Decision No. 253/2006/QĐ-TTg On the issuance of the Regulation on the operation of the Chu Lai Open Economic Zone, Quang Nam Province

DECISION OF THE PRIME MINISTER

On the issuance of the Regulation on the operationof the Chu Lai Open Economic Zone, Quang Nam 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;

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

DECISION:

Article 1. Issued together with this Decision is the Regulation on the operation of the Chu Lai Open Economic Zone, Quang Nam Province.

Article 2. Abolishes the Regulation on the operation of the Chu Lai Open Economic Zone, Quang Nam Province issued together with Decision No. 108/2003/QĐ-TTg dated June 5, 2003 of the Prime Minister.

Article 3. This Decision takes effect 15 days after its publication in the Official Gazette.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of government agencies, and the Chairman of the People's Committee of Quang Nam Province are responsible for implementing this Decision./.

 

REGULATIONS

 

Operation of the Chu Lai Open Economic Zone

(Issued together with Decision No. 253/2006/QĐ-TTg dated November 6, 2006)

of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. This Regulation stipulates the operation, policies, and state management over the Chu Lai Open Economic Zone (hereinafter referred to as the "Chu Lai OEZ"); rights and obligations of investors conducting investment and business activities in goods and services, and investors conducting investment and business activities in infrastructure development within the Chu Lai OEZ.

Article 2.

1. The Chu Lai OEZ is a defined geographical area within the territory and sovereignty of the State; it has a separate economic space with a particularly favorable and equal business environment; long-term preferential policies, encouraging mechanisms, and a transparent management system that create favorable conditions for domestic and foreign investors to invest confidently in production and business activities of goods and services.

2. The Chu Lai OEZ includes the town of Nui Thanh and communes Tam Nghia, Tam Quang, Tam Hai, Tam Giang, Tam Hoa, Tam Hiep, Tam Anh Bac, Tam Anh Nam, Tam Tien, Tam Xuan 1, and Tam Xuan 2 in Nui Thanh district; communes Tam Thanh, Tam Phu, Tam Thang, and ward An Phu in Tam Ky city, Quang Nam province; its geographical boundaries are determined as follows:

a) East bordering the East Sea;

b) West bordering communes Tam My and Tam Thanh, Nui Thanh district, Quang Nam province;

c) South bordering Binh Son district, Quang Ngai province;

d) North bordering Thang Binh district, Quang Nam province.

Article 3. The Chu Lai OEZ was established with the following objectives:

1. To apply new systems, mechanisms, and policies to create a favorable and equal investment and business environment in line with international practices for various types of domestic and foreign investments.

2. To apply new models and driving forces for economic development to address existing policy and management mechanism constraints while not having the conditions to implement them nationwide.

3. To develop production and create high-quality and competitive products; to promote exports and expand into global markets.

4. To create jobs and promote training and improve the quality of human resources.

5. To exploit advantages in natural conditions, geographic location, economic, and political factors in international and domestic trade and services to promote the socio-economic development of Quang Nam province, contributing to creating a driving force for socio-economic development in the Central region and narrowing the development gap between this region and other regions in the country.

6. To accelerate the pace of investment construction and development of the Chu Lai OEZ along with the Dung Quat Economic Zone so that by 2010, these economic zones will gradually become growth centers, industrial-commercial-service centers of the Central Economic Region, and serve as a driving force for the industrialization and modernization of the Central region.

Article 4. The Government encourages and protects organizations and individuals from all sectors of the economy in Vietnam, overseas Vietnamese, and foreign investors participating in investment and production and business activities in the Chu Lai OEZ in the following fields: infrastructure and urban development investment and business, industrial development, urban development, seaports, trade, services, tourism, entertainment, finance-banking, transportation, insurance, education-training, healthcare, housing, import-export of goods, and other production and business activities according to this Regulation, relevant 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 Chu Lai OEZ have the right:

a) To receive the transfer of land use rights, lease land, or sublease land already developed with technical infrastructure in the Chu Lai OEZ from enterprises investing in infrastructure development to build factories, offices, and architectural works serving production and business of goods and services, and to be granted a Land Use Right Certificate in accordance with the law on land;

b) To lease or purchase factories, offices, warehouses already built in the Chu Lai OEZ to serve production and business of goods and services under contracts signed with enterprises investing in infrastructure development;

c) To use technical infrastructure works, service works, and public utility works in the Chu Lai OEZ including: road systems, seaports, electricity supply, water supply, drainage, telecommunications, wastewater treatment, waste disposal, and other common services in the Chu Lai OEZ under contracts signed with enterprises investing in infrastructure development;

d) To enjoy investment incentives and other legitimate benefits as prescribed in this Regulation, the law on land, investment, tax, other relevant laws, and international treaties to which Vietnam is a party.

2. Investors conducting investment and business activities in goods and services in the Chu Lai OEZ have the obligation:

a) To comply with the provisions of this Regulation and detailed planning of functional areas approved by competent state authorities; to use land for the purpose assigned or leased or subleased.

b) Create conditions for enterprises to invest in constructing and operating infrastructure to carry out maintenance, repair, and upgrade infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities on the land area used by investors in the Chu Lai Industrial Park (KKTM Chu Lai);

c) Pay rent for land, sub-rent for land, rent or purchase fees for factories, offices, warehouses, and usage fees for infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) according to contracts signed with enterprises investing in constructing and operating infrastructure;

d) Implement regular reporting on operational status monthly, quarterly, and annually to the Management Board of the Chu Lai Industrial Park (KKTM Chu Lai);

đ) Fulfill tax obligations, customs duties, environmental protection responsibilities, 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 activities of investing in constructing and operating all or part of infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities (collectively referred to as enterprises investing in constructing and operating infrastructure) within the Chu Lai Industrial Park (KKTM Chu Lai) shall have the right:

a) To be leased land or allocated land with payment for land use, or allocated land without payment for land use, in accordance with relevant laws on land, to invest in constructing and operating all or part of infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai), as stipulated by the Management Board of the Chu Lai Industrial Park;

b) Transfer land use rights, lease land, or sublease land that has been developed with technical infrastructure within the Chu Lai Industrial Park (KKTM Chu Lai) to investors for investment in production and business activities within the Chu Lai Industrial Park (KKTM Chu Lai) in accordance with relevant laws on land;

c) Collect usage fees for infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) invested in by enterprises investing in constructing and operating infrastructure, according to contracts signed with lessees;

d) Construct factories, offices, warehouses within the Chu Lai Industrial Park (KKTM Chu Lai) for sale or lease;

đ) Set rental prices for land, rental prices for subleased land that has been developed with technical infrastructure, usage fees for technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) in accordance with the Management Board of the Chu Lai Industrial Park's agreement; set rental or sales 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 in raising investment capital to lease or sublease part or all of the undeveloped land area for subleasing land or raising investment capital in accordance with relevant laws on land;

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

2. Enterprises investing in constructing and operating infrastructure within the Chu Lai Industrial Park (KKTM Chu Lai) shall have the obligation:

a) Construct infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) in accordance with detailed planning, design, and schedule approved by competent state authorities;

The Management Board of the Chu Lai Industrial Park decides to terminate the operation of projects investing in constructing and operating infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) 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, it proposes competent state authorities to decide on the recovery of land allocated to the project in accordance with relevant laws on land;

b) Maintain and repair infrastructure works in functional zones, technical infrastructure works, and public service and convenience facilities within the Chu Lai Industrial Park (KKTM Chu Lai) to ensure the quality of the works;

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

d) Implement regular reporting monthly, quarterly, and annually to the Management Board of the Chu Lai Industrial Park (KKTM Chu Lai);

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

Article 7. The Chu Lai Industrial Park (KKTM Chu Lai) is permitted to apply the following methods to raise capital for investment and development:

a) Annually, based on the provisions of laws on state budget, laws on investment, the ability to balance the state budget, important infrastructure technical-social investment projects already approved by competent state authorities, and the progress of the project, the Ministry of Planning and Investment will coordinate with the Ministry of Finance and relevant agencies to allocate funds from targeted support from the central budget for Quang Nam Province to implement important infrastructure technical-social investment projects in the Chu Lai Industrial Park (KKTM Chu Lai);

b) Issue project bonds for large-scale infrastructure construction projects that play a key role in the development of the Chu Lai Industrial Park (KKTM Chu Lai) in accordance with laws on issuing bonds to raise investment capital;

c) Prioritize the use of ODA and preferential credit sources to invest in constructing technical-social infrastructure works and necessary public service and convenience facilities in the Chu Lai Industrial Park (KKTM Chu Lai) and other technical assistance;

d) Attract investment capital through BOT, BT, BTO, and other forms prescribed by law;

đ) Mobilize capital from land funds in accordance with laws on land to develop technical-social infrastructure serving the common needs of the Chu Lai Industrial Park (KKTM Chu Lai).

e) Mobilizing direct investment capital from domestic organizations and individuals, advance capital from entities with infrastructure usage needs, and capital from construction and business enterprises operating technical infrastructure projects.

Expanding credit syndication forms of financial institutions and mobilizing all sources of capital through various other forms, as prescribed by law.

Chapter II

ORGANIZATION AND OPERATIONS OF THE OPEN ECONOMIC ZONE OF CHU LAI

Article 8.

1. The Open Economic Zone of Chu Lai shall be organized into two functional zones: a non-tariff zone and a tariff zone. The scale and location of each zone shall be determined in the General Planning for Construction of the Open Economic Zone of Chu Lai approved by the Prime Minister under Decision No. 43/2004/QĐ-TTg dated March 23, 2004.

The non-tariff zone within the Open Economic Zone of Chu Lai (hereinafter referred to as the non-tariff zone) is located in Tam Quang Commune, Tam Giang Commune, and part of Tam Nghia Commune, with a scale of approximately 1,656 hectares. Within the non-tariff zone, there is a free trade area connected to part of the Ky Ha Port. The non-tariff zone is separated from the tariff zone within the Open Economic Zone of Chu Lai and the mainland of Vietnam by a fence system, equipped with gates and entrances/exits, ensuring conditions for the supervision of relevant authorities. There is a customs office within the non-tariff zone to conduct inspection, monitoring, and customs procedures for goods entering and exiting the non-tariff zone. There are no residential areas or permanent/temporary residents (including foreigners) within the non-tariff zone.

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

2. The Management Board of the Open Economic Zone of Chu Lai 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. Activities in the non-tariff zone associated with part of the Ky Ha Port include the following main types of production and business activities:

a) Production, processing, recycling, assembly of export goods, import goods, and goods for local use;

b) Goods trade including exports, imports, transshipments, temporary imports for re-export, retail shops and supermarkets, tax-free shops;

c) Service trade including classification, packaging, transportation and delivery of transit goods, warehousing, bonded warehouses, postal services, telecommunications, finance, banking, transportation, insurance, entertainment, restaurants;

d) Trade promotion including 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. The 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 according to the provisions of the law on exchanges between foreign countries. Economic organizations operating within 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 exported from the non-tariff zone to foreign countries are exempt from import duties and export duties (except for goods specified in Clause 2 of Article 15).

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

3. Foreign ships are permitted to directly enter the Ky Ha Port to load and unload goods, must complete entry and exit formalities for vessels at buoy number 0, and are exempt from completing entry and exit formalities for crew members.

Article 11.

1. Goods entering and exiting the tariff zone within the Open Economic Zone of Chu Lai 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. The exchange of goods and services between the non-tariff zone and the tariff zone (excluding export processing zones) within the Open Economic Zone of Chu Lai and the mainland of Vietnam shall be governed by the provisions of the law on exports and imports, the law on customs, and the law on export duties and import duties. The exchange of goods and services between the non-tariff zone and export processing zones within the Open Economic Zone of Chu Lai and other non-tariff zones shall be governed by the provisions on exchanges between foreign countries.

2. Investors, both domestic and foreign organizations and individuals, who carry out investment activities in production and business of goods and services in the tariff zone within the Open Economic Zone of Chu Lai and the mainland of Vietnam may only import goods and services that Vietnam does not prohibit or limit imports from the non-tariff zone and may sell goods and services that Vietnam does not prohibit exports to the non-tariff zone.

Article 13. Foreign investors are permitted to invest in international telecommunications services according to the integration roadmap that Vietnam has committed to, solely for the benefit of the Open Economic Zone of Chu Lai, with service fees determined by the investors themselves.

Chapter III

INVESTMENT INCENTIVES

Article 14.

1. Domestic and foreign organizations and individuals have the right to choose to implement investment projects in the Open Economic Zone of Chu Lai (excluding projects in the list of prohibited investment fields as prescribed by the law on investment). Investment projects in the list of conditional investment fields within the tariff zone (outside the non-tariff zone) of the Open Economic Zone of Chu Lai shall be implemented in accordance with the law.

2. Domestic investment projects and foreign-invested projects investing in the Open Economic Zone of Chu Lai shall be approved through the simplest registration and examination procedures to obtain an Investment Registration Certificate.

3. Investment projects in the Open Economic Zone of Chu Lai shall enjoy preferential policies applicable to areas with particularly difficult socio-economic conditions and policies applicable to economic zones as prescribed by the law on investment, corporate income tax, export duties, import duties, and related laws.

4. All investment projects of domestic and foreign organizations and individuals in the Chu Lai Free Trade Zone shall be subject to: a corporate income tax rate of 10% for 15 years from the date the project commences business operations; exemption from corporate income tax for 4 years from the date taxable income begins to be generated; reduction of 50% of the corporate income tax payable for the next 9 years; and other tax incentives applicable to areas with particularly difficult socio-economic conditions as prescribed by laws on investment, laws on taxation, related laws, and international treaties to which Vietnam is a party.

5. Domestic and foreign investors shall be exempted from import duties for a period of 55 years from the date of commencement of production activities for raw materials, components, spare parts, semi-finished products that are not yet produced domestically and imported for use in production within the Chu Lai Free Trade Zone.

6. A 50% reduction in personal income tax shall apply to individuals subject to personal income tax, including both Vietnamese and foreign nationals working in the Chu Lai Free Trade Zone.

7. In addition to the incentives stipulated in this Regulation, investment projects of domestic and foreign organizations and individuals in the Chu Lai Free Trade Zone shall enjoy a corporate income tax rate of 10% throughout the duration of the project under the following circumstances:

a) Projects in high-tech fields meeting the requirements 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) Large-scale projects of significant importance to industry development, sectoral development, or socio-economic development in the region, upon approval by the Prime Minister.

Article 15.

1. Goods exported or imported in the following cases are not subject to export tax or import tax:

a) Goods imported from abroad into the duty-free zone;

b) Goods exported from the duty-free zone to abroad;

c) Goods transferred or sold to an export processing zone or enterprise from the duty-free zone;

d) Goods originating from within Vietnam that are not subject to export tax and brought into the duty-free zone (except goods specified in Clause 2 of this Article).

2. Goods subject to export tax originating from the customs area in the Chu Lai Free Trade Zone and within Vietnam, when brought into the duty-free zone for export to abroad without undergoing production, processing, recycling, or assembly at the duty-free zone, must pay the export tax, complete export procedures according to current regulations, and be subject to inspection and supervision by customs authorities.

3. Goods originating from abroad and not included in the list of prohibited or restricted imports from the duty-free zone, when brought into the customs area (excluding export processing zones) in the Chu Lai Free Trade Zone and within Vietnam, must pay import tax, complete import procedures according to current regulations, and be subject to inspection and supervision by customs authorities.

4. Goods produced, processed, recycled, or assembled at the duty-free zone using imported raw materials and components from abroad, when brought into the customs area (excluding export processing zones) in the Chu Lai Free Trade Zone and within Vietnam, must: pay import tax on the portion of imported raw materials and components that constitute part of the product or goods; complete import procedures according to current regulations; and be subject to inspection and supervision by customs authorities.

5. Goods and services produced, consumed, or imported from abroad into the duty-free zone are exempt from value-added tax. Goods and services from within Vietnam and the customs area in the Chu Lai Free Trade Zone brought into the duty-free zone are subject to a zero percent value-added tax rate. Goods and services from the duty-free zone brought into within Vietnam and the customs area (excluding export processing zones) in the Chu Lai Free Trade Zone must be subject to value-added tax according to current regulations.

6. Goods and services subject to special consumption tax produced, consumed, or imported from abroad into the duty-free 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 the duty-free zone brought into the customs area (excluding export processing zones) in the Chu Lai Free Trade Zone and within Vietnam must be subject to special consumption tax.

8. Raw materials for production and merchandise supplies imported from abroad by domestic and foreign organizations and individuals engaged in production and business activities in the duty-free zone but not fully utilized, along with by-products still having commercial value, may be sold into the customs area (excluding export processing zones) in the Chu Lai Free Trade Zone and within 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 be implemented in accordance with general provisions.

Article 16. Organizations and individuals who successfully mobilize official development assistance funds, direct foreign investment projects, and domestic investment projects in the Chu Lai Free Trade Zone shall be rewarded according to the Regulation issued by the People's Committee of Quang Nam Province after obtaining the approval of the Ministry of Finance.

Article 17. Domestic enterprises belonging to various economic sectors with investment projects for production and business activities in the Chu Lai Free Trade Zone are eligible to benefit from preferential forms of state credit as prescribed by current laws on state investment development credit.

Article 18. Investors (except those specified in point d, Clause 4, Article 3 of the Investment Law) may invest in constructing housing for sale or lease; investing in constructing infrastructure in functional zones within the Chu Lai Open Economic Zone for lease, sublease, or transfer of land use rights after infrastructure construction according to relevant laws on land. Overseas Vietnamese are permitted to purchase housing attached to residential land use rights; foreign residents in Vietnam and foreign investors are allowed to lease housing attached to residential land use rights within the Chu Lai Open Economic Zone according to laws on housing and land.

Article 19. A single pricing policy shall be applied to goods, services, and land rent for organizations and individuals, regardless of domestic or foreign status, engaged in investment, production, and business activities within the Chu Lai Open Economic Zone.

Chapter IV

LAND USE IN THE CHU LAI OPEN ECONOMIC ZONE

Article 20.

1. The entire area of dedicated land and water bodies allocated for the development of industrial zones, export processing zones, high-tech zones, and duty-free zones within the Chu Lai Open Economic Zone as approved in the General Plan for Construction of the Chu Lai Open Economic Zone by the Prime Minister and the Detailed Plan for Construction of Functional Zones within the Chu Lai Open Economic Zone by the People's Committee of Quang Nam Province shall be assigned once to the Management Board of the Chu Lai Open Economic Zone for organizing construction and development. The People's Committee of Quang Nam Province shall direct the implementation of land recovery for areas planned for construction of functional zones within the Chu Lai Open Economic Zone.

2. The People's Committee of Quang Nam Province shall direct the implementation of land recovery for dedicated land and water bodies according to the detailed land use plan that has been approved for remaining functional zones and other purposes within the Chu Lai Open Economic Zone to assign to the Management Board of the Chu Lai Open Economic Zone based on the annual and five-year detailed land use plans of the Chu Lai Open Economic Zone that have been approved for organizing construction and development of the Chu Lai Open Economic Zone.

3. The People's Committee of Quang Nam Province shall direct the Management Board of the Chu Lai Open Economic Zone to coordinate with local authorities to implement compensation, clearance of land, and resettlement for households whose land has been recovered (for dedicated land and water bodies already recovered by competent state agencies) to assign land back with land use fees, assign land without land use fees, and lease land to those who need land use according to the laws on land.

The Management Board of the Chu Lai Open Economic Zone shall be responsible for managing and using effectively the dedicated land and water bodies assigned according to their intended use and in accordance with the General Plan for Construction of the Chu Lai Open Economic Zone approved by the Prime Minister and the Detailed Plan for Construction, Land Use Plan for ten years, and Five-Year Land Use Plan approved by the competent authority.

4. In cases where land is reassigned or 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 land rental fees stipulated by the People's Committee of Quang Nam Province and relevant laws on investment and land, the Management Board of the Chu Lai Open Economic Zone shall decide: the level of land use fees and dedicated water body fees; land rental fees and dedicated water body fees; levels of exemption and reduction of land use fees and dedicated water body fees; levels of exemption and reduction of land rental fees and dedicated water body fees for each investment project to ensure encouragement of investment.

5. In cases where land is reassigned with land use fees 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 Nam Province, the Management Board of the Chu Lai Open Economic Zone shall decide to reassign and lease land that has been compensated and cleared for those who need land use according to the laws on land.

6. Domestic organizations and individuals, and overseas Vietnamese investors may be assigned land or lease land; foreign organizations and individual investors may lease land to carry out investment projects within the Chu Lai Open Economic Zone and have corresponding rights and obligations according to the form of land assignment or lease according to the laws on land.

Article 21. The State supports the construction of technical infrastructure projects up to the boundaries of functional zones within the Chu Lai Open Economic Zone; provides support for compensation, clearance of land, and resettlement for households whose land has been recovered in functional zones; supports the construction of wastewater treatment and centralized waste disposal facilities for functional zones under targeted support programs.

Article 22. Domestic and foreign investors must submit applications to the Management Board of the Chu Lai Open Economic Zone according to the laws on construction before constructing production and business service projects, infrastructure projects in functional zones, technical infrastructure projects, and public utility and convenience projects within the Chu Lai Open Economic Zone. Within seven working days from the date of receiving complete valid files, the Management Board of the Chu Lai Open Economic Zone shall examine, decide, and issue a written response to the investor.

Article 23. The management of construction of production and business service projects, infrastructure projects in functional zones, technical infrastructure projects, and public utility and convenience projects within the Chu Lai Open Economic Zone shall be carried out according to the laws on construction.

Chapter V

FINANCIAL REGIME, LABOR, BUSINESS ORGANIZATION,

EXIT, ENTRY, RESIDENCE AND CONTACT INFORMATION

Article 24.

1. Foreigners and overseas Vietnamese working, investing, and operating businesses in the Chu Lai Open Economic Zone and their family members shall be granted multiple-entry visas with validity periods appropriate to their work duration in the Chu Lai Open Economic Zone; they are allowed to reside temporarily within the Chu Lai Open Economic Zone.

The Ministry of Public Security shall provide guidance on the implementation of this provision.

2. The Management Board of the Chu Lai Open Economic Zone shall be granted Labor Permits for foreign nationals and overseas Vietnamese to work and engage in investment and business activities within the Chu Lai Open Economic Zone in accordance with the laws on labor.

The Ministry of Labor, Invalids and Social Affairs shall guide the Management Board of the Chu Lai Open Economic Zone in implementing the issuance of Labor Permits as stipulated in this clause.

Article 25. Transactions, payments, transfers of goods and services, and other commercial transactions between economic organizations and individuals within the non-tariff zone may be conducted in convertible currencies through accounts opened at banks. Common goods purchases for daily living purposes may be settled in Vietnamese Dong.

Article 26.

1. Allow: credit institutions established and operating in accordance with the laws on credit institutions; foreign credit institutions to open branches, representative offices, savings funds, transaction points, and agency offices within the Chu Lai Open Economic Zone to provide banking services and other financial services in accordance with the laws on credit institutions; foreign banks and finance companies to invest and establish banks and finance companies within the Chu Lai Open Economic Zone.

2. Goods transported into or out of the non-tariff zone must be priced in convertible currencies; fees paid to state management agencies within the Chu Lai Open Economic Zone shall be calculated in Vietnamese Dong, while other types of fees may be calculated in convertible currencies or in Vietnamese Dong according to current foreign exchange management regulations.

Chapter VI

STATE MANAGEMENT OF THE CHU LAI OPEN ECONOMIC ZONE

Article 27.

1. The Management Board of the Chu Lai Open Economic Zone shall be established by the Prime Minister upon the proposal of the Chairman of the People's Committee of Quang Nam Province and the Minister of Home Affairs.

2. The Management Board of the Chu Lai Open Economic Zone is a state management body under the People's Committee of Quang Nam Province, directly responsible for centralized and unified management of investment, construction, and development activities within the Chu Lai Open Economic Zone in accordance with this Regulation, approved planning schemes, plans, and schedules, and relevant laws.

3. The Management Board of the Chu Lai Open Economic Zone shall have: legal personality; bank accounts and seals bearing the national emblem; office premises; dedicated staff; operational funding; and development capital provided by the state budget annually.

4. The Director of the Management Board of the Chu Lai Open Economic Zone shall be appointed by the Prime Minister upon the proposal of the Chairman of the People's Committee of Quang Nam Province and the Minister of Home Affairs; Deputy Directors shall be appointed by the Chairman of the People's Committee of Quang Nam Province upon the proposal of the Director of the Management Board of the Chu Lai Open Economic Zone.

Article 28. The Management Board of the Chu Lai Open Economic Zone shall perform the duties and exercise the powers prescribed in this Regulation, investment laws, and other relevant laws, as well as the following duties and powers:

1. To develop comprehensive socio-economic development master plans and overall plans for the Chu Lai Open Economic Zone for submission to the People's Committee of Quang Nam Province for approval by the Prime Minister; to prepare detailed functional area plans and land use plans for submission to the People's Committee of Quang Nam Province for approval; to manage, disseminate, guide, inspect, and supervise the implementation of the Operation Regulations, comprehensive plans, overall plans, detailed plans, and approved schedules.

2. To compile lists of investment projects and annual development capital plans for submission to competent state authorities for approval and implementation.

3. To issue, adjust, and revoke: Investment Certificates; Business Registration Certificates; Representative Office Licenses and Branch Licenses for foreign organizations and traders; Representative Office Licenses and Branch Licenses for foreign tourism enterprises; Labor Permits for foreign nationals and overseas Vietnamese to work and engage in investment and business activities; Origin Certificates for goods within the Chu Lai Open Economic Zone, and other licenses and certificates authorized by competent state authorities.

4. To allocate land with land use fees, allocate land without land use fees, lease land and water bodies specifically for investors' needs within the Chu Lai Open Economic Zone in accordance with the laws on land.

5. To establish fee and charge frameworks applicable within the Chu Lai Open Economic Zone for submission to competent state authorities for promulgation in accordance with the laws.

6. To serve as the focal point for resolving issues arising during the formation, implementation, and execution of investment projects, business operations, and activities within the Chu Lai Open Economic Zone.

7. To coordinate with local authorities and related agencies to ensure that all activities within the Chu Lai Open Economic Zone comply with this Regulation and approved planning and development plans for the Chu Lai Open Economic Zone.

8. To manage and utilize development capital resources within the Chu Lai Open Economic Zone, and manage construction projects funded from the state budget within the Chu Lai Open Economic Zone in accordance with the laws.

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

10. To develop human resource development plans to meet the needs of the Chu Lai Open Economic Zone for submission to the People's Committee of Quang Nam Province for approval to implement.

11. To report periodically to relevant ministries and the People's Committee of Quang Nam Province on the implementation of planning, construction, and development plans for the Chu Lai Open Economic Zone.

12. To perform other tasks assigned by the People's Committee of Quang Nam Province for each period.

Article 29. The Management Board of the Chu Lai Open Economic Zone may collect fees or charges for the use of infrastructure and public utility facilities within the Chu Lai Open Economic Zone in accordance with the laws on fees and charges.

Article 30. The People's Committee of Quang Nam Province shall be responsible:

1. Organize the preparation of the overall socio-economic development master plan and the general master plan for the Chu Lai Export Processing Zone (EPZ) to submit to the Prime Minister for approval as the basis for implementing long-term investment and development in the Chu Lai EPZ.

2. Approve detailed planning for functional zones within the Chu Lai EPZ and detailed land use plans within the Chu Lai EPZ; carry out land acquisition and allocation to the Management Board of the Chu Lai EPZ to organize construction and development of the Chu Lai EPZ in accordance with Clauses 1 and 2 of Article 20 of this Regulation.

3. Set land prices and levels of exemption and reduction of land use fees; levels of exemption and reduction of land rental fees in the Chu Lai EPZ for cases of land transfer or leasing without public auction of land use rights or bidding for projects using land, and approve financial plans and prices for cases of public auction of land use rights or bidding for projects using land.

4. Implement state management over investment projects in the Chu Lai EPZ according to approved planning; submit for approval or approve within their authority the list of investment development projects and annual investment capital plans at the Chu Lai EPZ.

5. Issue specific preferential policies and incentives in accordance with current laws to prioritize recruitment and utilization of local labor; support vocational training for local workforce; create conditions for local workforce to work in enterprises within the Chu Lai EPZ; encourage and attract highly skilled professionals from other places to work in the Chu Lai EPZ.

6. Support the construction of housing for workers; support the construction of resettlement areas; support the development of technical and social infrastructure systems, service facilities, and public utilities in accordance with the State Budget Law; support investment promotion and trade facilitation; support compensation and land clearance to accelerate investment and development in the Chu Lai EPZ.

7. Direct the People's Committee of Tam Ky City and the People's Committee of Nui Thanh District to implement compensation and land clearance; direct provincial functional agencies to cooperate with the Management Board of the Chu Lai EPZ to implement measures to ensure security and social order, creating favorable conditions for enterprises in the Chu Lai EPZ to operate smoothly.

8. Allocate administrative and operational funds and development capital to the Management Board of the Chu Lai EPZ from the budget annually and in accordance with the State Budget Law.

9. Direct provincial functional agencies to cooperate and create conditions for the Management Board of the Chu Lai EPZ to fully implement the provisions of this Regulation; coordinate with relevant ministries and sectors to manage the Chu Lai EPZ for rapid and sustainable development.

Article 31.

1. Ministries, ministerial-level agencies, agencies under the Government, and the People's Committee of Quang Nam Province shall perform state management functions within their respective jurisdictions regarding industry, sector, and territorial administration concerning the Chu Lai EPZ; guide the Management Board of the Chu Lai EPZ to implement 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, following the principle of "one-stop service" to facilitate investment and business activities of domestic and foreign organizations and individuals in the Chu Lai EPZ and its development requirements.

2. For fields not delegated or outside the jurisdiction of the Management Board of the Chu Lai EPZ, ministries, ministerial-level agencies, and the People's Committee of Quang Nam Province shall perform state management functions over the Chu Lai EPZ by organizing subordinate units within the Chu Lai EPZ (excluding banking management) and establishing coordination regulations with the Management Board of the Chu Lai EPZ to exercise assigned authorities.

Article 32. The customs office at the Chu Lai EPZ 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 territory of Vietnam.

Chapter VII

IMPLEMENTING PROVISIONS

Article 33. Other provisions related to the activities, rights, and obligations of domestic and foreign organizations and individuals engaged in production and business activities in the Chu Lai EPZ, which are not specified in this Regulation, shall be implemented in accordance with laws on investment, enterprises, cooperatives, customs, land, trade, labor, environment, science and technology, taxation, and other relevant laws and international treaties to which Vietnam is a party.

Article 34. Preferential treatments provided for organizations and individuals, both domestic and foreign, conducting investment, production, and business activities in the Chu Lai EPZ as stipulated in this Regulation shall apply to organizations and individuals, both domestic and foreign, who have been operating in the Chu Lai EPZ area before the issuance of this Regulation for the remaining period of preferential treatment, starting from the date this Regulation takes effect./.