Tiếng Việt| THE PRIME MINISTER OF GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No. 50/2005/QD-TTg | Hanoi, March 11, 2005 |
THE PRIME MINISTER
Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Political Bureau’s conclusions in the Party Central Committee’s Notice No. 155-TB/TW of September 9, 2004;
At the proposal of the Minister of Planning and Investment,
DECIDES:
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PRIME MINISTER
Phan Van Khai
ON OPERATION OF DUNG QUAT ECONOMIC ZONE
(Promulgated together with the Prime Minister’s Decision No. 50/2005/QD-TTg of March 11, 2005)
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2. Dung Quat EZ has the land area of around 10,300 hectares in Quang Ngai province, encompassing Binh Chanh, Binh Thanh, Binh Dong, Binh Thuan, Binh Tri and Binh Hai communes and some land areas of Binh Phuoc, Binh Hoa and Binh Phu communes of Binh Son district, with its geographical boundaries determined as follows:
a/ To the East, it borders on the East Sea;
b/ To the West, it borders on Binh Nguyen commune, Binh Son district, Quang Ngai province;
c/ To the North, it borders on Nui Thanh district, Quang Nam province;
d/ To the South, it borders on Binh Long, Binh Hiep and Binh Phu communes, Binh Son district, Quang Ngai province.
Article 3.- Major development objectives of Dung Quat EZ;
1. To build and develop Dung Quat EZ into a general, multi-branch and multi-sector economic zone, focusing on the development of oil refinery – petrochemical – chemical industry and large-scale industries, including: mechanical engineering, seagoing ship building and repair, steel working and rolling, cement production, container manufacture, and industries of consumer goods production, processing and export; and associate them with the development and efficient exploitation of Dung Quat deep-water seaport, Chu Lai international airport, and Van Tuong and Doc Soi industrial-service urban centers.
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3. To generate jobs, promote trainings and raise the quality of human resources in the region; to contribute to creating products with prestigious trademarks, high quality and competitiveness.
4. To efficiently tap advantages in natural conditions, geographical, economic and political positions in international and domestic trade and services, with a view to boosting regional economic development; to create a good radial impact on the vicinities and proceed to narrow the development gap between the region and other regions throughout the country.
a/ To receive rights to use, lease or sublease land within Dung Quat EZ, on which technical infrastructures have been built, from enterprises investing in construction and commercial operation of infrastructures according to relevant provisions of land legislation for building workshops and architectural works in service of goods production and trading or service provision;
b/ To rent or purchase workshops, warehouses or storing yards already built in Dung Quat EZ in service of goods production and trading and/or service provision under contracts signed with enterprises investing in construction and commercial operation of infrastructures;
c/ To use with payment of use levy technical infrastructure works, service and public-utility works in Dung Quat EZ, including: the system of traffic roads, seaports, electricity supply, water supply and drainage, information and communications, wastewater and waste matter treatment, etc., and other common services in Dung Quat EZ under contracts signed with enterprises investing in construction and commercial operation of infrastructures;
d/ To enjoy investment preference policies provided for in this Regulation;
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2. Obligations of economic organizations, households, individuals, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises, parties to business cooperation contracts under the Law on Foreign Investment in Vietnam, that conduct activities of producing and trading in goods or providing services in Dung Quat EZ are:
a/ To comply with the provisions of this Regulation, detailed planning on functional areas already approved by competent State agencies and stipulations in investment registration certificates, investment preference certificates or investment licenses, business registration certificates, or charters of enterprises; to use land for the right purposes for which land is assigned, leased or subleased;
b/ To create conditions for enterprises investing in construction and business operation of infrastructures to conduct the maintenance, regular repairs or upgrading of infrastructure works in functional areas, technical infrastructure works as well as service and public-utility works in land areas used by organizations and individuals in Dung Quat EZ;
c/ To pay land rents; workshop, warehouse or storing yard rents or purchase amounts, levy for use of infrastructure works in functional areas, infrastructure works and service and public-utility works in Dung Quat EZ to enterprises investing in construction and commercial operation of infrastructures under signed contracts;
d/ Domestic economic organizations, households and individuals investing in production and business in Dung Quat EZ shall register their operations with Dung Quat EZ’s Management Board;
e/ To observe the regime of reporting on operations on a monthly, quarterly and annual basis to Dung Quat EZ’s Management Board;
f/ To fulfill tax obligations, customs duties, environmental protection obligations and other obligations according to the provisions of law.
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b/ To transfer rights to use, lease or sublease land in Dung Quat EZ on which technical infrastructures have been built to domestic organizations and individuals, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises, parties to business cooperation contracts under the Law on Foreign Investment in Vietnam for investing in goods production and trading and/or service provision in Dung Quat EZ according to relevant provisions of land legislation;
c/ To collect levy for use of infrastructure works in functional areas, technical infrastructure works, service and public-utility works in Dung Quat EZ, invested by enterprises investing in construction and commercial operation of infrastructures under contracts signed with lessors;
d/ To build workshops, warehouses and storing yards in Dung Quat EZ for sale or lease;
e/ To set rent rates of leased or subleased land on which technical infrastructures have been built, levy rates for use of technical infrastructures, service and public-utility works in Dung Quat EZ with consents of Dung Quat EZ’s Management Board; to set rent rates or selling prices of workshops, warehouses or storing yards and service charges;
f/ To lease or sublease to economic organizations, overseas Vietnamese, foreign organizations and individuals; or foreign-invested enterprises with financial capability and experiences in calling for investment capital parts or whole of unleased land areas for sublease or calling for investment capital according to relevant provisions of land legislation;
g/ To enjoy other legitimate interests according to law provisions.
2. Enterprises investing in construction and commercial operation of infrastructures in Dung Quat EZ have the obligations:
a/ To construct infrastructures in functional areas, technical infrastructure works, service and public-utility works in Dung Quat EZ in strict compliance with the already approved detailed planning, designs and schedules;
In cases where land had been reassigned with collection of land use levy, reassigned without collection of land use levy or leased by Dung Quat EZ’s Management Board according to relevant provisions of land legislation for execution of projects on investment in construction and commercial operation of infrastructures in functional areas, technical infrastructure works, service and public-utility works in Dung Quat EZ, but has not been used for 12 consecutive months or the land use progress is 24 months later than the schedules inscribed in investment projects as from the date such land is handed over on site and the land use duration is not permitted for extension by Dung Quat EZ’s Management Board, Dung Quat EZ’s Management Board shall decide to recover the land without land compensations.
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c/ To comply with the provisions of this Regulation, the detailed planning on functional areas already approved by competent agencies; to use land for the right purposes for which such land has been assigned or leased;
d/ To observe the regime of monthly, quarterly or annual reporting to Dung Quat EZ’s Management Board;
c/ To fulfill tax obligations, customs duties and other obligations according to provisions of law.
ORGANIZATION AND OPERATION OF DUNG QUAT ECONOMIC ZONE
Size and position of each functional area are determined in the general planning on construction of Dung Quat EZ, approved by the Prime Minister.
2. In order to ensure the quality of the long-term development planning up to the international economic integration requirements, Dung Quat EZ’s Management Board is permitted to hire foreign consultancy companies to join in the formulation of Dung Quat EZ’s development planning and the detailed planning on the functional areas such as urban area, tourist – service area and tax suspension area.
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2. Tax suspension area is segregated from other functional areas in Dung Quat EZ and inland Vietnam by a system of walls and fences, with entrance and exit gates and doors, thus ensuring the control by relevant functional agencies. In the tax suspension area, there exist customs offices for supervising, inspecting and carrying out customs procedures for goods on entry or exit. There are no people (including foreigners) permanently or temporarily residing in the tax suspension area.
3. Operations of the tax suspension area cover the following major production and business lines:
a/ Production, processing, recycling or assembly of export goods, import goods and goods for on-spot consumption;
b/ Commodity commerce (including export, import, border-gate shift, temporary import for re-export, distribution, retail shops and supermarkets, duty-free shops and supermarkets);
c/ Service commerce (classification, packaging, transportation, forwarding of transited goods, preservation, warehousing, bonded warehouses, post, telecommunications, finance, banking, transport, insurance, entertainment, recreation, restaurants);
d/ Trade promotion (trade fairs and exhibitions, showrooms, branches and representative offices of domestic and foreign companies and financial-banking institutions) and other commercial activities.
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2. Domestic or foreign organizations and individuals conducting goods production and trading and/or service provision in other functional areas in Dung Quat EZ and inland Vietnam may only import from the tax suspension area goods and services not banned or restricted by Vietnam from import and sell into the tax suspension area goods and services not banned by Vietnam from export.
a/ Goods imported from foreign countries into the tax suspension area;
b/ Goods exported from the tax suspension area to foreign countries;
c/ Goods transferred or sold from the tax suspension area to the export processing zone or export processing enterprises in the Vietnamese territory;
d/ Goods not subject to export tax, originating from inland Vietnam and brought into the tax suspension area (other than those defined in Clause 2 of this Article).
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3. For goods originating from foreign countries, not on the list of goods banned or restricted from import, and imported from the tax suspension area into other functional areas (other than the export processing zone) in Dung Quat EZ and inland Vietnam, the import tax shall be paid and the import procedures shall be carried out, and such goods shall be subject to the customs inspection and supervision.
4. For goods manufactured, processed, recycled or assembled in the tax suspension area with the use of raw materials and components imported from foreign countries, when being imported into other functional areas (other than export processing zone) in Dung Quat EZ and inland Vietnam, the import tax shall be paid only for portions of raw materials and components imported from foreign countries constituting such products or goods, the import procedures shall be carried out according to current regulations, and such goods shall be subject to customs inspection and supervision.
5. Goods and services produced, provided and consumed within the tax suspension area and those imported from foreign countries into the tax suspension area shall not be subject to value added tax. Goods and services brought from inland Vietnam and other functional areas in Dung Quat EZ into the tax suspension area shall enjoy the value added tax rate of 0%. Goods and services brought from the tax suspension area into inland Vietnam and other functional areas (other than export processing zone) in Dung Quat EZ shall be subject to value added tax at the currently prescribed rates.
6. For goods and services subject to special consumption tax, produced, provided and consumed in the tax suspension area or imported from foreign countries into the tax suspension area, the special consumption tax shall not be paid.
7. For goods and services subject to special consumption tax, and brought from the tax suspension area into other functional areas (other than the export processing zone) in Dung Quat EZ and inland Vietnam, the special consumption tax shall be paid.
8. Production raw materials, supplies and goods imported from foreign countries by domestic or foreign organizations and individuals conducting goods production and trading and/or service provision in the tax suspension area but not yet used up, and faulty products with remaining commercial value shall be allowed for sale into other functional areas (other than the export processing zone) in Dung Quat EZ and inland Vietnam after the customs procedures are completed and import tax is paid according to current regulations.
9. Investment projects on production of export goods and transportation of transited goods shall comply with the general regulations.
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2. Projects on investment in production in Dung Quat EZ of domestic or foreign organizations and individuals shall be exempt from import tax on production raw materials, supplies, components and semi-finished products, which cannot be produced at home or can be produced at home but not up to the quality standards, for 5 years after the production commences.
3. A 50% income tax reduction shall be given to high income earners, including Vietnamese and foreigners working in Dung Quat EZ.
4. Apart from the preferences they are entitled to according to the provisions of this Regulation, investment projects of domestic or foreign organizations and individuals in Dung Quat EZ in hi-tech domains, which satisfy the provisions of 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, shall enjoy the enterprise income tax rate of 10% throughout the project execution duration.
5. Apart from the preferences they are entitled to according to the provisions of this Regulation, investment projects of domestic or foreign organizations and individuals in Dung Quat EZ, which are of large scale and importance for branch or sector development or regional socio-economic development, shall enjoy the enterprise income tax rate of 10% throughout the project execution duration after being approved by the Prime Minister.
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LAND USE IN DUNG QUAT ECONOMIC ZONE
2. The People’s Committee of Quang Ngai province shall direct the recovery of land and water surface areas used for the other functional quarters and other purposes in Dung Quat EZ under the approved land use detailed planning for subsequent assignment to Dung Quat EZ’s Management Board under the annual and five-year land use detailed plannings of Dung Quat EZ, already approved for organization of construction and development of Dung Quat EZ.
3. Dung Quat EZ’s Management Board shall have to coordinate with the People’s Committee of Quang Ngai province in making compensations for clearance of land or water surface areas already recovered by competent State agencies for assignment to Dung Quat EZ’s Management Board for reassignment of land with the collection of land use levy, reassignment of land without the collection of land use levy, lease of land to persons with land use demands, and resettlement of households having their land recovered according to the provisions of land legislation. Dung Quat EZ’s Management Board shall manage the assigned land and water surface area fund and take responsibility for the efficient use of such land and water surface area fund and land use purposes, ensuring the strict compliance with the general planning on construction of Dung Quat EZ already approved by the Prime Minister and the land use detailed planning and plans already approved by the People’s Committee of Quang Ngai province.
4. For case of land reassignment or land lease not through land use right auctions or land-using project biddings: Basing itself on land prices and land use levy exemption or reduction levels or land rent exemption or reduction levels prescribed by the People’s Committee of Quang Ngai province and the provisions of domestic investment promotion and foreign investment legislations, Dung Quat EZ’s Management Board shall decide on land and water surface use levy levels, land and water surface rents; land and water surface use levy or rent exemption or reduction levels applicable to each investment project in order to ensure investment promotion.
5. For case of land reassignment with the collection of land use levy or land lease through land use right auctions or land-using project biddings: Basing itself on financial and price plans agreed upon by the People’s Committee of Quang Ngai province, Dung Quat EZ’s Management Board shall decide to reassign and lease land for which ground clearance compensations have been paid, to persons with land use demands according to the provisions of land legislation.
6. Domestic organizations and individuals, and overseas Vietnamese shall be assigned or leased land; foreign organizations and individuals, foreign-invested enterprises and parties to business cooperation contracts under the Law on Foreign Investment in Vietnam shall be entitled to rent land for execution of their investment projects in Dung Quat EZ and have the rights and obligations corresponding to the land assignment or lease forms according to the provisions of land legislation.
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2. The management of construction of works in service of production and/or business, infrastructure works in functional areas, technical infrastructure works, and service and public-utility works in Dung Quat EZ shall comply with the provisions of construction legislation.
2. The expenditures for investment in capital construction for socio-technical infrastructures and important service and public-utility works necessary for the operation and development of Dung Quat EZ specified in Clause 1 of this Article shall be managed by the central government and allocated from the central budget’s development investment spending tasks under target programs and according to the provisions of the State Budget Law.
3. To allow the application of the following modes of capital mobilization for investment in and development of Dung Quat EZ:
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b/ To issue government bonds for large-scale infrastructure construction investment projects, which are key to the development of Dung Quat EZ, according to the regulations on issuance of government bonds for investment capital mobilization;
c/ To prioritize the use of ODA capital sources and preferential investment credits for the construction of socio-technical infrastructure works, necessary service and public-utility works of Dung Quat EZ and other technical assistances;
d/ To allow the attraction of investment capital in forms of BOT, BT, BTO and other forms in compliance with current regulations;
e/ To allow mobilization of capital from the land fund according to the provisions of land legislation for investment in development of socio-technical infrastructures in common service of Dung Quat EZ;
f/ To mobilize direct investment capital of domestic organizations and individuals; advanced capital of subjects with infrastructure use demands, capital of enterprises with function of building and commercially operating of technical infrastructures. To expand the form of co-financing credit of credit institutions, and mobilize all capital sources in other forms in compliance with provisions of law.
The Public Security Ministry shall guide the police office of Quang Ngai province in implementing this Clause.
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The Labor, War Invalids and Social Affairs Ministry shall guide Dung Quat EZ’s Management Board in implementing this Clause.
a/ Dung Quat EZ’s Management Board shall assume the prime responsibility for, and coordinate with the People’s Committee of Quang Ngai province in, planning and investing in the construction of resettlement quarters in association with the investment in essential socio-technical infrastructures;
b/ The People’s Committee of Quang Ngai province shall have to create new land fund and provide technical assistance for ensuring a better and stable life of resettled households for a long term, with the coordination of Dung Quat EZ’s Management Board;
c/ The People’s Committee of Quang Ngai province shall have to direct and create conditions for the construction of condominiums for lease to or purchase by specialists, officials and laborers working or conducting investment or business activities in Dung Quat EZ, with the coordination of Dung Quat EZ’s Management Board;
d/ The People’s Committee of Quang Ngai province shall have to ensure conditions on employment, accommodation, daily-life needs, study and healthcare of laborers and residents in Dung Quat EZ.
2. The State supports the promotion of investment in Dung Quat EZ and propagates investment environment in Dung Quat EZ to potential domestic and foreign investors.
3. Dung Quat EZ’s Management Board and concerned State agencies shall reform administrative procedures related to the domains of investment, land, construction, bidding, taxation, customs, labor and enterprise management in Dung Quat EZ.
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STATE MANAGEMENT OVER DUNG QUAT ECONOMIC ZONE
2. The Planning and Investment Ministry, the Finance Ministry, the Trade Ministry, the Construction Ministry, the Transport Ministry, the Natural Resources and Environment Ministry and the concerned agencies shall, within the ambit of their functions, tasks and powers, promulgate regulations guiding the operation of functional areas in Dung Quat EZ.
3. The People’s Committee of Quang Ngai province and Dung Quat EZ’s Management Board shall jointly formulate and promulgate the Regulation on joint coordination in such domains as the management of planning and plans on investment in construction and development of Dung Quat EZ, management of land (order and procedures for land assignment, compensation, ground clearance), resettlement and sedentarization, management of activities of domestic or foreign organizations and individuals conducting goods production and trading and service provision in Dung Quat EZ.
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3. Dung Quat EZ’s Management Board is a planning and budgetary unit under the central government (grade-I budget estimation unit), and is allowed to decide on budget revenues and expenditures in the development investment, administrative and non-business domains, target programs and other domains assigned by the Prime Minister.
4. The Minister of Home Affairs shall submit to the Prime Minister for decision the establishment and definition of functions, tasks, powers and organizational structure of Dung Quat EZ’s Management Board.
Article 28.- The People’s Committee of Quang Ngai province has the responsibilities:
1. To perform the function of State administrative management over Dung Quat EZ in its locality and take part in the management over Dung Quat EZ by directing the provincial services, departments and branches to perform on the spot jobs within the ambit of functions and tasks of the provincial People’s Committee according to their respective competence.
2. To coordinate with Dung Quat EZ’s Management Board in working out the general planning on construction of, and long-term development investment in, Dung Quat EZ and drawing up a list of long-term investment projects, then submitting them to the competent State agency for approval and organizing the implementation thereof.
3. To approve the detailed planning and plans on the use of land in Dung Quat EZ; recover and assign land to Dung Quat EZ’s Management Board for organizing the construction and development of Dung Quat EZ according to the provisions of Clauses 1 and 2, Article 18 of this Regulation;
4. To set land prices and land use levy exemption and reduction levels; land rent exemption and reduction levels for land in Dung Quat EZ for cases of land reassignment or land lease not through land use right auctions or land-using project biddings, and agree upon financial and price plans for cases of land use right auctions or land-using project biddings;
5. To direct and organize the coordination between local administrations of all levels and functional agencies of the province and Dung Quat EZ’s Management Board in performing the compensation and ground clearance; decentralize responsibilities, work out action program and assign sections to monitor and manage each geographical area and each domain in Dung Quat EZ;
6. To promulgate specific preferential and promotion policies in compliance with current regulations in order to effect the priority recruitment and employment of local laborers; to support job training for local labor force; to create conditions for local laborers to be employed by enterprises in Dung Quat EZ; to encourage and attract laborers with high professional skills from other localities to work in Dung Quat EZ; to support the building of dwelling houses for laborers; to support the construction of resettlement quarters; to support the investment –trade promotion; to support the compensation and ground clearance so as to accelerate the process of investment and development of Dung Quat EZ;
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2. In domains for which responsibilities and powers are not decentralized or vested to Dung Quat EZ’s Management Board, the ministries, ministerial-level agencies and the People’s Committee of Quang Ngai province shall perform the function of State management over Dung Quat EZ by organizing their attached units in Dung Quat EZ and adopting regulations on coordination with Dung Quat EZ’s Management Board in exercising their vested powers.
- 1 Law No. 13/2003/QH11 of November 26, 2003 Land Law
- 2 Law No.14/2003/QH11, on state enterprises, passed by the National Assembly
- 3 Law No. 18/2003/QH11 of November 26th, 2003, on cooperatives
- 4 Decree No. 99/2003/ND-CP of August 28, 2003, promulgating the regulation on High-Tech Parks
- 5 Law No. 09/2003/QH11 of June 17, 2003, on enterprise income tax
- 6 Law No.01/2002/QH11 of December 16, 2002 state budget Law
- 7 Law No. 32/2001/QH10 of December 25, 2001 on organization of the Government
- 8 Law No. 29/2001/QH10 of June 29, 2001 promulgated by The National Assembly on Customs Law
- 9 Law No. 13/1999/QH10 of June 12, 1999, on enterprises
- 10 Law No. 03/1998/QH10 of May 20, 1998, on domestic investment promotion (amended)
- 11 Law No. 07/1997/QH10 of December 12, 1997 on credit institutions
- 12 Law No. 58/1997/L-CTN of May 10, 1997 The Commercial Law
- 13 Law No. 52-L/CTN/DT of Novermber 12,1996, on foreign investment in vietnam