Decree No. 74/2017/ND-CP dated June 20, 2017 of the Government on provisions for specific policies on Hoa Lac hi-tech park

THE GOVERNMENT

Decree No. 74/2017/ND-CP dated June 20, 2017 of the Government on provisions for specificpolicies on Hoa Lac hi-tech park

Pursuant to the Law on organization of the government dated June 19^,2015;

Pursuant to the Law on High Technologies dated November 13, 2008;

Pursuant to the Law on Science and Technology dated June 18, 2013;

Pursuant to the Land Law dated November 29, 2013;

Pursuant to the Law on Public Investment dated June 18, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Investment dated November 26, 2014;

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Charges and Fees dated November 25, 2015;

Pursuant to the Law on Tax Administration dated November 29, 2006 and the law amendments to some articles of the Law on Tax Administration dated November 20, 2012;

Pursuant to the Law on Enterprise Income Tax dated June 3, 2008 and the law on amendments to some articles of the Law on Enterprise Income Tax dated June 19, 2013;

Pursuant to the law on amendments to some articles of the Laws on Tax dated November 26, 2014;

At the request of the Minister of Science and Technology;

The government issues the Decree on specific policies for Hoa Lac hi-tech park

Chapter I

GENERAL PROVISIONS

Article 1. Scopeof adjustment

This Decree provides for some specific policies on Hoa Lac hi-tech park (hereinafter referred to as hi-tech park). Other policies not specified in this Decree shall comply with regulations of the applicable law

Article 2.Subject of application

1.Domestic and foreign individuals and organizations that have invested in and worked at the hi-tech park.

2.Management board of the hi-tech park (hereinafter referred to as management board)

3.Regulatory agencies and relevant authorities

Chapter II

THE HI-TECH PARK CONSTRUCTION, DEVELOPMENT AND INVESTMENT

Article 3. Construction, development and investment in infrastructure of the hi-tech park

1.Technical infrastructure (except for the technical infrastructure invested by enterprises), public green areas specified in general planning of the hi-tech park, internal infrastructure of the research and deployment area and the education and training area shall be invested by the management board with state budget and other legal sources of funds.

2.Power, water and telecommunication supplies in the hi-tech park shall be constructed and used for commercial purposes by enterprises The Prime Minister shall decide incentives to assist technical infrastructure facilities with poor capital recovery at the request of the Minister of Science and Technology.

3.The Ministry of Science and Technology shall decide the investment and capital mobilization plans for construction of the internal infrastructure of external areas board specified in the Clause 1 of this Article at the request of the management board. Problems about the investment in technical infrastructure of housing areas and public cultural buildings shall be reported to the Prime Minister for consideration.

4.Public cultural buildings and public green areas are encouraged to be invested in the form of Public - Private Partner (PPP) and in other forms of private sector involvement.

5.The Ministry of Science and Technology shall decide the policies of investment, authorize the management board to make investment and demonstrate the authority of investment decision makers in the hi-tech park’s technical infrastructure construction projects funded by state budget in groups B and C.

6.Infrastructure investors specified in this Article and relevant units are obligated to cooperate in investing and completing the entire technical infrastructure system of the hi-tech park synchronically no later than 2020.

Article 4. Land clearance and resettlement

Hanoi people’s committee shall establish the policies of compensation, aid and resettlement to assist land clearance of the hi-tech park, relevant to the practical status of land management of the local area and ensure the general policy stability of the project and the progress of land clearance of the hi-tech park.

2.Investment in the projects on compensation, aid, resettlement to assist land clearance shall be made in accordance with the following regulations:

a) The chairman of Hanoi people’s committee shall decide the policies of investment and invest in the projects on compensation, aid and resettlement. Sources of funds for project investment shall be specified in the Clause 2 and 3 Article 16 of this Decree.

b) Hanoi people’s committee shall approve any modification to design and estimate of projects on compensation, aid and resettlement (if any) in which the investment is decided by itself before the effective date of the Law on Public Investment0}

c) The people s committee of Thach That and Quoc Oai districts and Hanoi people s committee shall act as investors in compensation, aid and resettlement projects.

Hanoi people’s committee shall take responsibility to construct and complete resettlement areas to assist with land clearance in Bac Phu Cat industrial zone (merged into the hi-tech park in accordance with the Decision No.1748/QD-TTg dated November 02_,2009 of the Prime Minister), funded by the city budget.

4.Land levies collected when allocating land to households in the resettlement areas and in service lands funded by state budget shall be paid to the Hanoi city budget. Annually, Hanoi people’s committee shall take responsibility to appropriate a sum proportional to the collected land levies for assisting the hi-tech park in its land clearance.

5.The final statement of compensation, aid and resettlement projects to assist the hi-tech park in its land clearance shall be made in accordance with applicable regulations and law.

Article 5. Investment in science and technology

1.Projects on investment in new or expanding research facility and large scale laboratories, in the North, in the fields of information, biology, automation and new material technology funded by the Science and technology capital of state budget are encouraged in the hi-tech park.

2.The Ministry of Science and Technology shall preferentially use the resources from the national program for science and technology to invest in the high technology technical infrastructure, incubating, training and transferring technology, attracting science and technology human resources and assisting the hi- tech park in developing high technology and products.

Article 6. Planning management and construction

1.The management board shall implement the general plan and zoning plan for constructing the areas in the hi-tech park. The detailed construction planning of the hi-tech park shall be done in accordance with each particular investment project.

2.The Ministry of Construction shall approve modifications to the general plan for construction in accordance with authorization from the Prime Minister when the adjusted plan does not change the area, characteristics and functions of land in the hi- tech park.

3.Hanoi people’s committee, regulatory agencies and professional construction authorities shall take responsibility to classify and authorize the management board to plan and construct the hi- tech park

Article 7. Technical infrastructure management and operation

1.The management board shall manage, operate, maintain and run the entire technical infrastructure system of the hi-tech park except for the facilities specified in the Clause 2 Article 3 of this Decree.

2.Hanoi people’s committee is obligated to cooperate with the management board in managing, operating, maintaining and running the entire urban technical infrastructure system of the hi- tech park.

3.Charges for using infrastructure and wastewater treatment

a) Charges for using state- invested technical infrastructure facilities shall be used as the revenue to cover the cost of operation and maintenance.

b) Charges for using investor- invested technical infrastructure facilities shall be used as the revenue to cover the cost of operation and maintenance

c) Charge for state- invested wastewater treatment system shall be used as the revenue to cover the cost in operation and maintenance.

d) The management board shall impose the charges for using infrastructure and wastewater treatment specified in Point a and c of this Clause. The management board shall wait for the consent from State drainage agencies and price management agencies in the local areas before imposing the charges for wastewater treatment specified in Point c of this Clause.

 Infrastructure investors shall impose the charges for using such infrastructure specified in Point b of this Clause with consent from the management board.

dd) Primary investors shall pay the charges for using infrastructure and wastewater treatment as specified in Point a, b and c of this Clause.

4.Expenses on maintenance and operation of technical infrastructure facilities and state-invested wastewater treatment systems shall be covered by the charges for using technical infrastructure and wastewater treatment of the hi-tech park until the revenue is sufficient to cover the expenses Annually, the Ministry of Finance shall, based on the amount of charges for using infrastructure and wastewater treatment that has been collected, identify an amount appropriated for state budget deficit.

Chapter III

LAND MANAGEMENT

Article 8. Land rent, compensation for land clearance and incentives for land in the hi-tech park.

1.Hanoi people’s committee shall issue the detailed price schedule of types of land in the hi-tech park, based on the approved planning of the hi-tech park and specific technical infrastructure conditions

2.Land price as the basis for calculation of land rent in the hi-tech park shall be set by the land price correction coefficient method and decided by the management board The management board shall define the annual land price correction coefficients and percentage of land rent with consent of Hanoi people’s committee.

3.Incentives for land

a) Persons who are directly granted land lease from the management board and those who are allocated land by the state without land levy but required to switch over to lease land as specified in Clause 2 Article 160 of the Land Law, incentives for land rent remission shall be given in compliance with the Article 14 of the Decree No. 35/2017/ND-CP dated April 30, 2017 of the government on land use levies, land rents and water surface rents in economic zones or in hi-tech park.

b) In the cases where infrastructure investors grant land sublease, land rent remission shall be specified in Clause 2a Article 18 of this Decree.

c) In the cases where land is used for infrastructure management and operation works, land users shall be exempt from land rents during the entire rental period.

d) Land users shall be exempt from non-agricultural land tax during the entire use period.

4.In the case of the areas invested by infrastructure investors, if the infrastructure investors advance sums to pay compensation, and land clearance for the land that the management board directly grants lease to primary investors, the primary investors are obligated to pay the infrastructure investors such amount of advance in accordance with the plan approved by competent authorities and such amount is deducted from the land clearance and land rent that the primary investors shall pay the state.

5.The management board shall deal with the residual value of investment in land or property on land (if any) in case of land appropriation due to violations against the Land Law, happening in the high-tech park, in accordance with procedures of applicable law.

6.other relevant regulations on land rent, water surface rent, land clearance
compensation, and land rent exemption or remission.
levy

Article 9. Performance security

1.Each primary investor who receives land lease grant from the management board to run a project in the hi-tech park shall make a deposit as a performance security for the project in accordance with the Land Law and Law on Investment.

2.If investors violate the commitment or the decision on investment policy / investment registration certificate is revoked, the deposit as the performance security shall be spent as specified in Point c Clause 1 Article 17 of this Decree

Article 10. Land management in the areas whose infrastructure is constructed and used for commercial purposes by investors (infrastructure investors).

1.the case where an infrastructure investor receives land lease grant from the management board after the effective date of this Decree.

a) Each infrastructure investor is entitled to lease land used for traffic work and technical infrastructure construction, land involving water surface and green spaces in accordance with the approved general construction and zoning planning.

b) The management board shall, based on the infrastructure investors’ construction progress, hand land over to infrastructure investors (except for the land specified in Point a of this Clause) for land leveling. After completion of land leveling, infrastructure investors shall hand land over to the management board.

c) Primary investors shall be directly granted lease or allocated land which is specified in Point b of this Clause. The primary investors shall pay the infrastructure investors for land leveling and other amounts payable in accordance with regulations of this Decree.

2.The cases where infrastructure investors receive land lease grant from the management board before the effective date of this Decree and have not been issued with the land use right certificate shall be switched over to the form of land administration specified in the Clause 1 of this Article.

3.In the cases where infrastructure investors receive land lease grant from the management board before the effective date of this Decree and are issued with the land use right certificate shall lease land in accordance with the decision on land lease that has been made and fulfill the land levy obligations to the state as specified in Clause 2 Article 18 of this Decree.

4. The management board shall, upon request of the infrastructure investors, approve the charges for using infrastructure, compensation for land leveling and unit price of land to be sublet from infrastructure investors to the primary investors, specified in the Clause 3 of this Article.

Chapter IV

INVESTMENTINCENTIVES

Article 11. Tax incentives

1.Projects launched in the hi-tech park shall have the greatest incentives in accordance with regulations of the Law on Investment and Law on Tax.

2.New investment projects in the hi-tech park which have at least 4000 billion VND capital shall apply the enterprise income tax rate of 10% in a period of 30 years.

3.The projects which received investment license grant from people’s committee of a province before the Prime Minister approves the adjusted general planning for constructing the hi-tech park (May 23, 2008) and are running in the hi-tech park shall be given tax incentives as mentioned in the certificate of investment/investment license/certificate of investment incentive.

Article 12. Policies on building houses provided for employees working in the hi-tech park.

1.Hanoi people’s committee shall allocate sufficient land for building houses provided for employees working in the hi-tech park. The State encourages and enables organizations and individuals to invest in housing development (including technical infrastructure, social infrastructure and housing constructions).

2.Measures to assist housing development.

a) Entities running projects on constructing houses provided for employees working in the hi-tech park shall be given incentives in terms of taxes, land rents and land levies in accordance with regulations of applicable law and this Decree.

b) Organizations and individuals running projects on housing shall not include the sums invested by the state, financial incentives in terms of taxes, land rents and land levies in house price and house rent price.

3.The management board shall issue regulations on managing and using houses provided for employees working in the hi-tech park.

4.The Ministry of Science and Technology shall submit to the Prime Minister additional incentives for houses provided for employees working in the hi-tech park suitable for each period and stage of the hi-tech park’s development for decision.

Article 13. Foreign employee exit, entry and management

1.Investors, experts and employees who are overseas Vietnamese or foreigners and their family members (including fathers, mothers, wives or husbands, offspring and adopted children under 18 years old) shall be considered to be granted exit and entry visas which are valid for multiple times and whose duration is consistent with their presenting work time in the high-tech park.

2.The head of the management board shall consider to allow Vietnamese businesspeople who are working in the enterprises established in accordance with the Law on Enterprises and the Law on Investment in the hi-tech park to use APEC business cards.

3.The management board shall grant work permits in accordance with the simplified procedure to overseas Vietnamese and foreign experts working in the hi-tech park as authorized by the Ministry of Labor, Invalids and Social Affairs.

4.The head of the management board shall decide to approve the plan for employment of foreign employees of the enterprises running in the hi-tech park and decide to allow the contractors in the hi-tech park to recruit foreign employees to occupy the positions that are unable to be held by Vietnamese employees, as authorized by the chairman of the Hanoi people’s committee.

Article 14. Other incentives

1.In addition to the policies on investment support specified in this Decree, individuals and organizations specified in Clause 1 Article 2 of this Decree are also eligible for other incentives in accordance with regulations of law when meeting certain conditions as prescribed.

2.The Ministry of Science and Technology shall submit requests for additional incentives for projects in the hi-tech park in which investment is particularly encouraged to the Government or the Prime Minister for decision.

Chapter V

OTHER POLICIES

Article 15. State administration in the hi-tech park

1.The management board shall be allowed to adopt the single-window system within a regulatory body to deal with problems about administrative procedures under jurisdiction of the management board and the single window system that involves multiple regulatory bodies to deal with problems about administrative procedures under jurisdiction of regulatory agencies and other specialized authorities in the fields of investment, business registration, land, construction, labor, etc..

2.The management board shall be the leader to put regulatory agencies and relevant specialized authorities in charge of single-window system within a regulatory body and single-window system for multiple regulatory bodies into coordination as specified in Clause 1 of this Article; make regulations on managing and using land for the proper purposes, subjects and suitably to the characteristics of the hi-tech park and regulations on managing the activities involved by infrastructure investors.

3.Ministries, Hanoi people’s committee and relevant authorities shall provide authorization to the management board, provide guiding documents on which the management board can base to perform roles of regulatory bodies in the hi-tech park and cooperate with the management board during the implementation.

4.The management board shall make reports on administrative violations committed in the fields of planning, constructions, land, environment, investment and labor in the hi-tech park and give them to authorities competent to impose sanctions against administrative violations for consideration in accordance with regulations and law.

Article 16. Technical infrastructure construction investment Capital and land clearance in the hi-tech park

1.The state budget shall preferentially provide funding for the management board as specified in the medium-term public investment plan in the period of 2016-2020 and other legal sources of funds to complete land clearance and building technical infrastructure on schedule specified in Point 6 Article 3 of this Clause. The Ministry of Planning and Investment shall submit plans for providing capital for the management board to the Prime Minister.

2.The state budget shall give Hanoi people’s committee funding for executing projects on compensation, aid, resettlement to assist land clearance in the hi-tech park via the annual budget plan of the management board.

3.Hanoi people’s committee shall allocate city’s source of funds as specified in the medium-term public investment plan and other legal sources of funds to complete facilities specified in Clause 3 Article 4 and Point b and c Clause 3 Article 21 of this Decree; provide funding for land clearance in the hi-tech park as specified in Clause 4 Article 4 of this Decree.

Article 17. Collecting, paying and using land rent, compensation, clearance refund, infrastructure use charge, wastewater treatment charge and project performance security against investors’ violations

1.Land rent, land clearance compensation refund and project performance security deposit.

a) Compensation and land clearance refund of land users shall be paid to the state budget and deducted from the land rent. The amount of remaining land rent shall be paid1 to the local budget in accordance with the Law on State Budget.

b) the management board shall collect compensation and land clearance refund as specified in Point a of this Clause and collect other revenues related to land users in the hi-tech park and pay into the separate account of the management board in the state treasury.

c) The sums collected specified in Point b of this Clause and project performance security deposit specified in Clause 2 Article 9 of this Decree shall be used for land clearance, reinvestment in the hi-tech park development and paid to the state budget.

d) The management board shall aggregate and send an annual report on all the collected sums specified in Point b and c of this Clause to the Ministry of Finance and Ministry of Planning and Investment and so that the two ministries can submit a plan for using such collected amount for land clearance and reinvestment in the hi-tech park purposes to the Prime Minister for consideration.

2.Charges for using infrastructure and wastewater treatment

The management board shall collect charge for using technical infrastructure facilities invested by the state and charge for wastewater treatment to operate and maintain service conditions of technical infrastructure facilities and wastewater treatment system.

Chapter VI

IMPLEMENTATIONPROVISIONS

Article 18.Transitional provisions for fulfilling financial obligations on land, applied to the cases of land use before the effective date of this Decree without land rent payment

1.Primary investors who use land before the effective date of this Decree without land lease decisions and have not paid for land rent.

a) The above-mentioned investors shall be given incentives for land rent remissions as specified in Clause 3 Article 8 of this Decree. Duration of incentives for land rent remissions shall commence from the date on which the land plot
is handed over.

b) Such investors are not required to pay for compensation and land clearance if they are those specified in the Decree No. 35/2017/ ND-CP dated April 3, 2017 of the government on land levy, land rent and water surface rent in economic zones and hi-tech parks.

c) Such investors shall pay for land rent, compensation refund and land clearance in accordance with regulations of applicable law when the management board issues a decision on land lease Compensation and land clearance refund shall be deducted from land rent in the cases where land rent is paid in lump-sum amount or converted into a certain number of years or months of financial obligation fulfillment in accordance with the land price policy at the time of the decision on land lease in the form of annual land rent payment

2.Infrastructure investors, who received land lease grant from the management board before the effective date of this Decree, are issued with land use right certificate but have not paid land rent.

a) Infrastructure investors who lease land in the form of annual payment shall be eligible for 15 year exemption from land rent after the land lease decision date; have the obligation to exempt the primary investors from land rent on the land sublease proportional to the amounts of incentives applicable to infrastructure investors specified in this Point.

b) Infrastructure investors shall pay for the land rent in lump-sum amount charged for the land area subleased before July 01_,2014 during the land lease period, the amount payable by the infrastructure investors is equal to annual land lease price specified in the document No. 2703/UBND-KT dated June 20^th_,2006 of Ha Tay people s committee multiplied by (x) the difference of the period of land sublease and the remaining land rent exemption time period as specified in Point a Clause 2 of this Article from the time of land sublease and multiplied by the sublet land area. Infrastructure investors shall pay interests on late payment from the land sublease to the deadline for paying the land rent to the state budget.

3.The primary investors shall be obligated to pay for the infrastructure use charge as specified in Clause 3 Article 7 of this Decree.

Article 19. Transitional provisions for projects which use land in the expanding planning areas as specified in the Decision No. 621/QD-TTg dated May 23, 2008 of the Prime Minister (southern part of Thang Long avenue and Eastern part of the hi-tech park in Ha Bang commune, Thach That district, Hanoi City)

1.The land whose sublease is granted from infrastructure investors before the Bac Phu Cat Industrial zone is merged into the hi-tech park but rent has not been paid

a) Infrastructure investors who lease land in the form of annual payment shall be eligible for 15 year exemption from land rent after the land lease decision date.

b) Infrastructure investors shall pay for the land rent in slump-sum charged for the land subleased during the land lease period. The amount payable by the infrastructure investors shall be calculated on the basis of annual land lease price specified in the Decision No.896/QD-TC dated December 8, 2006 of the Ha Tay department of finance multiplied by the land sublease period from which the remaining land rent exemption time deducts specified in Point a of this Clause from the land sublease date and multiplied by the area of land subleased. Infrastructure investors shall pay such land rent’s late payment from the land sublease date to the deadline for paying the sums to the state budget.

2.The land whose lease is granted from Ha Tay People’s Committee before the Prime Minister’s approval on the adjustment to general planning for constructing the hi-tech park (on May 23, 2008)

a) the management board shall continue to manage and use land for constructing and developing the hi-tech park. If necessary, the management board shall adjust the issued decision on land lease to match with the hi-tech park’s general planning and the needs for use of the projects

b) Investors shall be given incentives in terms of land rent remission as specified in the decision on land lease/ investment certificate / investment license / investment preference certificate issued and regulation of the law at the time of land lease grant from the state.

c) In accordance with the policies on land price in each period, Hanoi People’s Committee shall calculate and inform primary investors of the land rent payable for the period beginning from the day on which decision on land lease has been made by Ha Tay People’s Committee on land lease or from the day on which the land plot has been handed over to the end of 2016. The management board shall calculate notify the primary investors of the land rents payable in the following years. The amount of land rent shall be paid to the local budget in accordance with the Law on State Budget.

d) The sums of compensation and land clearance that investors advance as approved by competent regulatory authorities shall be specified in the Decree No. 35/2017/ ND-CP dated April 03, 2017 of the government on land levy, land rent and water surface rent in economic zones and hi-tech parks.

3.The primary investors using land specified in Clause 1 and 2 of this Article shall not expand the construction site and renew the land use time. The management board shall request the Hanoi People s Committee to acquire land in compliance with regulations and law when having the plan for using land for the hi-tech park’s development .

4.The cases of land use before the effective date of this Decree not specified in Clause 1 and 2 of this Article shall comply with regulations specified in Clause 1 Article 18 of this Decree.

Article 20. Obligations of the Ministry of Science and Technology

The Ministry of Science and Technology is obligated to implement the Decree

Article 21. Obligations of Ministries and Hanoi people’s committee

1.Hanoi People’s Committee must:

a) Provide guidelines for regulations specified in Clause 4 and 5 Article 4, Clause 3 and 4 Article 7, Article 8, Clause 1c and 4 Article 10, Article 17, Article 18 and Article 19 of this Decree.

b) Cooperate with the Ministry of Science and Technology in submitting a report on projects operating in the hi-tech park without tax incentives on which the Prime Minister shall base to make decision.

2.The Ministry of Planning and Investment shall comply with the regulations specified in Clause 1 Article 16 and Clause 1d Article 17 of this Decree.

3.Hanoi People’s Committee must:

a) Comply with regulations specified in Clause 1, 2, 3 and 4 Article 4,Clause 3 Article6, Clause2 Article 7, Clause 1 and 2 Article 8; Clause 1 Article 12, Clause 4 Article 13, Clause 2 and 3 Article 15, Clause 3 Article 16, Clause 2c Article 19 of this Decree.

b) Invest in traffic system, water supply and drainage systems located out of the hi-tech park’s border and connected to the hi-tech park financed by the city budget and complete them no later than 2020.

c) Invest in irrigation facilities in place of rivers, streams and irrigation lakes in the planning of the hi-tech park to match with the local general irrigation system Allocate the entire water surface area to the management board to manage and operate no later than 2020.

d) Add and allocate the land outside the hi-tech park to organizations and individuals running projects on houses provided for employees working in the hi-tech park

4.Ministries, Hanoi People’s Committee and relevant authorities shall carry out the assignments in this Decree.

Article 22. Effect

1.This Decree takes effect on August 5, 2017

2.Ministers, heads of ministerial level agencies, heads of agencies affiliated to the government, chairman of the Hanoi people’s committee, head of the management board of Hoa Lac hi-tech park and heads of relevant authorities shall comply with regulations specified in this Decree.

For the Government

The Prime Minister

Nguyen Xuan Phuc