Provisions

Policies to encourage investment in the industrial zones in BinhDinhProvince

(promulgated according to Decision 26/2002/QD-UB dated 19 March 2002 of amended and added according to Decision 86/2003/QD-UB dated 29 April 2003

of the People's Committee of BinhDinhProvince)

chapter i

general provisions

Article 1: The purpose of this regulation is to enable and encourage investment in the industrial zones in BinhDinhProvince, to help enterprises reduce investment capital and product price for more competitive market position.

Article 2: The qualified beneficiaries of the investment encouragement policies in these Provisions are those specified in the Law on Foreign Investment and the Law on Encouragement of Domestic Investment operating as partners or investors in the industrial zones.

Article 3: In this Provision, meanings ascribed to special terms include:

- 'Industrial zone' means the concentration of sites for industrial zone enterprises developed after the decision by the Prime Minister. Category B: means the geographical regions suffering from social and/or economic disadvantages.

- 'Infrastructure consumption fee' is the amount paid by industrial zone enterprises to the Industrial Zone Infrastructure Development Company for use of the facilities.

- "Assistance in the rate of land lease" and "assistance in income tax" means the amounts for land lease and income tax paid to the Government budget will be reimbursed to the investors from the Province budget for further project investment, upgrading, or expansion.

chapter ii
preferential treatment of investment in industrial zone enterprises

Article 4: Land lease rates of Government land, not including infrastructure service charges, shall be at the lowest rates in accordance with the current regulations.

Article 5: On expiry of State Government 's preferential treatment, enterprises shall be assisted with 100% land lease rebate for an additional 10 years.

In particular, enterprises with foreign investment capital shall be assisted with 100% land lease rebate for the first 15 years for project with investment capital up to USD15 million; or in the first 10 years for project with investment capital  under USD15 million.

Article 6: On expiry of the State Government's preferential treatment enterprises shall be assisted with their income tax as follows:

1. 50% rebate for an additional 7 years for foreign investment.

Projects entitled to the State Government 's special preferential treatment shall be given 50% income tax rebate for the following 7 years on expiry of preferential treatment at clause 1 of this Article.

2. 50% income tax rebate for an additional 8 years for domestic investment.

Article 7: Industrial zone enterprises shall be entitled to:

1. Refund, from the Provincial budget, of the inspection fee for their investment Licenses, if any;

2. Below the lowest rate for infrastructure service charges of other industrial zones in the neighbouring region;

3. In particular, enterprises with foreign investment capital shall be assisted with 100% infrastructure service charges for the first 15 years for project with investment capital up to USD15 million; or in the first 10 years for project with investment capital  under USD15 million.

Article 8: Investors will be encouraged to process investment; to access, investigate, exploit and expand their shares in both domestic and foreign markets; to obtain information and promote their trade as follows:

1. The Province will consider and fund parts of the costs for their participation in overseas trade fairs if their products are introduced to the fairs;

2. The Management Board of the Industrial Zones will provide, free-of -charge, necessary information for their investigation of investment potential, with instructions on investment procedures and construction in the industrial zones.

Article 9: The province will assist with funding for training locally employed unskilled and semi-skilled workers under long term contracts as follows:

- A minimum of 30% of the total costs for up skilling;

- A minimum of 50% of the total costs for training general skills.

Professionals with post gradute qualifications who are willing to work for industrial zone enterprises will be assisted with extra allowances in accordance with the Provincial polices on scientific and technical development and intellectual resource attraction accompanying Decision 112/199/QD-UB dated 21 August 1999 by Binh Dinh Provincial People's Committee.

Article 10:    Assistance with loans for investment

Enterprises, which lack sufficient capital for their direct investment or are entering joint ventures with foreign partners in the industrial zones, shall be considered by the Province for loans with preferential interest rates from the Provincial Fund for Investment and Development. The loans granted shall not exceed one third of the investment project total capital and shall be secured by the property acquired by the loans.

Article 11: Enterprises required, on environmental grounds, to re-locate from urban areas to industrial zones shall be assisted by the Province with:

- The costs of moving equipment or property;

- Rebate of the first year's charge for infrastructure services, on signing contracts with the Infrastructure Development Company;

- Preferential treatment as for new investors in the industrial zones.

Article 12: The Province guarantees the stability of the policies on encouraging investment.

Investors shall, during the period of preferential treatment, be provided with such additional assistance as is necessary to offset any disadvantages that may be incurred by subsequent changes in the rules of preferential treatment.

Article 13: Organisational or individual promoters of successful and effective investment projects in the Province, shall be rewarded with an amount equal to point two per cent (0.2%) of the project capital, plus the awards stipulated in the State Provisions.

chapter iii

preferential treatment of investment for infrastructural development companies in the industrial zones

Article 14: Part of the costs of infrastructue development will be funded from the Provincial budget to reduce infrastructure service charges for industrial zone enterprises namely:

1. 100%  of costs shall be covered for:

- Compensation for damage from land clearance in the establishment of industrial zones;

- Compensation and construction of resettlement areas;

- Tree planning and light installation in common areas in industrial zones.

2. 50% costs shall be covered for the installation of rainwater drainage, centralised waste water processing systems and construction of arterial roads in industrial zones

In cases of urgent need for land clearance and infrastructue development when funding from the Provincial budget has not been made available, infrastructure development companies are authorised to obtain short-term assistance or commercial loans, if approved by relevant authorities, to carry out the work required. Refunds, including interest, will be from the Provincial budget.

Article 15: Parts of investment capital for infrastructure inside industrial zones will be assisted with loans at preferential interest rates from the Provincial Fund for Investment and Development.

Article 16: If the infrastructure service charge rates, determined by the Province, are lower than the total costs of infrastructure installation, the infrastructure development enterprises will be considered for assistance.

Article 17: Technical infrastructure such as power supply, water supply, postal and telecommunication services will be installed and provided by the relevant authorities to the enterprise boundaries to meet operational needs in accord with the approved plan of zone development.

Article 18: The Province will invest in the essential infrastructure outside the industrial zones to enable investor business, travel and other essential activities.

chapter iv
documentation processing and project establishment

Article 19: Implementation of the "one-stopped shop" mechanism:

The Management Board of Binh Dinh Industrial Zones, hereinafter referred to as Management Committee, is the liaison body that assists investors in industrial zones with administrative procedures concerning licenses and permits. Investors in the industrial zones need only deal with the Management Board.

Article 20: Issuance of investment licenses

From the date of admission of valid documentation, the Management Committee will meet with relevant authorities to consider and process investment licenses:

1. Foreign investment

a) For registration of investment license (documentation can be sent by the investor directly or by post or internet) within two working days.

b) Within five working days for evaluation to issue investment license.

- Application for projects beyond the Province's authority shall be submitted to the Ministry of Planning and Investment, together with a covering letter, for consideration, within two working days. The Management Board will guide and join the investor in fulfilling the procedures if required by the investor.

2. Domestic investment

a. Projects which do not require inspection and approval shall be considered within two working days.

b. Consideration of projects in Category B and C for which inspection is required shall be completed within seven and ten working days respectively.

c. The Management Board shall advise investors, in writing, of supplementary documents or any amendment to their application within two working days; and be responsible for assisting investors to complete such documentation.

Article 21:  Time allotment for the relevant authorities to process valid investment applications referred by the Management Committee shall be as follows:

1. Department of Planning and Investment

- Three working days for a decision for certificates for domestic enterprise   establishment, branch or field office establishment.

- Five working days for applications for domestic preference to be considered before referral to the Provincial People's Committee.

2. Department of Land Registry:

- Five working days for processing land lease applications for enterprises in industrial zones.

3. Provincial Police Department:

- Two working days for determination for a fire protection systems design.

4. Department of Science, Technology and Environment

- Six working days for determination for environment protection standards for projects which do not require reports on their environmental effects;

- Fifteen working days for inspection of the report on environmental effects of projects within their jurisdiction or authorised by the Ministry of Science, Technology and Environment;

5. Provincial Tax Department

- Five working days for registration of tax codes;

6. Department of Construction

- Eight working days for determination of a construction plan

Above concerned departments should prepare the necessary forms to provide to the Management Board for guiding the investor and co-operate with the contact agency to fulfil procedures relating to the project within the stipulated time limit.

Article 22: To avoid disturbing industrial zone enterprises' investment and operation, the Management Board is to be advised in advance of meetings between the relevant Provincial authorities and enterprises in the industrial zones.

chapter v

implementation provisions

Article 23: Other preferential treatments which are not included in these Provisions shall be carried out in accordance with the current provisions of  the State  or Provincial governments.

The Management Committee is responsible for monitoring the implementation of these provisions and for proposing prompt and effective amendments where necessary.

Article 24:    Directors or Heads of Departments or bodies of the Province, Chairmen of Districts and the City together with investors in the industrial zones are responsible for implementing these Provisions.

THE PEOPLE'S COMMITTEE OF BINHDINHPROVINCE