Laws of Vietnam

THE PRIME MINISTER

At the proposal of the Minister of Industry and Trade,

DECIDES:

Article 1.- Governing scope

This Decision provides for investment; trade; financial, banking, insurance and logistics services; tourism; exit and entry; residence, travel and state management in Chu Lai free-trade area (below abbreviated to Chu Lai FTA) within Chu Lai open economic zone set up under the Prime Minister's Decision No. 108/2003/QD-TTg of June 5, 2003.

Article 2.- Subjects of application

This Decision applies to Vietnamese organizations and individuals and foreigners set up and operating in Chu Lai FTA; state management agencies conducting lawful operations related to Chu Lai FTA; and the Management Board of Chu Lai open economic zone.

Article 3.- Scope and boundaries of Chu Lai FTA

Chu Lai FTA is a functional area in the non-tariff area (defined in Article 8 of the Activity Regulation of Chu Lai open economic zone, promulgated together with the Prime Minister's Decision No. 253/2006/QD-TTg of November 6, 2006), within Chu Lai open economic zone, linked to part of Ky Ha port and Chu Lai international airport. Chu Lai FTA's geographical boundaries are determined according to a detailed planning on the construction of Chu Lai FTA, to be approved by a competent agency.

Article 4.- Objectives of setting up Chu Lai FTA

1. To apply on a pilot basis a number of new economic management models and mechanisms and investment and trade policies in order to speed up the development of Chu Lai open economic zone in accordance with treaties to which Vietnam is a contracting party.

2. To build and develop Chu Lai FTA into:

- An international trade, import, export, fair and exhibition center;

- A center for producing and processing goods for export;

- An international center for temporary import for re-export, transfer from or to border gate, and transit of goods;

- A center for financial, banking, insurance and logistics services.

Article 5.- Duty-free shop business

Investors may invest in duty-free shops within Chu Lai FTA to serve people on entry, exit or in transit by sea or by air; foreign sailors and crewmembers and international tourists arriving at Ky Ha port; and investors and traders that may temporarily reside in Chu Lai FTA under the provisions of Clause 2, Article 7 of this Decision. Duty-free goods which are brought out of Chu Lai open economic zone's non-tariff area are taxed according to law.

Article 6.- Investment incentives

1. Apart from investment incentives specified in the Activity Regulation of Chu Lai open economic zone, Quang Nam province, promulgated together with the Prime Minister's Decision No. 253/2006/QD-TTg of November 6, 2006, business establishments newly set up from investment projects in the domains of infrastructure, high technologies, special technologies, clean technologies and industries in Chu Lai FTA enjoy an enterprise income tax rate of 10% throughout the project execution duration; tax exemption for 4 years after taxable incomes are generated; and a 50% reduction of payable tax amounts for 9 subsequent years.

2. The application of enterprise income tax incentives specified in Clause 1 of this Article to investment projects in other domains shall be decided by the Prime Minister.

Article 7.- Entry, exit and residence

1. Foreigners and overseas Vietnamese who leave or enter Chu Lai FTA by sea through Ky Ha port or by air through Chu Lai international airport are only required to produce their passports or other papers of equivalent validity to entry and exit management agencies without having to carry out entry or exit procedures. If wishing to enter the inland, they shall abide by current regulations on entry and exit management.

2. Investors and traders working in Chu Lai FTA who wish to reside therein may be granted by the Public Security Service of Quang Nam province temporary residence cards of a term of up to 3 years to temporarily reside in Chu Lai FTA. Those cards serve as laissez-passers for entry into or exit from Chu Lai FTA.

Article 8.- State management of Chu Lai FTA

The Management Board of Chu Lai open economic zone shall perform the unified management of the investment, construction and development of Chu Lai FTA. The Management Board shall perform its tasks and exercise its powers defined in the Activity Regulation of Chu Lai open economic zone and according to the decentralization and authorization by ministries, ministerial-level agencies and the People's Committee of Quang Nam province. The Management Board shall decide on the setting up of units to directly manage Chu Lai FTA according to current provisions of law.

Article 9.- Other provisions

Other provisions on the operation of enterprises in Chu Lai FTA which are not mentioned in this Decision comply with the Activity Regulation of Chu Lai open economic zone promulgated together with the Prime Minister's Decision No. 253/2006/QD-TTg of November 6, 2006, and relevant current legal documents.

Article 10.- Implementation provisions

1. This Decision takes effect 15 days after its publication in "CONG BAO."

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and the President of the People's Committee of Quang Nam province shall implement this Decision.