Tiếng Việt| THE GOVERNMENT | SOCIALIST REPUBLIC OF VIET NAM |
| No: 29-CP | Hanoi, May 12, 1995 |
STIPULATING DETAILED PROVISIONS FOR IMPLEMENTATION OF THE LAW ON PROMOTION OF DOMESTIC INVESTMENT
THE GOVERNMENT
Pursuant to the Law on Organization of the Government on the 30th of September 1992;
Proceeding from the Law on Promotion of Domestic Investment on the 22nd of June 1994;
At the proposal of the Minister-Chairman of the State Planning Committee,
DECREES:
Article 1.- The objects of the Law on Promotion of Domestic Investment include:
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a) State-owned enterprises.
b) Enterprises of the political and social organizations.
c) Cooperatives.
d) Limited liability companies.
e) Joint-stock companies.
f) Private enterprises.
2. The business units operating under Decree No.66-HDBT on the 2nd of March 1992 of the Council of Ministers.
3. Organizations and individuals that buy stocks or invest capital in enterprises.
4. Enterprises which are direct investments in Vietnam by Vietnamese who reside overseas.
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Overseas Vietnamese who make direct investment in Vietnam are entitled to being subject to either the Law on Foreign Investment or the Law on Promotion of Domestic Investment. But for each investment project, they can adhere only to one law.
If requested by the authorized Vietnamese State agency, a person of Vietnamese descent and bearing a foreign nationality must obtain a written certificate from an overseas Vietnamese diplomatic representation, or from the authorized State agency of the country to which he/she belongs, on his/her Vietnamese origin in one of the commonly used international languages.
1. Aged 18 years or above.
2. Not insane.
3. Not subject to prosecution for criminal liability; not a sentence-serving convict in Vietnam or a foreign country; not banned from doing business by the ruling of a foreign court.
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Article 7.- The National Fund for Investment Support is formed with a view to:
1. Mobilizing mid-term and long-term capital from organizations and individuals at home and abroad;
2. Making mid-term and long-term loans for investment in projects of priority industries and business lines;
3. Making preferential mid-term and long-term loans for investment projects in areas of ethnic minorities, mountainous and island areas and difficult areas as stipulated in List C attached to this Decree.
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With regard to a number of important goods for export in the priority list drawn up by the Ministry of Trade in consultation with the State Planning Committee, the Ministry of Finance, the State Bank and the concerned ministries as provided for in Article 9 of Decree No.33-CP on the 19th of April 1994 of the Government, in the event of a fall of their prices on the world market, or a rise in the costs of their materials in the home market resulting in serious losses to their producers, the State shall consider providing subsidies through the Fund for Price Stabilization so as to reduce interest rates. The Government Pricing Committee shall, in cooperation with the concerned agencies, design and submit to the Government for approval the level of the subsidies and its timing, in accordance with the targets and regulations for management of this Fund.
The Ministry of Finance shall, in cooperation with the Ministry of Science, Technology and Environment, draft detailed provisions to guide activities in technology transfer done with the State's budget allocations to enterprises covered by this Decree.
1. The profit obtained through the process of production and business.
2. The principals and profits of the overseas loans made during the process of production and business.
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In the event of a dissolution of the enterprise, or a complete sale of the enterprise, or a transfer of his/her share to another person, the overseas Vietnamese is allowed to transfer overseas the capital that he/she has legally transferred into Vietnam.
PREFERENTIAL TREATMENT ON DUTIES
1. Investment in industries and crafts described in List A of the Appendix to this Decree.
2. Investment in production establishments which use modern technology and which satisfy at least one of the following criteria:
a) The applied technology is capable of leading to an upgrading of technologies and equipment in other industries such as machine building, electricity, electronics, informatics, etc.
b) The applied technology uses domestic materials to make products which are of higher technical quality than the available products of the same kind.
c) The applied technology makes products which are of exportable quality or which can serve as import substitutes.
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e) The applied technology is clean and employs wastes as materials, thus helping reduce environmental pollution.
f) The applied technology produces new materials.
g) The applied technology is high technology.
3. Investment in production establishments which, from the start, employ at least:
- In urban areas: 300 laborers.
- In mountainous areas: 50 laborers.
- In other areas: 200 laborers.
4. Investment in districts of ethnic minorities or in mountainous or island areas described in List B of the Appendix to this Decree.
5. Investment in other difficult areas as described in List C of the Appendix to this Decree.
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1. An establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction of the turnover tax in its first year, starting from the month its turnover is subject to duty; an exemption from income tax for the first two years starting from the time when a taxable profit is made and a 50% reduction of income tax in the ensuing three years. A production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for one more year after that.
2. Transport, trade and servicing establishments described in List A of the Appendix to this Decree are entitled to a 50% reduction of income tax for two years, starting from the time when a taxable profit is made.
1. A production establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction on income tax for four years, starting from the month when a taxable turnover is made; exemption from income tax in the first four years and a 50% reduction of income tax for the next seven years. A production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for two more years after that.
2. Transport, trade and servicing establishments are entitled to a 50% reduction of income tax for two years, starting from the month when their taxable turnover is made; exemption from income tax in the first two years, starting from the time when a taxable profit is made, and 50% reduction of income tax for the next five years.
1. A production establishment which satisfies one of the conditions stipulated in Items 1, 2 and 3 of Article 15 of this Decree is entitled to a 50% reduction of turnover tax for three years, starting from the month when a taxable turnover is made; exemption from income tax for the first four years, starting from the time when a taxable profit is made, and a 50% reduction of income tax in the next five years; a production establishment which satisfies two or more conditions is entitled to a 50% reduction of income tax for two more years after that.
2. Transport, trade and servicing establishments are entitled to a 50% reduction on turnover tax for two years, starting from the month when a taxable turnover is made; exemption from income tax for the first two years, starting from the time when a taxable profit is made, and a 50% reduction of income tax for four more years after that.
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2. Transport, trade and servicing establishments are entitled to a 50% reduction of turnover tax for two years, starting from the month when a taxable turnover is made; an exemption from income tax in the first year starting from the time when a taxable profit is made, and a 50% reduction of income tax for the next three years.
The provisions on tax exemption and reduction for production and business establishments, which are classified as investment priorities in Articles 16, 17, 18 and 19 of this Decree, include all tax exemptions and reductions stipulated in the Law on Promotion of Domestic Investment and the current Law on Turnover Taxes and Law on Income Taxes.
The increased profit is measured on the basis of the total profit gained and the ratio of the new investment.
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a) To issue guidance documents on the implementation of laws, norms, procedures and modalities within their jurisdiction to make the investors conscious and forthcoming in their compliance with, and responsible before law.
b) To make detailed and clear administrative procedures and minimize procedures for license application and licensing required for each part of the process.
c) To inspect and control the implementation of State laws and the regulations issued by each ministry; and handle acts of violation which are within the spheres of their jurisdiction.
2. The State Planning Committee shall help the Government in exercising State management of promotion of domestic investment. The State Planning Committee has the following tasks and powers:
a/ To work out and submit to the Government for decision to supplement or modify the lists of industries and crafts and the scope of the areas eligible for preferential investment treatment (defined in Lists A, B and C attached to this Decree).
b/ To coordinate with the State management agencies in each branch in guiding and supervising the implementation of investment support and preferential treatment.
c/ To define the order, procedures, forms of application and certificates of investment preferential treatment for uniform application in the whole country.
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The granting of preferential treatment to investors in newly-established enterprises shall be done at the same time with the licensing of their establishment.
The Planning Departments in the provinces and cities directly under the Central Government (hereafter referred to as the Provincial Planning Departments) shall assist the Provincial People's Committees in their performance of the State management function over investment in their localities, consider and submit to the Provincial People's Committee for issuing certificates of preferential investment treatment according to the Law on Promotion of Domestic Investment, and licensing the establishment of private enterprises, limited liability companies and joint-stock companies which belong to the categories of investment promotion.
The modalities for licensing the establishment of private enterprises, limited liability companies and joint-stock companies not in the industries and crafts stipulated in Paragraph 1 of this Article shall be as follows:
1. The applicant for license to establish a private enterprise or company shall submit his/her application to the Provincial Planning Department in the province where he/she wishes to locate the headquarters of the enterprise or company. The application shall include the request (if any) for preferential investment treatment in accordance with the Law on Promotion of Domestic Investment.
2. The Provincial Planning Department shall receive the application, consult the provincial services in charge of economic-technical affairs and finance, and report to the President of the Provincial People's Committee for decision on whether or not to grant the license for establishment of the private enterprise or company, and whether or not to issue the certificate for preferential investment treatment (if any).
3. Upon the proposal of the Director of the Provincial Planning Department, the President of the Provincial People's Committee shall consider and decide on licensing the establishment of private enterprises, limited liability companies and joint-stock companies and certifying the granting of preferential investment treatment (if any).
In the event of a denial of the license for establishment of a private enterprise or company or of the certificate for preferential investment treatment, the Provincial Planning Department must notify the concerned party of the reasons for the denial.
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The above-mentioned time limit is counted from the date of receipt of the proper application if it is submited directly to the Provincial Planning Department; or from the date the application is delivered through the post office. In case the application is found not proper, the Provincial Planning Department shall, within five days of the reception of the improper application, notify the applicant and request him/her to make changes to the application to make it comply with the provisions of the Corporate Law and the Law on Private Enterprises. The time limit for the granting or denial of the license for the establishment of the enterprise shall be counted from the date the Provincial Planning Department receives the changed and proper application.
5. The establishment of an enterprise of overseas Vietnamese or foreign permanent residents in Vietnam shall be conducted in accordance with the above-mentioned provisions regarding the modalities for establishment of enterprises and the stipulations in Article 5 of this Decree.
Regarding the production and business units which belong to the investment priority categories and which were established prior to the effective date of the Law on Promotion of Domestic Investment, they shall enjoy preferential investment treatment in the remaining period of their existence, starting from the 1st of January 1995.
The State Planning Committee, the Ministry of Finance, the State Bank, the Ministry of Science, Technology and Environment, and the Ministry of Justice are responsible for guiding and coordinating the implementation of this Decree.
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ON BEHALF OF THE GOVERNMENT
THE PRIME MINISTER
Vo Van Kiet
INDUSTRIES AND CRAFTS ELIGIBLE FOR PREFERENTIAL INVESTMENT TREATMENT
(Issued in conjunction with Decree No.29-CP on the 12th of May 1995 of the Government stipulating detailed provisions for the implementation of the Law on Promotion of Domestic Investment)
Projects in industries and crafts of the following areas are eligible for preferential investment treatment:
I. Afforestation and planting of long-term crops on unused and waste land and on bare hills and mountainous areas; raising aquatic products in unused water surface and fishing sea products in remote offshore areas.
1. To plant protection forests (in upstream or coastal areas, or for ecological protection), and special purpose forests.
2. To plant rubber, coffee, tea, mulberry for silk worm, cashew, pepper, etc., and fruit or herbal plants in waste or un-transformed land, or in waste or bare hills and mountainous areas.
3. To rear aquatic products in waste water areas, or in water areas which have not been transformed or used for aquaculture for commercial purposes.
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II. Construction of technical infrastructure; development of urban public transport, education and training, health care and ethnic cultures, and scientific and technological research.
1. Construction of technical infrastructure:
- New construction or transformation or expansion of electric power plants, development of electric grid, and construction of facilities which employ solar power, wind power and bio-gas.
- New construction and upgrading of roads, new constructions or expansions, upgrading and modernization of airports and harbors; restoration or upgrading and new construction of railways.
- Transformation and development of communications networks.
- Construction of plants for manufacturing water pipes and installation of water supply systems in service of production and life; projects for environmental protection and waste disposal, and sewage systems for urban and industrial areas.
2. Development of public passenger transport in urban and industrial areas.
3. Development of education and training, health care and ethnic cultures:
- Schools and people-established schools, crches and kindergartens.
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- Health clinics and pharmaceutical facilities.
- Ethnic cultural houses; ethnic art troupes.
4. Scientific and technological research:
- Basic and applied researches in natural science and technology, and social sciences and humanities.
- Researches for renewal of equipment and modernization of production lines.
- Application and development of information technology, bio-technology and technologies for manufacturing and production of materials from domestic raw materials.
- Development of the network of technological services: measuring, standardization, product quality control, technological evaluation, information of technological development and support for technology transfer.
III. Processing of farm, forest and aquatic produce, and direct technological services for agriculture, forestry and fisheries.
1. Processing of food, meat, dairy product, fish, shrimp, edible oil, sugar, vegetables, rubber, natural silk, tea, coffee, refreshments, fruit juices, etc.
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3. Plant and animal protection services; hybridization or creation of new strains; services in storage of farm, forest and sea produce.
IV. Production of export goods:
New construction or expansion of production and processing facilities for export goods.
V. Industries outside those mentioned above which are prioritized for development (in the 1995-2000 period).
1. Production of consumer goods: textile, leather ware, garment, house utensils, paper and school utensils.
2. Manufactured and electronic-informatic goods: manufacturing machines and facilities for production and processing of farm, forest and aquatic produce and industrial consumer goods; manufacturing of equipment and facilities for construction and mining; building of river and sea-going ships; building of locomotives and coaches and assembling cars of various types; manufacturing equipment for electric grids and transformer stations.
3. Production of materials, fuels and semi-finished products: extraction and refinery of oil and natural gas; building industrial facilities employing natural gas; mining and processing of coal; milling and rolling of steel; producing non-ferrous metals, cement and other construction materials; producing fertilizers (nitrogenous, potassium, composite, micro-biological and oligoelement); and producing basic chemicals.
4. Traditional crafts which need to be encouraged: wood carving, mother-of-pearl inlaying, lacquer ware, wickerwork, carpet making, ceramics, earthenware and natural-silk weaving.-
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DISTRICTS IN ETHNIC MINORITY, MOUNTAINOUS, ISLAND AREAS<R>FOR PREFERENTIAL INVESTMENT TREATMENT
(Issued in conjunction with Decree No.29-CP on the 12th of May 1995 of the Government stipulating detailed provisions for the implementation of the Law on Promotion of Domestic Investment)
I. LIST OF DISTRICTS IN ETHNIC MINORITY AND HIGH MOUNTAINOUS AREAS:
1. Ha Giang province:
1. Dong Van district
2. Meo Vac district
3. Yen Minh district
4. Quan Ba district
5. Vi Xuyen district
6. Bac Me district
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8. Hoang Su Pi district
2. Cao Bang province:
1. Bao Lac district
2. Thong Nong district
3. Ha Quang district
4. Tra Linh district
5. Trung Khanh district
6. Nguyen Binh distric
7. Hoa An district
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9. Thach An district
10. Ha Lang district
11. Ngan Son district
12. Ba Be district
3. Son La province:
1. Quynh Nhai district
2. Thuan Chau district
3. Mai Son district
4. Song Ma district
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6. Moc Chau district
7. Muong La district.
4. Lai Chau province:
1. Muong Te district
2. Phong Tho district
3. Sin Ho district
4. Muong Lay district
5. Tua Chua district
6. Tuan Giao district
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1. Bat Sat district
2. Muong Khuong district
3. Bac Ha district
4. Sa Pa district
5. Than Uyen district
6. Van Ban district
7. Cam Duong town
6. Gia Lai province:
1. Kon Chro district
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3. Mang Jang district
4. Ajunpa district
5. Chu Pa district:
6. Duc Co district
2. Chu Prong district
8. Krong Pa district
9. Chu Se district
10. Kbang district
7. Kon Tum province:
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2. Dac To district
3. Dakglei district
4. Sa Thay district
8. Darlac province:
1. Easup district
2. Krong Buk district
3. Krong Pac district
4. Dac Mil district
5. MD Rac district
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7. Dak Nong district
8. EaHD Leo district
9. Krong Bong district
10. Krong An district
11. Cu Mgar district
12. Dak Rlap district
13. Eakar district
14. Krong Nang district
15. Krong No district
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9. Lam Dong province:
1. Don Duong district
2. Duc Trong district
3. Di Linh district
4. Bao Loc district
5. Lac Duong district
6. Lam Ha district.
10. Yen Bai province:
1. Mu Cang Trai district
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11. Hoa Binh province:
1. Da Bac district
2. Mai Chau district
12. Lang Son province:
1. Trang Dinh district
2. Binh Gia district
3. Dinh Lap district
4. Van Lang district
5. Bac Son district
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7. Cao Loc district.
13. Bac Thai province:
1. Na Ri district
2. Cho Don district
3. Vo Nhai district.
14. Tuyen Quang province:
1. Na hang district.
15. Quang Ninh province:
1 . Ba Che district
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16. Ha bac province:
1 . Son Dong district
17. Thanh Hoa province:
1.Quan Hoa district
2. Ba Thuoc district
3. Lang Chanh district
4. Thuong Xuan district.
18. Nghe An province:
1. Ky Son district
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3. Con Cuong district
4. Quy Chau district
5. Que Phong district
19. Quang Binh province:
1. Minh Hoa district
20. Qung Tri province:
1. Huong Hoa district
21. Thua Thien - Hue province:
1. A Luoi district
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1. Tra My district
2. Hien district
3. Giang district
4. Phuoc Son district
23. Quang Ngai province:
1. Tra Bong district
2. Son Ha district
3. Ba To district
4. Minh Long district
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1. Ninh Son district
II. LIST OF DISTRICTS OF ETHNIC MINORITY, MOUNTAINOUS AND ISLAND AREAS:
1. Ha Giang province:
1. Bac Quang district
2. Ha Giang town
2. Cao Bang province:
1. Cao Bang town
3. Son La province:
1. Yen Chau disitrct
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3. Son La town
4. Lai Chau province:
1. Dien Bien district
5. Lao Cai province:
1. Bao Thang district
2. Bao Yen district
3. Lao Cai town
7. Kon Tum province:
1. Kon Tum town
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1. Da Hoai district
2. Da Te district
3. Cat Tien district
4. Da Lat City
9. Gia Lai province:
1. Play Ku town
10. Darlac province:
1. Buon Me Thuot town
11. Yen Bai province:
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2. Yen Binh district
3. Tran Yen district
4. Van Tran district
5. Lac Yen district
6. Van Yen district
12. Hoa Binh province:
1. Hoa Binh town
2. Tan Lac district
3. Lac Son district
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5. Luong Son district
6. Kim Boi district
7. Lac Thuy district
8. Yen Thuy district
13. Lang Son province:
1. Lang Son town
2. Van Lang district
3. Bac Son district
4. Van Quan district
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6. Loc Binh district
7. Chi Lang district
8. Huu Lung district
14. Bac Thai province:
1. Bach Thong district
2. Dinh Hoa district
3. Phu Luong district
4. Dai Tu district
5. Vo Nhai district
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7. Bac Can district
15. Tuyen Quang province:
1. Tuyen Quang town
2. Ham Yen district
3. Chiem Hoa district
4. Yen Son district
5. Son Duong district
16. Quang Ninh province:
1. Cam Pha district
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3. Quang Ha district
4. Hoanh Bo district
5. Dong Trieu district
6. Hai Ninh district
17. Ha Bac province:
1. Luc Nam district
2. Yen The district
3. Luc Ngan district
18. Vinh Phu province:
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2. Yen Lap district
3. Doan Hung district
4. Song Thao district
19. Hai Hung province:
1. Chi Linh district
20. Ninh Binh province:
1. Hoang Long district
2. Tam Diep district
21. Thanh Hoa province:
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2. Nhu Xuan district
3. Cam Thuy district
4. Thach Thanh district
22. Nghe An province:
1. Quy Hop district
2. Nghia Dan district
3. Anh Son district
4. Tan ky district
5. Thanh Chuong district
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1. Tuyen Hoa district
24. Ha Tinh province:
1. Huong Khe district
2. Huong Son district
25. Thua Thien - Hue province:
1. Nam Dong district
26. Quang Nam - Da Nang province:
1. Hiep Duc district
27. Binh Dinh province:
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2. Vinh Thach district
3. Van Canh district
28. Phu Yen province:
1. Son Hoa district
2. Song Hinh district
3. Dong Xuan district
29. Khanh Hoa province:
1. Khanh Son district
2. Khanh Vinh district
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1. Tam Linh district
2. Bac Binh district
3. Duc Linh district
31. Song Be province:
1. Bu Dang district
2. Phuoc long district
3. Loc Ninh district
32. Dong Nai province:
1. Tan Phu district
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3. Dinh Quan district
33. An Giang province:
1. Tinh Bien district
2. Tri Ton district
34. Island districts of coastal provinces and cities.
OTHER DIFFICULT AREAS
(Issued in conjunction with Decree 29-CP on the 12th of May 1995 of the Government stipulating detailed provisions for the implementation of the Law on Promotion of Domestic Investment)
1. Hoa Binh (except Hoa Binh town and districts in List B).
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3. Thanh Hoa (except Thanh Hoa city, Sam Son town, Bim Son town and districts in List B).
4. Ha Tinh (except Ha Tinh town and districts in List B).
5. Quang Binh (except Dong Hoi town and districts in List B).
6. Quang Tri (except Dong Ha town and districts in List B).
7. Quang Ngai (except Quang Ngai town and districts in List B).
8. Binh Dinh (except Quy Nhon City and districts in List B).
9. Phu Yen (except Tuy Hoa town and districts in List B).
10. Ninh Thuan (except Phan Rang - Thap Cham town and districts in List B).
11. Binh Thuan (except Phan Thiet town and districts in List B).
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