Resolution No. 55/2022/QH15 on Pilot Mechanism for Special Policies to Develop Khanh Hoa Province

RESOLUTION

On piloting certain mechanisms and special policies for the development of Khanh Hoa Province

OF THE NATIONAL ASSEMBLY

Based on the Constitution of the Socialist Republic of Vietnam; Based on the Law on Legislative Activities No. 80/2015/QH13 amended and supplemented by some articles according to Law No. 63/2020/QH14;

RESOLUTION:

Article 1. Scope of Regulation

This Resolution stipulates the pilot implementation of certain mechanisms and special policies for Khanh Hoa Province (hereinafter referred to as the Province) regarding financial and state budget management; decentralization of state management in planning, land, and environment sectors; separation of compensation, support, resettlement, and land clearance projects from public investment projects; development of Van Phong Economic Zone and marine economic development in Khanh Hoa Province.

Article 2. Applicability

1. State agencies, political organizations, socio-political organizations.

2. Socio-professional organizations, social organizations, socio-professional organizations.

MECHANISMS AND POLICIES REGARDING THE PRICE OF AUCTION SERVICES FOR ASSETS THAT MUST BE SOLD THROUGH AUCTIONS AS PRESCRIBED BY LAW

Article 3. Financial and State Budget Management

1. Annually, the central budget supplements targeted funds to the provincial budget not exceeding 70% of the increase in central government revenue from shared revenue sources compared to the estimate assigned by the Prime Minister (the remaining amount after implementing excess revenue rewards as stipulated in Clause 4, Article 59 of the State Budget Law No. 83/2015/QH13 amended and supplemented by Law No. 59/2020/QH14) and other central government revenues at 100% as specified in Points b, c, d, g, h, i, and q of Clause 1, Article 35 of the State Budget Law No. 83/2015/QH13 amended and supplemented by Law No. 59/2020/QH14, compared to the estimate assigned by the Prime Minister, but not exceeding the total increase in central government revenue on the territory compared to the previous year's actual revenue and without causing a deficit in the central budget. The determination of the targeted supplement is based on the total revenue, not calculated separately for each revenue source. 2. The Province may borrow through local government bond issuance, borrowing from domestic financial institutions, other domestic organizations, and from foreign loans provided by the Government to the Province with the total debt not exceeding 60% of the provincial budget revenue according to the decentralized allocation. The total borrowing and budget deficit of the Province annually shall be decided by the National Assembly in accordance with the provisions of the State Budget Law.

3. The Province may allocate an additional 45% of expenditures calculated based on population standards according to the principles, criteria, and allocation rates for the regular budget expenditure forecast for 2022 (excluding the provisions in Clause 16, Article 5 of the Resolution No. 01/2021/UBTVQH15 dated September 1, 2021 of the Standing Committee of the National Assembly concerning the principles, criteria, and allocation rates for the regular budget expenditure forecast for 2022) when preparing the regular budget expenditure forecast for 2023 and during the implementation of this Resolution.

4. The Provincial People's Council decides to allow districts, towns, and cities within the Province to use their district, town, and city budgets and other lawful sources to support districts Khanh Son and Khanh Vinh in disaster prevention and mitigation, disease control, implementation of national target programs for sustainable poverty reduction, new rural construction, and economic and social development in ethnic minority and mountainous areas.

4. The Provincial People's Council decides to permit the districts, towns, and cities within the Province to use their district, town, and city budgets and other lawful sources to support Khanh Son and Khanh Vinh districts in preventing, combating, and mitigating the consequences of natural disasters and epidemics, implementing national target programs for sustainable poverty reduction, building new rural areas, and developing the economy and society in ethnic minority and mountainous regions.

Article 4. Management of Planning

Based on the master plan for functional zones and urban planning projects that have been approved by the Prime Minister, the Prime Minister decides to delegate authority to the Provincial People's Committee to approve partial adjustments to the overall construction master plans for functional zones and urban areas according to procedures and formalities prescribed by the Prime Minister, and report the results of implementation to the Prime Minister. Article 5. Land Management

1. The Provincial People's Council decides on the change of land use purpose for rice cultivation areas under 500 hectares; decides on the policy of changing the land use purpose for production forests under 1,000 hectares in accordance with the delegation of authority from the Prime Minister in compliance with national forestry planning, land use planning, and annual land use plans decided upon by competent authorities.

The decision on changing the land use purpose must be conducted openly, soliciting opinions from the people and those affected by the change, and ensuring principles and conditions for changing the land use purpose and using forests for other purposes as stipulated by laws on land and forestry, and other relevant laws. Procedures and formalities for changing the land use purpose and using forests within the authority delegated by the Prime Minister to the Provincial People's Council shall be prescribed by the Prime Minister.

2. Implementation of land preparation for recovery at Van Phong Economic Zone and Cam Lam District is regulated as follows:

a) For industrial zone, export processing zone, high-tech park, economic zone; urban area, new rural residential area; concentrated agricultural, forest, aquatic, and marine product production and processing projects funded by non-state budget capital, which fall under the category of state land recovery according to land laws and have a scale of 300 hectares or more, based on district-level land use planning and annual district-level land use plans, the Provincial People's Council issues a list of projects to organize investigations, surveys, measurements, counts, and verification of land origin and attached assets according to the procedures specified in this clause;

b) Based on the project list specified in point a of this clause, the competent state agency responsible for land recovery according to the Land Law issues a notice to organize investigations, surveys, measurements, counts, and verification of land origin and attached assets;

The notice to organize investigations, surveys, measurements, counts, and verification of land origin and attached assets is sent to each land user and announced through mass media, posted at the offices of the commune-level People's Committees, and communal activity centers;

c) Based on the notice issued in point b of this clause, organizations tasked with compensation and clearance may proceed with investigations, surveys, measurements, counts, and verification of land origin and attached assets before the competent state agency issues a land recovery notice;

The commune-level People's Committee is responsible for coordinating with organizations tasked with compensation and clearance to implement investigations, surveys, measurements, counts, and verification of land origin and attached assets;

Land users are responsible for cooperating with organizations tasked with compensation and clearance to conduct investigations, surveys, measurements to determine land area, inventory housing and other attached assets to prepare compensation, support, and resettlement plans;

d) After selecting investors to implement the project according to current laws, the competent state agency responsible for land recovery according to the Land Law issues a land recovery notice and uses the results of investigations, surveys, measurements, counts, and verification of land origin and attached assets carried out according to point c of this clause to prepare compensation, support, and resettlement plans;

đ) The Provincial People's Council decides to use local budgets to implement the contents specified in point c of this clause and promulgate procedures and formalities for implementing the provisions of this clause.

d) After selecting the investor to implement the project in accordance with current laws, the competent state agency shall recover land in accordance with the Land Law, issue a land recovery notice, and use the results of investigations, surveys, measurements, verifications of land origin, and assets attached to the land conducted in accordance with point c of this clause to establish compensation, support, and resettlement plans.

The preparation, review, approval, and organization of implementation of compensation, support, and resettlement plans and decisions on land recovery shall be carried out in accordance with laws on land.

đ) The Provincial People's Council decides to use the local budget to implement the contents stipulated in point c of this clause and promulgate the procedures for implementing the provisions of this clause.

Article 6. Separating compensation, support, resettlement, and land clearance projects from public investment projects

1. The Provincial People's Council decides on the investment policy for overall projects with a scale of Group B projects in the transportation and water resources sectors in accordance with laws on public investment. It has the authority to decide to separate the work of compensation, support, resettlement, and land clearance into independent projects when approving the investment policy for overall projects; it decides on the objectives, scale, total investment amount, capital structure, and location of the compensation, support, resettlement, and land clearance project in the decision on the investment policy for the overall project.

2. Based on the investment policy for the overall project, the Chairman of the Provincial People's Committee decides on the investment and adjustment of the compensation, support, resettlement, and land clearance project within the scope of the objectives, scale, total investment amount, capital structure, and implementation location of the overall project.

In cases where adjustments to the compensation, support, resettlement, and land clearance project result in factors requiring adjustments to the investment policy for the overall project, the Provincial People's Council shall adjust the investment policy for the overall project before the Chairman of the Provincial People's Committee adjusts the compensation, support, resettlement, and land clearance project. Adjustments to the investment policy for the overall project and adjustments to the compensation, support, resettlement, and land clearance project shall be carried out in accordance with laws on public investment and other relevant laws.

3. The decision on the investment of the compensation, support, resettlement, and land clearance project serves as the basis for the competent authority to decide on the allocation of funds from the annual public investment plan for implementation, and at the same time, it is the basis for the competent state agency to issue announcements and decisions on land recovery.

4. The Provincial People's Council promulgates a list of public investment projects that implement the separation of compensation, support, resettlement, and land clearance projects from public investment projects as stipulated in this Article.

Article 7. Development of Van Phong Economic Zone

1. The priority industries and businesses for attracting investment in the Van Phong Economic Zone include:

a) Investment in building innovation centers, research and development (R&D) centers; information technology investment, research, production, and high-tech transfer in marine, maritime, biotechnology, marine medicine, and marine ecology fields with an investment capital of VND 1.5 trillion or more;

b) Investment in building and operating commercial and financial centers with an investment capital of VND 12 trillion or more;

c) Investment in building and operating urban areas with a land area of 300 hectares or more or a population of 50,000 people or more; investment in building and operating high-end hotels, tourist resorts, and comprehensive entertainment complexes with golf courses with an investment capital of VND 25 trillion or more;

d) Investment in clean energy industry, high-tech manufacturing industry, precision machinery, oil and gas processing, electronics, and health service zones with an investment capital of VND 6 trillion or more;

đ) Construction and operation of airports, investment in ports, port areas belonging to special seaports, logistics services, port hinterland services, port areas, general ports, and specialized ports with an investment capital of VND 2.3 trillion or more belonging to Class I seaports;

e) Investment in building and operating infrastructure in tax-free zones with an investment capital of VND 6 trillion or more.

2. Strategic investors are investors who meet the conditions specified in Clause 3 and Clause 4 of this Article.

3. Strategic investors must meet one of the following conditions:

a) Having a registered capital of VND 10 trillion or more or total assets of VND 25 trillion or more when implementing the investment projects specified in Point b and Point c of Clause 1 of this Article, and having experience in investing in similar projects with a total investment capital of VND 10 trillion or more;

b) Having a registered capital of VND 3 trillion or more when implementing the investment projects specified in Point d and Point e of Clause 1 of this Article, and having experience in investing in similar projects with a total investment capital of VND 6 trillion or more;

c) Having a registered capital of VND 1 trillion or more when implementing the investment projects specified in Point đ of Clause 1 of this Article, and having experience in investing in similar projects with a total investment capital of VND 2 trillion or more;

d) Having a registered capital of VND 500 billion or more when implementing the investment projects specified in Point a of Clause 1 of this Article, and having experience in investing in similar projects with a total investment capital of VND 1 trillion or more.

4. Strategic investors must commit in writing to training and developing human resources, meeting the conditions for ensuring national defense, security, and environmental protection as prescribed by Vietnamese law.

5. Strategic investors specified in Clause 2 of this Article, if selected according to the procedures and formalities stipulated in Clause 7 of this Article to implement investment projects under the priority industries and businesses for attracting investment specified in Clause 1 of this Article, shall enjoy investment incentives and have obligations as stipulated in Clause 8 and Clause 9 of this Article.

6. Based on the priority industries and businesses for attracting investment specified in Clause 1 of this Article, investors or competent state agencies may propose investment projects. For projects subject to approval of the investment policy, the competent authority shall approve the investment policy for the project according to the procedures and formalities for approving the investment policy as prescribed by laws on investment and Clause 12 of this Article.

7. The procedures and formalities for registering the implementation of projects and selecting strategic investors for projects not falling under the circumstances specified in Clause 4 of Article 29 of the Investment Law shall be implemented as follows:

a) Based on the decision approving the investment policy for the project as stipulated in Clause 6 of this Article, the Management Board of the Van Phong Economic Zone shall announce information about the project, preliminary requirements regarding the investor's capacity and experience, and the conditions for determining strategic investors as stipulated in Clause 3 and Clause 4 of this Article on the National Public Procurement System.

b) Based on the content of the information published as stipulated in point a of this clause, investors prepare and submit the project implementation registration dossier. The investor's project implementation registration dossier includes: the project implementation registration document; dossier on the legal status, capacity, and experience of the investor; documents proving compliance with the conditions prescribed in Clause 3 and Clause 4 of this Article and other related documents (if any);

c) Upon expiration of the project implementation registration period, the Management Board of Van Phong Economic Zone organizes an initial assessment of the capacity and experience of investors who have submitted the project implementation registration dossier. Based on the results of the initial assessment of capacity and experience, the Director of the Management Board of Van Phong Economic Zone decides to implement according to one of the cases prescribed in points d, đ, and e of this clause;

d) In the case where only one investor has registered and met the initial requirements for capacity and experience, or where multiple investors have registered but only one investor meets the initial requirements for capacity and experience, the investor shall be approved in accordance with the provisions of the law on investment;

đ) In the case where two or more investors meet the initial requirements for capacity and experience, among which only one investor is determined to meet the conditions for strategic investors as prescribed in Clause 3 and Clause 4 of this Article, the investor shall be approved in accordance with the provisions of the law on investment;

e) In the case where two or more investors meet the initial requirements for capacity and experience, among which two or more investors are determined to meet the conditions for strategic investors as prescribed in Clause 3 and Clause 4 of this Article, the competent state agency shall apply or select to apply the law on bidding to organize the selection of investors from among those investors determined to meet the conditions for strategic investors;

g) The People's Committee of the Province shall specify detailed models for the publication of information on projects attracting strategic investors, including initial requirements for the capacity and experience of investors; the project implementation registration dossier;

8. Strategic investors shall enjoy the following incentives:

a) The actual costs of research and development (R&D) activities shall be considered deductible expenses for determining taxable income for R&D activities at 150% of the actual costs when calculating corporate income tax. Actual R&D costs shall be determined in accordance with the accounting laws;

b) Strategic investors shall enjoy preferential procedures under customs regulations and tax procedures for goods exported and imported under investment projects implemented in Van Phong Economic Zone, provided that they meet the conditions for applying preferential regimes under customs and tax laws, except for export and import turnover conditions;

9. Strategic investors shall have the following obligations:

a) To implement the project in accordance with the contents specified in the Investment Registration Certificate or the Decision Approving the Investment Orientation;

b) To advance funds to the State for compensation, support, and resettlement for projects where land is reclaimed by the State in accordance with the Land Law; to advance a minimum of VND 200 billion to the State within one year from the date of issuance of the Investment Registration Certificate or the Decision Approving the Investment Orientation for construction of essential technical infrastructure in Van Phong Economic Zone as stipulated in points b, c, and e of Clause 1 of this Article. The advanced amount shall be deducted from the land use fee or land lease fee payable by the investor for the investment project. The deduction amount shall not exceed the payable land use fee or land lease fee, and any remaining amount (if any) shall be included in the project's investment capital;

c) To disburse funds within five years for projects stipulated in points b and c of Clause 1 of this Article, and within three years for the remaining projects stipulated in Clause 1 of this Article from the date of issuance of the Investment Registration Certificate or the Decision Approving the Investment Orientation. During this period, the strategic investor may not transfer the project;

d) To provide funding for vocational training for affected workers in the project area; to prioritize local labor force employment in the project; to implement commitments regarding the application and transfer of advanced, new, and high-tech technologies (if applicable);

10. During the implementation of the investment project, if the strategic investor fails to meet the conditions regarding capital, disbursement progress, and other conditions for strategic investors, they shall not enjoy the incentives prescribed in this Resolution. The investor shall be responsible for the consequences arising from failing to fulfill their commitments in accordance with the law;

11. The Management Board of Van Phong Economic Zone shall organize the review and approval of environmental impact reports and issue environmental permits for investment projects within the jurisdiction of the Provincial People's Committee in accordance with the Environmental Protection Law; it shall be responsible for the quality of the review and environmental impact and send the decision approving the review results of the environmental impact report to the Provincial People's Committee. The Provincial People's Committee shall be responsible for monitoring and inspecting compliance with environmental laws for projects stipulated in this clause;

12. The Provincial People's Committee shall approve the investment orientation for construction and operation of airports, port investments, and port areas belonging to special ports; port areas, ports, and specialized ports with an investment capital of VND 2.3 trillion or more belonging to Class I sea ports of strategic investors;

The procedure and process for approving the investment orientation prescribed in this clause shall be carried out in accordance with the procedure and process for approving the investment orientation for projects within the jurisdiction of the provincial people's committee in accordance with the investment law. During the process of implementing the investment orientation approval procedure, the Provincial People's Committee shall seek opinions from relevant ministries and agencies and decide according to its authority.

Article 8. Development of marine economy in Khanh Hoa Province

1. Development of marine aquaculture within the marine area under the management of the Province:

a) On the basis of the approval of the Ministry of National Defense, the People's Committee of the Province shall allocate marine areas for marine aquaculture and grant permits for marine aquaculture to domestic investors in the marine area beyond six nautical miles and in the area simultaneously within and beyond six nautical miles;

b) Exempt fees for using the marine area for fifteen years and reduce fifty percent of the fees for using the marine area for the remaining period for the area allocated to implement marine aquaculture projects of organizations and individuals who are domestic investors operating marine aquaculture beyond six nautical miles and in the area simultaneously within and beyond six nautical miles;

Apply a corporate income tax rate of ten percent, exempt taxes for four years, and reduce fifty percent of the tax payable for the next nine years on the income of organizations that are domestic investors from marine aquaculture projects beyond six nautical miles and in the area simultaneously within and beyond six nautical miles;

c) Exempt fees for using the marine area for fifteen years for the area allocated to implement marine aquaculture projects of organizations and individuals who are domestic investors operating marine aquaculture from three to six nautical miles;

Apply a corporate income tax rate of seventeen percent, exempt taxes for two years, and reduce fifty percent of the tax payable for the next four years on the income of organizations that are domestic investors from marine aquaculture projects from three to six nautical miles;

d) Within the capacity to balance the local budget, the Provincial People's Council decides to support funds for purchasing accident insurance for workers working on fish farming cages and boats, and for purchasing natural disaster risk insurance for marine farmed aquatic products;

đ) The time to start enjoying incentives, conditions for applying tax incentives, and income eligible for incentives as stipulated in this clause shall be implemented according to the provisions of the law on corporate income tax;

Organizations and individuals shall not enjoy the incentives stipulated in points b and c of this clause if they violate the regulations on allocating marine areas for marine aquaculture and granting permits for marine aquaculture as prescribed by relevant laws;

2. Establishing the Khanh Hoa Fishery Development Support Fund:

a) Allow the establishment of the Khanh Hoa Fishery Development Support Fund to supplement resources to serve the development of fisheries, investment in infrastructure projects such as fishing port facilities, processing facilities, post-harvest services, and other essential construction works for disaster prevention and serving civilian needs in Truong Sa District which have not been invested in or sufficiently funded by the state budget. The Khanh Hoa Fishery Development Support Fund is a national fund established by the Government and directly managed by the Province;

b) The Khanh Hoa Fishery Development Support Fund may receive support from the state budget of provinces and centrally-administered cities, donations from domestic and foreign organizations and individuals, and other legitimate sources of revenue;

c) Provinces and centrally-administered cities may use their local budgets to support the Khanh Hoa Fishery Development Support Fund;

d) The Government shall specify detailed regulations on the establishment and operational rules of the Fund;

Article 9. Implementation Organization

1. The Government, within its scope of duties and powers, shall be responsible for organizing the implementation of this Resolution; conduct a mid-term review after three years of implementation and report to the National Assembly at the final session in 2025; conduct a final review after five years of implementation and report to the National Assembly at the middle session in 2027;

The Government and the Prime Minister shall consider and decide on the delegation of authority to localities to carry out necessary tasks to effectively and synchronously implement this Resolution;

2. The Standing Committee of the National Assembly, the Ethnic Council, the Committees of the National Assembly, the Delegation of the National Assembly of the Province, and National Assembly deputies, within their scope of duties and powers, shall supervise the implementation of this Resolution;

Article 10. Provisions on implementation

1. This Resolution takes effect from August 1, 2022 and shall be implemented for five years;

2. For public investment projects that have been approved before the effective date of this Resolution, in case of necessity, the competent authority shall adjust the overall investment policy of the project to separate the work of compensation, support, resettlement, and land clearance from the public investment project according to the provisions of Article 6 of this Resolution;

3. Investors and organizations and individuals who have carried out activities stipulated in Articles 7 and 8 of this Resolution before its effective date and meet the conditions and fulfill the obligations stipulated in these articles shall enjoy the incentives provided by this Resolution for the remaining operation period of the investment project and marine aquaculture activities;

4. Projects stipulated in Articles 7 and 8 of this Resolution that are approved for investment orientation or granted Investment Registration Certificates during the effective period of this Resolution shall enjoy investment incentives as stipulated in Articles 7 and 8 of this Resolution until the completion of the project;

5. In cases where projects stipulated in Articles 7 and 8 of this Resolution are entitled to higher incentives under current laws or other forms of incentives than those stipulated in this Resolution, they shall continue to enjoy such incentives according to the provisions of the law;

6. In case there are different provisions on the same issue between this Resolution and other laws or resolutions of the National Assembly, the provisions of this Resolution shall apply. In case a regulatory legal document issued after the effective date of this Resolution provides more favorable incentive mechanisms or policies than this Resolution, the application thereof shall be decided by the Provincial People's Council;

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This Resolution was adopted by the National Assembly of the Socialist Republic of Vietnam, the third session of the 15th term, on June 16, 2022.