Laws of Vietnam

No: 66/2009/QD-TTg

Ha Noi, day 24 month 04 year 2009                          

DECISION

PROMULGATING A NUMBER OF MECHANISMS AND POLICIES TO BUILD HOUSES FOR LEASE TO WORKERS OF INDUSTRIAL PARKS

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of the Government;
Pursuant to the Government's Resolution No. 18/NQ-CP of April20, 2009;
At the proposal of the Minister of Construction,

DECIDES:

Article 1. General provisions

1. The State creates preferential conditions and encourages all economic sectors to invest in building houses for lease to workers of industrial parks, export-processing zones and economic zones (below referred to as houses for industrial park workers) by the socialization mode.

2. Investment in building houses for industrial park workers must conform with development master plans for industrial parks and economic zones; general and detailed construction plannings for industrial parks and economic zones; investment master plans and plans on technical and social infrastructure for industrial parks and economic zones; and land use master plans and plans approved by competent state agencies; and ensure complete technical and social infrastructure with sufficient functional sections and space to meet workers' needs for accommodation, and cultural and physical training and sports activities in order to create a civilized, safe and orderly living environment.

3. When elaborating and approving development master plans for industrial parks and economic zones; general and detailed construction plannings for industrial parks and economic zones; and investment master plans and plans on technical and social infrastructure for industrial parks and economic zones under the Government's Decree No. 29/2008/ND-CP of March 14. 2008, on industrial parks, export-processing zones and economic zones, competent state agencies shall concurrently elaborate and approve master plans to develop houses for industrial park workers in association with development master plans for industrial parks and economic zones.

4. To strive to provide accommodation under, this Decision to meet around 50% of industrial park
workers' needs by 2015.

Article 2. Models to implement investment projects on houses for industrial park workers

1. Local industrial park management units or industrial park infrastructure operators are concurrently assigned to act as investors of housing infrastructure for workers (grade-I investors). Investors of industrial park infrastructure projects shall identify workers' accommodation needs and simultaneously elaborate and submit to competent authorities for approval plannings to build houses for industrial park workers in association with those industrial parks.

2. Completing construction of housing infrastructure for workers. grade-I investors may build houses themselves or transfer land with infrastructure to production enterprises in industrial parks or licensed house dealers (grade-II investors) to build houses for lease to workers.

Article 3. Land funds to build houses for industrial park workers

1. For industrial parks in the stage of establishment, grade I investors shall pay compensations,
clear grounds and build technical infrastructure for workers' houses. Compensation, ground clearance
and technical infrastructure expenses may be allocated into rents of industrial park land.

2. For established industrial parks:

a/ Provincial-level People's Committees shall review and supplement master plans, recover land and pay ground clearance compensations to form new land funds and allocate them to local industrial park management units, industrial park infrastructure operators, production enterprises in industrial parks or licensed house dealers to build houses for lease to industrial park workers. Funds for ground clearance compensation may be taker from land use levy and land rent revenues retained for localities;

b/ To use 20% of the land funds for social houses under commercial housing and new urban center projects in localities for allocation to investors specified at Point a. Clause 2 of this Article to build houses for lease to industrial park workers if such land funds conform with planning.

c/ To assign industrial park infrastructure operators to elaborate plannings on housing for industrial park workers and act as investors of projects on houses for industrial park workers. When approving plannings on housing for industrial park workers, provincial-level People's Committees shall consider and permit partial use of this land fund to build commercial houses to create funds to cover compensation, ground clearance and construction of housing infrastructure for workers.

Article 4. Designing norms, rents of houses for industrial park workers

1. Designing housing norms for industrial park workers:

a/ The living area of a house for industrial park workers must be designed at minimum 5 m2/ person: norms on technical and social infrastructure for workers' houses comply with current construction regulations;

b/ Upon elaboration, evaluation and approval of detailed construction plannings, projects on houses for industrial park workers may raise the construction density and land use ratio by 1.5 times the levels under current technical regulations on construction planning, are not limited in the number of stories but must conform with approved construction 'planning.

2. House rents:

Provincial-level People's Committees shall approve rents of houses for industrial park workers at the proposal of investors, on the principle that state incentives and expenses for compensation, site clearance and construction of technical infrastructure for industrial park workers' houses (which have been included in industrial park land rents) are not included in the rents, the profit norm is maximum 10% and the capital recovery period is minimum 20 years.

Article 5. Incentives for investors of projects on houses for industrial park workers

1. Investors wishing to build houses for industrial park workers shall register investment with provincial-level People's Committees to receive incentives specified in Clause 2 of this Article.

2. Investors of projects on houses for industrial park workers (including grade-I and grade-II investors defined in Clauses 1 and 2. Article 2 of this Decision) may enjoy the following investment incentives:

a/ Exemption from land use levies and land rents within their projects;

b/ Enjoyment of the highest incentive level of the value-added tax rate (0%);

c/ Exemption from enterprise income tax for 4 years, counting from the time of generating taxable incomes, a 50% reduction of enterprise income tax for 9 subsequent years and enjoyment of a 10% enterprise income tax rate for the whole project life;

d/ Enterprises which build on their own houses for workers (without charging workers and charging at a level which does not exceed rents of social houses set by provincial-level People's Committees) and enterprises which rent houses for their workers may account housing expenses as reasonable expenses (as production costs) when calculating enterprise income tax;

e/ Enjoyment of investment credit supports from the following sources:

- Preferential credits or interest rate supports according to regulations;

- Loans from local housing development funds and other preferential loans (if any):

- Provincial-level People's Committees' partial or full support of loan interests (depending on local budget capacity);

f/ Receipt of free model and typical designs on houses and scientific and technical advances in construction and installation to help reduce work construction costs; implementation on their own if fully capable under law or contractor designation, for consultancy, construction and installation and procurement contracts;

g/ State supports for investment in outside-fence technical infrastructure (transport, electricity supply, water supply and drainage).

3. The order of and procedures for implementing investment projects on houses for industrial park workers comply with the law on construction investment and this Decision.

Article 6. Construction work quality management of projects on houses for industrial park workers

1. Construction work quality management of projects on houses for industrial park workers complies with the law on construction work quality management (the Government's Decree No. 209/2004/ND-CP of December 16, 2004, on construction work quality management; the Government's Decree No. 49/2008/ND-CP of April 18, 2008, amending and supplementing a number of articles of the Government's Decree No. 209/2004/ND-CP of December 16, 2004, on construction work quality management, and the Ministry of Construction's guiding documents).

2. Prior to operation, projects on houses for industrial park workers must be inspected in terms of construction work quality conformity by independent quality inspection and consultancy organizations.

Article 7. Management of use and operation of houses for industrial park workers

1. Houses for industrial park workers must be maintained and closely managed during their operation and may not change use purposes. They must be maintained in accordance with the construction law. The management of use and operation of houses for industrial park workers complies with the Ministry of Construction's guidance.

2. Investors of projects on houses for industrial park workers may hire or entrust licensed housing management service providers or set up housing service organizations to manage and operate houses under their investment. Managers of operation of houses for industrial park workers may provide other commercial services in workers" houses to generate funds to make up for management, operation and maintenance expenses in order to reduce rents.

3. Managers of houses for industrial park workers shall set rules on use of houses for industrial park workers and publicize them for information and compliance by renting workers and concerned units and individuals.

Article 8. Beneficiaries and conditions for renting houses for industrial park workers

1. Managers of houses for industrial park workers shall lease houses to proper lessees who are industrial park workers; and prioritize those from other provinces who work under labor contracts in industrial parks with projects on houses for workers, and low-income workers without houses or with temporary lodging.

2. An industrial park worker wishing to rent a house shall make an application with certification of his/her employer being a production enterprise operating in an industrial park and sign a house lease contract with the manager of houses for industrial park workers.

3. Industrial park workers shall fully pay rents and observe rules on use of houses for workers set by managers of houses for industrial park workers; may not re-rent houses or transfer lease contracts. Violators are subject to lease contract cancellation or shall be handled under law.

Article 9. Organization of implementation

1. Concerned ministries and branches and provincial-level People's Committees shall perform their assigned tasks under the Government's Resolution No. 18/NQ-CP of April 20, 2009.

2. The Ministry of Construction shall:

a/ Direct and guide key localities (Hanoi, Ho Chi Minh City and some other localities) and several state corporations in. formulating a number of projects on houses for industrial park workers under this Decision in the 2009-2010 period:

b/ Promulgate according to its competence model and typical designs on houses for industrial park workers; and the management regulation on use and operation of houses for industrial park workers; and model house lease contracts applicable to investment projects to build houses for industrial park workers;

c/ Monitor, urge and review the implementation of this Decision; propose appropriate amendments and supplements to suit realities and submit them to the Prime Minister for consideration and decision.

3. The Ministry of Planning and Investment shall assume the prime responsibility for. and coordinate with the Ministry of Construction, the Ministry of Natural Resources and Environment, concerned ministries and branches, and provincial-level People's Committees in, adjusting development master plans for industrial parks and economic zones in association with development master plans for houses for industrial park workers and submit them to the Prime Minister for approval.

4. The Ministry of Finance shall:

a/ Guide the application of financial and tax incentives under this Decision;

b/ Study and report to the Government for submission to the National Assembly's 2009 year-end session additional tax incentives at the highest level for projects on houses for industrial park workers.

5. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Construction and localities in. reviewing land use master plans and plans to add land funds for projects on houses for industrial park workers; and guide the application of land incentives under this Decision.

6. Provincial-level People's Committees shall:

a/ Organize and direct surveys on and sum-up of needs for houses for industrial park workers and formulate programs, plans and lists of investment projects to build houses for industrial park workers in their localities in the 2009-2015 period and complete and submit them to the Ministry of Construction in the second quarter of 2009 for sum-up and report to the Prime Minister;

b/ Review and adjust their general and detailed construction plannings and land use master plans and plans to add land funds for developing houses for industrial park workers; prioritize land use levy and land rent revenues retained for localities for compensation, ground clearance and formation of land funds for investment in houses for workers in industrial parks established in their localities;

c/ Organize and direct the timely and effective implementation of investment programs to build houses for workers in industrial parks within their localities; inspect, examine, and handle violations of regulations on construction investment, work quality management, management of use and operation of houses for industrial park workers according to their competence;

d/ Biannually and annually review and evaluate results of investment in houses for industrial park workers and report thereon to the Ministry of Construction for sum-up and report to the Prime Minister.

Article 10. This Decision takes effect on June 10, 2009.

Article 11. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial-level People's Committees shall implement this Decision.