Resolution 45/2022/QH15 on pilot implementation of a number of special mechanisms and policies for development of Can Tho city

RESOLUTION

On pilot implementation of a number of special mechanisms and policies for development of Can Tho city^[1]

THE NATIONAL ASSEMBLY

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to Law No. 57/2014/QH13 on Organization of the National Assembly, which had a number of articles amended and supplemented under Law No. 65/2020/QH14;

Pursuant to Law No. 80/2015/QH13 on Promulgation of Legal Documents, which had a number of articles amended and supplemented under 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 applicable to Can Tho city (below referred to as the City) regarding finance-state budget management; decentralization of powers for state management of land and planning; incomes of cadres, civil servants and public employees under the City’s management; and investment incentives and supports for projects on dredging of the Dinh An-Can Tho navigable channel and recovery of products therefrom and the Can Tho-based Center for linkage, production, processing and sale of agricultural products in the Mekong River delta region.

Article 2. Subjects of application

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

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

3. Other related organizations and individuals.

Article 3. Finance-state budget management

1. The City may raise loans through issuing municipal bonds, and take loans from financial institutions and other organizations at home and loans on-lent from the Government’s foreign loans with the total outstanding balance not exceeding 60% of the City’s budget revenue as decentralized. The National Assembly shall decide on the City’s total amount of annual loans and budget deficit in accordance with the Law on the State Budget.

2. Annually, the central budget shall provide a target transfer to the City’s budget with an amount not exceeding 70% of the central budget’s increased amount from the revenues divided between the central budget and the City’s budget as compared to the budget estimate allocated by the Prime Minister (the remainder after granting bonuses for revenue increases under Clause 4, Article 59 of Law No. 83/2015/QH13 on the State Budget, which had a number of articles amended and supplemented under Law No. 59/2020/QH14) and the revenues wholly belonging to the central budget as specified at Points b, c, d, g, h, i and q, Clause 1, Article 35 of Law No. 83/2015/QH13 on the State Budget, which had a number of articles amended and supplemented under Law No. 59/2020/QH14, as compared to the budget estimate allocated by the Prime Minister, provided that such amount does not exceed the central budget’s total increased revenue in the City over the previous year’s actual revenue and that there is no deficit in the central budget’s revenue. The target transfer shall be determined based on the total revenues but not on every single revenue.

3. The pilot implementation of the charge and fee policy in the City is provided as follows:

a/ The People’s Council of the City may decide to collect charges and fees not yet included in the List of charges and fees promulgated together with the Law on Charges and Fees; and adjust the approved levels or rates of the charges and fees specified in the List of charges and fees promulgated together with the Law on Charges and Fees, except court charge and court fee;

b/ The City’s budget will be entitled to 100% of the amount increased from the revenues as a result of the adjustment of the charge and fee policy specified at Point a of this Clause for investment in socio-economic infrastructure facilities and for covering other spending items to be covered by the City’s budget, and such amount will be excluded upon determination of percentage (%) of revenues divided between the central budget and the City’s budget;

c/ The pilot implementation of the charge and fee policy in the City specified at Point a of this Clause must adhere to the following principles: following a set roadmap and being suitable to the City’s development level and requirements; creating a favorable environment for production and business activities of enterprises, especially small- and medium-sized enterprises, and sectors and trades eligible for investment incentives; not causing negative impacts on security and social order and safety; ensuring the market consistency without impeding the circulation of goods and services; rationally regulating a number of goods and services and lawful incomes of organizations and individuals in the City; and ensuring publicity, transparency, and state administrative reform.

Article 4. Land management

1. The People’s Council of the City may decide on the repurposing of land for wet rice cultivation of 2 crops or more with an area of under 500 hectares as authorized by the Prime Minister in conformity with the approved land use master plan and plan.

In case of authorization, it is required to define the responsibilities of the authorizer and the authorized agency, ensuring publicity, transparency and efficiency and avoiding negative practices, loss and waste.

2. The repurposing of land for rice cultivation specified in Clause 1 of this Article shall be decided in a public manner with solicitation of opinions of the people and stakeholders to be affected by the repurposing, and must adhere to principles and meet conditions for land repurposing in accordance with the land law and other relevant laws.

3. The Prime Minister shall specify the order and procedures for repurposing of land for rice cultivation as authorized by the Prime Minister to the People’s Council of the City under Clause 1 of this Article.

Article 5. Planning management

Based on the function zone construction plan and urban master plan of the City which has been approved by the Prime Minister, the Prime Minister shall decide to decentralize the People’s Committee of the City to approve partial adjustment of the general master plan on function zone construction and general master plan on urban areas according to the order and procedures specified by the Prime Minister and report implementation results to the Prime Minister.

Article 6. Incomes of cadres, civil servants and public employees under the City’s management

The City may implement the mechanism of creating funding sources for salary reform under regulations. Once the City’s budget is sufficient for salary reform and implementation of social security policies for the whole period of budget stabilization under regulations of competent authorities, the People’s Council of the City may decide on the use of the remainder of the City’s budget fund reserved for salary reform; permit the use of the remainder of subordinate budget funds reserved for salary reform to make payment for additional average incomes for cadres, civil servants and public employees working in Party agencies, administrations and mass organizations under the City’s management based on their task performance at a rate not exceeding 0.8 time the salary level determined based on ranks/positions or working positions/leading titles or positions of such persons. The People’s Council of the City shall specify levels of income for experts, scientists and highly qualified intellectuals of the City.

Payment for additional incomes from funding sources for salary reform specified in this Article shall be made only when the City can balance the budget by itself.

Article 7. Dredging of the Dinh An-Can Tho navigable channel and recovery of products therefrom

1. A project on dredging of the Dinh An-Can Tho navigable channel and recovery of products therefrom which is implemented by the method of mobilization of social resources and meets the conditions that it is up to the standard on navigational channels for vessels of a tonnage of 10,000 tons or more entering or leaving the City’s ports, and has a capital amount of VND 500 billion or more, may enjoy the following investment incentives:

a/ The enterprise’s income from implementation of the project is entitled to a 10-percent rate of enterprise income tax for 15 years, enterprise income tax exemption for 4 years, and 50-percent reduction of payable enterprise income tax amounts for the subsequent 9 years.

The time of starting to enjoy, conditions for, and incomes eligible for, the incentives specified at this Point must comply with the law on enterprise income tax;

b/ The project is entitled to land rental exemption for 15 years and 50-percent reduction of land rental for the remaining period for the land area rented for storing the substances dredged from the project’s activities.

2. The implementation of projects on dredging of the Dinh An-Can Tho navigable channel and recovery of products therefrom must comply with the law on environmental protection, land law and other relevant laws.

Article 8. Can Tho-based Center for linkage, production, processing and sale of agricultural products in the Mekong River Delta region

1. The Can Tho-based Center for linkage, production, processing and sale of agricultural products in the Mekong River Delta region (below referred to as the Center) is an area with delimited geographical boundaries and established by the Prime Minister in conformity with relevant master plans in order to attract investment projects in the fields of research, technology application, production, processing, service provision, and export of agricultural and aquatic products.

The Prime Minister shall stipulate in detail the establishment, organization and operation of the Center.

2. An enterprise with investment projects in the Center are entitled to priorities in customs procedures in accordance with the customs law and in tax procedures in accordance with the tax laws for exported goods and imported goods of the Center when it fully satisfies the following conditions:

a/ Having properly observed the customs and tax laws for 2 consecutive years;

b/ Carrying out electronic customs procedures and electronic tax procedures; having an information technology program to manage its export and import activities connected to the network with customs offices;

c/ Making via-bank payment;

d/ Having an internal control system;

dd/ Abiding by the laws on accounting and audit.

3. An investment project in the Center may enjoy the following investment incentives:

a/ The enterprise’s income from implementation of the project in the Center is entitled to a 10-percent rate of enterprise income tax for 15 years, enterprise income tax exemption for 4 years, and 50-percent reduction of payable enterprise income tax amount for the subsequent 9 years.

The time of starting to enjoy, conditions for, and incomes eligible for, the incentives specified at this Point must comply with the law on enterprise income tax.

b/ The project is entitled to land rental exemption for the period of capital construction for at most 3 years from the date of issuance of the land rent decision; after that, it is entitled to  land rental exemption for 15 years and 50-percent reduction of land rental for the subsequent 7 years.

Article 9. Organization of implementation

1. The Government shall, within the ambit of its tasks and powers, organize the implementation of this Resolution; conduct a 3-year review of the implementation of this Resolution and report thereon to the National Assembly at its year-end session of 2024; and conduct a final review of the implementation of this Resolution and report thereon to the National Assembly at its year-end session of 2026.

2. The Standing Committee, the Ethnic Council, and Committees of the National Assembly, the Delegation of National Assembly deputies of Can Tho city, and National Assembly deputies shall, within the ambit of their tasks and powers, oversee the implementation of this Resolution.

Article 10. Implementation provisions

1. This Resolution takes effect on March 1, 2022, and shall be implemented for 5 years.

2. The projects specified in Clause 1, Article 7 of this Resolution for which project performance contracts are signed in the validity period of this Resolution may enjoy the investment incentives specified in Article 7 of this Resolution till the expiration of project implementation period; enterprises implementing these projects shall comply with their contractual commitments in accordance with law and may not transfer the projects. In case a project on dredging of the Dinh An-Can Tho navigable channel and recovery of products therefrom is already entitled to the investment incentives specified in Article 7 of this Resolution but, in the course of implementation, it fails to meet the law-specified conditions or does not continue to apply the method of mobilization of social resources specified in Clause 1, Article 7 of this Resolution, the project will not continue to enjoy the incentives specified in Article 7 of this Resolution.

The investment projects specified in Article 8 of this Resolution for which investment policy has been approved or investment registration certificates have been granted in the validity period of this Resolution may enjoy the investment incentives specified in Clause 3, Article 8 of this Resolution.

3. If there are different provisions on the same issue between this Resolution and laws or other resolutions of the National Assembly, this Resolution shall prevail. If legal documents promulgated after the effective date of this Resolution provide mechanisms and policies that are more preferential or beneficial than those specified in this Resolution, the People’s Council of the City may decide which documents shall be applied.

This Resolution was adopted on January 11, 2022, by the XV^th National Assembly of the Socialist Republic of Vietnam at its 1^st extraordinary session.-

Chairman of the National Assembly
VUONG DINH HUE