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Establishing Dinh Vu-Cat Hai economic zone, Hai Phong city, and promulgating its operation regulation

THE PRIME MINISTER OF GOVERNMENT
No: 06/2008/QD-TTg
SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
Ha Noi, day 10 month 01 year 2008                          

DECISION

Establishing Dinh Vu-Cat Hai economic zone, Hai Phong city, and promulgating its operation regulation

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 29, 2005 Investment Law;

At the proposal of the Minister of Planning and Investment and the president of the People's Committee of Hai Phong city,

DECIDES:

Article 1.- To establish Dinh Vu-Cat Hai economic zone in Hai Phong city.

Article 2.- To promulgate together with this Decision the Operation Regulation of Dinh Vu-Cat Hai economic zone, Hai Phong city.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and the president of the People's Committee of Hai Phong city shall implement this Decision.

Prime Minister
NGUYEN TAN DUNG

 

OPERATION REGULATION OF DINH VU-CAT HAI ECONOMIC ZONE, HAI PHONG CITY

(Promulgated together with the Prime Minister's Decision No. 06/2008/QD-TTg of January 10, 2008)

Chapter I

Article 1.- This Regulation provides for the operation, a number of policies for and state management of Dinh Vu-Cat Hai economic zone, Hai Phong city (below referred to as Dinh Vu-Cat Hai EZ); rights and obligations of investors conducting investment, goods trading or service activities, and investors investing and dealing in infrastructure works in Dinh Vu-Cat Hai EZ.

Article 2.-

1. Dinh Vu-Cat Hai EZ is a zone with specified geographical boundaries within the national territory and under the national sovereignty but having a separate economic space with a favorable and equal investment and business environment covering functional areas, socio-technical infrastructure facilities, service and public-utility works, and stable and long-term policies on preferential treatment and incentives for investors and an open management mechanism, aiming to create favorable conditions for investors to feel secure in developing goods production and trading and service activities within the current and ever-improving legal framework.

2. Dinh Vu-Cat Hai EZ, Hai Phong city, embraces communes in Ben Rung area of Thuy Nguyen district (Trung Ha, Thuy Trieu, An Lu, Ngu Lao, Phuc Le, Pha Le, Lap Le and Tam Hung communes), Vu Yen island, Trang Cat ward and Dinh Vu island of Hai An district, Cat Hai island (Van Phong, Hoang Chau, Nghia Lo and Dong Bai communes and Cat Hai township) of Cat Hai district. It has a total area of around 21,600 hectares, including a dry land area of around 12,900 hectares and a submerged alluvial area of 8,700 hectares.

To the east, the economic zone borders on Lach Huyen estuary of Bach Dang river; to the west, it borders on Hoa Binh, Thuy Trieu and Duong Quan communes of Thuy Nguyen district, Dong Hai and Nam Hai wards of Hai An district; to the north, it borders on Gia river; and to the south, it borders on the sea.

Article 3.- Major development objectives of Dinh Vu-Cat Hai EZ

1. To build and develop Dinh Vu-Cat Hai EZ into an integrated, dynamic and multi-sector economic zone operating for the main purpose of marine economy development with port services being the key domain; a center of marine economy in North Vietnam as well as the whole country, which can facilitate modern international trade activities in North Vietnam and serve as a driving force for stepping up the development of Hai Phong city towards industrialization and modernization; and an industrial, financial and banking service, tourist and commercial hub of the region and the whole country.

2. To build Dinh Vu-Cat Hai EZ in line with the plans on development of Hai Phong city, the northern key economic region, the economic corridor of Kunming - Lao Cai - Hanoi - Hai Phong, and create a close link between the zone and Van Don economic zone of Quang Ninh province. To step by step build and develop Dinh Vu-Cat Hai EZ into a key spot of development in the north of Hai Phong city with industrial parks, regarding the effective development of sea-based industries, services and tourism and other economic sectors as an important function of the economic zone. To build tourist resorts offering unique tourist products, and develop port economy, non-tariff areas, Dinh Vu and Lach Huyen seaports, urban residential areas and other public places.

3. To concentrate on building modern and synchronous physical and infrastructure foundations in Dinh Vu-Cat Hai EZ.

4. To develop key sub-sectors and products of high quality and competitiveness in industries, tourism, services and agriculture; to develop the production of quality and competitive products; to boost export and expand the export market around the world in order to generate momentum and force for long-term development of Hai Phong city and North Vietnam.

5. To efficiently take advantage of natural conditions and the geographical, economic and political position in international and domestic trade and services in order to promote the socio-economic development of Hai Phong city, contributing to creating a driving force for socio-economic development in the whole northern sea and coastal region, the Red River delta and the northern key economic region.

6. To create jobs for laborers, raise the quality of human resources in the region; to help create products of reliable brands, high quality and competitiveness.

7. To develop Dinh Vu-Cat Hai EZ in association with environmental protection and sustainable development; to combine socio-economic development with security, defense and social order and safety maintenance, contributing to firmly preserving national sovereignty and territorial integrity.

Article 4.- The Government encourages and protects Vietnamese organizations and individuals of all economic sectors, overseas Vietnamese and foreign organizations and individuals to invest and conduct business activities in Dinh Vu-Cat Hai EZ in the following domains: investment and dealing in infrastructures and urban centers, industrial development, urban and seaport development, commerce, services, tourism, entertainment, finance-banking, transportation, insurance, education, training, healthcare, housing, airports, import, export and other production and business activities under this Regulation, other provisions of Vietnamese law and treaties to which Vietnam is a contracting party.

Article 5.-

1. Investors that invest in goods production and trading or service provision in Dinh Vu-Cat Hai EZ have the following rights:

a/ To rent or sub-rent land areas within Dinh Vu-Cat Hai EZ on which technical infrastructure works have been constructed by infrastructure construction and operation enterprises for building workshops, offices and structures for goods production and trading or service provision, and to get land use rights certificates in accordance with the land law;

b/ To rent or buy workshops, offices, warehouses and storing yards already built within Dinh Vu-Cat Hai EZ for their goods production and trading or service provision under contracts signed with infrastructure construction and operation enterprises;

c/ To use and pay charges for technical infrastructure works and public-service facilities in Dinh Vu-Cat Hai EZ, including: roads, seaports, power supply system, water supply and drainage systems, communication system, wastewater and waste treatment facilities and other public services provided in Dinh Vu-Cat Hai EZ under contracts signed with infrastructure construction and operation enterprises;

d/ To enjoy investment incentives and other lawful benefits provided for in this Regulation and the provisions of land, investment, tax and other relevant laws and treaties to which Vietnam is a contracting party.

2. Investors that invest in goods production and trading or service provision in Dinh Vu-Cat Hai EZ have the following obligations:

a/ To comply with the provisions of this Regulation and detailed plans on functional areas already approved by competent state agencies; to use land for proper purposes for which land has been assigned or leased or subleased to them;

b/ To create conditions for infrastructure construction and operation enterprises to carry out maintenance, regular repair or upgrading of infrastructure works in functional areas, technical infrastructure works and public-service works in land areas they currently use;

c/ To pay rents for leased or subleased land, rents or purchase payments for leased or purchased workshops, offices, warehouses, storing yards, charges for use of infrastructure works of functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ to infrastructure construction and operation enterprises under signed contracts;

d/ To observe the regime of reporting on a monthly, quarterly or annual basis to the Management Board of Dinh Vu-Cat Hai EZ;

e/ To fulfill tax, customs and environmental protection obligations and other obligations specified by law.

Article 6.-

1. Investors (except for those specified at Point d, Clause 4, Article 3 of the Investment Law) that invest in construction of and dealing in all or several infrastructure work items in functional areas, technical infrastructure works, public-service works (collectively referred to as infrastructure construction and operation enterprises) in Dinh Vu-Cat Hai EZ have the following rights:

a/ To be leased or reallocated land with or without collection of land use levy by the Management Board of Dinh Vu-Cat Hai EZ in accordance with relevant provisions of the land law for investing in construction of and dealing in all or several infrastructure work items in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ;

b/ To sublease land areas within Dinh Vu-Cat Hai EZ, on which technical infrastructure works have been constructed, to investors for investment in goods production and trading or service provision in Dinh Vu-Cat Hai EZ under the land law. Investors being economic organizations that are allocated land under the land law with the collection of land use levy not funded with the state budget may transfer the rights to use land on which technical infrastructure works have been constructed.

c/ To collect charges for use of infrastructure works in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ which they have invested in under contracts signed with lessees;

d/ To build workshops, offices, warehouses and storing yards in Dinh Vu-Cat Hai EZ for sale or lease under the construction and land laws;

e/ To set rent or sub-rent rates for land areas on which technical infrastructure works have been constructed, charge rates for use of technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ in accordance with current legal provisions and agreements of the Management Board of Dinh Vu-Cat Hai EZ; to set rent rates or selling prices of workshops, offices, warehouses and storing yards and service charge rates;

f/ To sublease partially or wholly land areas on which technical infrastructure works have been completely constructed to investors (except for those specified at Point d, Clause 4, Article 3 of the Investment Law) with financial capability and investment capital mobilization experience for sublease or calling for investment capital in accordance with the land law;

g/ To enjoy investment incentives and other lawful benefits under this Regulation, the land, investment, tax and other relevant laws and treaties to which Vietnam is a contracting party.

2. Infrastructure construction and operation enterprises in Dinh Vu-Cat Hai EZ have the following obligations:

a/ To construct infrastructure works in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ in strict accordance with detailed plans, designs and construction schedules already approved by competent state agencies.

The Management Board of Dinh Vu-Cat Hai EZ may decide to terminate the operation of investment projects on construction and commercial operation of infrastructure works in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ, for cases specified in the Government's Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding the implementation of a number of articles of the Investment Law; and at the same time, request competent state agencies to decide on recovery of land areas already allocated to these projects under the land law;

b/ To regularly maintain and repair infrastructure works in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ in order to ensure their quality;

c/ To comply with the provisions of this Regulation and detailed plans of functional areas approved by competent state agencies; to use land for proper purposes for which it has been allocated or leased;

d/ To observe the regime of reporting on a monthly, quarterly or annual basis to the Management Board of Dinh Vu-Cat Hai EZ;

e/ To fulfill the tax, customs and environmental protection obligations and other obligations specified by law.

Article 7.-

1. Annually, based on investment projects on socio-economic infrastructure works approved by competent authorities and project execution progress, targeted additional allocations shall be granted from the central budget to the budget of Hai Phong city for investment in construction of socio-economic infrastructure works and public-service works of Dinh Vu-Cat Hai EZ in accordance with the state budget law.

2. The following modes of mobilization of capital for investment in development of Dinh Vu-Cat Hai EZ may be applied:

a/ Prioritizing investment with ODA capital and concessional credit capital in the construction of necessary socio-technical infrastructure works and public-service works of Dinh Vu-Cat Hai EZ and other technical assistance;

b/ Attracting investment capital in BOT, BT or BTO and other forms under current regulations;

c/ Mobilizing capital from the existing land fund in accordance with the land law for investment in the development of common socio-technical infrastructure works in Dinh Vu-Cat Hai EZ;

d/ Mobilizing direct investment capital of domestic and foreign organizations and individuals; and advance capital of entities that need to use technical infrastructure works and capital of infrastructure construction and operation enterprises. Expanding the form of co-financing credit by credit institutions and mobilizing all capital sources in other lawful forms;

e/ Issuing local bonds to mobilize investment capital for big investment projects on infrastructure construction which are key to the development of Dinh Vu-Cat Hai EZ in accordance with law.

Chapter II

ORGANIZATION AND OPERATION OF DINH VU-CAT HAI ECONOMIC ZONE

Article 8.-

1. Dinh Vu-Cat Hai EZ consists of two major functional areas: non-tariff area and tariff area. The size and location of each major functional area are determined in the general plan of Dinh Vu-Cat Hai EZ approved by the Prime Minister.

The non-tariff area is separated from the tariff area in Dinh Vu-Cat Hai EZ and inland Vietnam by a fence system with entrance gates and doors, ensuring conditions for control by concerned functional agencies. In the non-tariff area there are an export processing zone and a customs office that carry out inspection and supervision of and customs procedures for goods entering or leaving the non-tariff area. There will be no residential quarters and no permanent or temporary inhabitants (including foreigners) in the non-tariff area.

The tariff area occupies the remaining land area of Dinh Vu-Cat Hai EZ. In this area there are industrial parks, entertainment centers, tourist resorts, service facilities, urban centers, residential and administrative quarters.

The size and location of each of these functional areas or quarters are determined in the general construction plan of Dinh Vu-Cat Hai EZ approved by the Prime Minister.

2. The Management Board of Dinh Vu-Cat Hai EZ may hire foreign consultancy companies to take part in elaborating detailed plans for such functional areas as tourist resorts, urban centers and non-tariff area.

Article 9.- The non-tariff area accommodates the following principal production and business activities:

1. Production, processing, reprocessing or assembly of exports, imports and goods for local consumption.

2. Goods trading, covering export, import, border-gate transfer, temporary import for re-export, retail shops and department stores, duty-free shops and department stores.

3. Commercial provision of services, including sorting, packaging, transportation and forwarding of transit goods, preservation, warehousing, bonded warehousing, port, telecommunications, finance, banking, transportation, entertainment and restaurant.

4. Trade promotion, covering trade fair and exhibitions, showrooms, branches or representative offices of domestic and foreign companies, financial institutions, banks and other trade promotion activities.

Article 10.-

1. Goods and service exchange relations between the non-tariff area and foreign countries and among economic organizations in the non-tariff area comply with legal provisions on goods and service exchange among foreign countries. Economic organizations operating in the non-tariff area may export to foreign countries and import from foreign countries all goods and services not banned from export or import. Goods imported from abroad into the non-tariff area or goods exported from the non-tariff area to foreign countries are not liable to import and export duties (except for those specified in Clause 2, Article 15 of this Regulation).

2. Goods may be stored in the non-tariff for an unlimited period.

3. Foreign ships may directly enter the non-tariff port area for cargo loading and unloading. The procedures for entry or exit for ships and persons onboard these ships are carried out at buoys zero.

Article 11.-

1. Goods leaving or entering the tariff area in Dinh Vu-Cat Hai EZ must comply with legal provisions on customs, export and import duties and enjoy the most favorable customs procedures.

2. Goods may be freely circulated between the tariff area and inland Vietnam.

Article 12.-

1. Goods and service exchange relations between the non-tariff area and the tariff area in Dinh Vu-Cat Hai EZ as well as inland Vietnam comply with legal provisions on export and import relations, customs and export and import duties. Goods and service exchange relations between the non-tariff area and the export processing zone in Dinh Vu-Cat Hai EZ as well as other non-tariff areas comply with regulations on exchange relations among foreign countries.

2. Investors that invest in goods production and trading or service provision in the tariff area in Dinh Vu-Cat Hai EZ and inland Vietnam may only import from the non-tariff area goods and services neither banned nor restricted by Vietnam from import and may sell into the non-tariff area goods and services not banned by Vietnam from export.

Article 13.- Foreign investors are allowed to invest in the provision of international telecommunications services for exclusive use within Dinh Vu-Cat Hai EZ at charge rates set by these investors themselves and in accordance with Vietnam's international integration commitments.

Chapter III

INVESTMENT INCENTIVES

Article 14.-

1. Investors may choose to execute investment projects in Dinh Vu-Cat Hai EZ (except for those on the list of domains in which investment is banned under the investment law).

2. Investment projects in Dinh Vu-Cat Hai EZ may be granted investment certificates according to simplified and favorable investment registration and appraisal procedures.

3. Investment projects in Dinh Vu-Cat Hai EZ enjoy incentives applicable to geographical areas with exceptionally difficult socio-economic conditions under the Investment Law, the Land Law, the Enterprise Income Tax Law, the Export Tax and Import Tax Law, the Cooperative Law and other tax laws.

4. Vietnamese and foreigners working in Dinh Vu-Cat Hai EZ and earning incomes liable to personal income tax are entitled to a 50% reduction of the payable personal income tax.

5. Apart from incentives granted under this Regulation, the following investment projects of investors in Dinh Vu-Cat Hai EZ also enjoy an enterprise income tax rate of 10% throughout the project execution duration:

a/ Hi-tech projects that satisfy the conditions specified in Clause 2, Article 5 of the Regulation on hi-tech parks promulgated together with the Government's Decree No. 99/2003/ND-CP of August 28, 2003;

b/ Projects eligible for special investment incentives and with great socio-economic impacts and proposed by the Finance Ministry to the Prime Minister for decision, in case higher incentives are needed.

Article 15.-

1. In the following cases, exported or imported goods are not liable to export or import duty:

a/ Goods imported from foreign countries into the non-tariff area for use only in the non-tariff area of Dinh Vu-Cat Hai EZ;

b/ Goods exported from the non-tariff area to foreign countries;

c/ Goods transferred or sold from a non-tariff area to another or export processing enterprises in the Vietnamese territory;

d/ Goods not liable to export duty and brought from inland Vietnam into the non-tariff area (except for those specified in Clause 2 of this Article).

2. For goods liable to export duty, originating from the tariff area of Dinh Vu-Cat Hai EZ or inland Vietnam, and brought into the non-tariff area for export to foreign countries without being manufactured, processed, reprocessed or assembled into products in the non-tariff area, export duty must be paid and export procedures must be carried out under current regulations. They are subject to customs inspection and supervision.

3. For goods of foreign origin, not on the list of goods banned or restricted from import and imported from the non-tariff area into the tariff area in Dinh Vu-Cat Hai EZ and inland Vietnam, import duty must be paid and import procedures must be carried out under current regulations. They are subject to customs inspection and supervision.

4. For goods manufactured, processed, reprocessed or assembled in the non-tariff area from materials or components imported from abroad, and imported into the tariff area in Dinh Vu-Cat Hai EZ and inland Vietnam, import duty must be paid for the proportion of imported materials or components used in these products or goods and import procedures must be carried out under current regulations. They are subject to customs inspection and supervision.

5. Goods and services manufactured, provided and consumed in the non-tariff area and those imported from abroad into the non-tariff area are not liable to value-added tax. Goods and services brought from inland Vietnam and the tariff area in Dinh Vu-Cat Hai EZ into the non-tariff area are subject to a value-added tax rate of 0%. Goods and services brought from the non-tariff area into inland Vietnam and the tariff area (except for the export processing zone) in Dinh Vu-Cat Hai EZ are liable to value-added tax under current regulations.

6. For goods and services liable to special consumption tax and manufactured or provided and consumed in the non-tariff area or imported from abroad into the non-tariff area, special consumption tax is not required to be paid (except for goods and services subject to separate regulations on special consumption tax).

7. For goods and services liable to special consumption tax and brought from the non-tariff area into the tariff area (except for the export processing zone) in Dinh Vu-Cat Hai EZ and inland Vietnam, special consumption tax must be paid.

8. Production materials and goods materials imported from abroad by domestic and foreign organizations and individuals engaged in goods production and trading or service provision in the non-tariff area and not yet used up, and byproducts of commercial value may be sold into the tariff area in Dinh Vu-Cat Hai EZ and inland Vietnam after customs procedures are completed and import duty is paid under current regulations.

9. Investment projects on production of exports and transportation of goods in transit must comply with common regulations.

Article 16.- Investors (except for those specified at Point d, Clause 4, Article 3 of the Investment Law) may invest in building residential houses for sale or lease; invest in constructing infrastructure works in functional areas for lease or sublease, or transfer the rights to use land plots in Dinh Vu-Cat Hai EZ on which infrastructure works have been constructed in accordance with relevant provisions of the land law. Overseas Vietnamese may purchase residential houses attached with residential land use rights. Foreigners permanently residing in Vietnam and foreign investors may rent residential houses attached with land use rights in Dinh Vu-Cat Hai EZ under the housing and land laws.

Article 17.- The single-price mechanism applicable to goods, services and land rents is applied to organizations and individuals, both domestic and foreign, that conduct investment, production or trading activities in Dinh Vu-Cat Hai EZ.

Chapter IV

USE OF LAND IN DINH VU-CAT HAI ECONOMIC ZONE

Article 18.-

1. All special-use land and water surface areas that are reserved for investment in the construction and development of industrial parks, export processing zones and non-tariff area in Dinh Vu-Cat Hai EZ specified in the general plan on construction of Dinh Vu-Cat Hai EZ approved by the Prime Minister and detailed plans on construction of functional areas in Dinh Vu-Cat Hai EZ approved by the People's Committee of Hai Phong city may be allocated only once by the People's Committee of Hai Phong city to the Management Board of Dinh Vu-Cat Hai EZ for construction and development activities. The People's Committee of Hai Phong city shall direct the recovery of land areas planned for construction of functional areas in Dinh Vu-Cat Hai EZ.

2. The People's Committee of Hai Phong city shall direct the recovery of special-use land and water surface areas under approved detailed land use plans for use for other functional areas and other purposes in Dinh Vu-Cat Hai EZ, and then allocate these areas to the Management Board of Dinh Vu-Cat Hai EZ under approved annual and five-year detailed land use plans of Dinh Vu-Cat Hai EZ for the construction and development of Dinh Vu-Cat Hai EZ.

3. The People's Committee of Hai Phong city shall direct the Management Board of Dinh Vu-Cat Hai EZ in coordinating with local administrations in compensation payment, ground clearance and resettlement of households that have their land recovered (for special-use land and water surface areas already recovered by competent state agencies) for subsequent allocation to the Management Board of Dinh Vu-Cat Hai EZ for reallocation of land with or without collection of land use levy or lease of land to persons with land use needs under the land law.

The Management Board of Dinh Vu-Cat Hai EZ shall manage and efficiently use special-use land and water surface areas allocated to it for proper land use purposes and in compliance with the general plan on construction of Dinh Vu-Cat Hai EZ already approved by the Prime Minister, and the detailed construction planning, ten-year land use plannings and five-year land use plans already approved by competent authorities.

4. For land reallocation or land lease not through a land use rights auction or bidding of projects involving land use:

Based on land prices set by the People's Committee of Hai Phong city and current legal provisions, the Management Board of Dinh Vu-Cat Hai EZ shall decide on land and water surface use levy and rent rates. The exemption from and reduction of land and water surface use levy and rent must comply with current legal provisions.

5. For land reallocation with collection of land use levy or land lease through a land use rights auction or bidding of projects involving land use: Based on a financial plan and land price approved by the People's Committee of Hai Phong city, the Management Board of Dinh Vu-Cat Hai EZ shall decide on reallocation or lease of land, for which compensations for ground clearance have been paid, to persons with land use needs under the land law.

6. Investors being domestic organizations or individuals or overseas Vietnamese may be leased or allocated land; investors being foreign organizations or individuals may be leased land for execution of investment projects in Dinh Vu-Cat Hai EZ and have rights and obligations corresponding to forms in which they are allocated or leased land under the land law.

Article 19.- The State supports investment in the construction of technical infrastructure works within functional areas in Dinh Vu-Cat Hai EZ; payment of compensations for ground clearance in functional areas and resettlement for households that have their land recovered; and investment in the construction of consolidated wastewater and waste treatment facilities in functional areas under targeted support programs.

Article 20.- Before commencing construction of works serving production or business, infrastructure works in functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ, investors shall file dossiers of application for permission of the Management Board of Dinh Vu-Cat Hai EZ under the construction law. Within seven working days after receiving complete and valid dossiers, the Management Board of Dinh Vu-Cat Hai EZ shall consider and issue written replies to the investors.

Any historical and cultural relic which is discovered in the course of investment in construction of above works must be dealt with in accordance with the Law on Cultural Heritage.

Article 21.- The management of construction of works in service of production or business, infrastructure works of functional areas, technical infrastructure works and public-service works in Dinh Vu-Cat Hai EZ must comply with the construction law.

Chapter V

APPLICABLE REGULATIONS ON FINANCE, LABOR, BUSINESS ORGANIZATION, EXIT, ENTRY, RESIDENCE AND INFORMATION COMMUNICATIONS

Article 22.-

1. Foreigners and overseas Vietnamese who work or invest in production or business activities in Dinh Vu-Cat Hai EZ and their family members are granted multiple visas with a validity duration suitable to their working duration in Dinh Vu-Cat Hai EZ but not exceeding five years and may temporarily reside in the EZ within the validity duration of their visas.

The Ministry of Public Security shall guide the implementation of the provisions of this Clause.

2. The Management Board of Dinh Vu-Cat Hai EZ may grant work permits to foreigners and overseas Vietnamese who work or invest in production or business activities in Dinh Vu-Cat Hai EZ under the labor law.

The Ministry of Labor, War Invalids and Social Affairs shall guide the Management Board of Dinh Vu-Cat Hai EZ shall grant work permits specified in this Clause.

Article 23.- The purchase, sale or transfer of and payment for goods or services and other transactions between economic organizations and individuals in the non-tariff area may be conducted in freely convertible currencies via bank accounts. The payment for purchase and sale of ordinary goods for daily-life needs is made in Vietnam dong.

Article 24.-

1. Commercial banks and credit institutions established and operating under the Law on Credit Institutions may open their branches in Dinh Vu-Cat Hai EZ for performing their credit functions in Vietnam dong and foreign currencies with regard to economic activities in Dinh Vu-Cat Hai EZ under current regulations.

2. All goods transported into or out of the non-tariff area must be valued in freely convertible currencies; charges of all kinds paid to state management agencies in Dinh Vu-Cat Hai EZ must be calculated in Vietnam dong while other charges must be calculated in freely convertible currencies or Vietnam dong under current regulations on foreign exchange management.

Chapter VI

STATE MANAGEMENT OF DINH VU-CAT HAI EZ

Article 25.-

1. The Management Board of Dinh Vu-Cat Hai EZ is set up under the Prime Minister's decision at the request of the People's Committee of Hai Phong city and the Minister of Home Affairs.

2. The Management Board of Dinh Vu-Cat Hai EZ is a state management body attached to the People's Committee of Hai Phong city, directly performing the unified management of investment in the construction and development of Dinh Vu-Cat Hai EZ under this Regulation, plannings, plans and schedules approved by competent state agencies and other relevant legal provisions.

3. The Management Board of Dinh Vu-Cat Hai EZ has the legal person status, bank accounts and its own seal bearing the national emblem; a working office; full-time staff; non-business operation funds; and development investment capital allocated from the state budget under annual plans.

4. The head of the Management Board of Dinh Vu-Cat Hai EZ is appointed by the president of the People's Committee of Hai Phong city; deputy heads are appointed by the president of the People's Committee of Hai Phong city at the proposal of the head of the Management Board of Dinh Vu-Cat Hai EZ.

Article 26.- The Management Board of Dinh Vu-Cat Hai EZ has the tasks and powers specified in this Regulation, the investment law and other relevant laws and the following tasks and powers:

1. To elaborate a master plan on socio-economic development and the general plan of Dinh Vu-Cat Hai EZ to be submitted by the People's Committee of Hai Phong city to the Prime Minister for approval; to elaborate detailed plans on functional quarters, detailed planning and plans on land use in Dinh Vu-Cat Hai EZ to be submitted to the People's Committee of Hai Phong city for approval; to organize the management, dissemination, guide and inspection of the implementation of the Operation Regulation, the master plan, the general plan, detailed plans and plans approved by competent state agencies.

2. To draw up a list of investment projects and work out annual plans on development investment capital, then submit them to competent state agencies for approval, and organize their implementation.

3. To grant, adjust or revoke investment certificates; business registration certificates; licenses for setting up commercial representative offices; licenses for setting up representative offices; work permits for foreigners and overseas Vietnamese who work or invest in business in the EZ; certificates of origin of goods in Dinh Vu-Cat Hai EZ and other licenses, permits and certificates under authorization by competent state agencies.

4. To allocate land with or without the collection of land use levy, lease special-use land or water surface to investors with land use needs in Dinh Vu-Cat Hai EZ under the land law.

5. To elaborate price brackets and charge and fee rates to be applied in Dinh Vu-Cat Hai EZ, then submit them to competent state agencies for consideration and promulgation under legal provisions.

6. To act as the main body in charge of solving problems arising in the course of formulation, deployment and implementation of investment projects, business activities and operation in Dinh Vu-Cat Hai EZ.

7. To coordinate with local administrations and concerned agencies in ensuring that all activities in Dinh Vu-Cat Hai EZ are conducted in compliance with this Regulation and the planning and plans on construction and development of Dinh Vu-Cat Hai EZ approved by competent state agencies.

8. To perform the tasks of managing and using development investment capital sources in Dinh Vu-Cat Hai EZ, and managing construction projects funded with development investment capital from the state budget in Dinh Vu-Cat Hai EZ under regulations.

9. To organize, deploy, introduce, negotiate and promote investment, commerce, tourism and services at home and abroad. To formulate programs on promotion of investment, commerce, tourism or services, and submit them to competent state agencies for approval before organizing their implementation.

10. To work out a plan on development of human resources to meet Dinh Vu-Cat Hai EZ's needs, and submit it to the People's Committee of Hai Phong city for approval before organizing its implementation.

11. To send periodical reports on implementation of plannings and plans on construction and development of Dinh Vu-Cat Hai EZ to concerned ministries and branches and the People's Committee of Hai Phong city.

12. To perform other tasks assigned by the People's Committee of Hai Phong city in each period.

Article 27.- The Management Board of Dinh Vu-Cat Hai EZ may collect fees or charges for use of infrastructure and public-service works in Dinh Vu-Cat Hai EZ under the law on charges and fees.

Article 28.- The People's Committee of Hai Phong city shall:

1. Organize the elaboration of a master plan on socio-economic development and a general plan of Dinh Vu-Cat Hai EZ for submission to the Prime Minister for approval and use as a basis for long-term investment and development of Dinh Vu-Cat Hai EZ.

2. Approve detailed plans on functional quarters in Dinh Vu-Cat Hai EZ and detailed land use planning and plans in Dinh Vu-Cat Hai EZ; recover and allocate land to the Management Board of Dinh Vu-Cat Hai EZ for organization of construction and development of Dinh Vu-Cat Hai EZ under Clauses 1 and 2, Article 18 of this Regulation.

3. Set land prices and land use levy and rent exemption or reduction levels to be applied in Dinh Vu-Cat Hai EZ for the case of land reallocation or land lease not through a land use rights auction or bidding of projects involving land use, and approve financial and price plans for the case of land use rights auction or bidding of projects involving land use.

4. Perform the state management of investment projects in Dinh Vu-Cat Hai EZ under approved plan; submit to competent authorities for approval or approve according to its competence a list of development investment projects and annual plans on development investment capital in Dinh Vu-Cat Hai EZ.

5. Promulgate specific preferential policies and incentives in compliance with current legal provisions with a view to prioritizing the recruitment and employment of local laborers; support job training of local workforce; create conditions for local laborers to work in enterprises in Dinh Vu-Cat Hai EZ; attract professionally qualified and highly skilled laborers from other localities to work in Dinh Vu-Cat Hai EZ.

6. Support the building of residential houses for workers and resettlement areas; investment in the development of the system of socio-technical infrastructure and public-service works under the Law on the State Budget; promotion of investment and commerce; payment of compensations for ground clearance in order to accelerate the investment in and development of Dinh Vu-Cat Hai EZ.

7. Direct the People's Committees of Thuy Nguyen, Cat Hai and Hai An districts in paying compensations for ground clearance; direct the province's functional agencies in coordinating with the Management Board of Dinh Vu-Cat Hai EZ in taking measures to ensure security and social order and safety, and creating favorable conditions for the operation of enterprises in Dinh Vu-Cat Hai EZ.

8. Allocate funds for administrative and non-business activities and development investment capital to the Management Board of Dinh Vu-Cat Hai EZ from the state budget under annual plans and legal provisions on the state budget.

9. Direct the province's functional agencies in coordinating with and creating favorable conditions for the Management Board of Dinh Vu-Cat Hai EZ in strictly observing the provisions of this Regulation; coordinate with concerned ministries and branches in organizing the management of Dinh Vu-Cat Hai EZ for its fast and sustainable development.

Article 29.-

1. Ministries, ministerial-level agencies, government-attached agencies and the People's Committee of Hai Phong city shall, within the ambit of their functions, tasks and powers, perform the task of state management of Dinh Vu-Cat Hai EZ with regard to concerned branches, domains and administrative territories; guide the Management Board of Dinh Vu-Cat Hai EZ in performing a number of tasks of state management of such domains as investment, construction, planning, management of natural resources and the environment, urban management and development, management of land, labor, export, import and some other domains under legal provisions and this Regulation under the one-stop-shop and on-site mechanism, with a view to facilitating investors' investment, production and business activities and meeting development investment requirements of Dinh Vu-Cat Hai EZ.

2. For domains neither decentralized to nor falling under the management of the Management Board of Dinh Vu-Cat Hai EZ: Ministries, ministerial-level agencies and People's Committee of Hai Phong city shall perform the state management of Dinh Vu-Cat Hai EZ by organizing their attached units in Dinh Vu-Cat Hai EZ (except for the banking domain) and adopting a regulation on coordination with the Management Board of Dinh Vu-Cat Hai EZ in exercising their vested powers.

Article 30.- The customs office in Dinh Vu-Cat Hai EZ shall supervise and manage goods exchanged between the non-tariff area and foreign countries and goods exchanged between the non-tariff area and the rest of the Vietnamese territory.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 31.- Other matters related to activities, rights and obligations of domestic and foreign organizations and individuals engaged in goods production and trading or service provision in Dinh Vu-Cat Hai EZ not provided for in this Regulation must comply with legal provisions on investment, enterprises, cooperatives, customs, land, commerce, labor, environment, science, technology, tax and relevant laws and treaties to which Vietnam is a contracting party.

Article 32.- Domestic and foreign organizations and individuals that have been conducting investment in goods production and trading or service provision in Dinh Vu-Cat Hai EZ since before the date of promulgation of this Regulation are entitled to incentives specified in this Regulation for the remaining incentive duration like those conducting investment in goods production and trading or service provision in Dinh Vu-Cat Hai EZ from its effective date.

THE PRIME MINISTER OF GOVERNMENT
PRIME MINISTER
(signed)
 
Nguyen Tan Dung


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