Resolution 55/2022/QH15 special policies for the development of Khanh Hoa province

RESOLUTION

On pilot implementation of a number of special mechanisms and policies for the development of Khanh Hoa province

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THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam; Pursuant to the Law on Promulgation of Legal Documents No. 80/2015/QH13 which has been amended and supplemented by Law No. 63/2020/QH14;

RESOLVES:

Article 1. Scope of regulation

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

Article 2. Subjects of application

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

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

3. Other relevant organizations and individuals.

Article 3. Management of finance and state budget

1. Annually, the central budget shall be provided to the provincial budget with the target transfer of not exceeding 70% of the increase in central budget revenues from revenues shareable between the central budget and the provincial budget compared to the estimates assigned by the Prime Minister (the remaining amount after the implementation of the bonus for increased revenue as prescribed in Clause 4, Article 59 of the Law on the State Budget No. 83/2015/QH13 amended and supplemented by Law No. 59/2020/QH14) and revenues wholly belonging to the central budget specified at Points b, c, d, g, h, i and q, Clause 1, Article 35 of the Law on the State Budget No. 83/2015/QH13 as amended and supplemented by Law No. 59/2020/QH14 in comparison with the estimates assigned by the Prime Minister, but not exceeding the total increase in central budget revenues in the area compared to the previous year's revenues and the central budget does not have a revenue shortfall. The determination of target transfers shall be based on the sum of revenues, not counting each revenue separately.

2. The Province may borrow through the issuance of local government bonds, loans from domestic financial institutions, other domestic organizations and from the Government's foreign loans to the Province for on-lending with the total outstanding loan amount not exceeding 60% of the provincial budget revenues retained according to decentralization. The total annual provincial budget borrowing and deficit shall be decided by the National Assembly in accordance with the Law on the State Budget.

3. The Province shall be allocated an additional 45% of the expenditure calculated according to the population norm according to the principles, criteria and norms of allocation of the state budget current expenditure estimates in 2022 (excluding Clause 16, Article 5 of the Standing Committee of the National Assembly’s Resolution No. 01/2021/UBTVQH15 dated September 01, 2021 stipulating the principles, criteria and norms for allocation  of state budget current expenditure estimates in 2022) when formulating state budget current expenditure estimates in 2023 and during the implementation of this Resolution.

4. The Provincial People's Council shall decide to allow districts, towns and cities of the Province to use the budgets of districts, towns and cities and other lawful sources to support Khanh Son district and Khanh Vinh district in the prevention, control and remedy of consequences of natural disasters and epidemics, implementation of the national target programs on sustainable poverty reduction, new rural construction and socio-economic development of ethnic minority and mountainous areas.

Article 4. Planning management

On the basis of the planning scheme for construction of functional zones and urban planning already approved by the Prime Minister, the Prime Minister shall decide on the decentralization to the Provincial People's Committee to approve the partial adjustment of the general planning for construction of functional zones and the partial adjustment of the general urban planning according to the procedures as prescribed by the Prime Minister and reported to the Prime Minister on the implementation results.

Article 5. Land management

1. The Provincial People's Council shall decide to change the use purpose of under 500-hectare rice cultivation land areas; decide on the policies for changing the use purpose of under 1,000-hectare production forests as authorized by the Prime Minister in accordance with the national forestry planning, land use plannings and plans already decided by competent authorities.

The decision on changing land use purpose must be made public, collecting  opinions of people and subjects affected by the change of use purpose and ensure the principles and conditions for changing the land use purpose or forest use purposes to other purposes in accordance with the land law, the law on forestry and other relevant laws.

The order and procedures for change of land use purposes and forest use purposes under the competence of the Prime Minister shall be authorized by the Provincial People's Council as prescribed by the Prime Minister.

2. The preparation for land recovery in Van Phong Economic Zone and Cam Lam district is prescribed as follows:

a) For projects on construction of industrial parks, export processing zones, hi-tech parks and economic zones; urban areas, new rural residential areas; agricultural, forestry, aquatic and seafood production and processing zones concentrated on non-state budget capital in cases where land is recovered by the State in accordance with the land law and have a scale of 300 hectares or more, based on district-level land use plannings, district-level annual land use plans, the Provincial People's Council shall promulgate a list of projects that are subject to investigation, survey, measurement, tally and verification of land origins and land-attached assets in accordance with the procedures specified in this Clause;

b) Based on the list of projects specified at Point a of this Clause, the competent state agency shall recover land in accordance with the Land Law and issue a notice on the organization of investigation, survey, measurement, tally and verification of the origin of land and land-attached assets.

Notices of organization of investigation, survey, measurement, tally and verification of land origins and land-attached assets shall be sent to each land user and posted on the mass media, posted at the headquarters of commune-level People's Committees and common places of residential areas;

c) On the basis of the notice at Point b of this Clause, the organization in charge of compensation and ground clearance in accordance with the land law is permitted to carry out the investigation, survey, measurement, tally and verification of the origin of land and land-attached assets before competent state agency issues the notice of land recovery.

Commune-level People's Committees shall coordinate  with organizations in charge of compensation and ground clearance in carrying out surveys, examinations, measurements, counts and verification of land origins and land-attached assets.

Land users shall coordinate with organizations in charge of compensation and ground clearance in carrying out investigation, examinations and measurements to determine land areas, make statistics on houses and other land-attached assets in order to formulate compensation, support and resettlement plans;

d) After selecting the investor to implement the project in accordance with applicable law, the competent state agency shall issue the notice of land recovery in accordance with the provisions of the Land Law and use the results of investigation, examination, measurement, counting and verifying the origin of land and land-attached assets shall comply with the provisions of Point c of this Clause to make compensation, support and resettlement plans.

The formulation, appraisal, approval and implementation of compensation, support, resettlement plans and land recovery decisions shall comply with the provisions of the land law;

dd) The Provincial People's Council shall decide on the use of the local budget to implement the contents specified at Point c of this Clause and promulgate the procedures for implementation of the provisions of this Clause.

Article 6. Separation of compensation, support, resettlement and site clearance projects from public investment projects

1. The Provincial People's Council shall decide on the investment policy in the overall project with the scale of group-B projects in the field of transport and irrigation in accordance with the law on public investment, and may decide to permit the separation of compensation, support, resettlement, site clearance into an independent project when approving the investment policy of the overall project; decide on the objectives, scale, total investment, structure of capital sources and  investment location of the compensation, support, resettlement and site clearance project in the decision on investment policy of the overall project.

2. Based on the investment policy of the overall project, the Chairperson of the Provincial People's Committee shall decide on investment and adjustment of the project on compensation, support, resettlement and site clearance within the scope of objectives, scale, total investment, structure of capital sources and location for implementation  of the overall project.

In case of adjustment of compensation, support, resettlement or ground clearance projects arising from factors requiring adjustment of the overall project investment policy, the Provincial People's Council shall adjust the overall project investment policy before the Provincial  People's Committee president adjusts the compensation, support, resettlement and site clearance projects. The adjustment of the investment policy of the overall project and the adjustment of compensation, support, resettlement and site clearance projects shall comply with the provisions of the law on public investment and other relevant laws.

3. Decisions on investment in compensation, support, resettlement and ground clearance projects shall serve as a basis for competent authorities to decide   on the allocation of capital for annual public investment plans for implementation, and at the same time serve as a basis for state agencies competent to recover land to issue land recovery notices, decision on land recovery.

4.  The Provincial People's Council shall promulgate a list of public investment projects subject to separation of compensation, support, resettlement and ground clearance projects from public investment projects specified in this Article.

Article 7. Development of Van Phong Economic Zone

1. The list of sectors and trades prioritized for attracting investment in Van Phong Economic Zone includes:

a) Investment in the construction of innovation centers, research and development (R&D) centers; investment in information technology, research, production and transfer of high technologies in the fields of ocean, maritime, biotechnology, marine medicinal herbs and marine ecology with an investment capital of VND 1,500 billion or more;

b) Investment in the construction and operation of commercial and financial centers with an investment capital of VND 12,000 billion or more;

c) Investment in the construction and operation of urban areas with a land area of 300 hectares or more or with a population of 50,000 people or more; investment in the construction and business of hotels, tourist resorts, high-class resorts and general  entertainment with golf courses with an investment capital of VND 25,000 billion or more;

d) Investment in clean energy industry, high-tech processing and manufacturing industry, precision mechanics, oil and gas processing, electronics, and health care service zones with an investment capital of VND 6,000 billion or more;

dd) Construction and operation of airports, investment in ports, port areas of special seaports, logistics services, logistics services of seaports, harbors, port areas, general ports, special-use ports with an investment capital of VND 2,300 billion or more in grade-I seaports;

e) Investment in the construction and operation of infrastructure facilities  of non-tariff zones with an investment capital of VND 6,000 billion or more.

2. A strategic investor means an investor who satisfies the conditions specified in Clauses 3 and 4 of this Article.

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

a) Having the charter capital of VND 10,000 billion or more or total assets of VND 25,000 billion or more when executing an investment project specified at Points b and c, Clause 1 of this Article and having experience in investing in projects in the same field with the total investment capital of VND 10,000 billion or more;

b) Having the charter capital of VND 3,000 billion or more when executing an investment project specified at Points d and e, Clause 1 of this Article and having experience in investing in projects in the same field with the total investment capital of VND 6,000 billion or more;

c) Having the charter capital of VND 1,000 billion or more when executing an investment project specified at Point dd, Clause 1 of this Article and having experience in investing in projects in the same field with the total investment capital of VND 2,000 billion or more;

d) Having the charter capital of VND 500 billion or more when executing an investment project specified at Point a, Clause 1 of this Article and having experience in investing in projects in the same field with the total investment capital of VND 1,000 billion or more.

4. Strategic investors must make written commitments on training and development  of human resources, satisfying conditions for ensuring national defense, security and environmental protection in accordance with Vietnamese law.

5. Strategic investors specified in Clause 2 of this Article who are selected according to the procedures specified in Clause 7 of this Article to execute investment projects on the list of sectors and trades prioritized for investment attraction specified in Clause 1 of this Article shall be entitled to investment incentives and have the obligations specified in Clauses 8 and 9 of this Article.

6. Based on the list of sectors and trades prioritized for investment attraction specified in Clause 1 of this Article, investors or competent state agencies shall propose investment projects. For projects subject to approval for investment policies, the authority competent to approve investment policies for projects shall comply with the procedures for approval of investment policies in accordance with the law on investment and Clause 12 of this Article.

7. The procedures for project implementation registration and selection of strategic investors for projects other than those specified in Clause 4, Article 29 of the Law on Investment shall be implemented as follows:

a) Based on the decision on approval for the project investment policies specified in Clause 6 of this Article, the Van Phong Economic Zone Management Board shall publish the project information, preliminary requirements on the investor's capacity and experience and conditions for identification of strategic investors specified in Clauses 3 and 4 of this Article on the National Procurement Network System;

b) Based on the information disclosed at Point a of this Clause, the investor shall prepare and submit the project implementation registration dossier. The investor's project implementation registration dossier includes: the project implementation registration document; dossiers on the legal status, capacity and experience of the investor; documents proving the satisfaction of the conditions specified in Clauses 3 and 4 of this Article and other relevant documents (if any);

c) Upon the expiration of the project implementation registration period, the Van Phong Economic Zone Management Board shall organize  a preliminary assessment of the capacity and experience of investors who have submitted project implementation registration dossiers. Based on the results of the preliminary assessment of capacity and experience, the Head of the Management Board of Van Phong Economic Zone shall decide on the implementation according to one of the casesspecified at Points d, dd and  e of this Clause;

d) In case only 01 investor has registered and satisfies the preliminary requirements on capacity and experience or there are many investors registered but only 01 investor satisfies the preliminary requirements on capacity and experience, such investor shall be approved in accordance with the law on investment;

dd) In case there are 02 or more investors who meet the preliminary requirements on capacity and experience, of which only 01 investor is determined to meet the conditions for strategic investors specified in Clauses 3 and 4 of this Article, the investor shall be approved for such strategic investors in accordance with the law on investment;

e) In case there are 02 or more investors who meet the preliminary requirements on capacity and experience, including 02 or more investors who are determined to meet the conditions for strategic investors specified in Clauses 3 and 4 of this Article, the competent state agency shall apply or choose to apply the law on bidding to organize the selection of investors among investors who are determined to meet the conditions for strategic investors;

g)  The Provincial People's Committee shall detail the form of information disclosure of the project to attract strategic investors, including preliminary requirements on the investor's capacity and experience; the project implementation registration dossier.

8. Strategic investors are entitled to the following incentives:

a) To be included in the deductible expenses for determining taxable income for research and development (R&D) activities equal to 150% of the actual expenses of such activities when calculating enterprise income tax. Actual research and development (R&D) expenses are determined in accordance with accounting laws;

b) To enjoy the priority regime on customs procedures in accordance with the law on customs and tax procedures in accordance with the law on taxation for  exports and imports of investment projects implemented by strategic investors in Van Phong Economic Zone when they meet the conditions for application of the priority regime according to the law on customs and taxation, except for the conditions on export and import turnover.

9. Strategic investors have the following obligations:

a) Organizing the implementation of the project according to the contents specified in the investment registration certificate or the decision on approval for investment policies;

b) Advancing funds to the State for compensation, support and resettlement for projects subject to land recovery by the State in accordance with the Land Law; advancing at least VND 200 billion to the State for the implementation of public investment projects on construction of essential technical  infrastructure in Van Phong Economic Zone within 01 year from the date the project’s investment registration certificate or decision on approval of investment policies is granted for projects specified at Points b,  c and e, Clause 1 of this Article. The advance is deducted from the land use levy and land rent of the investment project that the investor must pay. The deductible level must not exceed the land use levy or payable land rent, and the remaining amount (if any) shall be included in the investment capital of the project;

c) Disbursement shall be made within 05 years for the projects specified at Points b and c, Clause 1 of this Article, and not more than 03 years for the remaining projects specified in Clause 1 of this Article from the date of issuance of the investment registration certificate or the decision on approval of investment policies. During this time, strategic investors are not allowed to transfer the project;

d) Providing financial support for vocational training for affected laborers in the project area; prioritizing the reception of local laborers to work at the project; fulfilling commitments on the application and transfer of advanced, new and high-tech technologies (if any).

10. In the course of implementing an investment project, in case the strategic investor fails to meet the conditions on capital, disbursement schedule and other conditions for strategic investors, he or she shall not be entitled to the incentives specified in this Resolution. Investors are responsible for the consequences arising from failure to fulfill their commitments in accordance with the law.

11. The Management Board of Van Phong Economic Zone shall organize the appraisal and approval of environmental impact assessment reports and grant environmental licenses for investment projects under the competence of the Provincial People's Committee in accordance with the Law on Environmental Protection; take responsibility before law for the quality of appraisal and  environmental impacts and send the decision approving the results of appraisal of the environmental impact assessment report to the Provincial People's Committee, which shall be responsible for monitoring and inspecting the compliance with the environmental law for the projects specified in this Clause.

12. The Provincial People's Committee shall approve the investment policies for investment projects on construction and operation of airports, investment in ports and port areas of special seaports; ports, port areas, general ports and special-use ports with an investment capital of VND 2,300 billion or more belonging to grade-I seaports of strategic investors.

The procedures for approval of investment policies specified in this Clause shall be the same as the procedures for approval of investment policies for projects falling under the competence to approve investment policies of provincial-level People's Committees in accordance with the law on investment. In the process of carrying out the procedures for approving investment policies, the Provincial People's Committee shall consult relevant ministries and industries and make decisions according to its competence.

Article 8. Marine economic development in Khanh Hoa province

1. Development of offshore aquaculture within the sea area under the management of the province:

a) On the basis of the Ministry of National Defence’s approval, the Provincial People's Committee shall assign the variable area for offshore aquaculture and grant a license for offshore aquaculture to domestic investors in the sea area beyond 06 nautical miles, the sea area located simultaneously within and outside 06 nautical miles;

b) Exemption of sea area use levy for 15 years and reduction of 50% of sea area use levy for the remaining time for sea area assigned for implementation of offshore aquaculture projects of domestic organizations and individuals engaged in offshore aquaculture activities beyond 06 nautical miles; the area is located simultaneously inside and outside 06 nautical miles.

Applying the enterprise income tax rate of 10%, tax exemption for 04 years and reducing 50% of the payable tax amount in the next 09 years for incomes of organizations being domestic investors from offshore aquaculture projects at sea beyond 06 nautical miles, areas located simultaneously within and outside 06 nautical miles;

c) Exemption of sea area use levy for 15 years for the sea area assigned for implementation of offshore aquaculture projects of domestic organizations and individuals that are domestic investors engaged in offshore aquaculture activities from 03 nautical miles to 06 nautical miles.

Applying the enterprise income tax rate of 17%, tax exemption for 02 years and reducing 50% of the payable tax amount in the next 04 years for incomes of organizations being domestic investors from offshore aquaculture projects from 03 nautical miles to 06 nautical miles;

d) Within the capacity to balance the local budget, the Provincial People's Council shall decide to support the purchase of accident insurance for employees   working on aquaculture cages and on vehicles in service of offshore aquaculture activities, and support for the purchase of natural disaster risk insurance for aquaculture subjects at sea;

dd) The commencement of tax incentives and conditions for application of tax incentives and incomes eligible for incentives specified in this Clause shall comply with the law on enterprise income tax.

Organizations and individuals shall not be entitled to the incentives specified at Point b and Point c of this Clause in case of violation of regulations on assignment of sea areas for offshore  aquaculture and licensing  of aquaculture at sea in accordance with relevant laws.

2. Establishment of the Khanh Hoa Fisheries Development Support Fund:

a) Permitting the establishment of the Khanh Hoa Fisheries Development Support Fund to supplement resources for fishery development, investment in fishing port infrastructure items and works, fishery processing establishments, fishery logistics services and other essential works, natural disaster prevention, serving people's livelihood in Truong Sa district that have not been invested by the state budget or invested insufficiently. Khanh Hoa Fisheries Development  Support Fund is a national fund established by the Government and assigned to the province to directly manage;

b) The Khanh Hoa Fisheries Development Support Fund shall receive support from the state budget of provinces and centrally-run cities, funding sources of domestic and foreign organizations and individuals and other lawful revenue sources;

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

d) The Government shall detail the establishment and operation regulations of the Fund.

Article 9. Implementation organization

1. The Government shall, within the ambit of its tasks and powers, organize the implementation of this Resolution; preliminarily review 03 years of implementation of the Resolution, report to the National Assembly at the end of 2025; summarize the implementation of the Resolution, report to the National Assembly at the mid-year session of 2027.

The Government and the Prime Minister shall consider and decide on the decentralization and authorization of localities to perform necessary tasks for the effective and synchronous implementation of this Resolution.

2. The Standing Committee of the National Assembly, the  Ethnic Council, the Committees of the National Assembly, the Provincial Delegations of National Assembly Deputies and National Assembly Deputies shall, within the ambit of their tasks and powers, supervise the implementation of this Resolution.

Article 10. Implemention provisions

1. This Resolution takes effect from August 1, 2022 and shall be implemented for 05 years.

2. For public investment projects whose investment policies have been decided before the effective date of this Resolution, in case of necessity, the competent agencies shall adjust the investment policies of the overall projects in order to separate the compensation and support, resettlement and ground clearance from public investment projects according to Article 6 of this Resolution.

3. Investors, organizations and individuals that have carried out the activities specified in Articles 7 and Article 8 of this Resolution before the effective date of this Resolution, satisfy the conditions and perform the obligations specified in these Articles shall be entitled to the incentives specified in this Resolution for the remaining operation period of the project investment and offshore aquaculture activities.

4. Projects specified in Articles 7 and Article 8 of this Resolution of which investment policies are approved or investment registration certificates are granted during the effective period of this Resolution shall be entitled to investment incentives under the provisions of Articles 7 and Article 8 of this Resolution until the end of the project implementation period.

5. In case the projects specified in Articles 7 and Article 8 of this Resolution are eligible for incentives as prescribed by current law at a higher  level or are entitled to other forms of incentives than those prescribed in this Resolution, they shall continue to enjoy such incentives in accordance with law.

This Resolution was approved by the XV^th National Assembly of the Socialist Republic of Vietnam, at its 3^rd session on June 16, 2022.

CHAIRMAN OF THE NATIONAL ASSEMBLY

Vuong Dinh Hue