Decision No. 92/2006/QD-TTg dated April 25, 2006 of the Prime Minister establishing Van Phong economic zone, Khanh hoa Province, and promulgating its operation regulation

DECISION

ESTABLISHING VAN PHONG ECONOMIC ZONE, KHANH HOA PROVINCE, AND PROMULGATINGITS OPERATION REGULATION

THE PRIME MINISTER

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

Pursuant to the Political Bureau's Resolution No. 39-NQ/TW of August 16, 2004;

Pursuant to the Prime Minister's Decision No. 148/ 2004/QD-TTg of August 13, 2004, on major orientations for socio-economic development of the key economic region of Central Vietnam to 2010 and vision to 2020;

At the proposal of the Planning and Investment Minister,

DECIDES:

Article 1.- To establish Van Phong economic zone, Khanh Hoa province.

Article 2.- To promulgate together with this Decision the Regulation on operation of Van Phong economic zone, Khanh Hoa province.

Article 3.-This Decision takes effect 15 days after its publication in "CONG BAO."

Article 4.- Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and the president of the People's Committee of  Khanh Hoa province shall have to implement this Decision.

REGULATION

ON OPERATION OF VAN PHONG ECONOMIC ZONE, KHANH HOA PROVINCE
(Promulgated together with the Prime Minister's Decision No. 92/2006/QD-TTg of April 25, 2006)

Chapter I

GENERAL PROVISIONS

Article 1.- This Regulation provides for the organization and operation of, a number of mechanisms and policies applicable to, and the state management of, Van Phong economic zone, Khanh Hoa province (hereinafter referred to as Van Phong EZ for short); the rights and obligations of domestic and foreign organizations and individuals producing and trading in goods or providing services as well as enterprises investing in the construction and commercial operation of infrastructures and an international container entrepot in Van Phong EZ.

The Regulation on organization and operation of the international container entrepot in Van Phong EZ shall be separately promulgated.

Article 2.-

1. Van Phong EZ is a zone with definite geographical boundaries in the national territory and under the national sovereignty, a separate economic space, a favorable and equal investment and business environment, comprising an international container entrepot which plays the leading role, functional areas, socio-technical infrastructure works, service and public facilities.

2. Van Phong EZ has a total area of 150,000 hectares, of which the water surface area is around 80,000 hectares and the land area is around 70,000 hectares in Van Ninh and Ninh Hoa districts, Khanh Hoa province, with its geographical boundaries determined as follows:

- To the north, it borders on Tuy Hoa district, Phu Yen province;

- To the south, it borders on Hon Heo;

- To the east, it borders on the East Sea;

- To the west, it borders on the mountainous areas of Van Tho, Van Phuoc, Van Binh, Van Phu, Van Luong and Van Hung communes and Van Gia district township of Van Ninh district, and Ninh Son, Ninh Dong, Ninh Binh, Ninh Hung and Ninh Tan communes  of Ninh Hoa district.

Article 3.- Major development objectives of Van Phong EZ:

1. To build and develop Van Phong EZ into a general economic zone with the international container entrepot playing the leading role, develop a multi-sector and multi-branch economy centering on the development of industry, tourism, service, aquaculture, other economic branches and the construction of urban centers.

2. To speed up the investment in construction and development of Van Phong EZ, which shall, together with Chu Lai open economic zone, Dung Quat economic zone and Nhon Hoi economic zone, form by 2010 a string of closely interrelated economic zones which shall serve as growth nuclei and urban-industrial-service-tourist centers of the southern Central Vietnam, the key economic region of Central Vietnam, and a hub for international exchange and an important tourist center of the whole country.

3. To create jobs, promote training and raise the quality of the region's human resources, thus contributing to creating products of high quality and competitiveness.

4. To efficiently tap the advantages of natural conditions as well as geographical, economic and political position of the southern Central Vietnam in international and domestic commercial exchange and service provision, thus promoting the region's socio­economic development which shall spread to the neighboring areas and help narrow the development gap with other regions throughout the country.

Article 4.- The Government of the Socialist Republic of Vietnam encourages and protects investment and business activities of Vietnamese organizations and individuals of all economic sectors;  overseas Vietnamese and foreign organizations and individuals in Van Phong EZ in such fields as: investment and dealing in infrastructures in functional areas and urban centers; commercial provision of transportation and seaport services, such as entrepot transportation of goods, reception, portage and transportation of goods, maritime services including carriage, loading/unloading, inspection, tallying, packing/unpacking, preservation and warehousing of goods; development of industries, and financial, banking, tourist, entertainment, insurance, housing, goods import and export services; trade promotion; exhibitions and other production and business activities according to the provisions of Vietnamese law and international agreements to which Vietnam is a contracting party.

Article 5.- Domestic economic organizations, households and individuals, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises and parties to business cooperation contracts under the Law on Investment in Vietnam, that produce and trade in goods or provide services in Van Phong EZ, shall have the following interests and obligations:

1. Interests:

a/ To be transferred the rights to use, rent or sub-rent land on which technical infrastructures have been constructed in Van Phong EZ from enterprises investing and dealing in infrastructures according to relevant provisions of land law for building workshops and architectures in service of their goods production and trading or service provision.

b/ To rent or purchase workshops or warehouses already built in Van Phong EZ in service of their goods production and trading or service provision under contracts signed with enterprises investing in infrastructure construction and dealing;

c/ To use and pay charges for technical infrastructures, service and public facilities in Van Phong EZ, including: systems of traffic roads, seaports, electric power supply, water supply and drainage, information and communication, wastewater and waste treatment as well as other general services in Van Phong EZ under contracts signed with enterprises investing in infrastructure construction and dealing;

d/ To enjoy the investment preferences provided for in this Regulation;

e/ To enjoy other legitimate interests provided for by Vietnamese law and international agreements to which Vietnam is a contracting party.

2. Obligations:

a/ To abide by the provisions of this Regulation and the provisions of law, detailed plannings on functional areas already approved by competent state agencies and stipulations of their investment registration certificates, investment preference certificates or investment licenses, business registration certificates or charters; to use land for the proper purposes for which such land is allocated, leased or subleased;

b/ To create conditions for enterprises investing in infrastructure construction and dealing to conduct the maintenance, regular repair or upgrading of infrastructures in functional areas, technical infrastructures and service and public facilities in land areas used by organizations and individuals in Van Phong EZ;

c/ To pay rent for rented or subrented land, rented or purchased workshops or warehouses, charges for use of infrastructures in functional areas, technical infrastructures and service and public facilities in Van Phong EZ to enterprises investing and dealing in such infrastructures under signed contracts;

d/ To perform tax, customs and environmental protection obligations and other obligations according to the provisions of law;

e/ Domestic economic organizations, households and individuals, that invest in production or business in Van Phong EZ, shall register their operation with the Management Board of Van Phong EZ;

f/ To observe the regime of reporting on operation on a monthly, quarterly or yearly basis to the Management Board of Van Phong EZ;

Article 6.- Domestic economic organizations, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises, that invest in the construction and commercial operation of infrastructures of functional areas, technical infrastructures, service and public facilities in Van Phong EZ (hereinafter collectively referred to as enterprises investing in the construction and commercial operation of infrastructures) shall have the following interests and obligations:

1. Interests:

a/ To be leased or reallocated land with or without the collection of land use levy by the Management Board of Van Phong EZ according to relevant provisions of land law for investing in the construction and commercial operation of infrastructures of functional areas, technical infrastructures, service and public facilities in Van Phong EZ;

b/ To transfer land use rights or sublease land on which technical infrastructures in Van Phong EZ have been built to domestic organizations and individuals, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises, parties to business cooperation contracts under the Law on Investment in Vietnam for investment in goods production and trading or service provision in Van Phong EZ according to the relevant provisions of land law;

c/ To collect charges for use of infrastructures of functional areas, technical infrastructures, service and public facilities in Van Phong EZ under contracts signed with lessees;

d/ To build workshops and warehouses in Van Phong EZ for sale or lease;

e/ To set rent rates for subleased land on which technical infrastructures have been built, charge rates for use of technical infrastructures, service and public facilities in Van Phong EZ after obtaining consents of the Management Board of Van Phong EZ; to set rent rates or selling prices of workshops, warehouses and service charges;

f/ To enjoy other legitimate interests provided for by law.

2. Obligations:

a/ To build infrastructures in functional areas, technical infrastructures, service and public facilities in Van Phong EZ in strict compliance with already approved detailed plannings, designs and schedules.

Where they are reallocated land with or without the collection of land use levy or leased land by the Management Board of Van Phong EZ according to the relevant provisions of land law for execution of projects on investment in construction and commercial operation of technical infrastructures, service and public facilities in Van Phong EZ but fail to use such land for 12 consecutive months or use such land 24 months later than the land use progress scheduled in their investment projects as from the time such land is handed over afield without the prolongation permission of Van Phong EZ's Management Board, the latter shall decide on land recovery without any land compensation.

b/ To maintain or regularly repair infrastructures in functional areas, technical infrastructures, service and public facilities in Van Phong EZ in order to ensure their quality;

c/To abide by the provisions of this Regulation and the detailed planning on functional areas approved by competent agencies; to use land for the proper  purposes for which such land has been allocated or leased;

d/To perform tax and customs obligations and other obligations according to the provisions of law.

e/ To report their operation on a monthly, quarterly or yearly basis to Van Phong EZ's Management Board;

Chapter II

ORGANIZATION AND OPERATION OF VAN PHONG ECONOMIC ZONE

Article 7.-

1. Van Phong EZ consists of two major functional areas: the non-tariff area and the tariff area.

The non-tariff area covers: the international container entrepot, the logistic port area and the commercial-financial center, which are determined in the planning on Van Phong EZ, Khanh Hoa province, till 2020 as approved by the Prime Minister.

The tariff area covers the functional quarters, including the oil entrepot, the special-use port, the general port, the tourist resort, the industrial zone, the urban population quarter and the administrative quarter.

The size and position of each functional quarter are determined in the planning on Van Phong EZ, Khanh Hoa province, till 2020, as approved by the Prime Minister.

2. In order to ensure that the quality of the long-term development planning is up to the requirements of international economic integration, Van Phong EZ's Management Board may hire foreign consultancy companies to take part in the elaboration of the detailed planning on functional quarters.

Article 8.-

1. The non-tariff area shall be separated from the tariff area in Van Phong EZ and inland Vietnam by a system of fencing walls with entrance gates and doors, thus ensuring the control by relevant functional agencies. The non-tariff area shall have its customs office for supervision, inspection and carrying out of customs procedures for in-and-out goods. In the non-tariff area, there will be no permanent or temporary inhabitants (Vietnamese and foreigners as well).

2. The non-tariff area's activities are of the following principal production and business types:

a/ Entrepot transportation, receipt, portage and transportation of goods from Vietnam to foreign countries and vice versa;

b/ Production, processing, reprocessing and assembly of imports, exports, goods for on-spot consumption and spare parts for repair of equipment;

c/ Trading in goods (including import, export, border-gate transfer, temporary import for re-export, distribution, sale at duty-free shops and supermarkets);

d/ Provision of maritime and commercial services: transportation, loading/unloading, inspection and tallying, forwarding, packing/unpacking, movement, preservation and warehousing of goods; supply of materials, equipment and techniques, water, food and fuels; provision of postal, communications, financial, banking, insurance, entertainment, recreation and food-catering services;

e/ Trade promotion (trade fairs, exhibitions, showrooms, branches and representative offices of domestic and foreign companies and financial institutions-banks) and other commercial activities.

Article 9.-

1. The relations of goods and service exchange between the non-tariff area and foreign countries or non-tariff areas of other economic zones or export processing zones, and among economic organizations in the non-tariff area shall be considered exchange relations between foreign countries and shall not be subject to customs procedures. Economic organizations operating in the non-tariff area may export to, and import from, foreign countries all goods and services not banned by Vietnamese law from export and import.

2. The retention of goods in the non-tariff area is not temporally restricted.

3. Foreign ships may directly enter the non-tariff port area in Van Phong EZ for loading or discharging cargoes without having to carry out the entry and exit procedures for people onboard. They shall only carry out entry and exit procedures for ships at buoy zero.

Article 10.-

1. The relations of goods and service exchange between the non-tariff area and the tariff area (other than export processing zone) in Van Phong EZ and inland Vietnam shall be considered exchange relations between foreign countries and Vietnam and comply with current provisions of law on customs and on export tax and import tax.

2. Domestic and foreign organizations and individuals, that are engaged in goods production and trading or service provision in the tariff area in Van Phong EZ and inland Vietnam, may only import from the non-tariff area goods and services not banned by Vietnamese law from import and sell into the non-tariff area goods and services not banned by Vietnamese law from export.

Article 11.-

1. Imports and exports in the following cases shall not be liable to import tax and export tax:

a/ Goods imported from foreign countries and other non-tariff areas into the non-tariff area in Van Phong EZ;

b/ Goods exported from the non-tariff area to foreign countries and other non-tariff areas;

c/ Goods transferred or sold from the non-tariff area into export processing zones or export processing enterprises in the Vietnamese territory;

d/ Goods not liable to export tax and originating from inland Vietnam, which are brought into the non-tariff area (except for goods specified in Clause 2 of this Article).

2. For goods liable to export tax and originating from inland Vietnam, which are brought into the non-tariff area for export to foreign countries without going through production, processing, reprocessing or assembly into products in the non-tariff area, export tax must be paid and export procedures must be carried out according to current regulations and such goods must be subject to customs inspection and supervision.

3. For goods originating from foreign countries and not on the list of goods banned or restricted from import, which are imported from the non-tariff area into the tariff area (other than export processing zone) in Van Phong EZ and inland Vietnam, import tax must be paid and import procedures must be carried out according to current regulations, and such goods must be subject to customs inspection and supervision.

4. For goods produced, processed, reprocessed or assembled in the non-tariff area with the use of raw materials and components imported from foreign countries, when being imported into the tariff area (other than export processing zone) in Van Phong EZ and inland Vietnam, import tax shall be paid only for the part of raw materials or components imported from foreign countries constituting such products or goods and import procedures must be carried out according to current regulations, and such goods must be subject to customs inspection and supervision.

5. Goods and services produced, provided and consumed in the non-tariff area and those imported from foreign countries into the non-tariff area shall not be liable to value added tax. Goods and services brought from inland Vietnam and the tariff area in Van Phong EZ into the non-tariff area shall be liable to value added tax at the tax rate of 0%. Goods and services brought from the non-tariff area into inland Vietnam and the tariff area in Van Phong EZ shall be taxed according to the provisions of law on value added tax.

6. For goods and services liable to special consumption tax which are produced and consumed in the non-tariff area or imported from foreign countries into the non-tariff area, special consumption tax shall not be paid (except for goods items liable to special consumption tax under separate regulations).

7. For goods and services liable to special consumption tax, which are brought from the non-tariff area into the tariff area in Van Phong EZ and inland Vietnam, special consumption tax shall be paid.

8. Production raw materials, supplies and goods imported by domestic and foreign organizations and individuals, that are engaged in goods production and trading or service provision in the non-tariff area, from foreign countries but not used up, and faulty products which still have commercial value, may be sold into other functional quarters in Van Phong EZ and inland Vietnam after the customs procedures therefor are completed and import tax is paid according to current regulations.

Chapter III

INVESTMENT PREFERENCES

Article 12.- Domestic and foreign organizations and individuals may select to execute investment projects in Van Phong EZ (except those on the list of projects in domains in which investment is banned under Vietnamese law). Projects on conditional investment in the tariff area in Van Phong EZ shall be executed according to the current provisions.

Article 13.-

1. All investment projects of domestic and foreign organizations and individuals in Van Phong EZ shall enjoy the enterprise income tax rate of 10% for 15 years from the date of commencement of business operation of such investment projects and shall be exempt from enterprise income tax for 4 years after the taxable incomes are generated and enjoy 50% reduction of payable tax for 9 subsequent years. They shall also enjoy other tax incentives applicable to geographical areas with particularly difficult socio­economic conditions as provided for by the Investment Law, other tax laws, and other preferences provided for by international agreements to which Vietnam is a contracting party.

2. Production investment projects of domestic and foreign organizations and individuals in Van Phong EZ shall enjoy import tax exemption for 5 years from the date of production commencement for production raw materials, supplies, components and semi­finished products, which cannot be domestically produced.

3. High income earners, Vietnamese and foreigners as well, who are working in Van Phong EZ, shall enjoy 50% reduction of income tax on high income earners.

4. Projects in hi-tech fields, which satisfy the requirements specified in Clause 2, Article 5 of the Regulation on Hi-Tech Parks promulgated together with the Government's Decree No. 99/2003/ND-CP of August 28, 2003, on investment in Van Phong EZ shall enjoy the enterprise income tax rate of 10% throughout their implementation duration.

Article 14.- Domestic enterprises of all economic sectors, which have projects on investment in production or business in Van Phong EZ, shall enjoy various kinds of the State's preferential credit according to current provisions of law on the State's development investment credit.

Article 15.- Domestic economic organizations, overseas Vietnamese, foreigners permanently residing in Vietnam, foreign-invested enterprises, foreign organizations and individuals may invest in building dwelling houses for sale or lease; invest in infrastructures in functional quarters for lease, sub­lease or transfer of the rights to use land in Van Phong EZ on which infrastructures have been built according to relevant provisions of land law. Overseas Vietnamese may purchase dwelling houses associated with rights to use residential land in Van Phong EZ.

Article 16.- To apply the single-price policy to goods, services and single land rent rate to all organizations and individuals conducting production and/or business activities in Van Phong EZ, regardless of whether they are domestic or foreign ones.

Chapter IV

USE OF LAND IN VAN PHONG ECONOMIC ZONE

Article 17.-

1. The entire land and water surface area reserved for investment in construction and development of the industrial zone, the port and the non-tariff area in Van Phong EZ, which have already been identified in the general planning on Van Phong EZ approved by the Prime Minister and the detailed land use planning approved by the People's Committee of Khanh Hoa province, shall be allocated only once to Van Phong EZ's Management Board for organization of construction and development.

The People's Committee of Khanh Hoa province shall direct the recovery of the land areas planned for construction of the industrial zone, the port and the non-tariff area in Van Phong EZ.

2. The People's Committee of Khanh Hoa province shall direct the recovery of land and water surface areas which, under the approved detailed land use planning, shall be used for other functional quarters and other purposes in Van Phong EZ for subsequent allocation to Van Phong EZ's Management Board under the approved annual and five-year detailed land use plans for organization of construction and development of Van Phong EZ.

3. The People's Committee of Khanh Hoa province shall direct Van Phong EZ's Management Board to coordinate with the local administration in conducting the compensation and ground clearance for land and water surface areas already recovered by competent state agencies for allocation to Van Phong EZ's Management Board for the latter to sub-allocate land with or without the collection of land use levy and lease land to persons with land use demands, or for purpose of resettlement of households whose land has been recovered according to the provisions of land law. Van Phong EZ's Management Board shall manage the land and water surface fund already allocated to it and take responsibility for their efficient use and proper land use purposes, thus ensuring strict compliance with the general planning on Van Phong EZ approved by the Prime Minister and the detailed land use planning and plans approved by the People's Committee of Khanh Hoa province.

4. For case of land sub-allocation and land lease without going through auction of land use rights or bidding of projects involving land use: Basing itself on the land price and the land use levy exemption or reduction level, land rent exemption or reduction level set by the People's Committee of Khanh Hoa province and relevant provisions of law, Van Phong EZ's Management Board shall decide on land and water surface use levy level and rent rate; on land and water surface use levy or rent exemption or reduction level for each investment project in order to guarantee investment promotion.

5. For cases of land sub-allocation with the collection of land use levy and land lease through auction of land use rights or bidding of projects involving land use: Basing itself on the financial plan and land price approved by the People's Committee of Khanh Hoa province, Van Phong EZ's Management Board shall decide on sub-allocation and lease of land for which compensations and ground clearance have been made to persons with land use demands according to the provisions of land law.

6. Domestic organizations and individuals and overseas Vietnamese may be allocated or leased land; foreign organizations and individuals, foreign-invested enterprises, parties to business cooperation contracts under the Investment Law may lease land for execution of investment projects in Van Phong EZ and shall have rights and obligations corresponding to land allocation or lease forms according to relevant provisions of land law.

Article 18.-

1. Domestic and foreign organizations and individuals, before building works in service of production and business, infrastructures in functional quarters, technical infrastructures and service and public facilities in Van Phong EZ, must file their dossiers of application for permission of Van Phong EZ's Management Board according to the provisions of construction law. The time limit for consideration and decision by Van Phong EZ's Management Board shall be 7 working days at most after the receipt of complete and valid dossiers.

2. The management of construction of works in service of production and business, infrastructures in functional quarters, technical infrastructures and service and public facilities in Van Phong EZ shall comply with the provisions of law on construction.

Chapter V

SOME OTHER POLICIES

Article 19.-

1. The State budget shall support the investment in construction of socio-economic infrastructures in Van Phong EZ from which capital is irrecoverable; support the investment in construction of technical infrastructures to the fence of functional quarters of Van Phong EZ; support the compensation and ground clearance in functional quarters and resettlement of households whose land is recovered; support the investment in construction of concentrated wastewater and waste treatment works in functional quarters and support the investment in construction of other important and necessary service and public facilities in service of operation and development of Van Phong EZ under target programs according to the provisions of the State Budget Law.

2. The People's Committee of Khanh Hoa province shall prioritize the allocation of investment capital from the local budget in combination with targeted support capital source from the central budget for performance of the tasks specified in Clause 1 of this Article.

The targeted supports from the central budget for the local budget mentioned in Clause 1 of this Article shall be considered on the basis of construction investment projects approved by competent authorities and balancing capability of the local budget and the central budget according to the provisions of the State Budget Law.

Article 20.- The following methods of capital mobilization may be applied for investment in, and development of, Van Phong EZ:

1. Within the first 15 years counting from the effective date of this Decision, annual allocations from the state budget for investment in the development of socio-economic infrastructures and important service and public facilities in common service of Van Phong EZ under target programs shall not be lower than the total budget revenues of Van Phong EZ.

2. Issuing project bonds for investment projects on construction of large-sized infrastructures which are crucial to the development of Van Phong EZ according to the regulations on issuance of government bonds.

3. Prioritizing the use of ODA capital and preferential credit investment capital for the construction of necessary socio-economic infrastructures and service and public facilities of Van Phong EZ and other technical assistances;

4. Attracting investment capital in forms of BOT, BT, BTO and other forms in compliance with current regulations;

5. Mobilizing capital from the land fund according to the provisions of land law for investment in the development of socio-economic infrastructures in common service of Van Phong EZ.

6. Mobilizing direct investment capital of organizations and individuals at home and abroad; advanced capital of subjects wishing to use infrastructures, capital of enterprises having the function of constructing and dealing in technical infrastructures. Expanding the form of co-financing credit of credit institutions and mobilizing all capital sources in other forms in compliance with the provisions of law.

Article 21.- State-owned commercial banks, joint-stock commercial banks, foreign joint-venture banks, foreign banks and other credit institutions established and operating under the Law on Credit Institutions are allowed to set up their branches in Van Phong EZ for operation according to current regulations.

Article 22.-

1. Foreigners and overseas Vietnamese working or conducting investment or business activities in Van Phong EZ and members of their families shall be granted multiple entry and exit visas with valid durations compatible with their working, investment or business durations in Van Phong EZ and shall be permitted to reside for a definite period of time in Van Phong EZ.

2. Tourists onboard foreign seagoing ships arriving at the seaport of Van Phong EZ under travel contracts with domestic tourist companies shall go through entry procedures at the port.

The Public Security Ministry shall guide the Police Department of Khanh Hoa province in implementing Clauses 1 and 2 of this Article.

3. Van Phong EZ's Management Board may grant work permits to foreigners and overseas Vietnamese working or conducting investment or business activities in Van Phong EZ according to the provisions of Vietnamese law.

The Ministry of Labor, War Invalids and Social Affairs shall guide Van Phong EZ's Management Board in implementing these provisions.

Article 23.-

1. The State shall support the promotion of investment in Van Phong EZ and advertise for the investment environment in Van Phong EZ to potential domestic and foreign investors.

2. Van Phong EZ's Management Board and concerned state agencies shall reform administrative procedures in the domains of investment, land, construction, bidding, taxation, customs, management of labor and enterprises in Van Phong EZ.

3. Van Phong EZ's Management Board shall coordinate with the local administration in organizing propagation and education of knowledge about Van Phong EZ among local officials and people so that they shall support and participate in the construction and development of Van Phong EZ.

Article 24.- Organizations and individuals that record merits in mobilizing official development assistance sources or calling for foreign direct investment projects and domestic investment projects in Van Phong EZ shall be rewarded according to the provisions of the Emulation and Commendation Law.

Chapter VI

STATE MANAGEMENT OF VAN PHONG ECONOMIC ZONE

Article 25.-

1. The Planning and Investment Ministry; the Finance Ministry; the Home Affairs Ministry; the Public Security Ministry; the Labor, War Invalids and Social Affairs Ministry; the Trade Ministry; the Construction Ministry; the Transport Ministry; the Natural Resources and Environment Ministry, the Vietnam National Administration of Tourism and concerned agencies shall promulgate regulations guiding the operations of functional quarters in Van Phong EZ, which fall within the ambit of their respective functions, tasks and powers.

2. The Planning and Investment Ministry shall assume the prime responsibility for, and coordinate with the Transport Ministry, the People's Committee of Khanh Hoa province and concerned ministries and branches in, elaborating the regulation on organization and operation of the international container entrepot of Van Phong EZ, then submitting it to the Prime Minister for consideration and decision.

Article 26.-

1. Van Phong EZ's Management Board shall be set up under the Prime Minister's decision at the proposals of the president of the People's Committee of Khanh Hoa province and the Home Affairs Minister.

2. Van Phong EZ's Management Board shall operate as state management agency under the People's Committee of Khanh Hoa province, performing the centralized and unified management of activities in the domains of construction investment and economic development in Van Phong EZ according to the operation regulation, planning, plans and schedule already approved by competent state agencies.

3. Van Phong EZ's Management Board shall have the legal person status, a seal bearing the national emblem, a working office, a payroll and a non-business operation fund and development investment capital allocated by the state budget according to annual plans; and act as a planning and budgetary unit having its development investment capital balanced with the state budget source.

4. The head of Van Phong EZ's Management Board shall be appointed by the Prime Minister at the proposals of the president of the People's Committee of Khanh Hoa province and the Home Affairs Minister. The deputy heads shall be appointed by the president of the People's Committee of Khanh Hoa province.

Article 27.- Van Phong EZ's Management Board shall perform and exercise the tasks and powers provided for the management boards of provincial-level industrial parks, the management boards of border-gate economic zones and implement the provisions of this Regulation.

Van Phong EZ's Management Board shall have the following tasks and powers:

1. To assume the prime responsibility for, and coordinate with the functional agencies of Khanh Hoa province in, reviewing, supplementing and adjusting the general planning on Van Phong EZ for submission by the People's Committee of Khanh Hoa province to the Prime Minister for approval; to work out the construction planning and detailed planning on functional quarters; detailed planning and plans on land use in Van Phong EZ for submission to the People's Committee of Khanh Hoa province for approval; to organize the management, dissemination, guidance and inspection of the implementation of the operation regulation, the planning and plans approved by competent state agencies.

2. To draw up lists of investment projects and work out annual development investment capital plans for submission to competent agencies for approval, and organize the implementation thereof.

3. To grant, adjust and withdraw business registration certificates; permits for setting up of trade representative offices or branches of foreign organizations and traders; foreign investment licenses according to the procedures of registration for investment licensing; investment preference certificates; work permits for foreigners and overseas Vietnamese working or conducting investment or business activities in the zone; certificates of origin of goods in Van Phong EZ; to evaluate and approve reports on assessment of environmental impacts or certify written registrations of satisfaction of environmental standards of investment projects in Van Phong EZ and other permits, licenses and certificates under authorization of competent state agencies.

4. To sub-allocate land with or without the collection of land use levy, lease land and water surface areas to organizations and individuals with land use demands in Van Phong EZ for use for propose use purposes according to the provisions of land law.

5. To elaborate price brackets, charge and fee rates for application in Van Phong EZ for submission to competent agencies for consideration and promulgation according to the provisions of law.

6. To act as the main unit in solving problems arising in the course of formulating and executing investment, business and operation projects in Van Phong EZ.

7. To coordinate with the local administration and concerned agencies in ensuring that all activities in Van Phong EZ be carried out in compliance with this operation Regulation, with the planning and plans approved by competent state agencies.

8. To perform the task of managing and using development investment capital sources in Van Phong EZ, managing construction projects funded with development investment capital sources from the state budget in Van Phong EZ according to the provisions of law on the state budget.

9. To organize, execute, recommend, negotiate and promote investment, trade and tourism at home and abroad. To formulate and submit programs on investment, trade or tourist promotion to competent agencies for approval before realization.

10. To assume the prime responsibility for, and coordinate with the local administration in, planning and making investment in the construction of resettlement quarters in association with the investment in essential technical and social infrastructures.

11. To periodically report to concerned ministries, branches and the People's Committee of Khanh Hoa province on the implementation of the planning and plans on construction and development of Van Phong EZ.

12. To perform other tasks assigned by the People's Committee of Khanh Hoa province in each period.

Article 28.- The People's Committee of Khanh Hoa province shall have the following responsibilities:

1. To organize the elaboration, supplementation and adjustment of the general planning on Van Phong EZ for submission to the Prime Minister for approval, and approve detailed planning on functional quarters in Van Phong EZ.

2. To approve detailed land use planning and plans for Van Phong EZ; to recover and allocate land to Van Phong EZ's Management Board for organization of the construction and development of Van Phong EZ according to the provisions of Clauses 1 and 2, Article 17 of this Regulation.

3. To promulgate the land price bracket and assign Van Phong EZ's Management Board to specify land use levy levels, land rent rates, land use levy and land rent exemption and reduction levels for application in Van Phong EZ to each project in order to guarantee investment promotion in cases of land sub-allocation or land lease without auction of land use rights or bidding of projects involving land use, and approve financial and price plans in case of auction of land use rights or bidding of projects involving land use.

4. To perform the state management over projects in Van Phong EZ under the approved planning; to authorize Van Phong EZ's Management Board to approve domestic investment projects under its competence; to submit for approval or approve according to its competence the list of development investment projects and annual plans on development investment capital in Van Phong EZ.

5. To promulgate specific preferential and promotion policies compliant with current regulations for application of preferences to recruitment and employment of local laborers; to support the job-training of local labor force; to create conditions for local laborers to be employed by enterprises in Van Phong EZ; to encourage and attract professionally qualified and highly skilled laborers from other localities to work in Van Phong EZ; to support the building of dormitories for workers, the construction of resettlement quarters, the investment - trade promotion, the support, compensation and ground clearance for acceleration of investment in, and development of, Van Phong EZ.

6. To direct the People's Committees of Van Ninh and Ninh Hoa districts to make compensations and carry out ground clearance, and direct functional agencies of the province to coordinate with Van Phong EZ's Management Board in applying measures for ensuring social security, order and safety, and creating favorable conditions for operation of enterprises in Van Phong EZ.

7. To allocate funds for administrative and non­business operations and development investment capital to Van Phong EZ's Management Board from Khanh Hoa province's budget under annual plans.

8. To assume the prime responsibility for, and direct Van Phong EZ's Management Board in, organizing the realization of the policies on resettlement, sedentary farming and social policies, creating jobs for people and ensuring living and working conditions for laborers in Van Phong EZ.

9. To direct and create conditions for Van Phong EZ's Management Board to fully implement the provisions of this Regulation; to coordinate with concerned ministries and branches in organizing the management of Van Phong EZ and facilitating its fast and sustainable development.

Article 29.-

1. Relevant ministries, ministerial-level agencies, Government-attached agencies and the People's Committee of Khanh Hoa province shall, within the ambit of their respective functions, tasks and powers, perform the task of branch, domain and administrative state management over Van Phong EZ; authorize and guide Van Phong EZ's Management Board to perform a number of state management tasks in the domains of construction investment, planning, management of natural resources and environment, urban management and development, management of land and labor, import and export and some other domains according to the provisions of law and this Regulation, ensuring "one-stop shop" principle with a view to creating favorable conditions for investment, production and business activities of domestic and foreign organizations and individuals in Van Phong EZ and satisfying the development investment requirements of Van Phong EZ.

2. For domains where management powers are neither decentralized nor authorized to Van Phong EZ's Management Board, the ministries, ministerial-level agencies and the People's Committee of Khanh Hoa province shall perform the function of state management over Van Phong EZ by organizing their attached units in Van Phong EZ and adopting regulations on coordination with Van Phong EZ's Management Board in exercising their assigned powers.

Chapter VII

IMPLEMENTATION PROVISIONS

Article 30.- Other issues concerning the operation, rights and obligations of domestic and foreign organizations and individuals engaged in goods production and trading or service provision activities in Van Phong EZ not provided for in this Regulation shall comply with relevant provisions of the Investment Law, the Enterprise Law, the Cooperative Law, the Customs Law, the Land Law, the Construction Law, the Commercial Law, the Environmental Protection Law, the tax laws, other relevant legal documents and international agreements to which Vietnam is a contracting party.

Article 31.- The preferences for domestic and foreign organizations and individuals engaged in goods production and trading or service provision activities in Van Phong EZ provided in this Regulation shall be allowed to be applied to domestic and foreign organizations and individuals engaged in goods production and trading or service provision activities in Van Phong EZ before the date of promulgation of this Regulation for the remaining preferential duration as from the effective date of this Regulation.