Decision No. 53/2001/QĐ-TTg stipulates policies for Border Gate Economic Zones, including types of business operations, investment incentives for infrastructure and taxes, management of entry and exit, banking, and quarantine. This decision applies to border gate economic zones and takes effect fifteen days after the date of issuance.
Scope of application
Border Gate Economic Zones, businesses operating there, domestic and foreign investors, Vietnamese citizens and neighboring countries' citizens.
Key points
- are permitted to establish various types of business such as import and export, bonded warehouses, duty-free shops, border marketplaces, and tourism within Border Gate Economic Zones (Article 1).
- Investors are entitled to incentives for infrastructure development with support ranging from 50% to 100% of actual budget revenue (Article 2).
- Businesses operating in Border Gate Economic Zones are eligible for preferential state loans to invest in business facilities and enjoy tax, trade, and tourism incentives (Article 2).
- Investors are granted a 50% reduction in land and water surface rental fees compared to current rates at Border Gate Economic Zones (Article 2).
- Businesses in Border Gate Economic Zones are entitled to tax incentives according to current regulations (Article 2).
🌐 Social impact of this document
- Creating opportunities for businesses and investors to develop their operations and enhance economic cooperation between Vietnam and neighboring countries.
- Reducing the burden of land rental and infrastructure construction costs for businesses, allowing them to focus on production and business activities.
- Strengthening management of entry and exit, limiting the spread of diseases and substandard goods into Vietnam.
❓ Frequently asked questions
What types of business operations are permitted in Border Gate Economic Zones?
Permitted types include import and export, temporary import for re-export, transit cargo transport, bonded warehouses, duty-free shops, exhibitions, manufacturing, and processing of imported and exported goods (Article 1).
How are investors incentivized for infrastructure development?
Investors are supported with funding ranging from 50% to 100% of actual budget revenue for infrastructure development, depending on annual budget revenues (Article 2).
Are businesses operating in Border Gate Economic Zones eligible for preferential loans?
Yes, businesses are eligible for preferential state loans to invest in business facilities (Article 2).
By what percentage are investors granted reductions in land and water surface rental fees?
A 50% reduction compared to current rates at Border Gate Economic Zones (Article 2).
What tax incentives are available to businesses in Border Gate Economic Zones?
Businesses are entitled to tax incentives according to current regulations, consistent with laws and decrees on taxation (Article 2).
Full text
Pursuant to …;
On policies for Border Gate Economic Zones
_________________
PRIME MINISTER
Pursuant to the Government Organization Law dated September 30, 1992;
Considering the proposal of the Ministry of Planning and Investment at the report No. 2933 BKH/QLKT dated May 18, 2000; opinions of central ministries and sectors and related provinces,
DECISION:
Article 1. Types of business operations in Border Gate Economic Zones.
1. In Border Gate Economic Zones, the following types of business operations shall be applied: import and export, temporary import for re-export, transit goods transportation, bonded warehouses, duty-free shops, trade fairs, product exhibition shops, production and processing facilities for imported and exported goods, branches of domestic and foreign companies, border gate markets, infrastructure investment, services, tourism...
2. Permitting the establishment of bonded zones in Border Gate Economic Zones, but they must be separated from other functional areas within the Border Gate Economic Zone.
Article 2. Preferential policies.
1. Investment in infrastructure development of Border Gate Economic Zones.
a) Based on the actual revenue collected annually from the state budget at Border Gate Economic Zones (excluding value-added tax and special consumption tax on imported goods; revenues not included in local budget allocation such as fines for smuggling, public donations; tuition fees; medical fees; aid...), the state will reinvest to build infrastructure in Border Gate Economic Zones according to the following levels:
- For Border Gate Economic Zones with annual state budget revenue below 50 billion VND, 100% of the revenue will be reinvested.
- For Border Gate Economic Zones with annual state budget revenue of 50 billion VND or more, 50 billion VND and 50% of the remaining actual revenue will be reinvested.
- For Border Gate Economic Zones that have been operating for five years (since the pilot period) and have annual state budget revenue exceeding 100 billion VND, no more than 50% of the actual revenue will be reinvested.
b) Border Gate Economic Zones may borrow preferential state capital (Development Fund) to develop infrastructure and use the capital specified in point a, Clause 1, Article 2 to repay principal and interest.
c) For Border Gate Economic Zones with low actual state budget revenue, the provincial People's Committee will allocate funds in the annual budget plan for investment. The construction of infrastructure projects in Border Gate Economic Zones will be decided by the provincial People's Committee based on current regulations, on the basis of approved planning and plans.
d) If the infrastructure projects in the Border Gate Economic Zone have been fully developed and completed, the remaining capital specified in point a, Clause 1, Article 2 can be used to invest in supporting projects outside the Border Gate Economic Zone (including new Border Gate Economic Zones) that are directly related and serve the Border Gate Economic Zone. The Chairman of the provincial People's Committee is responsible for their investment decisions, while simultaneously informing the Ministry of Planning and Investment for consolidation and monitoring.
2. Trade and Tourism.
a) Businesses engaged in the activities stipulated in Clause 1, Article 1 may borrow preferential state capital to invest in building business facilities at border gates.
b) Trade activities shall enjoy preferential border trade benefits according to current state regulations and commitments made with neighboring countries.
c) In bonded zones, non-tariff mechanisms similar to those applicable to bonded warehouses shall be implemented.
d) Investors with tourism development projects shall enjoy incentives as prescribed in Article 15 of the Law on Encouraging Domestic Investment (amended) No. 03/1998/QH10 dated May 20, 1998.
3. Land.
Domestic and foreign investors investing in Border Gate Economic Zones, when leasing land and water surfaces, in addition to enjoying existing incentives, shall also receive a 50% reduction in land and water surface rental prices compared to the current rental prices in that Border Gate Economic Zone.
4. Tax.
Enterprises in Border Gate Economic Zones shall enjoy tax incentives in specific cases according to current regulations consistent with laws, decrees on taxes and guiding documents of the Ministry of Finance.
Article 3. Management of certain fields.
1. Entry and Exit.
a) Citizens of bordering counties of neighboring countries facing Border Gate Economic Zones may enter and exit Border Gate Economic Zones with border identification cards or border travel documents issued by authorized agencies of the neighboring country. If they wish to visit other parts of the province where the Border Gate Economic Zone is located, the provincial police authority will issue a single-use permit valid for a certain period.
b) Individuals holding passports not exempt from visas (citizens of neighboring countries or third countries) shall be exempt from visa requirements for entry and allowed to stay in Border Gate Economic Zones for up to 15 days; if traveling to other regions of Vietnam under programs organized by Vietnamese international travel agencies, the immigration management authority (Ministry of Public Security) will consider issuing visas immediately at the Border Gate Economic Zone.
c) Permitting transport vehicles from neighboring countries and third countries to enter Border Gate Economic Zones based on business contracts between foreign partners and Vietnamese enterprises. If these transport vehicles need to deliver goods at locations outside the Border Gate Economic Zone, they must comply with current regulations.
Operators of the means of transport (crew members on ships, drivers, assistants) may enter and exit Border Gate Economic Zones with passports, seamen's books, border identification cards, or border travel documents issued by authorized agencies of foreign countries.
d) Expanding the reception of tourists from neighboring countries entering Border Gate Economic Zones with passports, cards, or equivalent documents to travel to various provinces and cities across the country as stipulated in point b, Article 3.
đ) Vietnamese consignors and vehicle owners conducting business with neighboring countries' counterparts are permitted to accompany goods and vehicles to neighboring countries for delivery and receipt of goods using identity cards or border travel documents issued by authorized Vietnamese agencies.
e) Vietnamese citizens residing and working in districts and towns with Border Gate Economic Zones may cross into neighboring countries using border identification cards or border travel documents issued by authorized Vietnamese agencies.
2. Banking.
The establishment of currency exchange desks and the implementation of currency buying and selling transactions for neighboring countries at border economic zones shall be carried out in accordance with Decision No. 140/2000/QĐ-TTg dated December 8, 2000, issued by the Prime Minister on the management regulations for currencies of neighboring countries in border areas and border economic zones in Vietnam, and current regulations. 2. Plant and animal quarantine, and quality inspection of imported goods.
3. Plant and animal quarantine and quality inspection of imported goods must be strictly implemented in accordance with current legal provisions to minimize the spread of diseases and substandard goods into Vietnam.
At the central agency level.
Article 4. Implementing organization.
a) The Ministry of Planning and Investment shall compile and submit to the Prime Minister for supplementation and amendment of policies encouraging the development of border economic zones, and shall take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to propose to the Government the termination of investment in each border economic zone.
b) The Ministry of Finance shall study and guide the provinces with border economic zones to implement tax, fee, and charge policies to create the most favorable conditions for businesses and exports in border economic zones. c) The Ministry of Trade shall take the lead and coordinate with the Ministry of Finance and relevant ministries and sectors to research trade policies for border economic zones, preferential market regulations within border economic zones compared to border markets, bonded area regulations within border economic zones, and guide the provinces with border economic zones to implement them.
Relevant ministries and sectors such as Construction, Agriculture and Rural Development, Science, Technology and Environment, Public Security, Defense, General Department of Tourism, General Department of Land Administration, General Department of Customs... shall, according to their respective functions and tasks, guide the provinces with border economic zones to implement.
At the provincial level.
a) The People's Committee of the province with a border economic zone shall take the lead and coordinate with central ministries and sectors to unify administrative management regulations for activities in the border economic zone based on the principle that in the border economic zone, there shall only be one entity conducting one inspection and control of goods and one collection of taxes and fees for goods and services.
The People's Committee of the province shall establish a Border Economic Zone Management Board (a coordinating body of related organizations) as the focal point to assist the People's Committee in implementing unified state administrative management over the border economic zone and resolving issues arising during the implementation of policies stipulated in this Decision. The operation rules of the Border Economic Zone Management Board shall be decided by the People's Committee of the province.
b) The People's Committee of the province with a border economic zone may engage in relations with the provincial authorities of the neighboring country to resolve issues related to the border economic zone within the framework of bilateral government agreements.
Border economic zones currently piloting policies under previous Prime Minister Decisions shall now transition to implementing this Decision (except for the Lao Bao Trading Area which shall continue to implement Decision No. 219/1998/QĐ-TTg dated November 12, 1998 of the Prime Minister).
For the deployment of new border economic zones, the People's Committee of the province must prepare a proposal for submission to the Prime Minister for approval to apply the policies set forth in this Decision.
Article 5. Implementation clause.
Ministers, Heads of ministerial-level agencies, Heads of governmental agencies, Chairmen of People's Committees of provinces and centrally governed cities shall be responsible for the implementation hereof./.
The implementation of new border economic zones shall require the People's Committee of the province to prepare a proposal for submission to the Prime Minister for approval to apply the policies set forth in this Decision.
THIS DECISION SHALL TAKE EFFECT 15 DAYS AFTER THE DATE OF SIGNATURE.
The Ministers, Heads of ministerial-level agencies, Heads of government agencies, and Chairpersons of the People's Committees of provinces and centrally governed cities are responsible for enforcement./.
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