment projects and activities in Nghi Son EZ.
7. To coordinate with the local administration and relevant agencies in ensuring that all activities in Nghi Son EZ comply with this Operation Regulation and plannings as well as plans on construction and development of Nghi Son EZ, which have been already approved by competent state bodies.
8. To manage and use development investment capital sources in Nghi Son EZ, to manage construction projects funded with development investment capital from the state budget in Nghi Son EZ according to regulations.
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10. To work out plans for human resource development in order to meet the demands of Nghi Son EZ and submit them to the People's Committee of Thanh Hoa province for approval and organize the implementation thereof.
11. To periodically report to the concerned ministries, branches and the People's Committee of Thanh Hoa province on the implementation of plannings as well as plans for construction and development of Nghi Son EZ.
12. To perform other tasks assigned by the People's Committee of Thanh Hoa province in each period.
Article 30.- The People's Committee of Thanh Hoa province shall have the responsibility:
1. To organize the formulation of the general planning on Nghi Son EZ and submit it to the Prime Minister for approval and approve the detailed planning on the functional quarters in Nghi Son EZ.
2. To approve the detailed planning and plans on the use of land in Nghi Son EZ; to recover and allocate land to the Nghi Son EZ Management Board for deployment of the construction and development of Nghi Son EZ according the provisions of Clauses 1 and 2, Article 18 of this Regulation.
3. To set land prices and levels of land use levy exemption and reduction; levels of land rent exemption and reduction in Nghi Son EZ for cases of land reallocation or lease without going through auction of land use rights or bidding for projects involving the land use and approve the financial plans and prices for cases of auction of the land use rights or bidding for projects involving the use of land.
4. To perform the state management of projects in Nghi Son EZ according to the approved planning; to submit for approval or approve according to competence the list of development investment projects and annual plans on development investment capital in Nghi Son EZ.
5. To promulgate specific preferential and incentive policies in accordance with current regulations in order to effect the preferential recruitment and employment of local labor; to support job training for local labor forces; to create conditions for local labor forces to be able to work in enterprises in Nghi Son EZ; to encourage and attract highly professional and skilled laborers from other places to work in Nghi Son EZ.
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7. To direct the People's Committee of Tinh Gia district to pay compensation and clear the ground and direct the functional agencies of the province to coordinate with the Nghi Son EZ Management Board in applying measures to ensure security, social order and safety, create favorable conditions for operation of Nghi Son EZ enterprises.
8. To allocate administrative and non-business management funding and development investment capital for the Nghi Son EZ Management Board from the state budget according to annual plans and the provisions of the State Budget Law.
9. To direct the functional agencies of the province to coordinate with, and create conditions for, the Nghi Son EZ Management Board to fully observe the provisions of this Regulation; to coordinate with the concerned ministries and branches in organizing the management of Nghi Son EZ for fast and sustainable development.
2. For domains neither decentralized nor authorized to the Nghi Son EZ Management Board, the ministries, ministerial-level agencies and the People's Committee of Thanh Hoa province shall perform the function of state management over Nghi Son EZ by organizing attached units in Nghi Son EZ and working out regulations on coordination with the Nghi Son EZ Management Board to perform the delegated powers.
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- 1 Decision No. 236/QD-TTg dated February 14th, 2007, on approval for master plan for Nghi Son economic zone development
- 2 Circular No. 08/2007/TT-BTC of January 30, 2007 guiding financial regimes and customs procedures to be applied in Nghi Son Economic Zone, Thanh Hoa province
- 3 Law no. 59/2005/QH11 of November 29, 2005 on investment
- 4 Decree No. 99/2003/ND-CP of August 28, 2003, promulgating the regulation on High-Tech Parks
- 5 Law No. 32/2001/QH10 of December 25, 2001 on organization of the Government
- 1 Decision No. 236/QD-TTg dated February 14th, 2007, on approval for master plan for Nghi Son economic zone development
- 2 Decision No. 28/2006/QD-BTM of September 19, 2006 authorizing the managing board of Nghi Son economic zone, Thanh Hoa province, to manage import-export and trading activities of foreign-invested enterprises in Nghi Son economic zone and industrial parks of Thanh Hoa province
- 3 Decision No. 761/TTg of September 13, 1997 ratifying the 1996-2010 overall planning for socio-economic development of Northern Central Vietnam