Laws of Vietnam

DECISION No. 210/1998/QD-TTg OF OCTOBER 27, 1998 ON THE EXPERI-MENTAL APPLICATION OF A NUMBER OF POLICIES ON DEVELOPMENT OF MOC BAI BORDER-GATE ECONOMIC AREA, TAY NINH PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the President of the People's Committee of Tay Ninh province in Official Dispatch No.975/TT-UB of August 19, 1998 and after considering opinions of the relevant ministries and branches,

DECIDES:

Article 1.- To allow the experimental application of a number of policies on the development of Moc Bai border-gate economic area with 21,292 ha, including some 1,000 ha for urban area, which embraces administrative units of Long Thuan, Tien Thuan, Loi Thuan and An Thanh communes of Ben Cau district, and Phuoc Luu, Binh Thanh and Phuoc Chi communes of Trang Bang district, Tay Ninh province.

Article 2.- The Moc Bai border-gate economic area shall be given priority for the development of trade, services, tourism, agricultural- forestry and aquatic product-processing, production of consumer goods and subcontracted production of goods for export in accordance with the laws of the Socialist Republic of Vietnam and international practices.

Article 3.- The Socialist Republic of Vietnam Government respects and protects the legitimate rights and interests of Vietnamese and foreign investors in Moc Bai border-gate economic area in accordance with the current laws and policies of Vietnam as well as international agreements which the Socialist Republic of Vietnam has signed or acceded to.

Article 4.- The management of Moc Bai border-gate economic area shall be effected on the principle of coordinating branch management with local management under the Government's unified direction.

The People's Committee of Tay Ninh province shall perform the function of regulating and coordinating State management organizations and activities on the provincial territory regarding economic activities in Moc Bai border-gate economic area; delegate power and assign appropriate responsibilities to the People's Committees of Ben Cau and Trang Bang districts.

Article 5.- Investors in Moc Bai border-gate economic area are entitled to mobilize capital from various sources within and outside the country in appropriate forms prescribed by law, and mobilize public labor for the construction of necessary infrastructure projects and business production establishments according to the plans for socio-economic development and national defense and security maintenance.

In order to accelerate the construction of infrastructure in the Moc Bai border-gate economic area, the People's Committee of Tay Ninh province is entitled to set up an infrastructure construction and development company which shall be a State enterprise in Moc Bai border-gate economic area.

Article 6.-

1. In the period from 1999 to 2002, the State shall annually make separate investment in infrastructure construction in Moc Bai border-gate economic area through the provincial budget, which, according to the ratified plan, shall not be lower than 50% of the total import-export tax amount collected at Moc Bai border-gate economic area. The investment capital levels and the list of infrastructure construction projects entitled to separate investment shall be proposed by the People's Committee of Tay Ninh province and decided by the Ministry of Planning and Investment after consulting the Ministry of Finance.

2. The president of the People's Committee of Tay Ninh province is entitled to sign decisions ratifying Group B- and C- capital construction projects after reaching agreement with the Ministry of Planning and Investment and consulting the Ministry of Defense so as to ensure national defense and security and control the border-gate area. Regarding the use of capital sources mentioned in Clause 1 of this Article for investment projects in Moc Bai border-gate economic area, the People's Committee of Tay Ninh province shall discuss in detail the capital allocation with the Ministry of Planning and Investment and the Ministry of Finance so as to ensure the implementation schedule.

Article 7.- To diversify production and business forms on the territory of the Moc Bai border-gate economic area. The licensing and business registration in Moc Bai border-gate economic area shall comply with the current provisions of law and the one-door regime.

The People's Committee of Tay Ninh province is entitled to license the establishment and business registration of private enterprises, limited liability companies and joint stock companies in Moc Bai border-gate economic area, which operate under the Law on Private Enterprises and the Law on Companies.

Article 8.- Domestic and foreign investors are encouraged to invest in production and business development as well as infrastructure construction in Moc Bai border-gate economic area in accordance with the Law on Domestic Investment Promotion and the Law on Foreign Investment in Vietnam. In addition to preferences they are entitled to under the current regulations, they shall also enjoy the following:

1. Domestic and foreign investors in Moc Bai border-gate economic area shall enjoy 50% land rent reduction, compared with the current land rent bracket set by the State and applicable in Moc Bai border-gate economic area.

2. Foreign investors, when transferring their profits abroad, shall be entitled to the lowest tax rates in the Tax Index prescribed by law.

Article 9.- The People's Committee of Tay Ninh province is entitled to consider and license foreign direct investment projects capitalized at no more than USD 5 million each in Moc Bai border-gate economic area.

Article 10.- Article 10.- For land and workshops already hired or purchased in Moc Bai border-gate economic area but not yet used for the purposes stated in the investment licenses, if their use purposes are expected change, such change must be re-negotiated, then permitted by the competent agency.

Article 11.- While their investment and/or business licenses are still valid, enterprises, after getting approval from the investment licensing agency, may transfer to other investors their assets already built on the rent land or properties already installed in the workshops in accordance with the current provisions of Vietnamese law. The transferees shall have the right and responsibility to continue the implementation of contracts which have been signed by their respective transferers with partners.

Article 12.- Trade, service and production activities in Moc Bai border-gate economic area shall be carried out in accordance with the current regulations, including:

1. Activities related to export, import, temporary import, re-export, goods transit, bonded warehouses, duty-free shops, showrooms, border-gate markets, subcontracted production of export goods, goods preservation, banking, information and communica-tions, representative offices and branches of foreign and domestic companies. Such activities must comply with the following provisions:

- Enterprises of different economic sectors set up under the current provisions of law and headquartered in Moc Bai border-gate economic area are entitled to conduct direct import and/or export of goods of different categories (except for those banned from import and/or export by the State). The import and/or export of goods that require State's quotas or conditional norms shall comply with the current regulations of the State and under guidances of the Ministry of Trade.

- Foreign goods temporarily imported into Moc Bai border-gate economic area, if having not yet been re-exported, must be deposited into bonded warehouses and, when being re-exported to other countries, must be subject to the re-export procedures. In cases where the goods are imported into the domestic market, the goods owners shall have to pay import tax. If the goods deposited in bonded warehouses in Moc Bai border-gate economic area are not further transported, they must be sent back to their places of origin according to the current regulations and international practices.

The Ministry of Trade shall guide and authorize the People's Committee of Tay Ninh province to issue permits to foreign enterprises for setting up their branches or representative offices in the field of trade, tourism and services in Moc Bai border-gate economic area, and to allow enterprises to organize international commodity exhibitions-cum-fairs in Moc Bai border-gate economic area under guidances of the Ministry of Trade.

2. Production activities, including assembly, processing of agricultural, forest and aquatic products; production of consumer goods, subcontracted production of export goods, shall have to comply with the following provisions:

- Enterprises, branches and representative offices of companies of different economic sectors in the country set up under the provisions of law and headquartered in Moc Bai border-gate economic area are allowed to manufacture goods in service of people's daily life; and to conduct direct import and/or export of goods of different categories.

- Materials and supplies imported into Moc Bai border-gate economic area for the production of export goods or import substitutes are subject to the import tax which shall be reimbursed when the goods are exported according to the current regulations of the State.

Article 13.- Management of entry and exit.

1. Cambodian nationals residing in Cambodia's districts that border on Moc Bai border-gate economic area are allowed to travel in and out of Moc Bai border-gate economic area with their identity cards or border laissez-passers, issued by the Cambodian competent agency(ies). Their stay duration in Moc Bai border-gate economic area shall not exceed 7 days. If they wish to travel to other places in Tay Ninh province or to other provinces and/or cities of Vietnam, they shall be considered for visa granting at border gates by the Entry-Exit Management Agency of the Vietnamese Ministry of Public Security. A travel permit is only valid for one travel and not more than 15 days and shall not be extended.

2. Cambodian nationals residing outside the area mentioned in Clause 1 of this Article are allowed to travel in and out of Moc Bai border-gate economic area with their passports, be exempt from entry and exit visas and be able to stay in Moc Bai border-gate economic area for not more than 15 days. If they wish to visit other places of Tay Ninh province or other provinces and/or cities of Vietnam, they must have passports and be considered for visa granting at border gates by the Entry-Exit Management Agency of the Vietnamese Ministry of Public Security.

3. Foreigners (other than Cambodian nationals), who hold valid passports, shall be exempt from entry and exit visas when entering Moc Bai border-gate economic area and their stay duration there must not exceed 15 days. If they want to visit other places of Tay Ninh province or other provinces of Vietnam, the Entry-Exit Management Agency of the Vietnamese Ministry of Public Security shall consider and issue them entry/exit visas at the Moc Bai border gate, except for cases where visa exemption is applied under bilateral agreements.

4. To encourage the organization of group tours for foreigners from Moc Bai border-gate economic area to other places of Tay Ninh province and other provinces and/or cities throughout Vietnam. For Cambodian nationals and other foreigners who are allowed to enter Moc Bai border-gate economic area, and wish to take part in package tours in group of at least 5 people to other places of Tay Ninh and other provinces of Vietnam, organized by Vietnamese travel companies with permission of the Vietnam General Department of Tourism, the Entry-Exit Management Agency of the Vietnamese Ministry of Public Security shall consider and help them quickly fulfill the procedures at Moc Bai border gate economic area.

5. Vietnamese citizens living in Moc Bai border gate economic area, Trang Bang and Ben Cau districts are allowed to visit the neighboring country for a certain period of time with their identity cards or border laissez-passers issued by the Vietnamese competent agency.

Article 14.-

1. If Cambodian land and river transport means that enter Moc Bai border gate economic area, with trans-national transport permits, only customs stamp is required; if not, they must fill declaration procedures for temporary import and re-export.

2. If transport means mentioned in Clause 1 of this Article want to travel to other ports, berths, stations and/or border gates of Tay Ninh province for the delivery and/or receipt of goods, permission from the functional management agency is required and customs and tax procedures must be carried out in accordance with the current provisions of law.

Article 15.-

1. The recruitment of laborers shall comply with the current provisions of Vietnamese law. Laborers recruited to work in enterprises in Moc Bai border-gate economic area shall have to submit registration dossiers to the competent agency. The laborer recruitment must be carried out in a democratic and open manner in accordance with the current regulations.

2. With regard to types of work which cannot be undertaken by Vietnamese laborers, enterprises are entitled to employ foreign laborers for a certain period of time, but not more than one year for work Vietnamese laborers are already qualified to. The recruited foreign laborers must have their diplomas and/or professional certificates be examined by the competent agency of Moc Bai border gate economic area. During such period, the concerned enterprise shall have to organize the training of Vietnamese laborers for replacement of foreign ones.

Article 16.- The People's Committee of Tay Ninh province shall assume the prime responsibility and coordinate with the concerned ministries, ministerial-level agencies and agencies attached to the Goevrnment in making annual preliminary review and the final review by the year 2002 of the application of the above-said policies, then propose appropriate amendments and/or supplements to the Prime Minister.

Article 17.- This Decision takes effect from January 1st, 1999. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the president of the People's Committee of Tay Ninh province shall, within their functions, tasks and powers, take initiative in preparing necessary conditions for implementation and have to implement this Decision.

Prime Minister

PHAN VAN KHAI