Laws of Vietnam

THE PRIME MINISTER

DECIDES:

Article 1.- To add the computer products to the list of key industrial products prescribed in the Prime Minister’s Decision No. 37/2000/QD-TTg of March 24, 2000.

Article 2.- The preferential tax policies and other financial policies for the computer products shall uniformly comply with the provisions in the Prime Minister’s Decision No. 37/2000/QD-TTg of March 24, 2000 (enclosed appendix).

Article 3.- This Decision takes effect after its signing.

Article 4.- The Ministers of Planning and Investment; Industry; Finance; Science, Technology and Environment; Trade; Defense; Agriculture and Rural Development; Aquatic Resources, the Minister-Chairman of the Committee for Ethnic Minorities and Mountainous Areas, the Governor of Vietnam State Bank, the General Director of Land Administration, the General Director of Customs, the General Director of Post and Telecommunications, the Director of the Government Pricing Committee, the Director of Radio Voice of Vietnam, the Chairman of the Management Board of Investment Development Support Fund, the General Director of Vietnam Electronics and Informatics Corporation, and the heads of concerned agencies shall have to implement this Decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN TAN DUNG

Policy of support for the development of key industrial products applicable to computer products

(Issued together with the Prime Minister’s Decision No. 19/2001/QD-TTg of February 20, 2001)

I. Enterprise assuming the prime responsibility for the execution of the project:

Vietnam Electronics and Informatics Corporation

II. Support policy:

1. On taxation:

- To exempt import tax up to the end of December 31, 2003 for equipment, machinery and special-use transport means, which are included in the technological lines to create fixed assets of the enterprise

- Incomes earned from the production of computers by the enterprises which execute the project shall be entitled to the enterprise income tax rate of 25%, be tax-free for the first two years after the taxable income is generated, and entitled to 50% reduction of the payable income tax for the two subsequent years.

- The enterprise shall be entitled to preferential index with the regulating coefficient of 0.5 to calculate import tax according to the localization rate prescribed in Joint-Circular No. 176/1998/TTLT of December 25, 1998 of the Ministry of Finance, the Ministry of Industry and the General Department of Customs.

2. On capital for the enterprise:

- When there arises the need to invest in building production establishments, the enterprise may borrow the State’s development investment credits from the Development Assistance Fund for a period of not more than 10 years for each separate loan. The capital-borrowing enterprise shall not have to mortgage its assets, but must not assign its assets before its has repaid all its debts (both principal and interest) for each loan.

- The enterprise directly producing computers shall be allocated full 30% of the norm working capital, the deficit shall be covered with the State’s development investment credit loans from the Development Assistance Fund corresponding to a production cycle.

- The enterprise shall be supported with the State budget capital source reserves for scientific and technical research in research and development projects after the project is approved.

3. Other preferences:

50% reduction of land rent for the enterprise during the period of project execution.-