Laws of Vietnam

DECIDES:

Article 1.- To exempt and/or reduce levy on land used for plant construction, enterprise income tax, import tax,... for a number of sugar plants in accordance with the Domestic Investment Promotion Law (amended) No. 03/1998/QH10 of May 20, 1998, the Government’s Decree No. 51/1999/ND-CP of July 08, 1999 detailing the implementation of the Law on Domestic Investment Promotion (amended).

The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the ministries, branches and localities in granting investment preference certificates to the above-said plants for implementation.

Article 2.- The Ministry of Finance shall make sum-up report and submit it to the Government for amendment and/or supplement to the Decree which guides the implementation of Value Added Tax (VAT) Law along the direction of allowing 50% reduction of VAT for sugar products and applying VAT rate of 0% (zero percent) to products made of discarded materials and/or by-products of sugar plants (microbiological fertilizers, pressed boards, animal feed, mushrooms, alcohol, electricity,... with cane’s remains, sludge residues, leaked molasses being used as raw materials).

Article 3.- For investment credit capital which the sugar plants have borrowed under the State’s and the National Investment Support Fund’s plans at monthly interest rate of 1.1%, the interest rate of 0.81% per month shall apply from January 01, 1998 to the end of December 31, 1999 and the interest rate stipulated in Decree No. 43/1999/ND-CP of June 29, 1999 on the State’s development investment credits shall apply as from January 01, 2000.

For commercial interest rate loans used for investment (including compulsory loan debts) and loans for further investment to complete the projects, the monthly interest rate of 0.81% shall also apply from January 1, 1998 to the end of December 31, 1999 and the interest rate stipulated in Decree No. 43/1999/ND-CP of June 29, 1999 on the State’s development investment credits shall apply as from January 1, 2000. The difference between the commercial interest rate and this interest rate shall be offset by the State budget for the sugar plants under the concrete guidance of the Ministry of Finance.

Lending organizations shall base themselves on capital recovery possibility and actual debt repayment capability of each plant, after giving priority to repayment of foreign loans according to lending contracts, to adjust lending terms for the sugar plants on the principle of taking into full and accurate account the factors affecting loans debt repayment and the project efficiency, but the lending terms must not exceed 12 years including the 5-year grace period for credit loans under the State’s plans, and not exceed 15 years including the 7-year grace period for the loans from the Asian Development Bank (ADB).

Article 4.- The difference increase in the value of the imported equipment due to fluctuation of the exchange rate between US dollar and Vietnam dong shall be considered for support in accordance with the principles stipulated at Point e, Article 2 of Decision No. 802/TTg of September 24, 1997 of the Prime Minister on solving the existing problems in opening letters of credit; the Ministry of Finance is assigned to inspect and determine the specific arising loss amount incurred due to exchange rate risk to report it to the Prime Minister for decision.

Article 5.- The Ministry of Finance shall provide working capital for the sugar plants to operate from 1999 on according to current regulations.

Article 6.- This Decision applies only to a number of sugar plants on the list enclosed herewith and takes effect after its signing.

Article 7.- The Minister of Agriculture and Rural Development, the Minister of Planning and Investment, the Minister of Finance, the Governor of the State Bank of Vietnam, the presidents of the People’s Committees of the provinces having sugar plants and the heads of the concerned agencies shall have to implement this decision.

For the Prime Minister
Deputy Prime Minister
NGUYEN TAN DUNG

LIST OF SUGAR COMPANIES AND PLANTS

(Issued together with Decision No. 194/1999/QD-TTg of September 23, 1999)

1 Tuyen Quang Sugar Cane and Sugar Company Tuyen Quang

2 Son Duong Sugar Company, Tuyen Quang (Sugar Cane and Sugar
Corporation No. I) Tuyen Quang

3 Linh Cam Sugar Company (Sugar Cane and Sugar Corporation No. I) Ha Tinh

4 Cao Bang Sugar Cane and Sugar Company Cao Bang

5 Son La Sugar Cane and Sugar Company Son La

6 Hoa Binh Sugar Cane and Sugar Company Hoa Binh

7 Viet Tri Sugar-Liquor-Beer Company (Sugar Cane and Sugar
Corporation No. I) Phu Tho

8 Nong Cong Sugar Company (Sugar Cane and Sugar Corporation No. I) Thanh Hoa

9 Shop 2 of Lam Son Sugar Company (Sugar Cane and Sugar
Corporation No. I) Thanh Hoa

10 Song Con Sugar-Liquor Enterprise (Nghe An Sugar Cane and
Sugar Company) Nghe An

11 Quang Binh Sugar Company (Sugar Cane and Sugar Corporation No. I) Quang Binh

12 Quang Nam Sugar Plant (Food and Foodstuffs Industry Company) Quang Nam

13 Expanded Quang Ngai Sugar Plant (Quang Ngai Sugar Company) Quang Ngai

14 Nam Quang Ngai Sugar Plant (Quang Ngai Sugar Company) Quang Ngai

15 Binh Dinh Sugar Company Binh Dinh

16 Tuy Hoa Sugar Cane and Sugar Company (Sugar Cane and Sugar
Corporation No. II) Phu Yen

17 Cam Ranh Sugar Plant (Khanh Hoa Sugar Company) Khanh Hoa

18 Ninh Hoa Sugar Plant (Khanh Hoa Sugar Company) Khanh Hoa

19 Binh Thuan Sugar Plant Binh Thuan

20 Kon Tum Sugar Cane and Sugar Company Kon Tum

21 Dak Lak Sugar Cane and Sugar Company Dak Lak

22 Sugar Cane and Sugar Company No. 333 (Vietnam Coffee Corporation) Dak Lak

23 Tri An Sugar Cane and Sugar Company Dong Nai

24 Tay Ninh Crude Sugar Plant (Bien Hoa Sugar Company) Tay Ninh

25 Ben Tre Sugar Company Ben Tre

26 Phung Hiep Sugar Plant (Can Tho Sugar Cane and Sugar Company) Can Tho

27 Vi Thanh Sugar Enterprise (Can Tho Sugar Cane and Sugar Company) Can Tho

28 Soc Trang Sugar Cane and Sugar Company Soc Trang

29 Kien Giang Sugar Cane and Sugar Company Kien Giang

30 Thoi Binh Sugar Company Ca Mau