Decision No. 185/2007/QĐ-TTg On the organization and operation of the Chu Lai Free Trade Zone within the Chu Lai Open Economic Zone in Quang Nam Province

Pursuant to …;

Regarding the organization and operation of the Chu Lai Free Trade Zone within the Chu Lai Open Economic Zone in Quang Nam Province

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PRIME MINISTER

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

Pursuant to the conclusion of the Politburo in Notification No. 79-TB/TW dated September 27, 2002;

Considering the proposal of the Minister of Industry and Trade,

DECISION:

Article 1. Scope of Regulation

This Decision stipulates investment activities; trade; financial, banking, insurance, logistics services; tourism; exit and entry; residence and movement; and state management within the Chu Lai Free Trade Zone (hereinafter referred to as the Chu Lai FTZ) established pursuant to Decision No. 108/2003/QĐ-TTg dated June 5, 2003 of The Prime Minister.

Article 2. Applicability

This Decision applies to organizations and individuals of Vietnam and foreigners established and operating within the Chu Lai FTZ; state management agencies operating according to relevant laws related to the Chu Lai FTZ and the Management Board of the Chu Lai Open Economic Zone.

Article 3. Scope and Boundaries of the Chu Lai FTZ

The Chu Lai FTZ is a functional area within the Non-Tariff Zone (as provided for in Article 8 of the Operation Regulations of the Chu Lai Open Economic Zone issued together with Decision No. 253/2006/QĐ-TTg dated November 6, 2006 of the Prime Minister) within the Chu Lai Open Economic Zone, connected to part of the Ky Ha Port and Chu Lai International Airport. The geographical boundaries of the Chu Lai FTZ are determined in the detailed construction planning of the Chu Lai FTZ approved by the competent authority.

Article 4. Objectives of Establishing the Chu Lai FTZ

1. To pilot certain economic management models and new policies related to investment and trade activities to accelerate the development process of the Chu Lai Open Economic Zone, while being consistent with international treaties to which Vietnam is a party.

2. To build and develop the Chu Lai FTZ into:

- A trading, import-export, fair, and exhibition center;

- A production, processing, and export manufacturing center;

- A temporary import-reexport, transshipment, and transit goods center;

- A financial, banking, insurance, and logistics service center.

Article 5. Duty-Free Shop Business

Investors are permitted to invest in duty-free shops within the Chu Lai FTZ to serve the following groups: outbound and inbound passengers, transit passengers by sea and air; foreign seafarers and crew members, international cruise tourists entering the Ky Ha Port; investors and traders temporarily residing in the Chu Lai FTZ as stipulated in Clause 2, Article 7 of this Decision. If duty-free goods are taken out of the Non-Tariff Zone within the Chu Lai Open Economic Zone, they must be subject to taxes as prescribed by law.

Article 6. Investment Incentives

1. In addition to the investment incentives stipulated in the Operation Regulations of the Chu Lai Open Economic Zone issued together with Decision No. 253/2006/QĐ-TTg dated November 6, 2006 of the Prime Minister, newly established businesses from projects investing in infrastructure, high technology, special technology, clean technology, and industry within the Chu Lai FTZ shall be subject to a corporate income tax rate of 10% throughout the project implementation period; exempted from tax for four years from the date of generating taxable income and reduced by 50% of the tax payable for the next nine years.

2. The application of the corporate income tax policy mentioned in Clause 1 of this Article to other investment projects shall be decided by the Prime Minister for decision.

Article 7. Exit, Entry, and Residence

1. Foreigners and overseas Vietnamese entering and exiting the Chu Lai Multi-purpose Zone through the Ky Ha port by sea and through the Chu Lai International Airport by air shall not be required to go through exit and entry procedures but only need to present their passports or other equivalent documents to the exit and entry management authorities. In cases where these individuals wish to enter the mainland of Vietnam, they must comply with the current regulations on exit and entry management.

2. Investors and traders working in the Chu Lai Multi-purpose Zone who require long-term residence shall be granted a Temporary Residence Card valid for up to three years by the Quang Nam Provincial Police to reside within the Chu Lai Multi-purpose Zone. The Temporary Residence Card shall serve as a pass for entering and exiting the Chu Lai Multi-purpose Zone.

Article 8. State Management of the Chu Lai Multi-purpose Zone

The Management Board of the Open Economic Zone of Chu Lai is the agency responsible for centralized and unified management of investment, construction, and development activities in the Chu Lai Multi-purpose Zone. The Management Board of the Open Economic Zone of Chu Lai performs its duties and powers as stipulated in the Operational Regulations of the Open Economic Zone of Chu Lai and according to the delegation of authority from relevant ministries, ministerial-level agencies, and the People's Committee of Quang Nam Province. The establishment of direct management units within the Chu Lai Multi-purpose Zone shall be decided by the Management Board of the Open Economic Zone of Chu Lai in accordance with current laws.

Article 9. Other Provisions

Other provisions related to the operations of enterprises within the Chu Lai Multi-purpose Zone that are not specified in this Decision shall be implemented in accordance with the Operational Regulations of the Open Economic Zone of Chu Lai issued together with Decision No. 253/2006/QĐ-TTg dated November 6, 2006 of the Prime Minister and other current regulatory legal documents. The Prime Minister and other relevant current legal normative documents.

Article 10. Provisions on implementation

1. This Decision shall take effect fifteen days after its publication in the Official Gazette.

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