Decree No. 07/1998/ND-CP detailing the implementation of the Law on Encouraging Domestic Investment (amended)

DECREE OF THE GOVERNMENT

detailing the implementation of the Law on Encouraging Domestic Investment (amended)

 

THE GOVERNMENT

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

Pursuant to the Law on Encouraging Domestic Investment dated June 22, 1994;

At the proposal of the Minister of Planning and Investment,

 

DECREE:

PART I
GENERAL PROVISIONS

Article 1. To encourage economic entities to invest in production and business activities for socio-economic development, the State establishes a consistent and stable legal framework, a transparent and favorable investment and business environment, and equal competition for all types of enterprises under various economic sectors, implements a "one-stop" mechanism in the relationship between investors and state agencies, and ensures preferential investment regimes for projects encouraged under the Law on Encouraging Domestic Investment.

Article 2. The forms of investment encouraged under the Law on Encouraging Domestic Investment are as follows:

1. Projects to establish and develop production and business bases including:

a) Investment in establishing production and business bases;

b) Investment in developing new industries or producing new products at the same location;

c) Investment in expanding production and business operations of existing products or new products at new locations.

In cases of investment mentioned in points b) and c) of Clause 1 of this Article, there is no need to apply for a business establishment license but only supplementary registration of new business activities is required.

2. Projects to expand scale, enhance production capacity, research and development, and technological innovation of existing production and business bases.

3. Purchasing shares or contributing capital to enterprises, or investing in enterprises.

4. Investment in Build-Operate-Transfer (BOT) contracts.

Article 3. The subjects applying the Law on Encouraging Domestic Investment include:

1. Enterprises established under the Law on Companies, Law on Private Enterprises, Law on Cooperatives, Law on State-Owned Enterprises, enterprises of political organizations, political-social organizations, professional associations, and individuals or business groups operating under Decree No. 66/HĐBT dated March 2, 1992 of the Council of Ministers (now the Government).

2. Organizations, Vietnamese citizens, overseas Vietnamese, foreigners residing long-term in Vietnam purchasing shares or contributing capital to domestic enterprises, including state-owned enterprises with diversified ownership or self-financing investment funds.

3. Enterprises directly invested in Vietnam by overseas Vietnamese.

4. Enterprises directly invested in Vietnam by foreigners residing long-term in Vietnam.

5. Enterprises jointly established by Vietnamese citizens and overseas Vietnamese, or with foreigners residing long-term in Vietnam.

Article 4. Industries, businesses, cultural, educational, training, health, and social fields encouraged for investment according to the List A issued together with this Decree; ethnic minority counties, mountainous areas, and islands encouraged for investment according to the List B issued together with this Decree; other difficult regions encouraged for investment according to the List C issued together with this Decree (hereinafter referred to as List A, List B, and List C).

Article 5. Overseas Vietnamese (hereinafter referred to as overseas Vietnamese) includes Vietnamese citizens residing abroad and Vietnamese-origin persons holding foreign citizenship.

Overseas Vietnamese directly investing in Vietnam have the right to choose to apply either the Law on Foreign Investment in Vietnam or the Law on Encouraging Domestic Investment, but each investment project can only apply one of these two Laws.

Investors who are overseas Vietnamese meeting the conditions stipulated in Article 9 of this Decree may establish enterprises in the form of companies or private enterprises, enjoying rights and obligations under the Law on Companies, Law on Private Enterprises, and related legal documents.

Article 6. To implement direct investment according to the Law on Encouraging Domestic Investment, Vietnamese-origin persons holding foreign citizenship must obtain a written confirmation of their Vietnamese origin from one of the following authorities: the diplomatic mission of Vietnam abroad; the Committee for Overseas Vietnamese; the competent authority of the foreign country where the person with Vietnamese origin holds a passport.

Article 7. Long-term residents in Vietnam refer to foreigners who have registered permanent residence in Vietnam.

Investors who are long-term residents in Vietnam meeting the conditions stipulated in Article 9 of this Decree may establish enterprises in the form of companies or private enterprises, enjoying rights and obligations under the Law on Companies, Law on Private Enterprises, and related legal documents.

Article 8. The proportion of shares or capital contributions of Vietnamese organizations and citizens, overseas Vietnamese, and long-term residents in Vietnam purchasing shares or contributing capital to domestic enterprises, including state-owned enterprises permitted to diversify ownership or state-owned investment funds, will be specifically regulated by the Government for each period based on industry, sector, and investment area.

Article 9. To be permitted to directly invest in establishing enterprises in Vietnam, overseas Vietnamese and long-term residents in Vietnam must meet the following conditions:

1. Having full civil capacity according to the Civil Code of Vietnam.

2. Having sufficient statutory capital as prescribed by the Law on Private Enterprises or the Law on Companies of Vietnam.

 

PART II
INVESTMENT ASSURANCE AND SUPPORT

Article 10. Enterprises investing under the Law on Encouraging Domestic Investment are allocated land or leased land, guaranteed the rights and obligations of organizations granted land or leased land by the State according to the laws on land, and issued Land Use Right Certificates.

Article 11. Enterprises of overseas Vietnamese and enterprises of long-term residents in Vietnam operating under the Law on Encouraging Domestic Investment and this Decree are treated equally with domestic enterprises of the same type, such as being subject to the same price for input goods and services priced by the State, paying the same tax rate, enjoying the same investment incentives, and being allocated or leased land by the State and fulfilling obligations as stipulated by law as domestic organizations.

Article 12. The State encourages economic sectors, social organizations, domestic and foreign individuals to contribute capital to establish development investment funds and manage them on the principle of financial autonomy. The Government shall issue regulations on the operation of investment funds, policies, and measures to encourage and provide incentives to ensure the benefits for contributing parties.

Article 13. The State directly assists investment through the National Investment Support Fund, development investment funds, and other programs of the State. The objects eligible for investment assistance and the methods of management, implementation periods shall be specified by the Government for each specific program and project.

The State encourages economic and social organizations, domestic and foreign individuals to voluntarily contribute capital to the National Investment Support Fund according to the principle of voluntariness. The State ensures the rights and interests of contributing parties in accordance with the Charter of the Fund.

Article 14. The National Investment Support Fund provides support for investment projects in industries, professions, fields, and regions that are entitled to preferential treatment as follows:

1. Providing medium-term and long-term loans at preferential interest rates for investment projects listed in Category B and Category C. The investor may use assets purchased with such loan funds as collateral. The interest rate for the loan shall be determined by the Prime Minister based on the recommendation of the Minister of Finance.

2. Guaranteeing credit for investment projects listed in Category A, Category B, and Category C;

3. Subsidizing part of the interest rate on loans from the Vietnam Investment and Development Bank and state-owned commercial banks for investment projects in industries listed in Category A. The subsidy amount equals the difference between the interest rate on loans from the Vietnam Investment and Development Bank or state-owned commercial bank where the investor borrows and the interest rate on loans from the National Investment Support Fund at the time of borrowing, and can only be received after the investor has repaid the principal of the loan.

Article 15. The State's contribution of capital to enterprises is carried out through Build-Operate-Transfer (BOT) contracts and other forms via the National Investment Support Fund, the Vietnam Investment and Development Bank, state-owned commercial banks, and state-owned finance companies. The State's contribution of capital to BOT enterprises for projects in Group A (as stipulated by the investment classification) shall be decided by the Prime Minister upon the proposal of the Ministry of Planning and Investment; the Chairman of the People's Committee of provinces and centrally-administered cities decides on the contribution of local budget capital for BOT projects in Groups B and C (as stipulated by the investment classification) upon the proposal of the Provincial Department of Planning and Investment and the Provincial Department of Finance.

Article 16. Export production enterprises have the right to directly export goods produced by themselves.

The minimum working capital prescribed for specialized import-export trading enterprises registered to operate in areas listed in Category B or Category C shall be reduced by 50% compared to the general prescribed working capital.

Article 17. Production bases for export goods or raw materials, components directly used for export goods that are entitled to investment incentives under Category A, Category B, or Category C shall be guaranteed or provided with export credit loans by the Vietnam Investment and Development Bank and state-owned commercial banks, including loans for purchasing export goods and expanding production bases for export goods. In cases where these banks do not have sufficient capital to lend, the State Bank of Vietnam shall be responsible for providing refinancing loans to these banks according to the current regulations of the State Bank of Vietnam.

For certain important export items prioritized for development under the Categories specified by the Government, in cases where world market prices fall or domestic market prices for raw materials and supplies for producing these export goods rise significantly, causing substantial losses to export production bases, the State will consider providing assistance through the Price Stabilization Fund. The Government's Price Control Board, together with relevant agencies, shall submit specific levels and timing of assistance to the Prime Minister for approval in accordance with the objectives and management charter of this Fund.

Article 18. The investor may choose the location to implement the investment project or open a branch without being dependent on their current place of permanent residence registration. After obtaining an investment incentive certificate, the investor named in the business registration may transfer their own and their family's permanent residence registration or residence certificate to the locality where the new investment project is located.

Workers with a bachelor's degree or higher skills level four or above who have worked under labor contracts for two years or more at production and business establishments entitled to investment incentives under the Law on Encouraging Domestic Investment may transfer their permanent residence registration to their new workplace.

Article 19. Investors under the Law on Encouraging Domestic Investment have the right to hire foreign workers and experts and pay wages based on labor contracts.

Article 20. Overseas Vietnamese investors, after receiving an investment incentive certificate, enjoy shipping rates for inland waterways, railways, roads, air transport, and service fees for housing, hotels, electricity, water, postal and telecommunications charges as applied to Vietnamese residing within the country.

Article 21. Overseas Vietnamese settling in Vietnam for investment purposes are granted multiple-entry visas during the preparation, implementation, and operation phases of their production facilities.

Article 22. After fulfilling all financial obligations under Vietnamese law, overseas Vietnamese investing directly in Vietnam may remit profits, borrowed capital, legitimate investment capital, and other legitimate sums and assets abroad as in the case of foreign investors investing in Vietnam under the Law on Foreign Investment in Vietnam.

Article 23. When remitting profits, borrowed capital, and investment capital as stipulated in Article 22 of this Decree, overseas Vietnamese investing directly in Vietnam may convert these amounts into foreign currency at authorized foreign exchange banks for remittance abroad.

Overseas Vietnamese persons purchasing shares or contributing capital to enterprises or investment funds, after fulfilling their tax obligations under Vietnamese law, may purchase foreign currency from authorized banks to transfer profits distributed or invested capital abroad in the event of transferring their contributed capital or shares to others.

Article 24. The State encourages organizations and individuals to establish organizations or enterprises to provide investment advisory services, management advisory services, technology transfer, vocational training, technical and management skills training, and information provision to assist domestic investment.

It is strictly prohibited for state management agencies to directly engage in business activities related to investment advisory services for profit.

Article 25. State agencies have the responsibility to provide information, guidance, and assistance to domestic investors to carry out investment activities within their authority and duties.

The Ministry of Finance shall take the lead in coordinating with the Ministry of Science and Technology and the Environment to specify the detailed implementation of the use of the Technology Development Fund and financial support measures for technological innovation for enterprises subject to this Decree.

Article 26. In cases where changes in legal regulations result in damage to the interests of investment-favored enterprises under the Law on Encouragement of Domestic Investment and this Decree, the State shall take reasonable measures to address the rights of investors.

The Ministry of Planning and Investment shall take the lead in coordinating with the Ministry of Finance and other relevant agencies to submit to the Prime Minister the basic principles for implementing this Article.

 

CHAPTER III
INVESTMENT INCENTIVES

Article 27. Agricultural production enterprises, forestry enterprises, aquaculture enterprises, salt-making enterprises, and enterprises with projects listed in Category A that implement projects in counties listed in Category B or regions listed in Category C, if granted land by the State, shall not be required to pay land use fees; if leasing land, they shall be exempt from land lease fees for the first five years and have their land lease fees reduced by 50% for the next five years from the date of signing the lease contract.

Article 28. Enterprises with projects to construct and operate infrastructure works in industrial zones, export processing zones, or high-tech zones shall have their land lease fees reduced by 50% for a period of five years from the date of signing the lease contract.

Enterprises investing in production and business activities in industries listed in Category A in industrial zones, export processing zones, or high-tech zones shall have their land lease fees reduced by 50% based on the original price charged by the State, excluding the value of infrastructure works provided by domestic infrastructure development companies, for a period of five years from the date of signing the lease contract.

Article 29. Investment projects producing export goods, substituting imported goods, or producing raw materials and components directly used for export substitution of imported goods shall be entitled to:

1. State-owned commercial banks providing export credit at preferential interest rates;

2. The National Investment Support Fund guaranteeing export credits;

3. Reducing the depreciation period of fixed assets used for production, processing, or assembly of export goods by 50%.

Article 30. The following investment projects shall enjoy tax incentives:

1. Investments in industries and businesses specified in Category A attached to this Decree.

2. Investments in production facilities using technology with one of the following characteristics:

a) Technology that produces export products or substitutes imported products,

b) Technology that can create technological innovation and equipment improvements in other industries,

c) Technology that uses domestic raw materials to produce products meeting higher quality standards than existing similar products,

d) Clean technology; technology utilizing solid, liquid, and gas waste.

The Ministry of Science and Technology and the Environment shall take the lead and coordinate with relevant state agencies to research and promulgate a list of technology fields that meet the requirements set forth in Clause 2 of this Article.

3. Investments in production and business projects employing an average of at least:

a) AT 100 people in cities classified as Type 1 and Type 2,

b) AT 20 people in counties listed in Category B and regions listed in Category C,

c) AT 50 people in other areas.

The Ministry of Labor, Invalids, and Social Affairs shall specify the method for calculating the average number of employees referred to in this Clause.

4. Investments in counties listed in Category B.

5. Investments in regions listed in Category C.

6. Investments in industrial zones, export processing zones.

Article 31. Production, transportation, trade, and service establishments investing according to the form prescribed in Clause 1, Article 2 of this Decree in counties not included in ethnic minority areas, mountainous regions, or coastal islands (Category B) or other difficult regions (Category C), if they meet one of the conditions stipulated in Clauses 1, 2, and 3 of Article 30 of this Decree, shall be entitled to a 50% reduction in turnover tax payable for one year from the month of taxable revenue, exemption from income tax for two years from the time of taxable profit, and a 50% reduction in income tax payable for the subsequent three years. For establishments with two or more conditions, they shall be further entitled to a 50% reduction in income tax payable for one additional year.

Article 32. Production, transportation, trade, and service establishments investing according to the form prescribed in Clause 1, Article 2 of this Decree in counties in ethnic minority areas, highland mountainous regions as defined in Part I of Category B, if they meet one of the conditions stipulated in Clauses 1, 2, and 3 of Article 30 of this Decree, shall be entitled to a 50% reduction in turnover tax payable for four years from the month of taxable revenue; exemption from income tax for four years from the time of taxable profit, and a 50% reduction in income tax payable for the subsequent seven years. For establishments with two or more conditions, they shall be further entitled to a 50% reduction in income tax payable for two additional years.

Article 33. Production bases, transportation, trade, service enterprises with investment projects under the form prescribed in Clause 1, Article 2 of this Decree located in counties belonging to ethnic minority areas, mountainous regions, islands specified in Part II of the List B, if they meet one of the conditions stipulated in Clauses 1, 2, and 3 of Article 30 of this Decree, shall be granted a 50% reduction in turnover tax payable for a period of three years from the month of taxable revenue; exempted from income tax for the first four years from the time of taxable profit, and granted a 50% reduction in income tax payable for the following five years. For production bases meeting two or more conditions, an additional 50% reduction in income tax payable will be granted for the next two years.

Article 34. Production bases, transportation, trade, service enterprises with investment projects under the form prescribed in Clause 1, Article 2 of this Decree located in other difficult regions (List C), if they meet one of the conditions stipulated in Clauses 1, 2, and 3 of Article 30 of this Decree, shall be granted a 50% reduction in turnover tax payable for a period of two years from the month of taxable revenue; exempted from income tax for the first three years from the time of taxable profit, and granted a 50% reduction in income tax payable for the following five years. For production bases meeting two or more conditions, an additional 50% reduction in income tax payable will be granted for the next two years.

Article 35. Production bases, transportation, trade, service enterprises with investment projects under the form prescribed in Clause 2, Article 2 of this Decree shall be exempted from income tax for one year on the additional profits generated from the year of taxable profit onwards. Profits used for reinvestment shall not be included in the taxable profit amount.

Article 36. The provisions of tax exemption and reduction for production bases, transportation, trade, service enterprises eligible for preferential investment as stipulated in Articles 31, 32, 33, 34, and 35 of this Decree are within the framework of tax exemption and reduction according to the Law on Encouraging Domestic Investment and the current Law on Turnover Tax and Income Tax.

Article 37. The exemption of import duties for investment projects that have been granted permits is regulated as follows:

1. Investment projects granted permits shall be exempted from import duties once for the following equipment, machinery, and transport vehicles:

a) Equipment and machinery imported (including electrical systems, water supply and drainage, information systems) to create fixed assets of the enterprise;

b) Specialized transport vehicles included in the imported technological chain to create fixed assets of the enterprise and transport vehicles used to pick up and drop off employees (cars with 24 seats or more), watercraft;

c) Spare parts, components, detachable parts, installation fixtures, molds, accessories accompanying the equipment, machinery, specialized transport vehicles, and transport vehicles mentioned above.

The exemption of import duties for the aforementioned equipment, machinery, and transport vehicles applies to cases of expanding project scale, replacing, and updating technology;

d) Raw materials and materials imported to implement BOT projects;

đ) Special crop seeds, livestock breeds, and agricultural chemicals permitted for import to implement agricultural, forestry, and fisheries projects;

e) Laboratory equipment and equipment serving the production of school equipment, medical equipment, and environmental protection equipment;

f) Other goods and materials used for special investment projects encouraged by the Prime Minister's regulations.

2. Raw materials and materials imported to form fixed assets of the enterprise shall be exempted from import duties under the following conditions:

a) Imported to manufacture equipment forming fixed assets of the enterprise;

b) Imported to construct fixed assets of the enterprise, if these raw materials and materials are not produced domestically or are produced but do not meet the technical requirements of the project;

c) Imported to produce samples upon explanation and approval by the Ministry of Trade for each specific case.

3. For raw materials, components, spare parts, and materials imported to produce export goods, when imported into Vietnam, import duties must be paid, and when exported as finished products, corresponding import duties will be refunded based on the proportion of exported finished products. Refunds will be processed according to the deadlines set by the authority where the importer initially paid the import duties.

4. Based on the investment permit and the decision on duty-free imports issued by the Ministry of Trade, customs authorities shall expedite the procedures for importing and exporting goods in accordance with the laws on customs.

5. Goods imported under Clause 1 and 2 of this Article must be used for the intended purpose of the project. In cases of resale in the market, import duties and other taxes as prescribed by law must be paid.

6. Patents, technical secrets, technological processes, and technical services used for capital contribution shall be exempted from related transfer taxes.

Article 38. Investment projects listed in Category A or implemented in regions listed in Category B or Category C, if they exploit mineral resources (excluding oil and gas), shall be granted a maximum 50% reduction in resource tax for the first three years from the start of exploitation.

Article 39. Organizations and individuals directly purchasing shares of enterprises or contributing capital to enterprises or investment funds shall be exempted from corporate income tax (income tax) or personal income tax, including additional income tax for high-income earners, for the portion of profits received during the first three years from the date of receipt.

Article 40. Overseas Vietnamese who invest according to the forms of investment prescribed in Article 2 of this Decree, and foreigners residing long-term in Vietnam who purchase shares, raise capital, increase capital, or contribute capital to enterprises according to Clause 3, Article 2 of this Decree, when transferring profits earned abroad only need to pay a tax of 5% of the amount transferred out.

 

PART IV
RIGHTS AND RESPONSIBILITIES OF THE STATE MANAGEMENT AUTHORITY FOR DOMESTIC INVESTMENT INCENTIVES
NATIONAL AUTHORITY FOR DOMESTIC INVESTMENT INCENTIVES

Article 41. The Ministry of Planning and Investment assists the Government in performing state management functions regarding domestic investment incentives, with tasks and powers as follows:

1. Establish for the Government to decide on supplementing and amending the list of industries, occupations, and scope of regions eligible for investment incentives (as specified in Appendix A, B, C of this Decree).

2. Coordinate with state management agencies to guide, monitor, and supervise the implementation of support measures and investment incentives.

3. Specify procedures, formalities, application forms, and investment incentive certificates uniformly applied nationwide.

4. Decide on granting or refusing to grant investment incentive certificates to enterprises established by the Prime Minister's decision; enterprises established by the Prime Minister's authorization to the Minister's decision.

Article 42. The Ministry of Finance shall provide guidance on implementing tax exemptions and reductions as stipulated in this Decree.

Based on the investment incentive certificate issued to the investor, the direct tax authority managing the tax payment of the enterprise enjoying investment incentives shall be responsible for implementing tax exemptions or land rental fee reductions as prescribed in this Decree.

Article 43. Provincial People's Committees (hereinafter referred to as Provincial People's Committee) shall be responsible for performing state management functions regarding investment within their localities in accordance with the provisions of the Law on Encouraging Domestic Investment, including determining the list of investment projects eligible for incentives; deciding on granting or refusing to grant investment incentive certificates; monitoring and supervising the implementation of domestic investment encouragement measures.

Issuing investment incentive certificates to newly established enterprises must be done simultaneously with issuing the business establishment license or business registration certificate.

Provincial Departments of Planning and Investment (hereinafter referred to as Provincial Department of Planning and Investment) assist Provincial People's Committees in performing state management functions regarding investment at the local level; review and submit applications for investment incentive certificates according to the Law on Encouraging Domestic Investment and business establishment licenses for private enterprises and companies to the Provincial People's Committee.

Article 44.

1. Procedures for applying for the establishment of private enterprises and companies in restricted industries and occupations must still be carried out according to current regulations as stipulated in Article 5 of the Law on Private Enterprises and Article 11 of the Law on Companies if they require approval from the Prime Minister as provided for in those laws.

2. Procedures for applying for the establishment of enterprises not in the restricted industries and occupations mentioned in Article 5 of the Law on Private Enterprises and Article 11 of the Law on Companies shall be implemented according to the following provisions:

a) Applicants for establishing private enterprises and companies shall submit an application for establishment to the Provincial Department of Planning and Investment where the enterprise is located or intends to locate its headquarters. The application for establishment includes the request for investment incentives (if applicable) as prescribed by the Law on Encouraging Domestic Investment and this Decree.

b) The Provincial Department of Planning and Investment shall accept the application for establishment or supplementary industry registration, seek opinions from relevant departments; in cases where there is an application for investment incentives, it shall seek written opinions from the Taxation Department, the Investment Development Department, and other related agencies when necessary, and report to the Chairman of the Provincial People's Committee for consideration and decision on granting or refusing to grant business establishment licenses for private enterprises and companies and investment incentive certificates. In cases where a business establishment license for private enterprises and companies or an investment incentive certificate is refused, the Provincial Department of Planning and Investment must notify the applicant of the specific reasons.

For projects where the Ministry of Planning and Investment issues investment incentive certificates, the Ministry of Planning and Investment shall seek written opinions from the Ministry of Finance before issuing them.

Agencies asked for opinions shall be responsible for replying within ten days from the date of receipt of the opinion-seeking document; if they fail to reply within this period, it will be deemed as agreement.

3. An investment incentive certificate clearly stating the benefits is a legal document reflecting the investor's right to enjoy investment incentives at the levels specified in this Decree.

4. Granting or refusing to grant business establishment licenses for private enterprises and issuing investment incentive certificates (if applicable) must be completed within thirty days for non-land lease cases and sixty days for land lease cases. Granting or refusing to grant business establishment licenses for companies and issuing investment incentive certificates (if applicable) must be completed within sixty days regardless of whether there is a land lease or not.

The time limit starts from the date of receiving valid applications, either directly submitted to the Provincial Department of Planning and Investment or received via postmarked mail if sent through postal service. If the application is invalid, the Provincial Department of Planning and Investment must notify the applicant to supplement or amend the contents to comply with the provisions of the Law on Companies and the Law on Private Enterprises within five days from the date of receipt. The time limit for granting or refusing to grant business establishment licenses will start from the date the Provincial Department of Planning and Investment receives a complete and valid application.

Article 45. The establishment and business registration of cooperatives, state-owned enterprises managed by localities, enterprises of political organizations, political-social organizations, social-professional organizations, individuals, business groups, and construction investment of privately-run educational and training institutions, healthcare facilities, and public welfare organizations permitted by the State to establish shall be carried out according to the procedures and formalities prescribed in current national legal documents.

The Provincial Department of Planning and Investment is the agency that accepts applications for investment incentives from entities mentioned in this Article and processes investment incentive applications according to the procedures and formalities as stipulated for private enterprises under Article 44 of this Decree.

Article 46. For investment projects in industrial parks, export processing zones, and high-tech zones, the Management Board of the Industrial Park of the province assists the People's Committee of the province in performing state management functions regarding investment in industrial parks, examining and submitting to the Chairman of the People's Committee for issuance of business establishment licenses and investment incentive certificates. The time limit for receiving applications, issuing licenses or refusing to issue business establishment licenses, and issuing investment incentive certificates shall be applied as stipulated in Clause 4, Article 44 of this Decree for joint-stock companies and private enterprises mentioned therein.

Article 47. The establishment of businesses and application for investment incentives by entities specified in Clause 3, 4, and 5 of Article 3 of this Decree shall be carried out in accordance with the conditions prescribed in Article 9 and the procedures for establishing businesses and granting investment incentives stipulated in Article 44 of this Decree.

Article 48. It is strictly prohibited for state officials to abuse their authority to create difficulties, harassment, or obstruction of domestic investment activities in violation of laws encouraging domestic investment. In cases of violation, they will be subject to disciplinary action or criminal prosecution depending on the severity of the offense.

Investors have the right to lodge complaints or reports with competent state agencies regarding acts of civil servants and state agencies that violate domestic investment encouragement laws.

Article 49. The inspection and supervision of business operations are regulated as follows:

1. Inspections and supervisions of business operations and production and trading establishments must be conducted within the scope of functions and powers and in compliance with the law. Multiple inspection teams shall not be organized to inspect the same content at the same time or continuously over a long period at the same enterprise.

Unannounced inspections may only be conducted when there are signs indicating violations of the law in the operation of businesses and production and trading establishments.

2. Inspection and supervision must be based on decisions made by competent authorities; upon completion of inspections and supervision, minutes must be recorded; the head of the inspection team is responsible for the inspection conclusions.

3. Organizations or individuals who make decisions to conduct inspections and supervision in violation of the law or who take advantage of inspections and supervision to harass or cause inconvenience to business operations shall be subject to disciplinary action or criminal prosecution depending on the severity of the offense.

4. Businesses and production and trading establishments have the right to lodge complaints or reports with competent state agencies regarding improper inspections and supervision by state agencies, the actions of inspectors and supervisors, and inspection conclusions that they consider incorrect; they also have the right to demand compensation for losses caused by improper measures taken by inspectors and supervisors.

 

CHAPTER V
IMPLEMENTING PROVISIONS

Article 50. This Decree replaces Government Decree No. 29/CP dated May 12, 1995 detailing the implementation of the Law on Encouragement of Domestic Investment. This Decree takes effect fifteen days from the date of signature; previous regulations issued by Ministries, ministerial-level agencies, and government-affiliated agencies that conflict with the provisions of this Decree are hereby abolished.

Investment projects currently enjoying investment incentives under the Law on Encouragement of Domestic Investment shall continue to enjoy such incentives until the end of the remaining period as stated in their investment incentive certificates.

As for additional incentives related to exemption and reduction of land rental fees as provided in Articles 27 and 28, import tax incentives as provided in Article 37, and reduction of resource taxes as provided in Article 38 of this Decree for projects with investment incentive certificates issued before the effective date of this Decree, these incentives shall apply to the remaining incentive period starting from the effective date of this Decree.

Investment incentives for new investment projects arising from the effective date of this Decree shall be implemented according to this Decree.

Article 51. The Ministry of Planning and Investment is responsible for monitoring and urging the implementation of this Decree, conducting mid-term reviews and reporting to the Government on the implementation situation and new issues requiring resolution every six months.

Within thirty days from the effective date of this Decree, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Labor, Invalids and Social Affairs, the Ministry of Foreign Affairs, the Ministry of Science, Technology and Environment, the Ministry of Education and Training, the Ministry of Industry, the Committee for Ethnic Minorities and Mountainous Areas, the General Department of Land Administration, and the Ministry of Justice shall be responsible for promulgating circulars guiding the implementation of this Decree.

Article 52. The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree./.

 

Public goods and services, defense and security tasks performed by companies

INDUSTRIES AND SECTORS ELIGIBLE FOR INVESTMENT INCENTIVES

Issued together with Government Decree No. 07/1998/NĐ-CP
dated January 15, 1998, detailing the implementation
of the Law on Encouragement of Domestic Investment (amended)

Investment projects in the following sectors and trades are eligible for incentives:

I. Planting forests, growing trees on unused land, utilizing and exploiting barren hills and mountains for commercial purposes; aquaculture in unexploited water areas, fishing in distant sea areas, concentrated livestock farming in mountainous regions.

1. Planting protective forests (upstream, coastal, environmental protection), special-use forests.

2. Growing rubber, coffee, tea, mulberry, cashew, pepper, fruit trees, medicinal plants on natural land that has not been improved.

3. Aquaculture in natural waters that have not been improved and have not previously been used for commercial aquaculture.

4. Fishing in distant sea areas.

5. Concentrated livestock farming in mountainous and midland regions.

II. Construction of technical infrastructure; development of public transport, education, training, healthcare, ethnic culture, scientific research, and technology.

1. Construction of technical infrastructure.

New construction, renovation, expansion of power plants, development of power grids, construction of facilities using solar, wind, and biogas energy.

New construction, upgrading of roads; new construction, expansion, upgrading, modernization of airports and ports; restoration, upgrading, new construction, and addition of railway lines.

Renovation and development of telecommunications networks.

Construction of water production plants and systems for water supply and drainage serving production and daily life; environmental protection works and waste treatment facilities for cities, industrial zones, mountainous areas, remote regions.

Constructing technical infrastructure for concentrated residential areas.

2. Developing cargo transportation and public passenger transportation.

3. Developing educational, training, healthcare, and ethnic cultural services.

Private schools at all levels; private kindergartens, secondary schools, vocational schools, and universities.

Training facilities to improve workers' skills and technical staff training; management staff training and skill enhancement.

Private establishments in fields such as medical examination and treatment, elderly care, and disabled care.

Ethnic cultural houses; ethnic music, dance, and theater groups.

4. Scientific research and technology development.

Basic research, applied research in natural sciences, technology, social sciences, and humanities.

Research on equipment innovation and production line modernization.

ứApplying and developing information technology, biotechnology, manufacturing and processing materials from domestic raw materials.

Developing service networks for technology: measurement, standards, product quality inspection, technology evaluation and certification, technology information, and technology transfer support.

5. Purchasing construction equipment for building public works. Investing in constructing commercial zones and supermarkets. Building various types of housing to meet the needs of residents in cities and urban areas.

III. Processing agricultural, forestry, and aquatic products, and technical services directly serving agricultural, forestry, and fishery production.

1. Processing grains, meat, milk, fish, shrimp, cooking oil, sugar, fruits and vegetables, rubber, silk, tea, coffee, beverage processing, fruit juice.

2. Processing medicinal herbs, flavorings.

3. Processing forest products for export.

4. Services and provision of crop and livestock protection; breeding and hybridizing new seeds; agricultural product preservation services, forest products, marine products.

IV. Production for export and replacement of imported goods.

Establishing new facilities, expanding scale, enhancing production capacity, researching and developing, and innovating technology for production and processing bases producing raw materials and auxiliary materials for export goods and replacing imported goods.

V. Priority industries for development (during the period 1995-2000), in addition to the sectors mentioned above.

1. Consumer goods production: Textiles, leather, high-quality rubber and plastic products, clothing, household items, paper, school supplies.

2. Machinery and electronics - informatics: Manufacturing, assembling, repairing machinery and equipment for agricultural, forestry, and aquatic product production and consumer goods processing; producing construction and mining equipment; shipbuilding for inland and sea vessels; producing locomotives and railway cars; electrical equipment for power transmission lines and substations; producing electronic components for export, researching computer software production.

3. Raw material and fuel production: Oil and gas exploration and processing, coal extraction and processing; steel smelting and rolling; producing colored metals, cement, other building materials; fertilizer production (nitrogen, phosphate, mixed, microbial, micronutrient fertilizers); basic chemical production.

4. Traditional crafts that need encouragement for development: carving, mother-of-pearl inlay, lacquer painting, rattan and bamboo weaving, carpet making, pottery and porcelain, silk weaving.

VI. Investment in industrial parks, export processing zones, high-tech zones, including:

1. Enterprises investing, constructing, and operating infrastructure in industrial parks, export processing zones, and high-tech zones.

2. Enterprises investing in production and service sectors within industrial parks, export processing zones, and high-tech zones.

 

LIST B

COUNTIES IN ETHNIC MINORITY AND MOUNTAINOUS AREAS, ISLANDS ENJOY INVESTMENT INCENTIVES
COUNTIES IN ETHNIC MINORITY AND MOUNTAINOUS AREAS, ISLANDS ENJOY INVESTMENT INCENTIVES
Issued together with Government Decree No. 07/1998/NĐ-CP
dated January 15, 1998, detailing the implementation
of the Law on Encouragement of Domestic Investment (amended)

 

I. LIST OF COUNTIES IN ETHNIC MINORITY AND MOUNTAINOUS AREAS

1. Province of Ha Giang:

1. Dong Van District

2. Meo Vac District

3. Yen Minh District

4. Quan Ba District

5. Vi Xuyen District

6. Bac Me District

7. Xin Man District

8. Hoang Su Phi District.

2. Province of Cao Bang:

1. Bao Lac District

2. Thong Nong District

3. Ha Quang District

4. Tra Linh District

5. Trung Khanh District

6. Nguyen Binh District

7. Hoa An District

8. Quang Hoa District

9. Thach An District

10. Ha Lang District

11. Ngan Son District

12. Ba Be District.

3. Province of Son La:

1. Quynh Nhai District

2. Thuan Chau District

3. Mai Son District

4. Song Ma District

5. Bac Yen District

6. Muong Cha District

7. Muong La District.

4. Province of Lai Chau:

1. Muong Te District

2. Phong Tho District

3. Sin Ho District

4. Muong Lay District

5. Toua Chua District

6. Tuong Giay District.

5. Province of Lao Cai:

1. Bat Sat District

2. Muong Khuong District

3. Bac Ha District

4. Sa Pa District

5. Than Uyen District

6. Van Ban District

7. Cam Duong Town.

6. Province of Gia Lai:

1. Kon Chro District

2. An Khê District

3. Mang Yang District

4. Ayun Pa District

5. Chu Pah District

6. Duc Co District

7. Chu Prong District

8. Krong Pa District

9. Chu Se District

10. Kbang District.

7. Province of Kon Tum:

1. Kon Plong District

2. Dak To District

3. Dak Glei District

4. Sa Thay District.

8. Province of Dak Lak:

1. Ea Sup District

2. Krong Buk District

3. Krong Pac District

4. Dak Mil District

5. Ma Drak District

6. Lak District

7. Dak Nong District

8. Ea Hleo District

9. Krong Bong District

10. Krong Ana District

11. Cu Mgar District

12. Dak Rlap District

13. Ea Kar District

14. Krong Nang District

15. Krong No District

16. Cu Jut District.

9. Province of Lam Dong:

1. Don Duong District

2. Duc Trong District

3. Di Linh District

4. Bao Loc District

5. Lac Duong District

6. Lam Ha District.

10. Province of Yen Bai:

1. Mu Cang Chai District

2. Tran Tau District.

11. Province of Hoa Binh:

1. Canh Chai District

2. Mai Chau District.

12. Province of Lang Son:

1. Trang Ding District

2. Binh Gia District

3. Dinh Lap District

4. Van Lang District

5. Bac Son District

6. Van Quan District

7. Cao Loc District.

13. Province of Bac Kan:

1. Na Ri District

2. Cho Don District

14. Province of Thai Nguyen:

1. Vo Nhai District

15. Province of Tuyen Quang:

1. Na Hang District

16. Province of Quang Ninh:

1. Ba Che District

2. Binh Lieu District.

17. Province of Bac Giang:

1. Son Dong District.

18. Province of Thanh Hoa:

1. Quan Hoa District

2. Ba Tho District

3. Lang Chan District

4. Thanh Xuan District.

19. Province of Nghe An:

1. Ky Son District

2. Tuong Duong District

3. Con Cuong District

4. Quy Chau District

5. Que Phong District

20. Province of Quang Binh:

1. Minh Hoa District

21. Province of Quang Tri:

1. Huong Hoa District

22. Province of Thua Thien Hue:

1. A Luoi District

23. Province of Quang Nam:

1. Tra My District

2. Hien District

3. Gianh District

4. Phuoc Son District

24. Province of Quang Ngai:

1. Tra Bong District

2. Son Ha District

3. Ba To District

4. Minh Long District.

25. Province of Ninh Thuan:

1. Ninh Son District.

26. Province of Kien Giang:

1. Ha Tien District.

 

II. LIST OF COUNTIES IN THE ETHNIC MINORITY, MOUNTAINOUS AND ISLAND AREAS:

1. Province of Ha Giang:

1. Bac Quang District

2. Ha Giang City.

2. Province of Cao Bang:

1. Cao Bang City

3. Province of Son La:

1. Yen Chau District

2. Phu Yen District

3. Son La City.

4. Province of Lai Chau:

1. Dien Bien District

5. Province of Lao Cai:

1. Bao Thang District

2. Bao Yen District

3. Lao Cai City

6. Kon Tum Province:

1. Kon Tum City

7. Lam Dong Province:

1. Da Huoai District

2. Da Teh District

3. Cat Tien District

4. Da Lat City

8. Gia Lai Province:

1. Pleiku City

9. Dak Lak Province:

1. Buon Ma Thuot City

10. Province of Yen Bai:

1. Yen Bai City

2. Yen Binh District

3. Tran Yen District

4. Van Chan District

5. Luc Yen District

6. Van Yen District.

11. Province of Hoa Binh:

1. Hoa Binh City

2. Tan Lac District

3. Lac Son District

4. Ky Son District

5. Luong Son District

6. Kim Boi District

7. Lac Thuy District

8. Yen Thuy District

12. Province of Lang Son:

1. Lang Son City

2. Van Lang District

3. Bac Son District

4. Van Quan District

5. Cao Loc District

6. Loc Binh District

7. Chi Lang District

8. Huu Lung District.

13. Province of Bac Kan:

1. Bach Thong District

2. Bac Kan City.

14. Province of Thai Nguyen:

1. Ding Hoa District

2. Phu Luong District

3. Dai Tu District

4. Vo Nhai District

5. Dong Hy District

15. Province of Tuyen Quang:

1. Tuyen Quang City

2. Ham Yen District

3. Chiem Hoa District

4. Yen Son District

5. Son Duong District.

16. Province of Quang Ninh:

1. Cam Pha City

2. Tien Yen District

3. Quang Ha District

4. Hoanh Bo District

5. Dong Trieu District

6. Hai Ninh District.

17. Province of Bac Giang:

1. Luc Nam District

2. Yen The District

3. Luc Ngan District.

18. Phu Tho Province:

1. Thanh Son District

2. Yen Lap District

3. Doan Hung District

4. Song Thao District.

19. Hai Duong Province:

1. Chi Linh District

20. Ninh Binh Province:

1. Nho Quan District

2. Gia Vien District

3. Tam Diep City

4. Yen Mo District.

21. Thanh Hoa Province:

1. Ngoc Lac District

2. Nhu Xuan District

3. Cam Thuy District

4. Thach Thanh District.

22. Nghe An Province:

1. Quy Hop District

2. Nghia Dan District

3. Anh Son District

4. Tan Ky District

5. Thanh Chuong District.

23. Quang Binh Province:

1. Tuyen Hoa District.

24. Ha Tinh Province:

1. Huong Ke District

2. Huong Son District

3. Ky Anh District

4. Cam Xuyen District

5. Nghi Xuyen District.

25. Thua Thien Hue Province:

1. Nam Dong District

26. Quang Nam Province:

1. Hiep Duc District.

27. Binh Dinh Province:

1. An Lao District

2. Vinh Thanh District

3. Van Canh District.

28. Phu Yen Province:

1. Son Hoa District

2. Song Hinh District

3. Dong Xuan District.

29. Khanh Hoa Province:

1. Khanh Son District

2. Khanh Vinh District.

30. Binh Thuan Province:

1. Tanh Linh District

2. Bac Binh District

3. Duc Linh District.

 

31. Binh Phuoc Province:

1. Bu Dang District

2. Phuoc Long District

3. Loc Ninh District.

32. Dong Nai Province:

1. Tan Phu District

2. Xuan Loc District

3. Dinh Quan District.

33. An Giang Province:

1. Tinh Bien District

2. Tri Ton District.

34. ISLAND COUNTIES BELONGING TO PROVINCES AND CITIES ALONG THE COAST:

Quang Ninh Province:

1. Van Don District

2. Co To District.

Haiphong City:

1. Cat Hai District

2. Bach Long Vi District.

Da Nang City:

1. Hoang Sa District.

Quang Ngai Province:

1. Nghi Son District.

Khanh Hoa Province:

1. Truong Sa District.

Binh Thuan Province:

1. Phu Quy Island District.

Kien Giang Province:

1. Kien Hai Island District

2. Phu Quoc Island.

Ba Ria - Vung Tau Province:

1. Con Dao District.

 

LIST C

OTHER DIFFICULT AREAS

Issued together with Government Decree No. 07/1998/NĐ-CP
dated January 15, 1998, by the Government, detailing the implementation of
of the Law on Encouragement of Domestic Investment (amended)

1. Hoa Binh Province (excluding Hoa Binh City and counties listed in Category B).

2. Nghe An Province (excluding Vinh City and counties listed in Category B).

3. Thanh Hoa Province (excluding Thanh Hoa City, Saim Son City, Bim Son City and counties listed in Category B).

4. Ha Tinh Province (excluding Ha Tinh City and counties listed in Category B).

5. Quang Binh Province (excluding Dong Hoi City and counties listed in Category B).

6. Quang Tri Province (excluding Dong Hoi City and counties listed in Category B).

7. Quang Ngai Province (excluding Quang Ngai City and counties listed in Category B).

8. Binh Dinh Province (excluding Qui Nhon City and counties listed in Category B).

9. Phu Yen Province (excluding Tuy Hoa City and counties listed in Category B).

10. Ninh Thuan Province (from Phan Rang - Thap Cham City and counties listed in Category B).

11. Binh Thuan Province (excluding Phan Thiet City and counties listed in Category B).

12. Counties in the Cham and Khmer ethnic minority areas in Central and Southern provinces (excluding counties listed in Category B): the Committee for Ethnic Minorities and Mountainous Areas shall issue the list.

13. Ho Chi Minh City:

1. Can Gio District

2. Nha Be District.

14. Kien Giang Province:

1. An Bien District (Deep Interior U Minh Thanh Region)

2. An Minh District (Deep Interior U Minh Thanh Region)

3. Vinh Thuan District (Deep Interior U Minh Thanh Region)

4. Go Quao District (Flooded Quadrangle Long Xuyen and West Hau River Region)

5. Giong Rieng District (Flooded Quadrangle Long Xuyen and West Hau River Region)

6. Hon Dat District (Flooded Quadrangle Long Xuyen and West Hau River Region)

7. Chau Thanh District (Flooded Quadrangle Long Xuyen and West Hau River Region)

8. Tan Hiep District (Flooded Quadrangle Long Xuyen and West Hau River Region)

9. Rach Gia City (Flooded Quadrangle Long Xuyen and West Hau River Region)

15. Hanoi City:

1. Soc Son District.

16. Ha Nam Province:

1. Kim Bang District

2. Thanh - Lien District.

17. Tra Vinh Province:

1. Chau Thanh District

2. Tra - Cu District./.