Decision No. 120/2007/QĐ-TTg on the establishment and issuance of the operational regulations of Van Don Economic Zone, Quang Ninh Province.

DECISION OF THE PRIME MINISTER

On the establishment and issuance of the operational regulations

of the Van Don Economic Zone, Quang Ninh Province

PRIME MINISTER

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

The Government issues this Decree on the re-registration and conversion of foreign-invested enterprises and the change of investment licenses for projects implemented under joint venture contracts.

Considering the proposal of the Minister of Planning and Investment and the Chairman of the People's Committee of Quang Ninh Province.

DECISION:

Article 1. Establish the Van Don Economic Zone, Quang Ninh Province.

Article 2. Issue along with this Decision the Operational Regulations of the Van Don Economic Zone, Quang Ninh Province.

Article 3. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

The Ministers, Heads of ministerial-level agencies, Heads of government agencies, and the Chairman of the People's Committee of Quang Ninh Province are responsible for implementing this Decision./.

REGULATIONS

Activities of the Van Don Economic Zone, Quang Ninh Province

(Issued together with Decision No. 120/2007/QĐ-TTg dated July 26, 2007)

of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. These regulations stipulate the activities, certain policies, and state management over the Van Don Economic Zone, Quang Ninh Province (hereinafter referred to as the Van Don Economic Zone); the rights and obligations of investors conducting investment and business operations in goods and services, and investors conducting investment and business operations in infrastructure within the Van Don Economic Zone.

Article 2.

1. The Van Don Economic Zone is a defined geographic area within the national territory and sovereignty but has a separate economic space with favorable and equal investment and business environments including functional zones, technical and social infrastructure projects, service and public utility facilities, with long-term preferential policies and incentives, and a transparent management mechanism to create favorable conditions for investors to invest and develop production and business operations in goods and services within the current legal framework and continuously improving.

2. The Van Don Economic Zone includes the entire Van Don District, Quang Ninh Province; with a total area of approximately 2,171.33 km²², of which the natural land area is 551.33 km²², and the sea area is 1,620 km²²; its geographic boundaries are determined within the geographic coordinates from 20^°40' to 21^°16' North Latitude and from 107^°15' to 108^° East Longitude, delineated as follows: to the north and northeast it borders the districts of Tien Yen and Dam Ha; to the southeast it borders the district of Co To; to the west it borders the city of Cam Pha and the city of Ha Long. The Van Don Economic Zone has one town and eleven communes, with more than 600 large and small islands located within Bai Tu Long Bay.

Article 3. Objectives of establishing the Van Don Economic Zone

1. To build the Van Don Economic Zone in conjunction with the development planning of the northeastern region of Quang Ninh Province, creating a close connection between the Van Don Economic Zone and the deep-water port area and the Hon Meiu Island industrial cluster in Hai Ha District and Mong Cai Border Gate City.

2. Gradually build and develop the Van Don Economic Zone into a high-quality marine-island eco-tourism center, an international airport center, a high-end service center, and an international trade hub; making significant contributions to economic growth and sustainable development in Quang Ninh.

3. Ensure national security and defense, social order and safety, contributing to maintaining national sovereignty and territorial integrity.

4. Exploit effectively the advantages of natural conditions, geographical location, and political economy in international and domestic trade and services to promote economic and social development in the northern region, moving towards narrowing the development gap between this region and other regions nationwide.

5. Develop fisheries, focusing on marine aquaculture such as pearl, abalone, scallop, fan mussel... using natural feed without causing environmental pollution, serving high-quality tourism; establish some fishery service facilities but must ensure that they do not disrupt the tourism space and maintain the marine ecosystem.

6. Develop modern science and technology bases; first, to serve the development of clean industry, high-quality seafood processing industry, industries serving tourism, services, and transportation.

7. Create jobs, promote training and improve the quality of human resources in the region; contribute to producing products with brands, quality, and high competitiveness.

Article 4. The Government encourages and protects organizations and individuals of Vietnam from all economic sectors, overseas Vietnamese, and foreign organizations and individuals investing and doing business in the Van Don Economic Zone in the following fields: investment and business operations in infrastructure and urban development, industrial development, urban development, seaports, trade, services, tourism, entertainment, finance-banking, transportation, insurance, education-training, healthcare, housing, airports, import-export of goods, and other production and business activities according to these regulations, other Vietnamese laws, and international treaties to which Vietnam is a party.

Article 5.

1. Investors conducting investment activities in the production and business of goods and services in the Van Don Economic Zone have the right:

a) To acquire the transfer of land use rights, lease land, or sublease land already developed with technical infrastructure in the Van Don Economic Zone from enterprises investing in and operating infrastructure to construct factories, offices, and architectural works serving production and business of goods and services, and be granted a Land Use Right Certificate in accordance with the provisions of the Law on Land;

b) To lease or purchase factories, offices, warehouses already constructed in the Van Don Economic Zone to serve production and business of goods and services under contracts signed with enterprises investing in and operating infrastructure;

c) To use technical infrastructure projects, service and public utility facilities in the Van Don Economic Zone, including: road systems, seaports, electricity supply, water supply, drainage, telecommunications, wastewater treatment, waste disposal, and other common services in the Van Don Economic Zone under contracts signed with enterprises investing in and operating infrastructure;

d) To enjoy investment incentives and other lawful benefits as prescribed in these regulations, the Law on Land, the Law on Investment, the Law on Taxation, related laws, and international treaties to which Vietnam is a party.

2. Investors conducting investment and business activities in goods and services in the Van Don Economic Zone have the obligation:

a) Comply with the provisions of this Regulation and the detailed planning of functional zones that have been approved by competent state authorities; use land for the purpose assigned or leased, subleased;

b) Create conditions for businesses to invest in constructing and operating infrastructure to carry out maintenance, repair, and upgrade infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within the area used by investors in Van Don Economic Zone;

c) Pay rent for land, sublease rent, rent or purchase price for factories, offices, warehouses, and usage fees for infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone according to contracts signed;

d) Report on the operation status regularly monthly, quarterly, and annually to the Management Board of Van Don Economic Zone;

đ) Fulfill tax obligations, customs duties, environmental protection obligations, and other obligations as prescribed by law;

Article 6.

1. Investors (excluding entities specified in point d, Clause 4, Article 3 of the Investment Law) who engage in investment construction and business of all or part of infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities (collectively referred to as infrastructure investment and business enterprises) in Van Don Economic Zone shall have the right:

a) To be leased land or subleased land with payment for land use, or subleased land without payment for land use, in accordance with relevant laws on land to invest in constructing and operating all or part of infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone;

b) Transfer land use rights, lease land, sublease land with constructed technical infrastructure in Van Don Economic Zone to investors for investment in production and business activities within Van Don Economic Zone in accordance with relevant laws on land;

c) Collect usage fees for infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone invested by infrastructure investment and business enterprises according to contracts signed with lessees;

d) Construct factories, offices, warehouses within Van Don Economic Zone for sale or lease;

đ) Set rental prices for land, sublease prices for land with constructed technical infrastructure, usage fees for technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone in accordance with current laws and agreements with the Management Board of Van Don Economic Zone; set rental or sale prices for factories, offices, warehouses, and service fees;

e) Allow investors (excluding entities specified in point d, Clause 4, Article 3 of the Investment Law) with financial capability and experience to raise capital to lease, sublease part or all of unleased land areas to sublease land and raise capital in accordance with relevant laws on land;

g) Enjoy investment incentives and other lawful benefits as stipulated in this Regulation and laws on land, investment, taxation, related laws, and international treaties to which Vietnam is a member;

2. Infrastructure investment and business enterprises in Van Don Economic Zone shall have the obligation:

a) Construct infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone in accordance with detailed planning, design, and progress approved by competent state authorities;

The Management Board of Van Don Economic Zone decides to terminate the operation of infrastructure investment and business projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone in cases prescribed in Decree No. 108/2006/NĐ-CP dated September 22, 2006 of the Government detailing and guiding the implementation of certain provisions of the Investment Law; at the same time, propose competent state authorities to decide to reclaim land allocated to the project in accordance with laws on land;

b) Maintain and repair infrastructure projects in functional zones, technical infrastructure projects, and public service and convenience facilities within Van Don Economic Zone to ensure the quality of the projects;

c) Comply with the provisions of this Regulation and detailed planning of functional zones approved by competent state authorities; use land for the purpose assigned or leased;

d) Report regularly monthly, quarterly, and annually to the Management Board of Van Don Economic Zone;

đ) Fulfill tax obligations, customs duties, and other obligations as prescribed by law;

Article 7.

1. Annually, based on socio-economic infrastructure investment projects approved by competent authorities, project implementation progress, and central budget supplements for Quang Ninh Province's budget to invest in constructing socio-economic infrastructure projects, public service and convenience facilities of Van Don Economic Zone in accordance with laws on state budget;

2. Permit the application of the following capital mobilization methods to invest in and develop Van Don Economic Zone:

a) Prioritize ODA and preferential loan funds to invest in constructing technical and social infrastructure projects, necessary public service and convenience facilities of Van Don Economic Zone, and other technical assistance;

b) Attract investment through BOT, BT, BTO, and other forms as currently prescribed;

c) Mobilize capital from land funds in accordance with laws on land to invest in developing technical and social infrastructure serving Van Don Economic Zone.

d) Mobilizing direct investment capital from domestic and foreign organizations and individuals; advance capital from entities with infrastructure usage needs; capital from construction and business enterprises of infrastructure technical works. Expanding credit syndication forms of financial institutions and mobilizing all sources of capital under various appropriate forms in accordance with the provisions of the law;

đ) Issuing local bonds to raise capital for investment in large-scale infrastructure projects that play a key role in the development of the Van Don Economic Zone in accordance with the provisions of the law.

Chapter II

ORGANIZATION AND OPERATIONS OF THE VAN DON ECONOMIC ZONE

Article 8.

1. The Van Don Economic Zone includes two main functional zones: the non-tariff zone and the tariff zone. The scale and location of each functional zone are determined in the General Planning of the Van Don Economic Zone approved by the Prime Minister.

The non-tariff zone within the Van Don Economic Zone is the area defined in the overall planning and general planning for construction connected to part of the Van Hoa Sea Port and the Van Don International Airport. The non-tariff zone is separated from the tariff zone within the Van Don Economic Zone and the mainland of Vietnam by a fence system, with gates and entrances/exits ensuring conditions for the control by relevant authorities. The non-tariff zone has a customs office to carry out inspection, supervision, and customs procedures for goods entering and exiting the non-tariff zone. There are no residential areas or permanent or temporary residents (including foreigners) within the non-tariff zone.

The tariff zone is the remaining area of the Van Don Economic Zone outside the non-tariff zone. Within the tariff zone, there are industrial zones, export processing zones, entertainment and leisure areas, tourist areas, urban areas, residential areas, and administrative areas.

The scale and location of each functional zone are determined in the General Construction Planning of the Van Don Economic Zone approved by the Prime Minister.

2. The Management Board of the Van Don Economic Zone is permitted to hire foreign consulting companies to participate in detailed planning for functional zones such as tourism areas, urban areas, and the non-tariff zone.

Article 9. Operations of the non-tariff zone include the following main types of production and business activities:

1. Production, processing, recycling, assembly of exported goods, imported goods, and goods for immediate use.

2. Goods trade including exports, imports, transshipments, temporary imports for re-export, retail shops and supermarkets, tax-free shops and supermarkets.

3. Service trade including classification, packaging, transportation and delivery of transit goods, storage, bonded warehouses, postal services, telecommunications, finance, banking, transportation, insurance, entertainment, restaurants.

4. Trade promotion including trade fairs and exhibitions, product showcase stores, branch offices, representative offices of domestic and foreign companies, financial and banking organizations, and other trade promotion activities.

Article 10.

1. Exchange of goods and services between the non-tariff zone and foreign countries and among economic organizations within the non-tariff zone shall be carried out in accordance with the provisions of the law on exchange relations between foreign countries. Economic organizations operating in the non-tariff zone are allowed to export to foreign countries and import from foreign countries all goods and services not prohibited from export or import. Goods imported into the non-tariff zone from foreign countries or goods exported from the non-tariff zone to foreign countries are exempt from import duties and export duties (except for goods specified in Clause 2, Article 15 of this Regulation).

2. There is no restriction on the storage time of goods in the non-tariff zone.

3. Foreign ships are permitted to directly enter the non-tariff port area at Van Hoa Port to load and unload goods without having to go through entry and exit formalities for persons, only formalities for ships at buoy number 0.

Article 11.

1. Goods entering and exiting the tariff zone within the Van Don Economic Zone must comply with the provisions of the law on customs, export duties, and import duties; the most favorable customs procedures shall be applied.

2. Goods can freely circulate between the tariff zone and the mainland of Vietnam.

Article 12.

1. Exchange of goods and services between the non-tariff zone and the tariff zone (excluding export processing zones) within the Van Don Economic Zone and the mainland of Vietnam shall be governed by the provisions of the law on export and import relations, the law on customs, and the law on export duties and import duties. Exchange of goods and services between the non-tariff zone and export processing zones within the Van Don Economic Zone and other non-tariff zones shall be governed by the provisions on exchange relations between foreign countries.

2. Investors carrying out investment activities in the production and business of goods and services in the tariff zone within the Van Don Economic Zone and the mainland of Vietnam may only import goods and services from the non-tariff zone that Vietnam does not prohibit or limit imports, and sell goods and services to the non-tariff zone that Vietnam does not prohibit exports.

Article 13. Permitting foreign investors to invest in international telecommunications services exclusively for the Van Don Economic Zone at fees determined by the investor, consistent with Vietnam's international integration commitments.

Chapter III

INVESTMENT INCENTIVES

Article 14.

1. Domestic and foreign organizations and individuals have the right to choose to implement investment projects in the Van Don Economic Zone (except for projects in the list of prohibited investment fields according to the Investment Law).

2. Domestic investment projects and foreign-invested projects investing in the Van Don Economic Zone shall be implemented through a quick and convenient registration and examination process to obtain an Investment Certificate.

3. Investment projects in the Van Don Economic Zone shall enjoy incentives applicable to areas with particularly difficult socio-economic conditions according to the Investment Law, Land Law, Corporate Income Tax Law, Export Tax Law, Import Tax Law, Cooperative Law, and other tax laws.

4. Investors are exempt from import duties for a period of five years, starting from the date of commencement of production activities, for raw materials, components, semi-finished products, and other goods that are not domestically produced and are imported for use in production within the Van Don Economic Zone.

5. Vietnamese individuals and foreign individuals working at Vân Đồn Economic Zone shall be subject to a 50% reduction in income tax on taxable income.

6. In addition to the incentives stipulated in this Regulation, investment projects of investors in Vân Đồn Economic Zone shall enjoy a corporate income tax rate of 10% throughout the implementation period of the project:

a) Projects in high-tech fields that meet the provisions set forth in Clause 2, Article 5 of the High-Tech Zone Regulation issued together with Decree No. 99/2003/NĐ-CP dated August 28, 2003 of the Government;

b) Projects in special preferential investment fields and having significant economic and social impacts, which shall be decided by the Prime Minister upon recommendation by the Ministry of Finance in cases requiring higher encouragement.

Article 15.

1. Goods exported or imported under the following circumstances shall not be subject to export tax or import tax:

a) Goods imported from abroad into a non-tariff zone and only used within the non-tariff zone of Vân Đồn Economic Zone;

b) Goods exported from a non-tariff zone to abroad;

c) Goods transferred from one non-tariff zone to another non-tariff zone or sold to an export processing enterprise within the territory of Vietnam;

d) Goods not subject to export tax originating from domestic Vietnam brought into a non-tariff zone (except for goods specified in Clause 2 of this Article).

2. Goods subject to export tax originating from a tariff zone within Vân Đồn Economic Zone and domestic Vietnam brought into a non-tariff zone for export to abroad without undergoing production, processing, recycling, or assembly into products within the non-tariff zone must pay export tax, complete export procedures according to current regulations, and be subject to customs inspection and supervision.

3. Goods originating from abroad and not included in the list of prohibited or restricted imports from a non-tariff zone into a tariff zone (excluding export processing zones) within Vân Đồn Economic Zone and domestic Vietnam must pay import tax, complete import procedures according to current regulations, and be subject to customs inspection and supervision.

4. Goods produced, processed, recycled, or assembled in a non-tariff zone using imported raw materials and components from abroad when imported into a tariff zone (excluding export processing zones) within Vân Đồn Economic Zone and domestic Vietnam must: pay import tax on the portion of imported raw materials and components from abroad constituting the product or goods; complete import procedures according to current regulations; and be subject to customs inspection and supervision.

5. Goods and services produced and consumed in a non-tariff zone and goods and services imported from abroad into a non-tariff zone are exempt from value-added tax. Goods and services from domestic Vietnam and tariff zones within Vân Đồn Economic Zone brought into a non-tariff zone are subject to a zero percent VAT rate. Goods and services from a non-tariff zone brought into domestic Vietnam and tariff zones (excluding export processing zones) within Vân Đồn Economic Zone must pay VAT according to current regulations.

6. Goods and services subject to special consumption tax produced and consumed in a non-tariff zone or imported from abroad into a non-tariff zone are exempt from special consumption tax (except for items specifically subject to special consumption tax according to special consumption tax laws).

7. Goods and services subject to special consumption tax from a non-tariff zone brought into a tariff zone (excluding export processing zones) within Vân Đồn Economic Zone and domestic Vietnam must pay special consumption tax.

8. Raw materials for production and merchandise supplies imported from abroad by organizations and individuals inside and outside Vietnam engaged in production and business activities in a non-tariff zone but not fully utilized, along with by-products still having commercial value, may be sold into a tariff zone (excluding export processing zones) within Vân Đồn Economic Zone and domestic Vietnam after completing customs procedures and paying import tax according to current regulations.

9. Investment projects for producing export goods and transporting transit goods shall comply with general regulations.

Article 16. Investors (excluding those specified in Point d, Clause 4, Article 3 of the Investment Law) may invest in building housing for sale or lease; invest in constructing infrastructure for functional areas for lease, sublease, or transfer of land use rights already developed infrastructure within Vân Đồn Economic Zone in accordance with relevant land laws. Overseas Vietnamese residents may purchase housing attached to residential land use rights; foreigners residing in Vietnam and foreign investors may lease housing attached to residential land use rights within Vân Đồn Economic Zone in accordance with laws on housing and land.

Article 17. A single price policy shall apply to goods, services, and land rental fees for organizations and individuals, regardless of whether they are domestic or foreign, engaged in investment, production, and business activities within Vân Đồn Economic Zone.

Chapter IV

LAND USE IN VÂN ĐỒN ECONOMIC ZONE

Article 18.

1. The entire area of dedicated land and water surfaces allocated for the construction and development of industrial zones, export processing zones, and non-tariff zones within Vân Đồn Economic Zone as detailed in the General Master Plan for Vân Đồn Economic Zone approved by the Prime Minister and the Detailed Master Plan for Functional Areas within Vân Đồn Economic Zone approved by the People's Committee of Quảng Ninh Province shall be assigned once by the People's Committee of Quảng Ninh Province to the Management Board of Vân Đồn Economic Zone for organization and implementation of construction and development. The People's Committee of Quảng Ninh Province shall direct the implementation of land recovery for the area planned for construction of functional areas within Vân Đồn Economic Zone.

2. The People's Committee of Quảng Ninh Province shall direct the implementation of land recovery for dedicated land and water surfaces according to the detailed land use plan already approved for the remaining dedicated land and water surfaces used for other purposes within Vân Đồn Economic Zone to be assigned to the Management Board of Vân Đồn Economic Zone according to the annual and five-year detailed land use plans of Vân Đồn Economic Zone already approved for organization and implementation of construction and development of Vân Đồn Economic Zone.

3. The People's Committee of Quang Ninh Province shall direct the Management Board of Van Don SEZ to coordinate with local authorities to implement compensation, land clearance, and resettlement for households whose land has been reclaimed (for the area of specialized land and water surfaces that have been reclaimed by competent state agencies) to transfer such land to the Management Board of Van Don SEZ to re-transfer land with payment for land use rights, re-transfer land without payment for land use rights, and lease land to those who need land use according to the laws on land.

The Management Board of Van Don SEZ shall be responsible for managing and using effectively the specialized land and water surfaces allocated in accordance with their intended purposes and in compliance with the General Plan for Construction of Van Don SEZ approved by the Prime Minister, detailed construction plans, land use plans for ten years, and land use plans for five years approved by competent authorities.

4. In cases where land is re-transferred and leased without going through public auction of land use rights or bidding for projects using land:

Based on the land price and levels of exemption and reduction of land use fees, and levels of exemption and reduction of land lease fees stipulated by the People's Committee of Quang Ninh Province and relevant laws on investment and land, the Management Board of Van Don SEZ shall decide on: the amount of land use fee and specialized water surface fee; land lease fee and specialized water surface fee; levels of exemption and reduction of land use fee and specialized water surface fee; levels of exemption and reduction of land lease fee and specialized water surface fee for each investment project to ensure encouragement of investment.

5. In cases where land is re-transferred with payment for land use rights and leased through public auction of land use rights or bidding for projects using land: based on the financial plan and land price approved by the People's Committee of Quang Ninh Province, the Management Board of Van Don SEZ shall decide to re-transfer and lease land that has been compensated and cleared for those who need land use according to the laws on land.

Domestic organizations and individuals, overseas Vietnamese, and foreign organizations and individuals may be granted land or lease land to carry out projects in Van Don SEZ, and they shall have corresponding rights and obligations in accordance with the form of land grant or lease under the laws on land.

Article 19. The State shall support investment in constructing technical infrastructure works up to the perimeter fences of functional zones in Van Don SEZ; provide support for compensation, land clearance, and resettlement for households whose land has been reclaimed in functional zones; support investment in constructing centralized wastewater treatment facilities and solid waste disposal facilities in functional zones according to targeted support programs.

Article 20. Before constructing production and business service works, infrastructure works in functional zones, technical infrastructure works, and public utility and convenience works in Van Don SEZ, investors must submit an application to the Management Board of Van Don SEZ in accordance with the laws on construction. Within seven working days from the date of receiving complete valid documents, the Management Board of Van Don SEZ shall examine, decide, and issue a written response to the investor.

Article 21. The management of construction of production and business service works, infrastructure works in functional zones, technical infrastructure works, and public utility and convenience works in Van Don SEZ shall be carried out in accordance with the laws on construction.

Chapter V

FINANCIAL REGIME, LABOR, BUSINESS ORGANIZATION,

EXIT, ENTRY, RESIDENCE AND COMMUNICATION INFORMATION

Article 22.

1. Foreigners and overseas Vietnamese engaged in work, investment, production, and business activities in Van Don SEZ and their family members shall be issued multiple-entry visas with validity periods appropriate to their working periods in Van Don SEZ; they shall be allowed to reside temporarily in Van Don SEZ.

The Ministry of Public Security shall guide the implementation of this provision.

2. The Management Board of Van Don SEZ shall issue work permits to foreigners and overseas Vietnamese engaged in work, investment, production, and business activities in Van Don SEZ in accordance with the laws on labor.

The Ministry of Labor, Invalids, and Social Affairs shall guide the Management Board of Van Don SEZ in issuing work permits as stipulated in this provision.

Article 23. Transactions, payments, transfers of goods and services, and other commercial transactions between economic organizations and individuals within the tax-free zone shall be permitted to be conducted in freely convertible currencies through accounts opened at banks. Common goods purchases for daily living shall be settled in Vietnamese Dong.

Article 24.

1. Commercial banks and credit institutions established and operating under the Law on Credit Institutions shall be allowed to open branches in Van Don SEZ to perform credit functions in Vietnamese Dong and foreign currencies for economic activities in Van Don SEZ in accordance with current regulations.

Goods transported into or out of the tax-free zone must be priced in freely convertible currencies; fees paid to state management agencies in Van Don SEZ shall be calculated in Vietnamese Dong, while other fees may be calculated in freely convertible currencies or in Vietnamese Dong according to current foreign exchange management regulations.

Chapter VI

STATE MANAGEMENT OF VAN DON ECONOMIC ZONE

Article 25.

1. The Management Board of Van Don SEZ shall be established by the Prime Minister upon the proposal of the Chairman of the People's Committee of Quang Ninh Province and the Minister of Home Affairs.

2. The Management Board of Van Don SEZ is a state administrative body subordinate to the People's Committee of Quang Ninh Province, directly implementing centralized and unified management of investment, construction, and development activities in Van Don SEZ in accordance with this Regulation, planning, schedules, and progress approved by competent state agencies and related laws.

3. The Management Board of Van Don SEZ shall have: legal personality, bank account and seal bearing the national emblem; office premises; dedicated staff; operational funding; development capital provided by the state budget annually.

4. The Chairman of the People's Committee of Quang Ninh Province shall appoint the Director of the Management Board of Van Don SEZ; the Deputy Directors shall be appointed by the Chairman of the People's Committee of Quang Ninh Province upon the proposal of the Director of the Management Board of Van Don SEZ.

Article 26. The Management Board of Van Don SEZ shall perform tasks and exercise powers as prescribed in this Regulation, investment laws, other relevant laws, and the following tasks and powers:

1. To develop the overall socio-economic master plan and the general plan of Van Don SEZ for submission to the People's Committee of Quang Ninh Province for approval by the Prime Minister; to prepare detailed plans for functional zones, land use plans, and detailed plans within Van Don SEZ for submission to the People's Committee of Quang Ninh Province for approval; to manage, disseminate, guide, inspect, and supervise the implementation of the operational regulations, overall plans, general plans, detailed plans, and approved programs.

2. To develop a list of investment projects and annual development capital investment plans for submission to the competent state authorities for approval and to organize their implementation.

3. To issue, adjust, and revoke: Investment Certificates; Business Registration Certificates; Licenses for establishing representative offices and branches of foreign organizations and traders; Licenses for establishing representative offices and branches of foreign tourism enterprises; Work Permits for foreigners and overseas Vietnamese coming to work and engage in business investment activities; Origin Certificates for goods produced in Van Don SEZ and other licenses and certificates authorized by the competent state authorities.

4. To allocate land with payment for land use rights, allocate land without payment for land use rights, lease land, and dedicated water surfaces to investors who need to use land within Van Don SEZ in accordance with the provisions of the Land Law.

5. To establish a framework of fees and charges applicable in Van Don SEZ for submission to the competent state authorities for issuance in accordance with the provisions of the law.

6. To act as the focal point for resolving issues arising during the formation, implementation, and operation of investment projects and business activities within Van Don SEZ.

7. To coordinate with local authorities and related agencies to ensure that all activities within Van Don SEZ comply with this Regulation and the approved overall plans and development programs for Van Don SEZ.

8. To implement management and utilization of development capital on the territory of Van Don SEZ, manage construction projects funded by the State budget within Van Don SEZ in accordance with the provisions.

9. To organize, implement, introduce, negotiate, promote investment, trade, tourism, and services both domestically and internationally. To develop investment promotion programs, trade, tourism, and service programs for submission to the competent state authorities for approval and implementation.

10. To develop human resource development plans to meet the needs of Van Don SEZ for submission to the People's Committee of Quang Ninh Province for approval and implementation.

11. To report periodically to relevant ministries and departments and the People's Committee of Quang Ninh Province on the implementation of planning, construction, and development plans for Van Don SEZ.

12. To perform other tasks assigned by the People's Committee of Quang Ninh Province at different times.

Article 27. The Management Board of Van Don SEZ may collect fees or charges for the use of infrastructure works and public utilities within Van Don SEZ in accordance with the provisions of the law on fees and charges.

Article 28. The People's Committee of Quang Ninh Province shall have the responsibility:

1. To organize the preparation of the overall socio-economic development master plan and the general plan of Van Don SEZ for submission to the Prime Minister for approval as the basis for long-term investment and development of Van Don SEZ.

2. To approve detailed plans for functional zones within Van Don SEZ, detailed land use plans within Van Don SEZ; to carry out land recovery and allocation to the Management Board of Van Don SEZ to organize the implementation of construction and development of Van Don SEZ in accordance with Clauses 1 and 2 of Article 18 of this Regulation.

3. To set land prices and exemptions and reductions in land use fees; exemptions and reductions in land rental fees within Van Don SEZ for cases where land is reallocated or leased without going through land use right auctions or project bidding involving land use and to approve financial plans and prices for cases involving land use right auctions or project bidding involving land use.

4. To implement state management over investment projects within Van Don SEZ according to the approved planning; to submit for approval or approve within its authority the list of development investment projects and annual development capital investment plans within Van Don SEZ.

5. To promulgate specific preferential policies and incentives in line with current laws to prioritize recruitment and employment of local labor; to support vocational training for local workforce; to create conditions for local workforce to work in enterprises within Van Don SEZ; to encourage and attract highly skilled and experienced workers from other places to work in Van Don SEZ.

6. To support the construction of housing for workers; to support the construction of resettlement areas; to support the development of technical and social infrastructure systems and public service facilities in accordance with the State Budget Law; to support investment promotion and trade promotion; to support compensation and land clearance to accelerate the investment and development process of Van Don SEZ.

7. To direct the People's Committee of Van Don District to implement compensation and land clearance; to direct provincial functional agencies to cooperate with the Management Board of Van Don SEZ to implement measures to ensure security, social order, and safety, creating favorable conditions for enterprises in Van Don SEZ to operate smoothly.

8. To provide administrative and public service operating funds and development capital for the Management Board of Van Don SEZ from the budget annually and in accordance with the State Budget Law.

9. Direct the competent agencies of the province to coordinate and create favorable conditions for the Management Board of Vân Đồn SEZ to fully implement the provisions of this Regulation; coordinate with relevant ministries and sectors to organize the management of Vân Đồn SEZ to develop rapidly and sustainably.

Article 29.

1. Ministries, ministerial-level agencies, agencies under the Government, and the People's Committee of Quảng Ninh Province shall perform state management functions within their respective powers, duties, and authorities over industries, fields, and administrative territories concerning Vân Đồn SEZ; guide the Management Board of Vân Đồn SEZ to carry out certain state management tasks in fields such as investment, construction, planning, natural resource management and environment, urban management and development, land management, labor, import and export, and other fields as prescribed by law and this Regulation according to the principle of "one-stop service" to facilitate investors' investment and business activities in Vân Đồn SEZ and the development requirements of Vân Đồn SEZ.

2. For fields not delegated or outside the management authority of the Management Board of Vân Đồn SEZ: ministries, ministerial-level agencies, and the People's Committee of Quảng Ninh Province shall perform state management functions over Vân Đồn SEZ by organizing subordinate units within Vân Đồn SEZ (excluding the field of state management of banking) and establishing coordination regulations with the Management Board of Vân Đồn SEZ to exercise the assigned authority.

Article 30. The customs agency at Vân Đồn SEZ shall supervise and manage goods circulating between the duty-free zone and foreign countries and goods circulating between the duty-free zone and the remaining areas on Vietnamese territory.

Chapter VII

IMPLEMENTING PROVISIONS

Article 31. Other provisions related to the activities, rights, and obligations of domestic and foreign organizations and individuals engaged in production and business operations of goods and services in Vân Đồn SEZ that are not specified in this Regulation shall be implemented in accordance with the provisions of laws on investment, enterprises, cooperatives, customs, land, trade, labor, environment, science and technology, taxation, and other related laws and international treaties to which Vietnam is a party.

Article 32. Domestic and foreign organizations and individuals who have been engaged in investment and production and business operations of goods and services in the Vân Đồn SEZ area before the issuance of this Regulation shall enjoy the remaining period of incentives as provided for domestic and foreign organizations and individuals implementing investment and production and business operations of goods and services in Vân Đồn SEZ as stipulated in this Regulation from the date this Regulation takes effect./.