Decision No. 53/2004/QĐ-TTg On Certain Policies to Encourage Investment in the High-Tech Zone

Pursuant to …;

On certain policies to encourage investment in High-Tech Zones

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to the Law on Science and Technology dated June 9, 2000;
Based on the Land Law dated November 26, 2003;
Pursuant to the Law on Encouraging Domestic Investment (amended) dated May 20, 1998;
Pursuant to the Law on Foreign Investment in Vietnam dated November 12, 1996, the Law Amending and Supplementing Certain Articles of the Law on Foreign Investment in Vietnam dated June 9, 2000, and Decree No. 24/2000/NĐ-CP dated July 21, 2000 of the Government detailing the implementation of the Law on Foreign Investment in Vietnam;
Pursuant to the Law on Corporate Income Tax dated June 17, 2003, and Decree No. 164/2003/NĐ-CP dated December 22, 2003 of the Government detailing the implementation of the Law on Corporate Income Tax,
Pursuant to the Ordinance on Income Tax for High-Income Individuals dated May 19, 2001, and Decree No. 78/2001/NĐ-CP dated October 23, 2001 of the Government detailing the implementation of the Ordinance on Income Tax for High-Income Individuals;
Based on Decree No. 99/2003/NĐ-CP dated August 28, 2003 of the Government on the issuance of the Regulation on High-Tech Parks;
At the proposal of the Minister of Science and Technology,

Pursuant to …;

Article 1. Scope of Regulation

This Decision stipulates certain policies to encourage investment in High-Tech Zones as provided for in Article 5 of the Regulation on High-Tech Zones issued together with Decree No. 99/2003/NĐ-CP dated August 28, 2003 of the Government.

Article 2. Applicability

The subjects eligible to benefit from the investment encouragement policies prescribed in this Decision are:

1. Domestic and foreign organizations and enterprises, Vietnamese individuals, foreigners, and overseas Vietnamese residing abroad who have projects investing in High-Tech Zones as specified in Article 1 of this Decision (hereinafter referred to as Investors).

2. Vietnamese individuals, foreigners, and overseas Vietnamese residing abroad working for projects investing in High-Tech Zones as specified in Article 1 of this Decision.

Article 3. Preferential tax policies

1. Corporate Income Tax

Investors shall enjoy a corporate income tax rate of 10% throughout the duration of their projects; they shall be exempted from corporate income tax for 4 years starting from when they generate taxable income and shall have their tax payable reduced by 50% for the next 9 years.

2. Income Tax for High-Income Individuals

Vietnamese individuals and overseas Vietnamese residing abroad as specified in Clause 2, Article 2 of this Decision shall be exempted or granted reductions in income tax for high-income individuals to match the tax payable applied to foreigners with the same level of income.

Article 4. Land Use Preferences

1. A single-price policy shall be applied to Investors leasing land directly from the High-Tech Zone Management Board, regardless of whether they are domestic or foreign Investors.

2. Investors may mortgage the value of their land use rights and assets attached to the land during the lease period, including subleased land, at financial institutions operating in Vietnam in accordance with the law.

3. Investors implementing research and development technology projects or high-level scientific and technological human resource training projects shall be exempted from land rental fees according to the regulations of the Government.

Article 5. Capital, Credit, and Guarantees

1. Investors with production projects in High-Tech Zones operating under the Law on Encouraging Domestic Investment shall be considered for medium- and long-term credit loans with preferential interest rates by the Development Support Fund, and shall be eligible for loan guarantees and post-investment interest rate support according to current regulations.

2. Investors shall enjoy state incentives regarding export credit support when exporting products directly and shall be subject to the export reward system as stipulated by law.

Article 6. Entry and Exit, Residence

1. Foreigners and overseas Vietnamese residing abroad who fall under the objects specified in Article 2 of this Decision and their family members shall be granted multiple-entry visas with validity periods corresponding to their working and operating times at the High-Tech Zone.

2. The objects specified in Article 2 of this Decision shall be provided favorable conditions for residence, and shall be allowed to rent or purchase housing within the High-Tech Zone in accordance with the provisions of the law.

Article 7. Other Provisions

1. A single price policy for public services prescribed by the State shall be applied to the objects specified in Article 2 of this Decision.

2. For particularly important investment projects, investors shall enjoy additional incentives as decided by

3. The Ministry of Science and Technology shall take the lead and coordinate with relevant agencies to develop and submit to the Prime Minister for promulgation policies encouraging individuals working at business incubators within the High-Tech Zone, scientists, and research and development organizations operating within the High-Tech Zone.

4. In addition to the provisions set out in this Decision, investors shall enjoy the highest level of preferential policies stipulated in related legal documents and international treaties to which Vietnam is a party.

In case international treaties provide different provisions, such provisions shall be followed.

Article 8. Implementation clause

This Decision shall take effect fifteen days from the date of publication in the Official Gazette. All other conflicting regulations shall be abolished.

Ministers, heads of ministerial-level agencies, heads of government agencies, Chairpersons of People's Committees of provinces and centrally governed cities, and Directors of Management Boards of High-Tech Zones shall be responsible for implementing this Decision.