Decree No. 99/2003/NĐ-CP on the issuance of the Regulation on the High-Tech Zone

DECREE

On the issuance of the High-Tech Zone Regulation

THE GOVERNMENT

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;

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 Provisions of the Law on Foreign Investment in Vietnam dated June 9, 2000;

At the proposal of the Minister of Science and Technology,

DECREE

Article 1. This Decree promulgates the High-Tech Zone Regulation.

Article 2. This Decree shall take effect fifteen days from the date of publication in the Official Gazette and shall replace the High-Tech Zone Regulation issued in Government Decree No. 36/CP dated April 24, 1997 concerning the issuance of the Industrial Zone, Export Processing Zone, and High-Tech Zone Regulations. All provisions contrary to this Decree are hereby abolished.

Article 3. Ministers, Heads of ministerial-level agencies, Heads of government agencies, Chairpersons of provincial people's committees under central cities, and Directors of High-Tech Zone Management Boards shall be responsible for implementing this Decree.

REGULATIONS
High-Tech Zone
(Issued together with Government Decree No. 99/2003/NĐ-CP dated August 28, 2003)

PART I

GENERAL PROVISIONS

Article 1. Scope of regulation and applicable subjects

Article 1. This Regulation stipulates the organization and operation of the High-Tech Zone.

Article 2. The subjects to which this Regulation applies include domestic and foreign agencies, organizations, enterprises, and individuals who are Vietnamese citizens, overseas Vietnamese, and foreigners operating within the High-Tech Zone.

Article 2. Definitions

In these Regulations, the following terms are understood as follows:

Point 1. "High technology" refers to technology integrated from advanced scientific and technological achievements, capable of creating a sudden increase in labor productivity, functionality, quality, and added value of goods, forming new production or service industries with high economic and social efficiency, significantly impacting economic and social development and national defense and security.

Point 2. "High-tech product" is a product created through the application of high technology.

Point 3. "High-Tech Zone" is a multifunctional economic and technical area with defined boundaries, established by the Prime Minister's decision, aimed at researching, developing, and applying high technology, nurturing high-tech enterprises, training high-tech human resources, and producing and trading high-tech products. Within the High-Tech Zone, there may be export processing zones, bonded warehouses, tax-free areas, and residential areas.

Point 4. "Investor" refers to domestic and foreign organizations and enterprises, individuals who are Vietnamese citizens, overseas Vietnamese, and foreigners investing in the High-Tech Zone.

Point 5. "Nurturing high-tech enterprises" involves supporting organizations and individuals with scientific and technological ideas and research results to complete technology, test products, and establish enterprises to produce high-tech products.

Article 3. Objectives of the High-Tech Zone

Article 1. Contributing to building research and development capabilities in high technology fields in the country.

Article 2. Creating a favorable environment for investment activities to attract domestic and foreign capital, high technology, and high-tech human resources, contributing to building high-tech industries as drivers of economic development, particularly in key economic regions.

Article 3. Facilitating the integration between training, high technology research and development, production, and services, promoting technological innovation, nurturing high-tech enterprises, and commercializing high technology.

Article 4. Contributing to economic growth, enhancing the technological level of production and competitiveness of goods and services.

Article 4. State Guarantees

Article 1. Prioritizing budget funds for the construction of the High-Tech Zone and certain technical infrastructure projects outside the High-Tech Zone directly serving its operations.

Article 2. Treating equally and providing favorable conditions for domestic and foreign organizations, enterprises, and individuals to invest in the High-Tech Zone; scientists and experts working in the High-Tech Zone.

Article 3. Protecting ownership rights over invested capital, assets, profits, intellectual property rights, and other legitimate rights and interests of organizations, enterprises, and individuals operating in the High-Tech Zone; ensuring that their lawful assets in the High-Tech Zone are not requisitioned, confiscated, or nationalized during the implementation of investment projects.

Chapter II

INVESTMENT ACTIVITIES

Article 5. Fields of investment and encouraged high technologies

Article 1. Investment fields:

a) Construction and operation of technical infrastructure projects.

b) Production and trade of high-tech products.

c) Scientific research and development of technology, training of high-tech human resources.

d) Nurturing high technology, high-tech enterprises, and promoting high-tech trade.

đ) Provision of services.

Article 2. Encouraged high technologies:

a) Information technology, telecommunications, and software technology.

b) Biotechnology for agriculture, aquaculture, and healthcare.

c) Microelectronics, precision machinery, mechatronics, optoelectronics, and automation.

d) New materials technology, nanotechnology.

đ) Environmental technology, new energy technology.

e) Other special technologies.

Article 3. Based on the high technologies specified in Clause 2 of this Article, the High-Tech Zone Management Board shall announce a list of specific projects encouraged for investment in the High-Tech Zone in the fields of high-tech product manufacturing, high-tech services, and high-tech research and development.

Article 6. Authority and procedures for investment in the High-Tech Zone

Article 1. The High-Tech Zone Management Board shall guide investors on investment procedures in the High-Tech Zone; receive applications, issue, adjust, and revoke Investment Licenses for projects authorized; submit to competent state authorities for issuing, adjusting, and revoking Investment Licenses for projects not authorized.

Article 2. For authorized projects, within fifteen working days from the receipt of complete and valid documents, the High-Tech Zone Management Board must examine, decide, and notify the investor of the issuance or refusal of the Investment License and Investment Incentive Certificate. If refused, the High-Tech Zone Management Board must respond in writing and specify the reasons.

3. For investment projects not authorized, the High-Tech Zone Management Board shall be responsible for serving as the focal point to assist investors in resolving difficulties and obstacles during the implementation of investment procedures according to the one-stop principle on-site.

4. Investment projects in the High-Tech Zone shall be established in accordance with the provisions of the law, clearly explaining compliance with the conditions for enjoying investment incentives as stipulated by law.

5. Investment incentives for foreign-invested projects shall be considered simultaneously during the process of reviewing and issuing the Investment License and shall be specified in the Investment License. Incentives for domestic investment projects shall be specified in the Certificate of Investment Incentive.

Chapter III

LAND MANAGEMENT AND INFRASTRUCTURE CONSTRUCTION

Article 7. Land Management

1. The High-Tech Zone Management Board shall be allocated land once to organize the construction and development of the High-Tech Zone according to the approved planning and intended use. The High-Tech Zone Management Board shall allocate land and lease land to investors in accordance with the procedures prescribed by the law on land.

2. Investors using land within the High-Tech Zone shall be issued a Certificate of Land Use Right. The authority to issue Certificates of Land Use Right shall be in accordance with the provisions of the law on land.

3. The procedures and formalities for allocating land and issuing Certificates of Land Use Right shall be carried out in accordance with the guidelines of the Ministry of Natural Resources and Environment.

Article 8. Planning Management and Infrastructure Construction

1. The construction of technical infrastructure structures and works within the High-Tech Zone must comply with the approved planning. The High-Tech Zone Management Board shall manage the planning files, technical designs, and completion certificates of infrastructure construction works within the High-Tech Zone.

2. For technical infrastructure works constructed with state budget funds, the High-Tech Zone Management Board shall organize their implementation in accordance with the current legal regulations.

3. For technical infrastructure works constructed with non-state budget funds, the High-Tech Zone Management Board shall guide and supervise investors in implementing construction in accordance with the legal regulations.

4. Power supply, water supply, postal and telecommunications facilities outside the boundaries of the High-Tech Zone shall be implemented by specialized enterprises according to the requirements of the High-Tech Zone Management Board, in line with the planning and construction schedule of the High-Tech Zone.

Article 9. CAPITAL FOR INFRASTRUCTURE CONSTRUCTION

1. State budget capital shall be allocated for the following tasks:

a) Preparing the general and detailed planning, and investment preparation work.

b) Land clearance, mine clearance, explosive material clearance, and land leveling.

c) Constructing the common technical infrastructure of the High-Tech Zone, and the headquarters of the High-Tech Zone Management Board.

d) Constructing the technical infrastructure of the training area, research and development high-tech area.

đ) Constructing the High-Tech Enterprise Incubator.

2. Depending on specific conditions for each High-Tech Zone, the Prime Minister shall consider and decide the proportion of investment funds returned for constructing the High-Tech Zone from the annual revenue from land leasing and taxes collected within the High-Tech Zone, and the time frame for implementing this decision.

3. The construction of infrastructure in the remaining areas shall be carried out with other sources of capital.

4. The State shall prioritize calling for Official Development Assistance (ODA) capital to construct the High-Tech Zone.

Chapter IV

HIGH-TECH ZONE ENTERPRISES

Article 10. High-Tech Zone Enterprises

1. High-Tech Zone Enterprises are enterprises established in accordance with the law and operating within the High-Tech Zone, including: infrastructure development enterprises, high-tech enterprises, high-tech service enterprises, High-Tech Zone Development Company, and public service enterprises.

2. High-Tech Zone Enterprises shall have the following rights and obligations:

a) Choosing the form of investment.

b) Being allocated land, leasing land, or subleasing developed land; leasing or purchasing factories.

c) Being issued a Certificate of Land Use Right; being able to mortgage the value of land use right and property attached to the land at financial institutions in accordance with the law.

d) Being able to transfer the value of land use right and property attached to the land during the lease period in accordance with the law. The transferee shall be responsible for continuing to fulfill the obligations and enjoy the benefits stipulated in the contract that the transferor has signed with the infrastructure development enterprise or the High-Tech Zone Development Company, except where there is a different agreement.

đ) Enjoying investment incentive policies as prescribed.

e) Operating in accordance with the provisions of the Investment License.

g) Providing information to the High-Tech Zone Management Board and relevant state management agencies as prescribed.

h) Other rights and obligations as prescribed by law.

Article 11. Infrastructure Development Enterprises

1. Infrastructure Development Enterprises are enterprises constructing and operating technical infrastructure, housing, factories, and other works within the High-Tech Zone according to approved projects.

2. Infrastructure Development Enterprises shall have the following rights and obligations:

a) Rights and obligations prescribed in Clause 2 of Article 10 of this Regulation.

b) Being responsible for the quality of works; performing maintenance and upkeep of works constructed by the enterprise.

c) Promoting investment in the High-Tech Zone.

d) After two years from the date of the decision approving the technical infrastructure development project, if the Infrastructure Development Enterprise does not implement the project, the High-Tech Zone Management Board will review and reclaim the approval decision for the project.

Article 12. High-Tech Enterprises

1. High-Tech Enterprises are enterprises producing goods on production lines applying high technology.

2. High-Tech Enterprises shall have the right to directly export products produced by the enterprise and the rights and obligations as stipulated in Clause 2 of Article 10 of this Regulation.

Article 13. High-Tech Service Enterprises

1. A high-tech service enterprise is an enterprise providing information services, advanced technical services, technology transfer, and knowledge transfer directly serving high-tech research and development activities and the production of high-tech products.

2. High-tech service enterprises have rights and obligations as prescribed in Clause 2 of Article 10 of this Regulation.

Article 14. High-Tech Zone Development Company

1. The High-Tech Zone Development Company is a state-owned enterprise under the High-Tech Zone Management Board.

2. The High-Tech Zone Development Company operates in the following fields:

a) Investment in construction and development of the High-Tech Zone.

b) Construction and operation of infrastructure projects in the High-Tech Zone.

c) Providing services for investment activities and technology transfer activities within the High-Tech Zone.

d) Other activities registered in accordance with the law.

3. The High-Tech Zone Management Board shall stipulate the organizational structure and approve the Articles of Operation of the High-Tech Zone Development Company.

4. The High-Tech Zone Development Company has rights and obligations as prescribed in Clause 2 of Article 11 of this Regulation.

Article 15. Civil Service Enterprises

1. Civil service enterprises are enterprises that provide housing, school, healthcare, cultural life, and other services related to the daily lives of residents in the High-Tech Zone.

2. Civil service enterprises have rights and obligations as prescribed in Clause 2 of Article 10 of this Regulation.

Article 16. Export Processing Zones, Bonded Warehouses, and Tax-Free Zones

1. Within the High-Tech Zone, export processing zones, bonded warehouses, and tax-free zones shall be established in accordance with the law.

2. The Ministry of Trade shall issue regulations on the organization and operation of tax-free zones within the High-Tech Zone.

Chapter V

SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES, HIGH-TECH WORKFORCE TRAINING

Article 17. Scientific and technological activities

1. Scientific and technological activities at the High-Tech Zone include: adaptive research, improvement, and innovation of high-tech; incubation and transfer of high-tech; scientific and technological services.

2. The State encourages domestic and foreign organizations, businesses, and individuals to invest in high-tech research and development activities at the High-Tech Zone.

3. The State focuses on investing in building key laboratories in priority fields at the High-Tech Zone.

4. Scientists and experts from both domestic and foreign countries working in laboratories at the High-Tech Zone shall enjoy preferential policies as prescribed by law.

Article 18. High-Tech Workforce Training Activities

1. High-tech workforce training activities at the High-Tech Zone include:

a) Training and instructing high-tech workers and technicians.

b) Participating in doctoral training programs in high-tech fields.

2. The State encourages domestic and foreign organizations, businesses, and individuals to establish vocational training centers and implement cooperative training programs at the High-Tech Zone to train and instruct high-tech workers and technicians.

3. Training organizations at the High-Tech Zone may lease infrastructure facilities and services under favorable conditions and are responsible for complying with laws on education and training.

Chapter VI

RISK INVESTMENT, INCUBATION OF HIGH-TECH ENTERPRISES, AND HIGH-TECH TRADE

Article 19. Venture Capital Fund

1. A venture capital fund is a financial organization established in accordance with the law to invest in high-tech incubation activities and high-tech enterprises. The venture capital fund operates based on its Articles of Organization and Operation.

2. Functions of the Venture Capital Fund:

a) Mobilizing, receiving, and managing legitimate investment capital from domestic and foreign organizations, businesses, and individuals.

b) Investing in high-tech incubation activities, high-tech enterprises, and enjoying benefits from such investments.

3. The State encourages:

a) Foreign investment funds currently operating in Vietnam and abroad to participate in risk investment activities at the High-Tech Zone.

b) Domestic organizations and individuals, or those jointly established with foreigners, to set up venture capital funds.

4. The State creates conditions and provides initial funding support to form venture capital funds to develop domestic high-tech enterprises and high-tech industries.

Article 20. High-Tech Enterprise Incubator

1. The High-Tech Enterprise Incubator is tasked with organizing and implementing support activities for organizations and individuals with scientific and technological ideas and research results to complete technology, test products, and establish high-tech product manufacturing enterprises.

2. Conditions, rights, and obligations of organizations and individuals incubating enterprises at the High-Tech Enterprise Incubator.

a) Conditions: having a high-tech project approved for incubation.

b) Benefits:

Receiving 50% rent subsidy for office and workshop space from the High-Tech Zone Management Board.

Free consulting and provision of information related to enterprise incubation activities at the High-Tech Enterprise Incubator.

Leasing infrastructure and services under favorable conditions.

Being allowed to use equipment in laboratories funded by the State at the High-Tech Zone.

Receiving support to borrow from financial institutions and investment funds.

c) Obligations: complying with the High-Tech Zone Management Board's regulations and laws.

Article 21. High-Tech Trade and Product Activities

1. High-tech trade and product activities within the High-Tech Zone include:

a) Exhibitions and advertising of high-tech and high-tech products.

b) Purchasing and selling high-tech products.

c) Transfer of high-tech.

d) Consulting services for high-tech and high-tech product commercialization.

2. The High-Tech Zone Management Board organizes and manages the activities prescribed in Clause 1 of this Article in accordance with the law.

Chapter VII

LABOR MANAGEMENT AND POPULATION CONTROL

Article 22. Labor Relations

The High-Tech Zone Management Board implements management, inspection, and supervision of the implementation of labor laws within the High-Tech Zone pursuant to the authorization of competent state management agencies.

Article 23. Labor Utilization

1. Investors operating in the High-Tech Zone have the right to directly recruit and utilize labor in accordance with the provisions of the law.

2. Foreign nationals and overseas Vietnamese residing abroad working in the High-Tech Zone shall be granted work permits by the Management Board of the High-Tech Zone under the delegation of competent state management agencies.

3. Investors utilizing labor shall be responsible for registering lists of foreign workers and overseas Vietnamese residing abroad, and changes to these lists with the Management Board of the High-Tech Zone.

4. In cases of merger, division, transfer of ownership, management rights, or usage rights of assets among investors in the High-Tech Zone, the new owner or subsequent employer shall be responsible for continuing to implement collective labor agreements and signed labor contracts until the parties agree to amend or terminate the old contract and sign a new one.

Article 24. Labor conditions

Labor conditions, rights, and obligations of each party in the labor relationship shall be agreed upon in the labor contract between the employer and employee on the basis of ensuring the legitimate benefits of the employee.

Article 25. Residency in the High-Tech Zone

Vietnamese, overseas Vietnamese residing abroad, foreigners working in the High-Tech Zone, and their families may reside in the High-Tech Zone in accordance with the law and regulations of the Management Board of the High-Tech Zone.

Chapter VIII

FINANCE, ACCOUNTING, FOREIGN EXCHANGE

Article 26. Currency Unit

The currency unit used in accounting and bookkeeping by investors in the High-Tech Zone is the Vietnamese Dong.

Article 27. Payment Currency

Investors in the High-Tech Zone shall settle all payments due to the state budget, purchase, sell, pay, transfer, and other transactions using the Vietnamese Dong.

Article 28. Financial Accounting System

Investors in the High-Tech Zone shall comply with the financial accounting system as prescribed by law. Investors with foreign capital must obtain approval from the Ministry of Finance and notify the Management Board of the High-Tech Zone before applying different accounting standards from those commonly accepted internationally.

Article 29. Fiscal Year

1. The fiscal year runs from January 1st to December 31st annually. For the first fiscal year, it runs from the date of issuance of the Investment License to December 31st of that year.

2. Investors in the High-Tech Zone with foreign investment may adopt a 12-month fiscal year not coinciding with the calendar year, but such adoption must be approved by the Ministry of Finance and notified to the Management Board of the High-Tech Zone prior to implementation.

Article 30. Financial Reports

Investors in the High-Tech Zone shall prepare and submit annual financial reports to competent state management agencies according to the reporting system already approved.

Article 31. Foreign Exchange Management

Foreign exchange management for investors in the High-Tech Zone shall be carried out in accordance with Vietnam's foreign exchange management regulations.

Chapter IX

STATE MANAGEMENT OF THE HIGH-TECH ZONE

Article 32. Content of State Management

1. Developing strategies, planning, plans, and mechanisms and policies for the development of the High-Tech Zone.

2. Prescribing and guiding the establishment, construction, development, and management of activities in the High-Tech Zone.

3. Issuing, adjusting, and revoking licenses.

4. Inspecting, auditing, supervising compliance with laws, and handling violations of laws in the High-Tech Zone.

Article 33. Responsibilities of State Management

1. Ministry of Science and Technology:

a) Taking the lead in developing comprehensive strategies and master plans for the development of the High-Tech Zone nationwide, consistent with economic and social development strategies and science and technology development strategies for each period, and submitting them to the Prime Minister for consideration and approval.

b) Drafting and promulgating, within its authority, or submitting to the Government and the Prime Minister for promulgation, legal normative documents related to mechanisms and policies for the development of the High-Tech Zone.

c) Organizing inspections and audits of the construction, development, management, and operation of High-Tech Zones; evaluating the effectiveness of operations in High-Tech Zones and regularly reporting to the Prime Minister.

2. The main managing agency of the High-Tech Zone:

a) Submitting to the Prime Minister for the appointment of the Director of the Management Board of the High-Tech Zone.

b) Delegating the Director of the Management Board of the High-Tech Zone to decide on projects of Group B and Group C investments funded by the state budget in accordance with the law.

3. Provincial People's Committees where the High-Tech Zone is located shall manage administrative, civil affairs, security, and public order in the High-Tech Zone in coordination with the Management Board of the High-Tech Zone.

4. Ministries: Planning and Investment, Finance, Construction, Labor - Invalids and Social Affairs, Home Affairs, Natural Resources and Environment, Commerce, and other relevant ministries and agencies shall manage the High-Tech Zone or delegate the Management Board of the High-Tech Zone to perform certain state management tasks according to their functions and responsibilities.

Article 34. Management Board of the High-Tech Zone

The Management Board of the High-Tech Zone, established by the Prime Minister, has the function of state management over activities in the High-Tech Zone in accordance with the law. The Management Board of the High-Tech Zone has an organizational structure and staffing under the main managing agency of the High-Tech Zone, uses a seal with the national emblem, is assigned annual targets, has a primary account, and receives operational funding from the state budget.

Article 35. Tasks and Authorities of the Management Board of the High-Tech Zone

1. Planning and Management:

a) Managing the implementation of the overall plan of the High-Tech Zone and detailed plans for functional areas.

b) Preparing five-year and annual development plans for the High-Tech Zone and submitting them to the main managing agency of the High-Tech Zone and competent state agencies for approval.

c) Implementing approved construction and development plans for the High-Tech Zone.

2. Investment Promotion, Investment Management, and Construction:

a) Formulating and implementing plans for investment promotion and facilitation.

b) Issuing, adjusting, and revoking Investment Licenses and Investment Incentive Certificates in accordance with Article 6 of this Regulation.

c) Decide on investment projects of group B and C for investment items using state budget funds pursuant to the delegation from the managing agency of the High-Tech Zone.

d) Organize the construction and operation of construction works and technical infrastructure facilities within the High-Tech Zone.

đ) Cooperate with organizations, enterprises, and individuals both domestically and internationally in areas related to investment in construction and development of the High-Tech Zone.

e) Inspect the implementation of investment projects within the High-Tech Zone.

3. Land management:

Carry out land management within the High-Tech Zone in accordance with Article 7 of this Regulation.

4. Draft the Charter of organization and operation of the High-Tech Zone Management Board for approval by the managing agency of the High-Tech Zone.

5. Organize and manage services within the High-Tech Zone.

6. Report periodically and urgently to the Prime Minister, the managing agency of the High-Tech Zone, and relevant state management agencies about the situation of construction, development, management, and operation of the High-Tech Zone.

Article 36. Organization structure of the High-Tech Zone Management Board

1. The organizational structure of the High-Tech Zone Management Board includes the Director, Deputy Directors, office, specialized departments, public service units, and the High-Tech Zone Development Company.

2. The Director of the High-Tech Zone Management Board shall be appointed by the Prime Minister upon the proposal of the managing agency of the High-Tech Zone. Deputy Directors shall be appointed by the head of the managing agency of the High-Tech Zone upon the proposal of the Director.

3. The Director of the High-Tech Zone Management Board is responsible for directing all activities of the High-Tech Zone Management Board and is accountable to the Prime Minister and the head of the managing agency of the High-Tech Zone for the operation and effectiveness of the High-Tech Zone.

Chapter X

IMPLEMENTING PROVISIONS

Article 37. Dispute resolution

Disputes arising within the High-Tech Zone shall be resolved in accordance with the provisions of the law.

Article 38. Handling Violations

Organizations, enterprises, and individuals operating within the High-Tech Zone that violate the provisions of the law and this Regulation shall be dealt with according to the provisions of the law depending on the severity of the violation.

Article 39. Other Provisions

Apply the provisions of other regulatory legal documents for issues related to the operation of the High-Tech Zone not covered by this Regulation.