Decision No. 166/2008/QĐ-TTg On Adjusting Administrative Boundaries and Issuing Regulations on the Operation of the Border Economic Zone in Dong Thap Province

Pursuant to …;

REGARDING THE ADJUSTMENT OF BOUNDARIES AND THE ISSUANCE OF REGULATIONS ON THE OPERATIONS

OF THE BORDER GATE ECONOMIC ZONE IN DONG THAP PROVINCE

_________

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Based on the Investment Law dated November 29, 2005;
Pursuant to Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones;
Considering the proposal of the Minister of Planning and Investment and the Chairman of the People's Committee of Dong Thap Province,

DECISION:

Article 1. The geographical boundaries of the Border Gate Economic Zone in Dong Thap Province are defined as follows:

1. The Border Gate Economic Zone in Dong Thap Province is a region with clearly defined geographical boundaries within the national territory and sovereignty, comprising functional areas with the most favorable investment and business environment according to current regulations, including socio-economic infrastructure and management policies that facilitate business activities in accordance with market mechanisms.

2. The Border Gate Economic Zone in Dong Thap Province has a natural area of 319.36 km² after the adjustment of boundaries, with 48.7 km of border, including two international border gates: the international border gate at Thuong Phuoc and the international border gate at Dinh Ba, and five auxiliary border gates: So Thượng, Thong Binh, Moc Ra, A Don, and Binh Phu. It includes 11 communes and 2 towns: Thuong Phuoc 1, Thuong Phuoc 2, Thuong Thoi Hau A, Thuong Thoi Hau B, Thuong Lac, Thuong Thoi Tien, Tan Hoi, Binh Thanh (in Hong Nu District), Binh Phu, Tan Ho Cu, Thong Binh (in Tan Hung District) and two towns: Hong Nu and Sa Ray.

The geographical boundaries are defined as follows:

- Northern boundary: Pray Veng province - Cambodia;

- Southern boundary: communes in Hong Nu and Tan Hung districts;

- Western boundary: Phu Chau district, An Giang province, separated by the Mekong River;

Article 2. - Eastern boundary: Tan Hung district, Long An province.

Article 3. This Decision also promulgates the Regulations on the operations of the Border Gate Economic Zone in Dong Thap Province.

Article 4. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

REGULATIONS

Operations of the Border Gate Economic Zone in Dong Thap Province

(Issued together with Decision No. 166/2008/QĐ-TTg dated December 11, 2008 of the Prime Minister)
___________

Chapter 1

GENERAL PROVISIONS

Article 1. Scope of Regulation

These Regulations stipulate the operations and certain policies for the Border Gate Economic Zone in Dong Thap Province; rights and obligations of domestic and foreign organizations and individuals engaged in investment and business activities in the Border Gate Economic Zone in Dong Thap Province.

Article 2. Development objectives of the Border Gate Economic Zone in Dong Thap Province

1. To build and develop the Border Gate Economic Zone in Dong Thap Province into a dynamic economic region and a center for economic linkage among countries in the Mekong Subregion along the East-West Economic Corridor, primarily in the relationship between Vietnam and Cambodia.

2. To develop central areas within the Border Gate Economic Zone in Dong Thap Province into border cities, effectively utilizing geographical, political, economic, cultural, and social conditions during international economic exchanges to promote economic development and enhance the spillover effects of the Border Gate Economic Zone in Dong Thap Province on countries in the Mekong Subregion, particularly between Vietnam and Cambodia in the process of integration.

3. To develop rural areas, especially border areas, to minimize negative impacts on social, ecological, cultural, ethnic, public order, security, and defense environments based on creating more job opportunities, promoting education, raising public awareness, and improving human resource quality.

4. To create conditions for protecting national sovereignty and border security, effectively addressing social issues, enhancing the material and spiritual lives of the people, ensuring ethnic unity, and strengthening friendly cooperative relations with neighboring countries.

Article 3. Policy Orientation towards the Border Economic Zone of Dong Thap Province

The Government of the Socialist Republic of Vietnam encourages organizations and individuals from all economic sectors in Vietnam, overseas Vietnamese, and foreign investors to participate in investment and business activities within the Border Economic Zone of Dong Thap Province in areas such as import and export, temporary import for re-export, transit goods transport in accordance with the Agreement on Transit Goods Transport, bonded warehouses, duty-free shops, trade fairs, product display shops, production and processing facilities for imported and exported goods, representative offices, domestic and foreign companies, border marketplaces, social and economic infrastructure investment, tourism, financial and banking services in compliance with Vietnamese laws and international treaties to which Vietnam is a party.

Article 4. Rights of Organizations and Individuals Engaged in Investment and Business Activities within the Border Economic Zone of Dong Thap Province

In addition to the rights stipulated by Vietnamese laws and international treaties to which Vietnam is a member, businesses operating within the Border Economic Zone of Dong Thap Province shall enjoy the following rights:

1. To benefit from incentives as prescribed in Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on Industrial Zones, Export Processing Zones, and Economic Zones, and according to this Regulation.

2. To utilize infrastructure works, public utilities, and common services serving the Border Economic Zone of Dong Thap Province, such as transportation roads, technical infrastructure systems, street lighting, electricity supply, water supply, telecommunications, at agreed prices with infrastructure business enterprises.

3. To transfer land use rights and assets attached to the land during the lease period, including sublease periods, in accordance with the law and consistent with the project's intended land use purpose that has been invested in. In cases where there is a change in the initial investment purpose of the project, the transfer of land use rights and assets attached to the land can only be carried out after approval by the competent authority.

4. To mortgage the value of land use rights and assets attached to the land during the lease period, including sublease periods, with credit institutions operating in Vietnam and foreign credit institutions in accordance with relevant laws.

Chapter II

ACTIVITIES OF THE TRADE AND INDUSTRY ZONE WITHIN THE BORDER ECONOMIC ZONE OF DONG THAP PROVINCE

Article 5. The Border Economic Zone of Dong Thap Province includes Trade and Industry Zones, administrative management zones, border control management and supervision zones, urban and residential zones, tourist and service zones, and agricultural, forestry, and fishery development zones. The scale and location of each zone are determined in the overall and detailed planning of the Border Economic Zone of Dong Thap Province.

The Trade and Industry Zone within the Border Economic Zone of Dong Thap Province (hereinafter referred to as the Trade and Industry Zone) is separated from other functional zones within the Border Economic Zone of Dong Thap Province and the mainland by a hard fence system with entry and exit gates, ensuring the control over people, goods, and transportation means by relevant authorities.

There shall be no permanent residents (including foreigners) in the Trade and Industry Zone.

Article 6. Import and export of goods and services of the Trade-Industrial Zone

1. The exchange relationship of goods and services between the Trade-Industrial Zone and other functional zones within the Border Economic Zone of Dong Thap Province and domestic areas shall be considered as import and export relationships and must comply with the provisions of Vietnamese laws on export and import; customs procedures under Vietnamese Customs Law must be implemented. The exchange relationship of goods and services between the Trade-Industrial Zone and foreign countries shall be treated as an exchange relationship between foreign countries.

2. Economic organizations operating in the Trade-Industrial Zone are permitted to export to foreign countries and import from foreign countries all goods and services that are not prohibited by Vietnamese law.

3. Economic organizations and individuals within the Border Economic Zone of Dong Thap Province and domestic areas may only import from the Trade-Industrial Zone those goods and services that Vietnam does not prohibit from being imported; they may export to the Trade-Industrial Zone those goods and services that Vietnam does not prohibit from being exported.

4. Goods and services imported from abroad into the Trade-Industrial Zone or goods and services exported from the Trade-Industrial Zone to foreign countries shall be exempted from import tax and export tax.

5. Goods and services imported from abroad into the Trade-Industrial Zone shall not be subject to value-added tax.

6. Goods and services produced and consumed within the Trade-Industrial Zone shall enjoy a zero percent value-added tax rate; goods and services from other functional zones within the Border Economic Zone of Dong Thap Province and from domestic areas brought into the Trade-Industrial Zone shall enjoy a zero percent value-added tax rate; goods and services from the Trade-Industrial Zone brought into other functional zones within the Border Economic Zone of Dong Thap Province and into the domestic area of Vietnam shall be subject to value-added tax according to current laws.

7. Goods and services subject to special consumption tax produced and consumed within the Trade-Industrial Zone and goods and services subject to special consumption tax imported from abroad and from the domestic area of Vietnam into the Trade-Industrial Zone shall not be subject to special consumption tax, except for automobiles subject to special consumption tax.

8. Goods and services subject to special consumption tax from the Trade-Industrial Zone exported to foreign countries shall not be subject to special consumption tax.

9. Goods and services subject to special consumption tax from the Trade-Industrial Zone brought into the domestic area of Vietnam shall be subject to special consumption tax.

10. Goods manufactured, processed, recycled, or assembled at the Trade-Industrial Zone using imported raw materials and spare parts from abroad according to current regulations on import management, when imported into the domestic area of Vietnam, shall only pay import tax on the portion of raw materials and spare parts constituting the product or goods. In cases where imported raw materials and spare parts from abroad are not used when importing into the domestic area of Vietnam, no import tax shall be paid.

Article 7. Investment Incentive Policy

1. All investment projects in the Trade-Industrial Zone shall enjoy the maximum incentives applicable to areas with particularly difficult socio-economic conditions as stipulated in the Investment Law, the Corporate Income Tax Law, the Value-Added Tax Law, and other incentives according to international treaties, multilateral or bilateral trade agreements to which Vietnam is a party.

2. Investment projects in the Trade-Industrial Zone shall be subject to a corporate income tax rate of 10% for 15 years from the date the project begins operations; they shall be exempt from corporate income tax for up to four years from the date taxable income is generated and shall have their corporate income tax reduced by 50% for up to nine subsequent years.

3. Investment projects constructing new production lines, expanding scale, updating technology, improving ecological environment, and enhancing production capacity shall be exempt from corporate income tax for up to four years for additional income generated by such investments and shall have their corporate income tax reduced by 50% for up to seven subsequent years.

Article 8. Incentives for tourists entering the Trade-Industrial Zone

Domestic and foreign tourists entering the Trade-Industrial Zone are permitted to purchase imported goods brought into the domestic market of Vietnam (goods not included in the list of prohibited imports) and are exempt from import tax, value-added tax, and special consumption tax (if applicable) with a value not exceeding 500,000 VND/person/day. If the value of goods exceeds 500,000 VND, the excess amount must be subject to adjustment according to current regulations applicable to other general imported goods.

Prior to implementation, the People's Committee of Dong Thap Province shall issue regulations on identifying tourists eligible to benefit from this policy, ensuring strict management conditions to prevent abuse and tax evasion.

Chapter III

IMPLEMENTING PROVISIONS

Article 9. Other provisions related to the activities of organizations and individuals within the Border Economic Zone of Dong Thap Province that are not specified in this Regulation shall be implemented in accordance with corresponding articles of the Commercial Law, Investment Law, Enterprise Law, Land Law, other legal documents, and international treaties to which Vietnam is a member.

Article 10. The incentive mechanisms and policies under this Regulation shall also apply to organizations and individuals, both domestic and foreign, already operating in investment and business activities within the Border Economic Zone of Dong Thap Province from the date it becomes effective, for the remaining period of time./