Pursuant to …;
Issuing certain mechanisms and policies for developing housing for workers in industrial zones on lease
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PRIME MINISTER
Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Resolution No. 18/NQ-CP dated April 20, 2009 of the Government;
Considering the proposal of the Minister of Construction,
DECISION:
Article 1. General Provisions
1. The State shall create favorable conditions and incentives for all economic sectors to participate in investing in housing for workers in industrial zones, export processing zones, and economic zones (hereinafter referred to collectively as worker housing in industrial zones) through socialization.
2. Investment in constructing worker housing in industrial zones must meet the following requirements: compliance with the overall planning for the development of industrial zones and economic zones; general planning and detailed construction planning for industrial zones and economic zones; planning and investment plans for developing technical infrastructure and social infrastructure serving the development of industrial zones and economic zones, approved by competent state agencies; having a synchronized technical and social infrastructure system, ensuring sufficient functional areas and living spaces to serve residential and cultural and sports activities, thereby creating a civilized, safe, and orderly living environment.
3. When organizing and approving the overall planning for the development of industrial zones and economic zones; general planning and detailed construction planning for industrial zones and economic zones; planning and investment plans for developing technical infrastructure and social infrastructure serving the development of industrial zones and economic zones, in accordance with Decree No. 29/2008/NĐ-CP dated March 14, 2008 of the Government on industrial zones, export processing zones, and economic zones, competent state agencies must simultaneously organize and approve the planning for developing housing for workers in conjunction with the development planning of industrial zones and economic zones.
4. By 2015, approximately 50% of workers in industrial zones with housing needs shall have their housing issues resolved in accordance with this Decision.
Article 2. Model for implementing projects to invest in building worker housing in industrial zones
1. The local Industrial Zone Management Board or the enterprise operating the industrial zone's infrastructure may be entrusted to act as the primary investor in constructing the worker housing area's infrastructure (Primary Investor). The project investor for the industrial zone's infrastructure must organize the determination of the housing needs of workers in the industrial zone, and at the same time organize the preparation and submission for approval by the competent authority of the planning for constructing housing for workers in conjunction with the industrial zone. 2. After completing the infrastructure of the worker housing area, the Primary Investor may either invest in building housing themselves or transfer the land with infrastructure to production enterprises within the industrial zone, or enterprises with functions in housing business (Secondary Investors) to invest in building housing for workers to lease.
Article 3. Land Fund for Building Worker Housing in Industrial Zones
1. For industrial zones currently in the formation stage, the Primary Investor shall organize compensation, clearance of land, and investment in the technical infrastructure of the worker housing area in the industrial zone. The costs of compensation, clearance of land, and investment in technical infrastructure of the worker housing area shall be allocated to the rental price of land in the industrial zone.
2. For established industrial zones, the following principles apply:
a) The provincial People's Committee shall review and supplement the planning, organize the recovery, compensation, and clearance of land to create a new land fund to allocate to the local Industrial Zone Management Board, enterprises operating industrial zone infrastructure, production enterprises within the industrial zone, or enterprises with functions in housing business to invest in building housing for workers in the industrial zone to lease. The costs of compensation and clearance of land shall be drawn from the revenue from land use fees and land rental fees retained by the locality;
b) Utilize the 20% land fund designated for building social housing in commercial housing projects and new urban areas within the locality to allocate to the investors mentioned in point a of Clause 2 of this Article to invest in building housing for workers in the industrial zone to lease, if the land fund is consistent with the planning;
c) Allocate the enterprise operating industrial zone infrastructure to organize the planning of the worker housing area and act as the investor for the worker housing project in the industrial zone. When approving the planning for the worker housing area, the provincial People's Committee shall consider and permit the use of part of this land fund to build commercial housing, generating revenue to offset the costs of compensation, clearance of land, and construction of infrastructure for the worker housing area.
c) Direct the industrial infrastructure business enterprise to organize the planning of worker residential areas and act as the main investor for the worker housing project in the industrial zone. When approving the planning of the worker residential area, the provincial People's Committee shall consider and permit the use of part of this land fund to construct commercial housing, creating a source to offset compensation costs, land clearance, and the construction of infrastructure for the worker residential area.
Article 4. Design standards and rental prices for industrial zone workers' housing
1. Design standards for industrial zone workers' housing:
a) The minimum living area standard for industrial zone workers' housing shall be 5 m²/person; technical infrastructure and social infrastructure construction indicators within the workers' housing area shall comply with current Construction Standards;2/person; technical infrastructure and social infrastructure construction standards in the worker residential area according to current Construction Standards;
b) When organizing detailed construction planning, reviewing, and approving, the density of construction and land use coefficient for industrial zone workers' housing projects may be increased by 1.5 times compared to the current Construction Planning Standards, without controlling the number of floors, in accordance with the approved construction plan by the competent authority.
2. Rental Prices:
The rental price for industrial zone workers' housing shall be approved by the Provincial People's Committee based on the proposal of the investor, following the principle of not including state incentives, not including compensation costs for land clearance and infrastructure construction for the industrial zone workers' housing area (already allocated into the industrial zone land rental price), ensuring a maximum profit margin of 10%, with a minimum capital recovery period of 20 years.
Article 5. Incentives for investors in industrial zone workers' housing construction projects
1. Investors who wish to participate in investing in industrial zone workers' housing construction projects shall register their investment with the Provincial People's Committee to enjoy the investment incentive mechanisms stipulated in Clause 2 of this Article.
2. Investors in industrial zone workers' housing projects (including primary investors and secondary investors as defined in Clauses 1 and 2 of Article 2 of this Decision) shall enjoy the following investment incentive mechanisms:
a) Exemption from land use fees and land rental fees within the project scope;
b) Application of the highest preferential VAT rate (0%);
c) Exemption from corporate income tax for four years from the date of taxable income, and a 50% reduction in corporate income tax for the next nine years, with an application of a 10% corporate income tax rate throughout the operation period;
d) Enterprises that self-build workers' housing (without charging rent or charging rent but at a rate not exceeding the rental price of social housing as prescribed by the Provincial People's Committee) and enterprises that lease housing for workers shall be allowed to include housing expenses as reasonable costs (included in production cost) when calculating corporate income tax;đ) Access to investment credit support from the following sources:
- Preferential loans or interest rate subsidies as prescribed;
- Loans from local Housing Development Funds and other preferential loan sources (if available);
- Partial or full interest payment support by the Provincial People's Committee (depending on each locality's budget capacity);
e) Provision of free sample designs and typical designs for housing, as well as scientific and technological advancements in construction and installation to reduce construction costs;
f) Application of self-execution if they have sufficient capacity according to the law or designation of contractors for consulting, construction, and equipment procurement contracts; g) State support for external infrastructure development outside the project boundary (transportation, electricity supply, water supply and drainage).
3. Procedures and processes for implementing investment and construction projects for industrial zone workers' housing shall be carried out in accordance with laws on investment and construction and the provisions of this Decision.
Article 6. Management of construction quality for investment and construction projects of industrial zone workers' housing
1. The management of construction quality for industrial zone workers' housing projects shall be implemented in accordance with laws on construction quality management (Government Decree No. 209/2004/ND-CP dated December 16, 2004 on construction quality management; Government Decree No. 49/2008/ND-CP dated April 18, 2008 amending and supplementing certain articles of Government Decree No. 209/2004/ND-CP dated December 16, 2004 on construction quality management and guiding documents issued by the Ministry of Construction).
2. Industrial zone workers' housing projects must be independently assessed by consulting firms regarding the suitability of construction quality before being put into use.
2. The worker housing project in the industrial zone must be independently assessed for quality suitability by a consulting organization before being put into use.
Article 7. Management of the use, operation, and exploitation of the worker housing fund in industrial zones
1. The worker housing fund in industrial zones must be maintained and strictly managed during operation, without arbitrarily changing the purpose of use. Maintenance of the facilities must comply with the regulations on construction under the law. The management rules for the use, operation, and exploitation of the worker housing fund in industrial zones shall be implemented according to the guidelines of the Ministry of Construction.
2. The project investor of worker housing in industrial zones is permitted to lease or entrust a unit with the function of managing housing services or establish a housing service organization to manage and operate the housing fund they have invested in. The unit managing and operating the worker housing fund in industrial zones is permitted to conduct other services within the housing area to create revenue to offset management and operation costs, maintenance expenses, thereby reducing rental prices for housing.
3. The unit managing and operating the worker housing fund in industrial zones must develop internal regulations for using worker housing, publicly announce them so that workers renting houses and related units and individuals are aware and comply with them.
Article 8. Objectives and Conditions for Renting Worker Housing
1. The unit managing and operating the worker housing fund in industrial zones is responsible for leasing to the correct target group, which are workers employed in industrial zones; priority will be given to cases where workers from outside the province have employment contracts at the industrial zone where the worker housing project is located, workers with low income who do not have housing or have temporary housing.
2. Workers in industrial zones who need to rent housing must submit an application, confirmed by the production enterprise in the industrial zone, and sign a housing rental contract with the unit managing and operating the worker housing fund in industrial zones.
3. Workers in industrial zones renting housing must pay full rent, comply with the internal regulations for using housing set by the unit managing and operating the worker housing fund in industrial zones; they may not sublet or transfer the rental contract, and if violated, their contract will be terminated or they will be dealt with according to the provisions of the law.
Article 9. Implementation Organization
1. Relevant Ministries, sectors, and People's Committees of provinces and centrally governed cities are responsible for organizing the implementation of tasks assigned in Resolution No. 18/NQ-CP dated April 20, 2009 of the Government.
2. The Ministry of Construction:
a) Idirectly instruct and guide key localities (Hanoi City, Ho Chi Minh City, and some other localities) and some State-owned Corporations to implement investment and construction of certain worker housing projects in industrial zones in accordance with this Decision during the period of 2009-2010;
b) Issue model designs, typical designs for worker housing in industrial zones; management rules for the use, operation, and exploitation of the worker housing fund in industrial zones; rental contract templates applicable to worker housing construction investment projects;
c) Monitor, urge, and compile the implementation situation of this Decision; propose amendments and supplements to suit the actual situation for submission to the Prime Minister for consideration and decision.
3. The Ministry of Planning and Investment shall take the lead, coordinate with the Ministry of Construction, the Ministry of Natural Resources and Environment, and relevant ministries, sectors, and provincial and centrally governed city people's committees to adjust the overall planning for the development of industrial zones and economic zones in conjunction with the planning for the development of worker housing in industrial zones, for submission to the Prime Minister for approval.
4. The Ministry of Finance:
a) Guide the implementation of financial and tax incentives related to policies stipulated in this Decision;
b) Study and report to the Government to submit to the National Assembly for supplementation of the highest tax incentives for worker housing construction projects in the last session of the National Assembly in 2009.
5. The Ministry of Natural Resources and Environment shall take the lead, coordinate with the Ministry of Construction and localities to organize reviews of land use plans to supplement land funds for worker housing construction projects; guide the implementation of land incentives according to the provisions of this Decision.
6. Provincial and centrally-administered city People's Committees shall be responsible for:
a) Organize and direct the investigation, survey, compilation of needs, and the establishment of programs, plans, and lists of investment construction worker housing projects within the jurisdictional area during the period of 2009-2015, to be completed in the second quarter of 2009 and sent to the Ministry of Construction for consolidation and reporting to the Prime Minister;
b) Review, adjust the general planning, detailed construction planning, land use planning, and land use plans of the locality to supplement land for developing worker housing in industrial zones; prioritize the use of land use fees and land rental fees retained by the locality for compensation and clearance of land to create a land fund for investing in worker housing in established industrial zones within the jurisdictional area;Organize and direct the implementation of the investment construction
c) program within the jurisdictional area according to the plan, ensuring quality; inspect, examine, and handle violations related to investment construction, management of construction quality, management of the use, operation, and exploitation of the worker housing fund in industrial zones within their authority; in industrial zones Organize mid-term reviews and annual assessments of the results of investment construction of worker housing in industrial zones, report to the Ministry of Construction for consolidation and reporting to the Prime Minister.
d) This Decision takes effect from June 10, 2009.
Article 10. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairmen of provincial and centrally governed city People's Committees are responsible for implementing this Decision./.
Article 11. The Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees, and Chairpersons of municipal People's Committees directly under the Central Government are responsible for implementing this Decision./.