Decision No. 65/2007/QD-TTg On the Issuance of the Operating Regulations for the Border Economic Zone of An Giang Province

DECISION OF THE PRIME MINISTER

On issuing the Regulation on the operation of the An Giang Border Economic Zone

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Based on the Investment Law dated November 29, 2005;

Considering the proposal of the Minister of Planning and Investment and the Chairman of the People's Committee of An Giang Province.

DECISION:

Article 1. This Decision promulgates the Regulation on the Operation of the An Giang Border Economic Zone attached hereto.

Article 2. This Decision shall take effect fifteen days from the date of publication in the Official Gazette.

Article 3. The Ministers, Heads of ministerial-level agencies, Heads of government agencies, and the Chairman of the People's Committee of An Giang Province are responsible for implementing this Decision.

REGULATIONS

operation of the An Giang Border Economic Zone

(Issued together with Decision No. 65/2007/QĐ-TTg dated May 11, 2007)

of the Prime Minister)

PART I

GENERAL PROVISIONS

Article 1. This Regulation stipulates the operation, certain policies, and state management organization concerning the An Giang Border Economic Zone; rights and obligations of organizations and individuals within and outside Vietnam engaging in investment and business activities in the An Giang Border Economic Zone.

Article 2.

1. The An Giang Border Economic Zone is a defined geographic area within the national territory and sovereignty, comprising functional zones with the most favorable investment and business environment according to current regulations, including socio-economic infrastructure and management mechanisms that facilitate business activities consistent with market mechanisms.

2. The An Giang Border Economic Zone has a natural area of 265.83 km², including: the Vinh Xuong border area, the Khanh Binh border area, and the Tinh Bien border area, specifically as follows:

a) The Vinh Xuong border area, with a natural area of 99.16 km², includes Tan Chau town and the communes of Vinh Xuong, Vinh Hoa, Tan An, Phu Loc, and Long An in Tan Chau district. The geographic boundaries are as follows:

- North: Cambodia border;

- South: southern communes of Tan Chau district and part of Long Son commune (Phu Tan district);

- East: River Tien;

- West: An Phu district.

b) The Tinh Bien border area has a natural area of 92.55 km², including Tinh Bien town, Nha Bang town, and the communes of An Nong, An Phu, and Nhon Hung in Tinh Bien district. The geographic boundaries are as follows:

- West: Cambodia;

- Northeast: Chau Doc city;

- East: Thoi Son and An Cu communes;

- South: Le Tri commune.

c) The Khanh Binh border area has a natural area of 74.12 km², including Long Binh town and the communes of Khanh Binh, Khanh An, Quoc Thai, Nhon Hoi, and Phu Huu in An Phu district. The geographic boundaries are as follows:

- North: River Binh Di and Cambodia border;

- South: Phu Hoi and Phu Hung communes;

- East: Phu Huu commune;

- West: River Binh Di and Cambodia border.

Article 3. Main objectives for the development of the An Giang Border Economic Zone

1. To build and develop the An Giang Border Economic Zone into a driving force and economic linkage center among countries in the Mekong Subregion along the East-West Economic Corridor, initially focusing on the relationship between Vietnam and Cambodia.

2. To develop central areas within the An Giang Border Economic Zone into border towns, effectively utilizing geographical, political, economic, cultural, and social conditions during international economic exchanges to promote economic development and enhance the spillover effects of the An Giang Border Economic Zone on countries in the Mekong Subregion, particularly between Vietnam and Cambodia in the process of integration.

3. To develop rural areas, especially border regions, minimizing negative impacts on social, ecological, cultural, and ethnic environments, public order, security, and defense by creating more jobs, promoting training, raising public awareness, and improving human resource quality.

4. To create conditions for protecting national sovereignty and border security, effectively addressing social issues, improving the material and spiritual lives of the people, ensuring ethnic unity, and strengthening friendly cooperative relations with neighboring countries.

Article 4. The Government of the Socialist Republic of Vietnam encourages and protects Vietnamese organizations and individuals from all economic sectors, overseas Vietnamese, and foreign investors participating in business operations in the An Giang Border Economic Zone in export-import, temporary import-export, transit cargo transport in accordance with the Agreement on Transit Cargo Transport, bonded warehouses, duty-free shops, trade fairs, product showcase stores, production and processing facilities for export-import goods, branch offices, domestic and foreign companies, border markets, investment in socio-economic infrastructure, tourism, financial services, and banking in accordance with Vietnamese laws and international treaties to which Vietnam is a party.

Article 5. Vietnamese enterprises from various economic sectors and foreign-invested enterprises operating in the An Giang Border Economic Zone are subject to and entitled to benefits under this Regulation, other provisions of Vietnamese law, and international treaties to which Vietnam is a party.

Article 6. In addition to rights granted under Vietnamese law and international treaties to which Vietnam is a party, enterprises operating in the An Giang Border Economic Zone are entitled to the following rights:

1. To use economic and social infrastructure facilities, public utilities, and common services provided by infrastructure businesses in the An Giang Border Economic Zone.

2. To enjoy incentives stipulated in this Regulation.

3. To transfer land use rights and assets attached to the land within the lease period according to the law, consistent with the project's intended land use. In cases where there is a change in the initial investment purpose of the project, the transfer of land use rights and assets attached to the land can only be carried out after approval by the competent authority.

4. The right to mortgage the value of land use rights and assets attached to the land during the lease period of the land or sublease of the land at credit institutions operating in Vietnam and foreign credit institutions in accordance with the relevant laws.

Article 7. The An Giang Border Economic Zone shall be developed primarily through the following sources of capital:

1. Annually, based on the provisions of the State budget law, investment law, the ability to balance the State budget, important technical-social infrastructure projects that have been approved by competent state authorities and the progress of project implementation, the Ministry of Planning and Investment shall coordinate with the Ministry of Finance and related agencies to allocate funds from targeted support from the central government budget for An Giang Province to implement important technical-social infrastructure investment projects in the An Giang Border Economic Zone.

2. Issuing construction bonds for large-scale investment projects in building infrastructure that play a key role in the development of the An Giang Border Economic Zone in accordance with the law on issuing bonds to raise investment capital.

3. Prioritize the use of ODA and preferential loan funds to invest in constructing technical-social infrastructure works and necessary public utility works in the An Giang Border Economic Zone and other technical assistance.

4. Attract investment through BOT, BT, BTO and other forms prescribed by law.

5. Mobilize capital from land funds in accordance with the law on land to invest in developing technical-social infrastructure serving the common needs of the An Giang Border Economic Zone.

6. Mobilize direct investment capital from domestic organizations and individuals, advance capital from entities requiring infrastructure use, and capital from enterprises with functions in construction and operation of technical infrastructure.

Expand the form of joint financing by credit institutions and mobilize all sources of capital under various forms in accordance with the law.

Chapter II

ACTIVITIES OF THE INDUSTRIAL AND COMMERCIAL ZONE

BELONGING TO THE AN GIANG BORDER ECONOMIC ZONE

Article 8. The An Giang Border Economic Zone includes industrial-commercial zones, administrative management areas, border control management and inspection areas, urban and residential areas, tourist and service areas, and agricultural, forestry, and fishery development areas. The scale and location of each area are determined in the overall and detailed planning of the An Giang Border Economic Zone.

The industrial-commercial zone belonging to the An Giang Border Economic Zone (hereinafter referred to as the industrial-commercial zone) is separated from other functional areas within the An Giang Border Economic Zone and inland by a hard fence system with entry and exit gates, ensuring the control of people, goods, and transportation means by relevant authorities.

There is no permanent resident population (including foreigners) within the industrial-commercial zone.

Article 9. Import and export of goods and services of the industrial-commercial zone

1. The exchange of goods and services between the industrial-commercial zone and other functional areas within the An Giang Border Economic Zone and inland is considered an export-import relationship and must comply with the provisions of Vietnamese laws on exports and imports; customs procedures must be carried out according to Vietnamese Customs Law. The exchange of goods and services between the industrial-commercial zone and foreign countries is treated as an exchange between foreign countries.

2. Economic organizations operating in the industrial-commercial zone may export to foreign countries and import from foreign countries all goods and services not prohibited by Vietnamese law.

3. Economic organizations and individuals within the An Giang Border Economic Zone and inland may only import from the industrial-commercial zone those goods and services not prohibited by Vietnam for importation; and export to the industrial-commercial zone those goods and services not prohibited by Vietnam for exportation.

4. Goods and services imported from abroad into the industrial-commercial zone or exported from the industrial-commercial zone to foreign countries are exempted from import and export duties.

5. Goods and services imported from abroad into the industrial-commercial zone are exempted from value-added tax.

6. Goods and services within the industrial-commercial zone; goods and services imported from abroad into the industrial-commercial zone are not subject to value-added tax; goods and services from other functional areas within the An Giang Border Economic Zone and from inland brought into the industrial-commercial zone enjoy a zero percent value-added tax rate; goods and services from the industrial-commercial zone brought into other functional areas within the An Giang Border Economic Zone and into inland Vietnam must be subject to value-added tax in accordance with current laws.

7. Goods and services subject to special consumption tax produced, consumed, or imported from abroad and from inland Vietnam into the industrial-commercial zone are exempted from special consumption tax, except for automobiles subject to special consumption tax.

8. Goods and services subject to special consumption tax exported from the industrial-commercial zone to foreign countries are exempted from special consumption tax.

9. Goods and services subject to special consumption tax brought from the industrial-commercial zone into inland Vietnam must be subject to special consumption tax.

10. Goods manufactured, processed, recycled, or assembled in the industrial-commercial zone using imported raw materials and components in accordance with current regulations on import management; when imported into inland Vietnam, they only need to pay import duty on the portion of raw materials and components constituting the product or goods. In cases where imported raw materials and components from abroad are not used, there is no need to pay import duty upon importation into inland Vietnam.

Article 10. Investment in the industrial-commercial zone

1. All investment projects in the industrial trade zone shall enjoy the maximum incentives applicable to areas with particularly difficult socio-economic conditions as stipulated in the Investment Law, the Law on Corporate Income Tax, the Law on Value Added Tax, and other incentives under international treaties, multilateral or bilateral trade agreements to which Vietnam is a party.

2. Investment projects in the industrial trade zone shall be exempt from corporate income tax for a period of four years from the date they begin generating taxable income, and shall have their corporate income tax reduced by fifty percent for the next nine years; they shall also apply a corporate income tax rate of ten percent for fifteen years from the date the investment project commences operations.

3. Investment projects that construct new production lines, expand scale, innovate technology, improve ecological environment, and enhance production capacity shall be exempt from corporate income tax for up to four years on additional income generated by such investments, and shall have their corporate income tax reduced by fifty percent for up to seven subsequent years.

4. In cases where legal regulatory documents provide different levels of incentives for the same issue, the higher-ranking legal document's provisions shall be applied.

5. Where legal regulatory documents issued by the same authority provide different regulations on the same issue, the regulation in the later-issued document shall be applied.

Chapter III

ACTIVITIES OF THE AN GIANG BORDER GATE ECONOMIC ZONE

Article 11. Entry and exit of persons and transport vehicles and residence in the An Giang Border Gate Economic Zone

1. Exit and entry of citizens of the Kingdom of Cambodia

a) Citizens of the Kingdom of Cambodia (hereinafter referred to as Cambodian citizens) entering and exiting the An Giang Border Gate Economic Zone shall use passports and be exempt from visa requirements for entry and exit to and from Vietnam, and may reside in the An Giang Border Gate Economic Zone for no more than 15 days. If they wish to enter locations outside the An Giang Border Gate Economic Zone, they must be considered for a visa at the border checkpoint by the competent authority.

b) Cambodian citizens residing in provinces sharing borders with An Giang Province may cross the An Giang Border Gate Economic Zone using border crossing certificates issued by authorized Cambodian authorities. The temporary stay permit in the An Giang Border Gate Economic Zone shall not exceed 15 days.

c) Cambodian citizens entering and exiting the border gate economic zone on the same day shall use identity cards issued by authorized Cambodian authorities.

2. Exit and entry, residence, and temporary stay in the An Giang Border Gate Economic Zone:

a) Foreign nationals and overseas Vietnamese holding foreign passports who come to the An Giang Border Gate Economic Zone to study the market, work, invest, or engage in business activities, along with their family members, shall be granted multiple-entry exit and entry visas. Those coming to work, invest, or engage in business activities will be considered for temporary residence permits, with the maximum validity period of the temporary residence permit being three years.

b) The Ministry of Public Security and the Border Guard Command shall guide the An Giang Provincial Police and the An Giang Provincial Border Guard Command in managing exit and entry, residence, and temporary stay in the An Giang Border Gate Economic Zone.

3. Entry and exit of transportation means

a) Land and waterway transportation means (hereinafter referred to as transportation means) of Cambodia and other countries entering the An Giang Border Gate Economic Zone with an international through-transport permit shall only be stamped by customs, while those without such a permit must go through temporary import and re-export procedures.

b) Transportation means of Cambodia and other countries entering and exiting the An Giang Border Gate Economic Zone on the same day need only confirm with customs at the border checkpoint and must anchor or park at designated berths under the management of relevant authorities.

Article 12. Investment in building economic and social infrastructure

1. The State prioritizes budget capital and preferential credit to support planning, investment, and development of economic and social infrastructure systems, important public service facilities, and utilities to ensure the operation and development of the An Giang Border Gate Economic Zone.

2. The allocation of capital for constructing economic and social infrastructure systems and public service and utility facilities as stipulated in Clause 1 of this Article shall be carried out in accordance with the State Budget Law.

3. In addition to central government budget funds, other sources of capital and economic sectors, as well as official development assistance (ODA) funds, shall also be mobilized to develop economic and social infrastructure.

4. Investment in building economic and social infrastructure in the An Giang Border Gate Economic Zone must not disrupt the planning and defense posture ensuring national defense tasks in the border area.

Article 13. Finance, Credit, and Land of the An Giang Border Gate Economic Zone

1. Enterprises of various economic components investing, producing, and operating in the An Giang Border Gate Economic Zone shall be eligible for state credit loans from the Vietnam Development Bank according to current regulations of the Government of Vietnam on state investment development credit.

2. Organizations and individuals engaged in the production, trading of goods and services, foreign-invested enterprises, and parties participating in joint business contracts operating within the An Giang Border Gate Economic Zone, after settling accounts with tax authorities and suffering losses, may carry forward these losses to the following year, deducting them from taxable income. The carry-forward period for losses shall not exceed five years.

3. Individuals working in the An Giang Border Gate Economic Zone who are subject to personal income tax according to the law shall have their tax liability reduced by fifty percent.

4. Domestic and foreign tourists visiting the industrial trade zone in the Tinh Bien border area may purchase imported goods and be exempt from import duties, value-added tax, and special consumption taxes (if applicable) when bringing them back to the domestic market, with a limit of no more than 500,000 Vietnamese dong per person per day.

Chapter IV

STATE MANAGEMENT OF THE AN GIANG BORDER GATE ECONOMIC ZONE

Organization of the Management Board of the An Giang Border Gate Economic Zone.

Article 14. Establishment of the organizational structure of the Management Board of the An Giang Border Gate Economic Zone.

1. The Management Board of the An Giang Border Economic Zone shall be established by the Prime Minister upon the proposal of the An Giang Provincial People's Committee and the Minister of Home Affairs.

2. The Management Board of the An Giang Border Economic Zone is a state management agency under the An Giang Provincial People's Committee to centrally and uniformly manage activities in investment construction and economic development within the An Giang Border Economic Zone according to operational regulations, planning, plans, and implementation schedules approved by competent state agencies.

3. The Management Board of the An Giang Border Economic Zone has: legal personality; a seal bearing the national emblem; office premises; dedicated staff; administrative and public service operating funds; development capital provided by the state budget annually.

4. The Director and Deputy Directors of the Management Board of the An Giang Border Economic Zone shall be appointed by the Chairman of the An Giang Provincial People's Committee.

Article 15. The Management Board of the An Giang Border Economic Zone shall have the following tasks and powers:

1. To take the lead and coordinate with functional agencies of An Giang Province to develop a general master plan for submission to the An Giang Provincial People's Committee for approval by the Prime Minister; to develop detailed zoning plans and detailed land use plans for submission to the An Giang Provincial People's Committee for approval; to organize management, dissemination, guidance, inspection, and supervision of the implementation of this operational regulation, plans, and schedules approved by competent state agencies.

2. To develop lists of investment projects and annual basic construction investment plans, including bond issuance schemes for approval by competent authorities and to implement them.

3. To issue, adjust, and revoke business registration certificates, representative offices, and branch establishment permits for foreign organizations and traders; investment certificates; investment incentives certificates; work permits for foreigners; Vietnamese citizens residing abroad coming to work and engage in business activities; certificates of origin for goods at the border economic zone; to assess and approve environmental impact reports or confirm compliance with environmental standards; planning and construction permits for investment projects within the An Giang Border Economic Zone and other permits and certificates authorized by competent state agencies.

4. To establish and promulgate price frameworks, submit to competent authorities for decisions on fee and tax frameworks as prescribed by law. To directly collect various fees and taxes and manage and use them in accordance with the law.

5. To act as the focal point for resolving issues arising during the formation and implementation of production and business investment projects and activities within the An Giang Border Economic Zone.

6. To cooperate with local authorities and related agencies to ensure that all activities within the An Giang Border Economic Zone comply with this operational regulation and plans and schedules approved by competent state agencies.

7. To manage and utilize development capital sources within the An Giang Border Economic Zone, manage construction projects funded by the state budget within the An Giang Border Economic Zone in accordance with regulations.

8. To develop programs for promoting industrial, trade-service, and tourism investments for approval by the An Giang Provincial People's Committee and to organize their implementation, introduction, negotiation, and promotion of domestic and foreign investments.

9. To closely cooperate with the Ministry of National Defense and the Ministry of Public Security to effectively implement projects related to defense and security.

10. To regularly report to relevant ministries and sectors and the An Giang Provincial People's Committee on the implementation of planning, construction, and policies within the An Giang Border Economic Zone. Based on annual summaries, to propose amendments and supplements to policies for submission to the Prime Minister.

11. To carry out cooperation, support for development, and joint management tasks between An Giang Province and Cambodian provinces to ensure the operation of the An Giang Border Economic Zone is consistent with agreements between the Government of Vietnam and Cambodia as well as agreements between An Giang Province and Cambodian provinces.

12. To perform other tasks assigned by the An Giang Provincial People's Committee for each period.

Article 16. The An Giang Provincial People's Committee is responsible for

1. Organizing the development of a general master plan for the An Giang Border Economic Zone for submission to the Prime Minister for approval and approving detailed zoning plans for the An Giang Border Economic Zone.

2. Approving detailed land use plans for the An Giang Border Economic Zone; conducting land recovery and allocation to the Management Board of the An Giang Border Economic Zone to organize the implementation of construction and development of the An Giang Border Economic Zone in accordance with regulations.

3. Establishing a land price framework and instructing the Management Board of the An Giang Border Economic Zone to set land use fee rates, land lease rates, exemptions, and reductions in land use fees; exemptions and reductions in land lease fees for each project to encourage investment, in cases where land use rights are not auctioned or projects using land are not tendered, and approving financial plans and prices for cases involving auctions of land use rights or tenders for projects using land.

4. To exercise state management functions over investment projects within the An Giang Border Economic Zone according to approved planning; to authorize the Management Board of the An Giang Border Economic Zone to approve domestic investment projects within its authority, while authorizing management and inspection of domestic and foreign organizations and individuals engaged in production and business activities within the An Giang Border Economic Zone as prescribed; to submit for approval or approve within its authority lists of development investment projects and annual development investment capital plans for the An Giang Border Economic Zone.

5. Enact specific preferential policies and incentives in accordance with current regulations to implement priority recruitment and utilization of local labor; support vocational training for local workforce; facilitate conditions for the local workforce to work at enterprises within the An Giang Border Gate Economic Zone; encourage and attract highly skilled and technically proficient labor from other places to work at the An Giang Border Gate Economic Zone; support the construction of housing for workers; support the establishment of resettlement areas; support investment in developing economic and social infrastructure systems, public service facilities, and utilities according to the State Budget Law; support investment promotion activities; support compensation and land clearance to accelerate the investment and development process of the An Giang Border Gate Economic Zone.

6. Direct and organize local government levels and provincial management agencies to coordinate with the Management Board of the An Giang Border Gate Economic Zone to implement compensation, land clearance, and ensure security and social order, creating favorable conditions for enterprises in the An Giang Border Gate Economic Zone to operate smoothly.

7. Allocate administrative operation funds, public service funds, and development investment capital for the Management Board of the An Giang Border Gate Economic Zone from the An Giang provincial budget annually.

8. Direct provincial functional agencies to cooperate and create favorable conditions for the Management Board of the An Giang Border Gate Economic Zone to fully perform their tasks and powers stipulated in this Regulation; coordinate with relevant ministries and sectors in organizing implementation and management to ensure rapid and sustainable development of the An Giang Border Gate Economic Zone.

9. Reach written agreements with the authorities of Cambodian provinces regarding principles of cooperation, support, and joint management of the activities of the An Giang Border Gate Economic Zone and neighboring Cambodian provinces based on the current laws of each country and in line with the development of cooperative relations among countries in the region.

Article 17. Responsibilities of Ministries and Sectors in State Management at the An Giang Border Gate Economic Zone

1. Ministries, ministerial-level agencies, agencies under the Government, and the People's Committee of An Giang Province shall, within their functions, tasks, and powers, manage state affairs concerning industries, fields, and territories of the An Giang Border Gate Economic Zone, delegate and guide the Management Board of the An Giang Border Gate Economic Zone to perform certain state management tasks in fields such as investment construction, planning, natural resource and environmental management, urban management and development, land management, labor, import and export, and other fields as prescribed by law and this Regulation, following the principle of "one-stop service" to facilitate investment and business operations of domestic and foreign organizations and individuals in the An Giang Border Gate Economic Zone and meet the development requirements of the An Giang Border Gate Economic Zone.

2. For fields not delegated or authorized to the Management Board of the An Giang Border Gate Economic Zone, Ministries, ministerial-level agencies, and the People's Committee of An Giang Province shall manage state affairs concerning the An Giang Border Gate Economic Zone by establishing subordinate units located within the An Giang Border Gate Economic Zone (excluding banking regulatory fields) and establish coordination regulations with the Management Board of the An Giang Border Gate Economic Zone to exercise assigned authority.

Chapter V

IMPLEMENTING PROVISIONS

Article 18. Other provisions related to the activities of organizations and individuals in the An Giang Border Gate Economic Zone that are not specified in this Regulation shall be implemented in accordance with corresponding articles of the Commercial Law, Investment Law, Enterprise Law, Land Law, other legal documents, and international treaties to which Vietnam is a party./.