Decree No. 36-CP. On the issuance of regulations for industrial zones, export processing zones, and high-tech parks

DECREE

Decree No. 36-CP dated April 24, 1997 on the issuance of regulations for industrial zones, export processing zones, and high-tech zones

______________________________

 

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

Based on the Law on Encouraging Domestic Investment dated June 22, 1994;

Pursuant to the Law on Foreign Investment in Vietnam dated November 12, 1996;

To expand and enhance the effectiveness of activities related to the formation, construction, development, and management of industrial zones, export processing zones, and high-tech zones;

At the proposal of the Minister of Planning and Investment, the Minister of Science, Technology, and Environment, the Minister of Industry, and the Director of the Vietnam Industrial Zone Management Board,

DECREE:

Article 1.- Attached hereto are the regulations for industrial zones, export processing zones, and high-tech zones, replacing the export processing zone regulations issued pursuant to Decree No. 322/HĐBT dated October 18, 1991 of the Council of Ministers (now the Government) and the industrial zone regulations issued pursuant to Decree No. 192/CP dated December 28, 1994 of the Government.

Article 2.- This Decree shall take effect fifteen days after its signing date. Previous regulations contrary to this Decree shall be abolished.

Article 3.- The Ministers, Heads of ministerial-level agencies, Heads of government agencies concerned, and the Vietnam Industrial Zone Management Board shall be responsible for providing detailed guidance on the implementation of these regulations.

Article 4.- The Ministers, Heads of ministerial-level agencies, Heads of government agencies, and the Director of the Vietnam Industrial Zone Management Board, and the Chairpersons of the People's Committees of provinces and centrally governed cities shall be responsible for implementing this Decree.

REGULATIONS

Industrial Zones, Export Processing Zones, High-Tech Zones
(Attached to Decree No. 36/CP dated April 24, 1997 of the Government)

Chapter 1:

GENERAL PROVISIONS

Article 1.- The Government encourages domestic enterprises of various economic sectors, economic organizations, foreign individuals, and foreign-invested enterprises to invest in industrial zones, export processing zones, and high-tech zones (collectively referred to as industrial zones, except where specific provisions apply to each type of zone) based on these regulations and relevant Vietnamese laws.

Article 2.- In these Regulations, the following terms shall be understood as follows:

1. "Industrial zone" means a concentrated area of industrial zone enterprises specializing in manufacturing industrial products and providing services for industrial production, with clearly defined geographical boundaries, without residential populations; established by the Government or the Prime Minister. Within an industrial zone, there may be export processing enterprises.

2. "Export processing zone" means an industrial zone concentrating export processing enterprises specializing in manufacturing export goods, providing services for export production and export activities, with clearly defined geographical boundaries, without residential populations; established by the Government or the Prime Minister.

3. "High-tech zone" means a concentrated area of high-tech enterprises and units serving the development of high technology including research and development of science and technology, training, and related services, with clearly defined geographical boundaries; established by the Government or the Prime Minister. Within a high-tech zone, there may be export processing enterprises.

4. "Export processing enterprise" means an enterprise specializing in manufacturing export goods, providing services for export production and export activities, established and operating under these regulations.

5. "Industrial zone enterprise" means an enterprise established and operating within an industrial zone, including manufacturing enterprises and service enterprises.

6. "Manufacturing industrial zone enterprise" means an enterprise manufacturing industrial products established and operating within an industrial zone.

7. "Service industrial zone enterprise" means an enterprise established and operating within an industrial zone, providing services for industrial zone infrastructure projects and industrial production.

8. "Provincial industrial zone management board" (except where specific provisions apply to each management board) means the direct management agency for industrial zones, export processing zones within the administrative territory of a province or centrally governed city, or an industrial zone management board covering multiple provinces, or a single industrial zone management board (in exceptional cases), or a high-tech zone management board; established by the Prime Minister.

Article 3.- The development of industrial zones must comply with the overall master plan approved by the Government. If an industrial zone already exists in the overall master plan, the Provincial People's Committee shall direct the preparation of a feasibility study report for establishing the industrial zone and submit it for approval according to current regulations. If an industrial zone does not exist in the overall master plan, the Ministry of Planning and Investment shall take the lead, coordinate with the Ministry of Industry, the Ministry of Construction, the Vietnam Industrial Zone Management Board, and other relevant agencies (if necessary) based on the proposal of the Provincial People's Committee, and submit it to the Prime Minister for consideration and decision on the establishment of that industrial zone.

Article 4.- When submitting to the Prime Minister for consideration and decision on the establishment of an industrial zone, the reviewing and assessing agency shall clarify the following issues:

1. Whether it is included or not in the overall master plan already approved by the Government. In case it is not included in the overall master plan, the necessity of adjusting and supplementing it into the overall master plan must be clarified.

2. Investment in constructing infrastructure projects within and outside the industrial zone, taking into account technical connections outside the industrial zone, residential areas serving workers and employees at the industrial zone, schools, and medical facilities serving the industrial zone.

3. Solutions regarding capital sources, power supply, water supply and drainage, transportation, communication, environment, labor to ensure the feasibility of the industrial zone.

4. Industrial production sectors within the industrial zone.

5. Investment attraction plans for the industrial zone.

Article 5.- Investment management, construction management, and bidding management activities of industrial zone enterprises must comply with current Vietnamese laws.

Article 6.- Within industrial zones, the following types of enterprises are allowed:

a. Enterprises of Vietnam from various economic sectors.

b. Foreign-invested enterprises.

c. Parties participating in business cooperation contracts under the Law on Foreign Investment in Vietnam.

Article 7.- Within industrial zones, domestic and foreign investors, enterprises of Vietnam from various economic sectors, and foreign-invested enterprises are permitted to invest in the following fields:

1. Construction and operation of infrastructure projects.

2. Manufacturing, processing, assembling industrial products for export and domestic consumption; developing and trading patents, technical secrets, and production processes.

3. Researching and implementing science and technology to improve product quality and create new products.

4. Industrial production support services.

Chapter 2:

ENTERPRISES IN INDUSTRIAL ZONES

Article 8.- Enterprises in industrial zones have sufficient legal basis to operate within industrial zones after being granted investment approval decisions or investment licenses and business registration certificates by competent state agencies.

For foreign-invested enterprises, the investment license has the value of a business registration certificate according to Article 60 of the Law on Foreign Investment in Vietnam.

Domestic investors investing in industrial zones must have establishment decisions in accordance with current regulations for each type of enterprise.

Article 9.- The operating period of enterprises in industrial zones shall not exceed fifty years and shall not exceed the operating period of the Industrial Zone Infrastructure Development Company, calculated from the date the enterprise receives investment approval decisions or investment licenses from competent authorities.

In special cases, the operating period of enterprises in industrial zones may exceed the operating period of the Industrial Zone Infrastructure Development Company, but such extension must be approved by the Prime Minister based on proposals from provincial People's Committees and the agency issuing investment approval decisions or investment licenses.

Article 10.- Enterprises in industrial zones have the following rights:

1. Leasing land within industrial zones in accordance with current regulations for each type of enterprise to construct factories and architectural works serving production and business activities. The lease term of land within industrial zones shall be consistent with the operating period of enterprises in industrial zones recorded in investment approval decisions or investment licenses.

2. Using infrastructure facilities, public utilities, and services within industrial zones upon payment.

3. Organizing production and business activities, and providing services in accordance with investment approval decisions or investment licenses, business registration certificates, contracts, and company charters.

4. Engaging in direct import and export activities in accordance with the provisions of the law.

5. Leasing public utilities, production and business equipment, and services outside industrial zones.

6. During the permitted production and business period, enterprises in industrial zones have the right to transfer their equity in accordance with current legal regulations. The equity transfer shall only take effect after the agency issuing investment approval decisions or investment licenses approves the equity transfer contract.

Article 11.- Enterprises in industrial zones have the following obligations:

1. Adhering to laws, this Regulation, management charters of industrial zones, investment approval decisions or investment licenses, and business registration certificates.

2. Registering with the provincial industrial zone management board: the quantity and volume of exported products and consumed domestically (for enterprises in industrial zones); the quantity of waste materials with commercial value sold domestically by export enterprises and goods purchased from the domestic market transferred to export enterprises (for export enterprises). For high-tech enterprises, in addition to registering the above contents depending on the type of enterprise, they must also register the transfer of high-tech.

3. Fulfilling financial obligations to the State.

4. Opening foreign currency accounts and Vietnamese dong accounts at banks permitted to operate in Vietnam.

They can open accounts at foreign banks to receive loans if foreign lenders require the opening of loan accounts at foreign banks and such opening is approved by the State Bank of Vietnam.

5. Implementing accounting, statistics, and insurance systems in accordance with the law.

6. Adhering to regulations on security, order, labor safety, industrial hygiene, environmental protection, and fire prevention.

7. Submitting regular and annual reports to the provincial industrial zone management board.

Chapter 3:

CONSTRUCTION AND OPERATION OF INFRASTRUCTURE PROJECTS IN INDUSTRIAL ZONES

Article 12.- The Government encourages and creates favorable conditions for Vietnamese enterprises of various economic sectors and foreign investors in joint ventures with Vietnamese enterprises to invest in, construct, and operate infrastructure projects in industrial zones (hereinafter referred to as Industrial Zone Infrastructure Development Companies) established and operated in accordance with the law. Depending on scale and nature, an industrial zone may have one or more Industrial Zone Infrastructure Development Companies.

Article 13.- After receiving investment approval decisions or investment licenses from competent authorities, provincial People's Committees will consider and decide on specific cases allowing Vietnamese enterprises of various economic sectors (excluding cases where Vietnamese enterprises participate in joint ventures established under the Law on Foreign Investment in Vietnam) to delay payment of land lease fees for a certain period (depending on the scale of the investment project, the area of operation, and the financial capacity of the enterprise) in the form of allowing the enterprise to receive deferred land lease payments from the state budget.

On this basis, provincial People's Committees will consider and decide on the delayed payment of land lease fees by Vietnamese enterprises of various economic sectors (excluding cases where Vietnamese enterprises participate in joint ventures established under the Law on Foreign Investment in Vietnam) based on agreements between enterprises in industrial zones and Industrial Zone Infrastructure Development Companies regarding the period of delayed land lease fee payment, but not exceeding the period allowed for delayed payment by the Industrial Zone Infrastructure Development Company.

Vietnamese enterprises of various economic sectors (excluding cases where Vietnamese enterprises participate in joint ventures established under the Law on Foreign Investment in Vietnam) can borrow preferential loans from the State and mobilize capital sources in accordance with the law to invest in constructing infrastructure projects in industrial zones.

Article 14.-

1. Industrial Zone Infrastructure Development Companies have the following rights:

a. Promote investment in the Industrial Zones based on detailed development plans that have been approved.

b. Allow enterprises mentioned in Article 6 of this Regulation to lease land attached to infrastructure works constructed in accordance with Decree No. 11/CP dated January 24, 1995 of the Government detailing the implementation of the Ordinance on the rights and obligations of foreign organizations and individuals leasing land in Vietnam and Decree No. 85/CP dated December 17, 1996 of the Government detailing the implementation of the Ordinance on the rights and obligations of domestic organizations granted land use rights or land leases by the State. The Land Administration Department shall be authorized by the Provincial People's Committee to issue lease registration certificates for such leased land with simplified administrative procedures based on lease contracts signed between the Industrial Zone Infrastructure Development Company and the Industrial Zone Enterprises.

c. Lease or sell factory buildings constructed by the Industrial Zone Infrastructure Development Company within the Industrial Zone to Industrial Zone Enterprises.

d. Operate services within the Industrial Zone in accordance with the investment approval decision or business license, business registration certificate, and company charter.

đ. Set rental prices for land with built infrastructure, rental or sale prices for factory buildings, and service fees with the agreement of the Provincial Industrial Zone Management Board.

2. The Industrial Zone Infrastructure Development Company has the obligation:

a. To prepare and submit comprehensive proposals on the development of infrastructure projects within the Industrial Zone and state the need for the development of related infrastructure outside the Industrial Zone so that competent state management agencies can base their planning and assignment of responsibilities for implementation.

b. To construct infrastructure projects strictly in accordance with approved planning, design, and schedule. If due to force majeure or other justifiable reasons, the Company fails to complete the construction plan according to the prescribed schedule, at least thirty (30) days before the deadline, the Company must request permission from the competent authority to extend the construction period. If the deadline is exceeded and the Company does not request an extension or uses the land for purposes other than those permitted and thus does not obtain an extension, the competent state authority will consider and decide on measures including sanctions, and if repeated, may apply the form of land recovery.

c. Maintain and repair infrastructure projects within the Industrial Zone throughout the operational period of the Company.

d. Ensure industrial hygiene, protect the environment.

đ. Implement regular and annual reporting requirements to the Provincial Industrial Zone Management Board.

Article 15.- In cases where factory construction requires phased land use, Industrial Zone Enterprises are still allowed to lease part or all of the necessary land area, but they must have a phased land use plan within a maximum period of two (2) years. Industrial Zone Enterprises must submit their phased land use plans to the Industrial Zone Infrastructure Development Company (which has leased the land), the Land Administration Department, and the Provincial Industrial Zone Management Board. If due to force majeure or other justifiable reasons, the phased land use plan cannot be completed, at least thirty (30) days before the deadline, the Industrial Zone Enterprise must request an extension of the land use right. If the deadline is exceeded and the Enterprise does not request an extension or uses the land for purposes other than those permitted and thus does not obtain an extension, the unused leased land will be subject to consideration and decision by the competent state authority on measures including sanctions, and if repeated, may apply the form of land recovery.

Chapter 4:

LABOR RELATIONS IN INDUSTRIAL ZONE ENTERPRISES

Article 16.- Labor relations in Industrial Zone Enterprises are regulated in accordance with the Labor Code of Vietnam dated June 23, 1994 and other relevant laws.

Article 17.- Depending on the specific conditions of the Provincial Industrial Zone Management Board, the Provincial People's Committee decides to establish a Job Service Center under the Provincial Industrial Zone Management Board to fully perform the functions of a job service center as stipulated in Decree No. 72/CP dated October 31, 1995 of the Government detailing and guiding the implementation of certain provisions of the Labor Code on employment.

Article 18.- Recruitment of labor for work in Industrial Zone Enterprises is carried out in accordance with Decree No. 72/CP mentioned above and related guiding documents.

Chapter 5:

FINANCIAL MANAGEMENT AND FOREIGN EXCHANGE

Article 19.- Tax payment obligations of Industrial Zone Enterprises

1. Vietnamese Enterprises belonging to various economic sectors investing in Industrial Zones and the Industrial Zone Infrastructure Development Company are Vietnamese Enterprises belonging to various economic sectors and fulfill tax payment obligations with current preferential rates.

2. Industrial Zone Enterprises with foreign capital, foreign parties participating in joint venture contracts, and the Industrial Zone Infrastructure Development Company established under the Law on Foreign Investment in Vietnam shall pay taxes as follows:

a. Pay corporate income tax at the rate (this tax rate applies throughout the project implementation period):

- For high-tech industrial enterprises and high-tech service enterprises in high-tech zones: 10% of profits earned and exempted from corporate income tax for 8 years starting from when business operations begin to generate profits.

- For export processing enterprises:

+ 10% of profits earned and exempted from corporate income tax for 4 years starting from when business operations begin to generate profits for production enterprises;

+ 15% of profits earned and exempted from corporate income tax for 2 years starting from when business operations begin to generate profits for service enterprises.

- For Industrial Zone Enterprises:

+ 15% of profits earned for enterprises with export activities below 50% of their products and exempted from corporate income tax for 2 years starting from when business operations begin to generate profits; if exports range from 50% to 80% of their products, then corporate income tax is reduced by 50% for the next 2 years; 10% of profits earned for enterprises with export activities above 80% of their products and exempted from corporate income tax for 2 years and reduced by 50% for the next 2 years starting from when business operations begin to generate profits.

+ 20% of profits earned for service enterprises and exempted from corporate income tax for 1 year starting from when business operations begin to generate profits.

- For Industrial Park Infrastructure Development Companies: 10% of profits earned and exemption from corporate income tax for 4 years starting from the first profitable business year, and a reduction of 50% for the following 4 years.

Adjustments to export tax rates and exemptions/reductions in corporate income tax as stipulated in the investment license shall be carried out in accordance with Article 58 of Decree 12/CP dated February 18, 1997, issued by the Government detailing the implementation of the Law on Foreign Investment in Vietnam. The use of distributed profits for reinvestment and the refund of previously paid corporate income tax on reinvested profits shall be implemented in accordance with Article 59 of Decree 12/CP dated February 18, 1997, issued by the Government.

b. When transferring profits abroad, industrial park enterprises pay a tax of 5% of the transferred profits.

c. Pay other types of taxes and fees as prescribed at the time of annual tax submission.

Article 20. Vietnamese Commercial Banks, Joint Stock Banks between Vietnam and foreign countries, and Branches of Foreign Banks in Vietnam have the right to operate within Industrial Parks upon approval by the Governor of the State Bank of Vietnam and the Provincial Industrial Park Management Board.

The management of foreign exchange in Industrial Parks shall be conducted in accordance with the regulations of the Government and Chapter VII of this Regulation.

Chapter 6:

ORGANIZATION OF INDUSTRIAL PARK MANAGEMENT

Article 21.- The scope of state management over Industrial Parks includes:

1. Developing strategies, planning, plans, and policies for the development of Industrial Parks;

2. Issuing legal regulatory documents concerning the operation of Industrial Parks;

3. Specifying and guiding the formation, construction, development, and management of activities in Industrial Parks;

4. Issuing, adjusting, and revoking various licenses and implementing related administrative procedures of the state;

5. Organizing staff, training, and enhancing cadres;

6. Inspecting, auditing, supervising activities in Industrial Parks, and resolving emerging issues.

Article 22.- Ministries, agencies equivalent to ministries, and government agencies (collectively referred to as government agencies) carry out state management functions over Industrial Parks and provincial Industrial Park Management Boards within their respective functions, tasks, and authorities as currently defined, and delegate some state management functions over Industrial Parks to provincial Industrial Park Management Boards.

Article 23.- Responsibilities for state management over Industrial Parks:

1. The Ministry of Planning and Investment:

- Lead and coordinate with the Ministry of Industry, the Ministry of Construction, and the Vietnam Industrial Park Management Board to develop overall planning for the development of Industrial Parks nationwide, consistent with economic and social development strategies during each period, to submit to the Government for approval.

- Aggregate and submit to the Government the annual and five-year plans for the development of Industrial Parks. Ensure the factors necessary to implement major balances in the annual state plan regarding the solutions set forth in Clauses 2 and 3 of Article 4 of this Regulation.

- Submit to the Government for issuance of legal regulatory documents related to economic management mechanisms, policies encouraging domestic and foreign investment aimed at promoting the development of Industrial Parks.

- Issue, adjust, and revoke investment licenses within its authority.

- Delegate to provincial Industrial Park Management Boards the issuance, adjustment, and revocation of investment licenses for foreign-invested projects in Industrial Parks based on the proposal of the provincial People's Committee (for inter-provincial Industrial Parks, the proposal is made by the inter-provincial Industrial Park Management Board, and for high-tech zones, the proposal is made by the Ministry of Science, Technology, and Environment), and with the approval of the Prime Minister.

- Organize the review of Class A projects within its authority to submit to the Prime Minister for consideration and decision on approval of investment in Industrial Parks.

- Issue model bylaws on the management of Industrial Parks.

- Organize inspections, audits, and evaluations of the economic and social effectiveness of investment projects in Industrial Parks under its investment license issuing authority.

- Allocate basic construction investment plans for provincial Industrial Park Management Boards within the annual plan of the provincial People's Committee; for inter-provincial Industrial Parks, it belongs to the provincial People's Committee where the main office of the inter-provincial Industrial Park Management Board is located; for high-tech zones, it belongs to the Ministry of Science, Technology, and Environment.

Leading and being responsible for preparing and providing materials for notifications and inquiries about contents and regulations on the application of measures related to food hygiene for industrial processed products according to the timeframes and forms specified by the WTO.

- Together with the Ministry of Planning and Investment, build overall planning for the development of Industrial Parks to submit to the Government for approval.

- Lead and coordinate with the Vietnam Industrial Park Management Board to guide the determination of industries encouraged, prohibited, or restricted from investment in each Industrial Park and Export Processing Zone.

- Issue permits for resource exploitation, production of industrial explosives, and other permits within its authority as prescribed by law.

- Participate in the review of investment projects in Industrial Parks related to the industry under its responsibility as prescribed by the Government.

- Organize the management of product quality and industrial safety within its authority as prescribed by law.

- Conduct specialized inspections and evaluate the economic and social effectiveness of investment projects within its sectoral management.

- Direct specialized economic organizations under its responsibility to participate in the development of Industrial Parks.

3. Ministry of Construction:

- Participate in building overall planning for the development of Industrial Parks.

- Approve detailed planning for Industrial Parks in provinces and centrally administered cities, except when the Prime Minister decides otherwise.

- Participate in the review of investment projects in Industrial Parks as prescribed by the Government.

- Review technical design of Class A project works, and guide the provincial People's Committees (Provincial Construction Departments or City Chief Architects) to review technical design of Class B projects (foreign investment), Class B and C projects (domestic investment). After the technical design is approved, investors can construct the works without a construction permit.

- Direct specialized economic organizations under its responsibility to participate in the development of Industrial Parks.

- Issue model bylaws on construction management in Industrial Parks for provincial Industrial Park Management Boards to organize and implement.

4. Ministry of Science, Technology, and Environment:

- Perform state management functions regarding Science, Technology, and Environment for industrial parks generally within the scope of their current functions, tasks, and authorities, and directly manage state functions concerning the formation, construction, and development of high-tech zones.

- Take the lead and coordinate with relevant government agencies to develop mechanisms and policies to promote the development of high-tech zones. Guide the selection of priority industries and technologies for investment in high-tech zones that align with the science and technology development strategy for each period.

- Propose personnel to serve as the Head, Deputy Heads, and Members of the High-Tech Zone Management Board for the Prime Minister's consideration and appointment. Decide on the support staff structure of the High-Tech Zone Management Board based on the proposal of the High-Tech Zone Management Board Head in accordance with the regulations and general guidelines of the Government Organizational and Cadre Affairs Board.

- Suggest the Ministry of Planning and Investment to submit to the Prime Minister for a decision on the delegation of authority from the Ministry of Planning and Investment to the High-Tech Zone Management Board to issue, adjust, and revoke investment permits for foreign-invested projects in high-tech zones, and propose the Ministry of Trade to delegate authority to the High-Tech Zone Management Board to review export-import plans for high-tech zone enterprises.

5. The Ministry of Trade decides on delegating authority to provincial industrial park management boards to review export-import plans for enterprises in industrial parks within the scope of importing goods to establish enterprises, serving production and business operations of enterprises, and exporting goods produced by enterprises according to the production and business objectives specified in the investment permit or approval decision. The delegation of authority by the Ministry of Trade is based on the proposal of the People's Committee of the province (for provincial industrial park management boards in multi-provincial areas, the proposal is made by the multi-provincial industrial park management board, and for high-tech zone management boards, the proposal is made by the Ministry of Science, Technology, and Environment) for provincial industrial park management boards already authorized to issue investment permits in industrial parks.

6. The Government Organizational and Cadre Affairs Board:

- Propose or provide comments on the suitability of personnel to serve as the Head of provincial industrial park management boards, the Head, Deputy Heads, and Members of high-tech zone management boards for the Prime Minister's consideration and appointment.

- Propose personnel to serve as the Head, Deputy Heads, and Members of multi-provincial industrial park management boards for the Prime Minister's consideration and appointment.

- Lead and coordinate with the Vietnam Industrial Park Management Board to issue general regulations on salary systems for civil servants and officials; organizational structures, training, and cadre development; procedures for appointing leadership cadres; and annual staffing plan review procedures for provincial industrial park management boards.

7. The Vietnam Industrial Park Management Board:

- The Vietnam Industrial Park Management Board operates under the direct guidance of the Prime Minister to assist the Prime Minister in directing the preparation, construction, development, and management of industrial parks that have been planned and approved.

- Serve as the central point for compiling and submitting proposals to the Prime Minister for resolution of requests from government agencies, provincial People's Committees, and provincial industrial park management boards, and convey the Prime Minister's directives to these entities regarding issues related to industrial parks.

- Be delegated by the Prime Minister to promptly resolve new issues arising in relation to industrial parks and be responsible to the Prime Minister for such matters.

- Coordinate with government agencies and provincial People's Committees in drafting legal regulations, policies, planning, and plans related to the formation, construction, development, and management of industrial parks and projects outside industrial parks.

- Coordinate with the Ministry of Industry to guide the determination of lists of encouraged, prohibited, or restricted industries for investment in industrial parks and export processing zones.

- Coordinate with the Government Organizational and Cadre Affairs Board to guide the implementation of organizational and cadre-related tasks for provincial industrial park management boards.

- Coordinate with provincial industrial park management boards in developing human resource development plans for industrial parks and organizing training and development for industrial park management officials.

- Participate in reviewing industrial park development plans and investment projects.

- Propose opinions on key personnel for provincial industrial park management boards as stipulated in Article 28 of this Regulation.

- Organize mid-term and final reviews and report to the Prime Minister periodically or urgently on the construction, development, and management of industrial parks.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."- The issuance of guiding documents detailing the implementation of this Regulation must comply with the provisions of the Law on Issuing Legal Regulations dated November 12, 1996, and detailed implementing regulations of this Law.

Government agencies are responsible for providing legal regulations issued by themselves to provincial industrial park management boards. The Office of the Government provides legal regulations of the Government and the Prime Minister related to industrial parks to provincial industrial park management boards.

Article 25.- Specialized agencies in Trade, Finance, Customs, Public Security, and other necessary fields shall establish representative offices with sufficient authority to directly handle matters at each industrial park or industrial park cluster. These agencies are established, regulated in operation, directed, and guided in their professional activities by higher-level specialized agencies. The staffing and funding for the operation of these agencies are decided and arranged by higher-level specialized agencies.

Article 26.- Provincial People's Committees where there are industrial parks have the following duties and powers:

1. Perform state management functions over industrial parks and provincial industrial park management boards within their territorial jurisdiction. Bear responsibility for managing and resolving issues within their authority concerning industrial parks within their territory. For issues exceeding their authority, they shall coordinate with government agencies to resolve them.

2. Participate in the development of the overall plan for industrial park development; direct the establishment of projects to form industrial parks and the detailed planning of industrial parks.

3. Supervise and inspect the implementation of plans, construction procedures and regulations, labor regulations, environmental protection, ensuring security and order within industrial parks.

4. Chair the formulation and organization of implementation of land clearance and resettlement plans for residents in areas requiring clearance; the allocation of land for industrial parks and the allocation of land for the construction of infrastructure outside industrial parks serving the development of industrial parks.

5. Issue licenses to establish Vietnamese enterprises within its jurisdiction according to current regulations.

6. Propose that the Ministry of Planning and Investment submit to the Prime Minister for decision on the delegation of authority from the Ministry of Planning and Investment to provincial industrial park management boards to issue, adjust, and revoke investment permits for foreign-invested projects in industrial parks; propose that the Ministry of Trade decide on the delegation of authority to provincial industrial park management boards to review export-import plans for industrial park enterprises.

7. Approve the management regulations of industrial parks submitted by provincial industrial park management boards based on model regulations issued by the Ministry of Planning and Investment, guidelines from the Ministry of Industry regarding the list of industries for investment in industrial parks and export processing zones, and guidelines from the Ministry of Planning and Investment and the Ministry of Trade regarding markets.

8. Propose personnel to head provincial industrial park management boards for consideration and appointment by the Prime Minister; decide on deputy heads, members, and administrative staff of provincial industrial park management boards according to regulations and general guidelines from the Government's Organizational and Cadre Affairs Board.

9. Chair the assessment of technical design for projects classified as Group B (foreign investment) and Groups B and C (domestic investment).

10. Provide documents issued by itself and related materials and information about industrial parks to provincial industrial park management boards.

Article 27.- Provincial industrial park management boards are directly responsible for managing industrial parks with duties and powers as follows:

1. Develop management regulations for industrial parks based on model regulations issued by the Ministry of Planning and Investment and submit them to the provincial People's Committee for approval. In cases where the management regulations apply to multi-provincial areas, they must be submitted to the Ministry of Planning and Investment for approval. For high-tech zone management regulations, they must be approved by the Ministry of Science, Technology, and Environment.

2. Organize the development and management of detailed planning, construction progress, and development of industrial parks including: infrastructure development planning; industry layout planning; participate in the development of infrastructure outside industrial parks and residential areas serving workers in industrial parks.

3. Urge and inspect the construction of infrastructure projects inside and outside industrial parks to ensure their construction and operation are synchronized according to approved plans and schedules.

4. Support investment promotion in industrial parks.

5. Receive investment applications accompanied by project proposals, organize reviews, and issue investment permits for foreign-invested projects according to delegated authority.

6. Inspect and audit compliance with investment permits, processing contracts, service supply contracts, business contracts, and economic disputes at the request of the parties involved.

7. Coordinate with state agencies responsible for labor affairs in inspecting and auditing labor contracts, collective labor agreements, occupational safety, and wages.

8. Manage service activities within industrial parks.

9. Agree with infrastructure development companies on the valuation of land leases tied to constructed infrastructure facilities and service fees according to current policies and laws.

10. Issue, adjust, and revoke certificates and licenses within its jurisdiction or according to delegated authority.

11. Be invited to attend meetings of government agencies and provincial People's Committees when discussing the formation, construction, development, and management of industrial parks.

12. Report periodically and annually as required by law on the situation of the formation, construction, development, and management of industrial parks to the provincial People's Committee, Vietnam Industrial Park Management Boards, and relevant government agencies.

Article 28.- The provincial industrial park management board consists of a director, several deputy directors, and several members; it has an administrative support staff and may use a seal bearing the national emblem.

The director of the provincial industrial park management board is appointed by the Prime Minister upon recommendation of the provincial People's Committee and the opinion of the Minister, Director of the Government's Organizational and Cadre Affairs Board, and the opinion of the Director of Vietnam Industrial Park Management Boards.

The director, deputy directors, and members of high-tech zone management boards are appointed by the Prime Minister upon recommendation of the Minister of Science, Technology, and Environment and the opinion of the Minister, Director of the Government's Organizational and Cadre Affairs Board, and the opinion of the Director of Vietnam Industrial Park Management Boards.

The director, deputy directors, and members of industrial park management boards in multi-provincial areas are appointed by the Prime Minister upon recommendation of the Minister, Director of the Government's Organizational and Cadre Affairs Board, and the Director of Vietnam Industrial Park Management Boards.

The administrative support staff of industrial park management boards in multi-provincial areas is decided by the director of the industrial park management board in accordance with general guidelines from the Government's Organizational and Cadre Affairs Board.

Article 29.- Provincial industrial park management boards are budgetary units. Budget revenues from the industrial park area must be remitted to the state budget. Expenditures for the operations of provincial industrial park management boards are covered by the state budget.

Article 30. Provincial industrial park management boards are responsible for coordinating with functional agencies in developing, compiling, and submitting plans for industrial park development to competent state management agencies as stipulated in Clauses 2 and 3 of Article 4 of this Regulation. After the plan is approved, they will work with the competent agency to allocate plan indicators.

Article 31.- Provincial industrial zone management boards managing multiple industrial zones shall have their own representatives at each industrial zone.

Article 32.-

1. The examination and issuance of investment licenses for foreign-invested projects by provincial industrial zone management boards, when authorized by the Ministry of Planning and Investment pursuant to the Prime Minister's decision, shall be carried out as follows:

- The content of project examination shall be in accordance with Article 92 of Decree 12/CP dated February 18, 1997 of the Government.

- Within fifteen days from the date of receipt of the project dossier, the provincial industrial zone management board shall complete the project examination and issue the investment license.

Within seven days after the expiration of the aforementioned period, if the investment license has not been issued, the provincial industrial zone management board shall notify the investor in writing, clearly stating the reasons, and send copies to relevant agencies.

The above time limit does not include the time required for the investor to amend and supplement the application dossier upon request of the provincial industrial zone management board.

Any requests made by the provincial industrial zone management board to the investor regarding the amendment and supplementation of the project dossier must be completed within seven days from the date of receipt of the project dossier. After seven days from the date the provincial industrial zone management board issues the request, if the investor does not respond in writing, the investment application attached to the project dossier will lose its validity.

2. Investment licenses granted to investors and project dossiers shall be in a unified form prescribed and promulgated by the Ministry of Planning and Investment.

3. Within seven days from the date of issuance of the investment license, the provincial industrial zone management board shall send the original investment license to the provincial People's Committee, the Ministry of Planning and Investment, and copies to the Ministry of Finance, the Ministry of Trade, the Ministry of Industry Management, the Board of Industrial Zones of Vietnam, and other relevant state management agencies.

Article 33.- The authority to decide on accepting investments and issuing investment licenses, as well as the examination procedures for domestic investment projects and group A foreign-invested projects in industrial zones, shall be implemented according to current regulations.

Chapter 7:

SOME SPECIAL PROVISIONS APPLICABLE TO EXPORT PROCESSING ZONES AND EXPORT-PROCESSING ENTERPRISES

Article 34.- Export processing zones and export-processing enterprises shall be separated from the surrounding territory by a fence system, with gates and entrances.

Article 35.- Only investors, officials, workers, and staff working in export processing zones and export-processing enterprises, and persons having work relations with organizations, enterprises, and agencies in these zones and enterprises may enter and leave the zones and enterprises.

Article 36.- Vietnamese citizens and foreigners are not allowed to reside in export processing zones and export-processing enterprises. In cases where it is necessary to stay temporarily in these zones and enterprises to handle business matters, permission from the provincial industrial zone management board is required.

Article 37.- Entry, exit, movement, and other activities within export processing zones and export-processing enterprises shall be regulated by the provincial industrial zone management board in the management charter of the industrial zone.

Article 38.- Goods, luggage, and foreign currency imported into export processing zones or export-processing enterprises from abroad (directly or through Vietnamese border gates) and exported from these zones or enterprises to abroad (directly or through Vietnamese border gates) shall be exempt from export duties and import duties, but they must undergo customs inspection and supervision in accordance with Vietnamese customs laws and pay any applicable customs fees.

Article 39.-

1. Goods of export-processing enterprises exported to abroad and imported from abroad into export processing zones or export-processing enterprises must have a certificate of origin issued by the competent authority and go through customs formalities at the customs office of the industrial zone. The goods listed on the customs declaration must correspond to the approval decision on investment or the investment license, and the business registration certificate.

2. Goods for export transported from the customs inspection point in the export processing zone or export-processing enterprise to the Vietnamese border gate and goods for import transported from the Vietnamese border gate to the customs inspection point in the export processing zone or export-processing enterprise shall be carried out using containers, sealed cargo, and accompanied by customs officers.

Article 40. Transactions of goods between domestic enterprises and export-processing enterprises shall be treated as export and import transactions and must comply with Vietnamese export and import laws. In this case, both the buyer and seller must complete customs formalities at the industrial zone in accordance with Vietnamese customs laws and are exempt from the review of export and import plans.

Export-processing enterprises may purchase raw materials, supplies, and goods from the domestic market into the export processing zone or export-processing enterprise; scrap and waste products with commercial value from the export processing zone or export-processing enterprise may be sold in the domestic market under simplified and convenient customs procedures.

Sales of goods between enterprises within the same export processing zone or between an export-processing enterprise and an industrial zone enterprise within the same industrial park or high-tech zone must be approved by the provincial industrial zone management board and subject to customs inspection and supervision.

Article 41

1. Luggage and foreign currency of foreigners working in export processing zones or export-processing enterprises (including investors and foreigners working in these zones or enterprises) brought into Vietnam upon entry and taken out of the country upon departure shall be processed through customs at Vietnamese border gate customs offices.

2. Luggage and foreign currency of foreigners brought from the domestic Vietnamese market into export processing zones or export-processing enterprises and taken from these zones or enterprises into the domestic Vietnamese market shall be processed through customs at the industrial zone.

Article 42 |||.- Export-processing enterprises may conclude processing contracts and service contracts with Vietnamese enterprises belonging to various economic sectors and foreign-invested enterprises in accordance with the provisions of the law.

1. The "Labor Medal" second class shall be awarded or posthumously awarded to individuals meeting one of the following criteria:.-

1. Customs procedures must be public, swift, and convenient. The head of the customs authority at the industrial park is responsible for guiding export processing enterprises to handle customs procedures.

2. Customs inspection activities must be conducted with the presence of the owner of the goods or baggage, or a lawful representative of the owner of the goods or baggage.

3. The head of the customs authority at the industrial park has the right to request a surprise inspection of goods in the warehouse of an export processing enterprise when there is evidence indicating illegal import or export of goods.

4. In cases where there is evidence to suggest illegal import or export of goods, foreign exchange, or Vietnamese currency, or bringing them into or out of an export processing zone or enterprise illegally, from the Head of the Border Gate Customs Authority upwards have the right to conduct inspections in accordance with the provisions of Vietnamese customs law.

Article 44.- Goods transported between export processing zones or enterprises within Vietnam must be carried out using containerized transport, sealed customs packages, accompanied by customs officers, and exempted from export duties and import duties.

Article 45.- Foreign individuals working in export processing zones or enterprises who bring foreign exchange into Vietnam must declare it to the border gate customs authority upon entry; upon departure, they may take unused foreign exchange out of the country.

Article 46.- Bringing foreign exchange from domestic areas into export processing zones or enterprises and vice versa must comply with the regulations on foreign exchange management in Vietnam.

Article 47.- Transactions, payments, transfers, and other commercial dealings between export processing enterprises must be conducted in freely convertible currencies through bank accounts and accounting books recorded in freely convertible currencies.

Sales of goods serving the daily lives of employees of export processing enterprises shall be conducted in Vietnamese currency.

Article 48.- When exporting goods or services that generate foreign currency, export processing enterprises must deposit the foreign currency received into a bank account. All expenses of the enterprise must go through this account.

Article 49.- Violations of the provisions of this Chapter, depending on their nature and severity, are considered violations of customs procedures, customs inspection and supervision systems, or smuggling or illegal transportation of goods, foreign exchange, or Vietnamese currency across borders, and will be handled according to Vietnamese customs law.

Chapter 8:

SOME SPECIAL PROVISIONS APPLICABLE TO HIGH-TECH INDUSTRIAL PARKS

Article 50.- The goal of high-tech industrial parks is to develop high-tech industries, attract high-tech technology from abroad, absorb and transfer high-tech technology, and enhance domestic high-tech capabilities.

Government agencies are responsible for prioritizing investment plans, seeking funding, and attracting investments to mobilize all sources of capital: budget funds, foreign aid, loans, joint venture capital from domestic and foreign investors to build and develop high-tech industrial parks according to the overall plan. Government agencies and provincial People's Committees where high-tech industrial parks are planned to be built and developed shall create favorable conditions, simplify administrative procedures, and apply the highest preferential policies currently stipulated by law to encourage domestic and foreign investors, scientific research organizations and high-tech development, and high-tech service providers to invest in high-tech industrial parks.

Article 51.- The Government encourages overseas Vietnamese, including those with Vietnamese citizenship or Vietnamese citizens holding other nationalities, and economic organizations established abroad with capital from overseas Vietnamese to invest in building and developing high-tech zones in Vietnam. These entities will enjoy incentives as stipulated in Article 44 of the Law on Foreign Investment in Vietnam and according to the Government's regulations on measures to encourage overseas Vietnamese to invest in their home country.

Article 52.- The Government encourages and facilitates foreign scientists, experts, and high-tech enterprises to work and invest in building and developing high-tech zones in Vietnam.

Article 53.- In addition to high-tech industrial enterprises (including export processing enterprises) under the types of enterprises as prescribed in Article 6 of this Regulation, within high-tech zones, research and development units for science and technology, specialized training institutions, and related service organizations shall also be established.

Article 54.- Research and development, training, and science and technology service units in high-tech zones shall enjoy incentives as provided by current laws governing scientific and technological activities.

Chapter 9:

DISPUTE RESOLUTION AND VIOLATIONS

Article 55.- Criminal cases occurring in high-tech zones shall be adjudicated by the People's Court in accordance with the provisions of the law.

Civil and economic disputes involving a high-tech zone enterprise as one party shall be resolved in accordance with the provisions of the law, except where otherwise specified.

Article 56.- Domestic and foreign investors, high-tech zone enterprises, infrastructure development companies, organizations, individuals, officials, and state agencies that violate the provisions of this Regulation shall be subject to legal sanctions depending on the severity of the violation.

Article 57.- Domestic and foreign investors, high-tech zone enterprises, infrastructure development companies, organizations, and individuals have the right to lodge complaints and initiate lawsuits against decisions and actions contrary to this Regulation that cause difficulties and inconvenience to officials and state agencies.

Complaints and lawsuits, and the resolution thereof, shall be carried out in accordance with the provisions of the law.

Chapter 10:

IMPLEMENTING PROVISIONS

Article 58.- Other provisions relating to the operation of high-tech zone enterprises not covered in this Regulation shall be implemented in accordance with corresponding articles of the Law on Foreign Investment in Vietnam, the Law on Encouraging Domestic Investment, the Law on State-Owned Enterprises, the Law on Cooperatives, the Law on Joint Stock Companies, the Law on Private Enterprises, the Land Law, and other regulatory legal documents.

Article 59.- This Regulation shall take effect fifteen days from the date of signature. High-tech zones established before the effective date of this Regulation must still comply with the provisions of this Regulation, except where the provincial management board requests and obtains Prime Minister approval to continue operating under the Export Processing Zone Regulations (Decree 322/HĐBT dated October 18, 1991 of the Council of Ministers now the Government) and the Industrial Zone Regulations (Decree 192/CP dated December 28, 1994 of the Government) for a maximum period of one year from the effective date of this Regulation.