Decision No. 10/2009/QD-TTg On Mechanism for Supporting the Development of Key Mechanical Product Production and List of Key Mechanical Products, List of Investment Projects for Producing Key Mechanical Products from 2009 to 2015

Pursuant to …;

On the mechanism to support the development of key mechanical product production and the List of key mechanical products,

 List of investment projects for producing key mechanical products from 2009 to 2015

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PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to Decision No. 186/2002/QĐ-TTg dated December 26, 2002 of the Government approving the Strategy for the Development of the Mechanical Industry in Vietnam until 2010 with a vision to 2020;

Considering the proposal of the Ministry of Industry and Trade at document No. 9639/BCT-CNNg dated October 9, 2008 and the opinions of relevant ministries and sectors on the mechanism and policies to support the development of key mechanical product production and the List of key mechanical products, the List of investment projects for producing key mechanical products,

DECISION:

Article 1. Issuing the mechanism, policies, List of key mechanical products, and List of investment projects for producing key mechanical products from 2009 to 2015, specifically as follows:

1. Investment credit policy: - Projects investing in the production of key mechanical products are eligible to borrow state investment credit from the Vietnam Development Bank up to a maximum of 85% of the total project investment capital (excluding working capital) with interest rates, loan terms, and grace periods consistent with state investment credit regulations. - Projects investing in the production of key mechanical products that require foreign loans will be considered for government guarantees on a case-by-case basis. - In special cases, the State Steering Committee for the Key Mechanical Product Program will study and propose specific investment credit mechanisms and policies, to be submitted for approval.

2. Stimulus policy: - Enterprises producing key mechanical products or purchasing such products may apply for designated tendering or assignment according to current laws. - Organizations and individuals from all economic sectors purchasing key mechanical products are eligible to borrow state credit from the Vietnam Development Bank according to regulations.

3. Investment policy for research and development: - Domestic enterprises manufacturing key mechanical products will be supported from the National Science and Technology Development Fund for technology transfer costs, purchase of design rights, software purchases, hiring foreign experts, and human resource training. - The state will partially fund the establishment of laboratories for key mechanical products for domestic enterprises from all economic sectors. The State Steering Committee for the Key Mechanical Product Program will study and propose specific investment projects to be submitted for approval.

4. Policies on tax and fees: - Import tariffs on products listed in the List of key mechanical products that have been domestically invested in production will be set at the maximum rate, valid until the end of the tariff reduction period committed to under international agreements. - Raw materials and equipment imported for the production of key mechanical products and for investment in the production of key mechanical products will be subject to zero import tariffs or the minimum rates stipulated in international commitments Vietnam has joined.

Article 2. Applicability:

The subjects eligible to benefit from the support policies outlined in Article 1 are key mechanical products and investment projects for producing key mechanical products carried out by domestic enterprises included in the list issued together with this Decision.

Article 3. Implementation organization:

1. Ministries of Industry and Trade, Planning and Investment, Finance, Science and Technology, Natural Resources and Environment, State Bank of Vietnam, and Vietnam Development Bank shall, within their respective functions and responsibilities, guide investors and organizations and individuals in implementing the aforementioned support mechanisms and policies.

2. During implementation, the Steering Committee for the Key Mechanical Product Program will report

Article 4. This Decision takes effect 45 days from the date of signature.

Previous regulations concerning key mechanical products and separate production projects for key mechanical products have been

Article 5. Ministers, Heads of ministerial-level agencies, Heads of agencies directly under the Government, Chairpersons of People's Committees of provinces and centrally governed cities, Heads of related agencies, and members of the Steering Committee for the Key Mechanical Product Program are responsible for enforcing this Decision.