Decision No. 10/2009/QD-TTg dated January 16, 2009 of the Prime Minister providing for the mechanism of support for manufacture of key mechanical products and the list of investment projects to manufacture key mechanical products during 2009-2015

DECISION

PROVIDING FOR THE MECHANISM OF SUPPORT FOR MANUFACTURE OF KEY MECHANICAL PRODUCTS AND THE LIST OF INVESTMENT PROJECTS TO MANUFACTURE KEY MECHANICAL PRODUCTS DURING 2009-2015

THE PRIME MINISTER

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

Pursuant to the Prime Minister's Decision No. 186/2002/QD-TTg of December 26, 2002, approving the Strategy for development of Vietnam's mechanical engineering sector up to 2010, with a vision toward 2020;

At the proposal of the Ministry of Industry and Trade in Document No. 9639/BCT-CNNg of October 9, 2008, and opinions of ministries and branches on the mechanism of and policies on support for the development of the manufacture of key mechanical products, the list of key mechanical products, and the list of investment projects to manufacture key mechanical products,

DECIDES:

Article 1. To promulgate the mechanism and policies toward, the list of key mechanical products, and the list of investment projects to manufacture key mechanical products during 2009-2015, specifically:

1. Investment credit policy:

- Investment projects to manufacture key mechanical products may borrow from the Vietnam Development Bank state investment credit loans equal up to 85% of their total investment capital amounts (excluding working capital) with interest rates, loan terms and grace periods compliant with regulations on state investment credits.

- The Government may consider on a case-by-case basis providing guarantee for investment projects to manufacture key mechanical products to borrow foreign loans.

- In special cases, the State Steering Committee for the Program on key mechanical products shall study and propose specific investment credit mechanisms and policies to the Prime Minister for consideration and decision.

2. Demand stimulation policy:

- Enterprises manufacturing or purchasing key mechanical products may apply the form of appointment of contractors or assignment of contracts under current law.

- Organizations and individuals of all economic sectors that purchase key mechanical products may borrow state credit loans from the Vietnam Development Bank under regulations.

3. Research and development investment policy:

- Domestic enterprises manufacturing key mechanical products are eligible for supports from the National Assistance Fund for Scientific and Technological Development to cover expenses for technology transfer, purchase of design copyright and software, hiring of foreign experts and training of human resources.

- The State provides part of funds invested by enterprises of all economic sectors in laboratories studying key mechanical products. The State Steering Committee for the Program on key mechanical products shall study and propose specific investment projects to the Prime Minister for consideration and decision.

4. Tax and charge policies:

- Ceiling import tax rates will be applicable to imported products on the List of key mechanical products which can be domestically manufactured until the expiration of the tariff exemption and reduction schedules to which Vietnam has committed with the international community.

- Supplies and equipment imported for the manufacture of key mechanical products and for investment in manufacturing key mechanical products are eligible for the import tax rate of 0% or the lowest import tax rate under Vietnam's international commitments.

Article 2. Subjects of application

Eligible for the support policies specified in Article 1 are key mechanical products and investment projects to manufacture key mechanical products on the lists enclosed with this Decision and manufactured or implemented by domestic enterprises.

Article 3. Organization of implementation

1. The Ministry of Industry and Trade, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Science and Technology, the State Bank of Vietnam and the Vietnam Development Bank shall, within the ambit of their functions and tasks, guide investors, organizations and individuals in implementing the aforesaid mechanism and policies.

2. In the course of implementation, the Steering Committee for the Program on key mechanical products shall propose to the Prime Minister for consideration and decision the supplementation or abolishment of support mechanisms and policies, the list of key mechanical products and the list of investment projects to manufacture key mechanical products.

Article 4. This Decision takes effect 45 days from the date of its signing.

All previous stipulations on specific key mechanical products and projects to manufacture key mechanical products, which have been approved by the Prime Minister, will continue to be effective.

Article 5. Ministers, heads of ministerial-level agencies and government-attached agencies, presidents of provincial-level People's Committees, heads of concerned agencies, and members of the Steering Committee for the Program on key mechanical products shall implement this Decision.

APPENDIX I

LIST OF KEY MECHANICAL PRODUCTS DURING 2009-2015
(To the Prime Minister's Decision No. 10/2009/QD-TTg of January 16, 2009)

APPENDIX II

LIST OF INVESTMENT PROJECTS TO MANUFACTURE KEY MECHANICAL PRODUCTS DURING 2009-2015

(To the Prime Minister's Decision No. 10/2009/QD-TTg of January 16, 2009)