REGULATION

on measures for investment incentives in Nghe An Province

(Issued in accordance with Decision 86/2002/QD-UB

of People’s Committee of Nghe An Province dated 27 September 2002)

1. The People’s Committee of Nghe An Province encourages and creates favourable conditions for domestic and foreign investors to invest in Nghe An Province in accordance with the Law on encouragement of domestic investment and the Law on Foreign Investment in Vietnam.
2. On the basis of preferential treatment for domestic and foreign investment regulated in existing legal writings, this Regulation shall provide more specific measures for investment encouragement in Nghe An Province.

1. All domestic and foreign investors in production, business and service activities that were set up and operated legally in Nghe An Province.
2. Domestic organisations and persons who helped to mobilise domestic investment and foreign investors who contributed to investment attraction in Nghe An Province.
3. Licensed investment projects shall enjoy favourable treatment provided in this Regulation for implementing preferential conditions.
4. Investment projects in Industrial Zones in Nghe An Province shall be complied with a separate regulation.

Chapter II

ASSISTANCE TO INVESTMENT PROMOTION

Article 3:

All domestic organisations and persons who lobby and attract investment for Nghe An Province shall be supported a part of investment promotion cost by the People’s Committee of Nghe An Province.

a. Conditions of support: Encouragement and attraction of the following investment projects for Nghe An Province:

• For domestic investment: Group A projects issued with Decree 35/2002/ND-CP of the Government dated 29 March 2002 on amendment, supplement of the Annex of Group A projects issued with Decree 51/2000/ND-CP of the Government providing regulations on implementation of the Law on encouragement of domestic investment.
• For foreign investment: projects in the List of projects of special investment incentives and List of projects of investment incentives issued with Decree 24/2000/ND-CP of the Government providing detailed regulations on implementation of the Law on Foreign Investment in Vietnam.

b. Level of support:

• For domestic investment projects: equal to 0.1% (1/1,000) of investment capital but the maximum financial support of a project shall not exceed 40 billion VND.
• For foreign investment projects: equal to 0.03% (3/10,000) of legal investment capital (in terms of VND) but the maximum financial support of a project shall not exceed 50 billion VND.

c. Procedures:

Investors or organisations and persons who do investment promotion shall make reports to the Provincial People’s Committee, the Office of Planning and Investment and the Office of special management to investment sectors.  Following the issuance of investment licenses, completion of investment procedures and date of official operation that are identified by the provincial bodies in charge of investment management, investors or organisations and persons who do investment promotion shall make and send a request of direct investment assistance to the Office of People’s Council – People’s Committee of Nghe An Province to submit the People’s Committee of Nghe An Province, with all the necessary formalities.

Chapter III

PREFERENTIAL TAX, COMPENSATION, SITE CLEARANCE AND INFRASTRUCTURE CONSTRUCTION SUPPORT

Article 4: Re-granting income tax for enterprises:

Investment projects in Nghe An Province shall enjoy preferential treatment provided in the Law on encouragement of domestic investment and the Law on Foreign Investment in Vietnam. Furthermore, the Provincial People’s Committee shall re-grant income tax for enterprises in 3 years.

Article 5: Support to cost of compensation, site clearance- ground levelling

1. Support to cost of compensation and site clearance:

• The Provincial People’s Committee shall be responsible for compensation and site clearance, supply guidance to provinces and related branches to set up projects, compensate for site clearance and hand over the cleared site for investors.

• Investors in Nghe An Province shall bear 50% of the compensation cost for site clearance; the Provincial People’s Committee shall assist 50% of the compensation cost (according to the plan of compensation for site clearance approved by the Provincial People’s Committee).

2. Support to cost of ground levelling:

• For investment projects with capital under 5 billion USD (foreign investment projects) or 50 billion VND (domestic investment projects): The Provincial People’s Committee shall assist 50% of the cost of ground levelling according to the calculation in advance approved by the Committee but the maximum cost of a project shall not exceed 500 million VND.

• For investment projects with capital over 5 billion USD (foreign investment projects) or 50 billion VND (domestic investment projects): The Provincial People’s Committee shall assist 50% of the cost of ground levelling according to the calculation in advance approved by the Committee but the maximum cost of a project shall not exceed 1 billion VND.

Article 6: Support to infrastructure investment

1. Support from infrastructure to boundary marker of production and business area:

• Investment projects in areas where infrastructure has not been developed: The Provincial People’s Committee shall assist from the construction of main transport roads to boundary marker of production and business area according to transport infrastructure projects approved by the Committee, but the maximum cost of a project shall not exceed 2 billion VND.

• For investment projects with capital over 5 billion USD (foreign investment projects) or 50 billion VND (domestic investment projects), utilizing local resources in areas where resources are available or there are plans of resource production but infrastructure has not yet developed: The Provincial People’s Committee shall assist from the construction of main transport roads to boundary marker of production and business area according to transport infrastructure projects approved by the Committee, but the maximum cost of a project shall not exceed 5 billion VND.

In case there is a huge investment in transport infrastructure, the Provincial People’s Committee and investors shall have a separate commitment.

2. Support to development of infrastructure of areas where resources for processing industry are located:

• Areas of tea, coffee, orange with a scale of over 300 ha; areas of pineapple, sugarcane, cassava, banana with a scale of over 500 ha shall be totally invested by the Provincial People’s Committee to construct main transport roads, key hydro projects according to the infrastructure projects approved by the Committee.

• With regard to aquatic products development: Projects of shrimp breeding with a scale of over 20 million for new breeds of shrimp and of over 30 ha for intensive cultivation of shrimp shall be invested by the Provincial People’s Committee to construct the whole main transport roads, level I irrigation canals according to infrastructure projects approved by the Committee.

• Areas of other resources shall be assisted in construction of main transport roads at appropriate level, depending on each project.

1. 10 years for investment projects with capital under 5 billion VND.
2. 20 years for investment projects with capital over 5 billion VND.

1. 20 years for investment projects with capital under 10 billion VND.
2. 30 years for investment projects with capital over 10 billion VND.

1. 20 years for the land where there is not investment project or are investment projects with capital under 10 billion VND.
2. 30 years for investment projects with capital over 10 billion VND.

• In Vinh City, Cua Lo Town:        0.35 USD/m²/year
• In other towns:                          0.18 USD/m²/year

• Plain districts/villages:                       0.06 USD/m²/year
• Mountainous districts/villages:            0.01/m2/year
• For land not belonging to urban, residential, and special land where investment for upgrading is necessary to make the land useful for agriculture production, forestry, aquaculture production, the land rent is 50 USD/ha/year. Particularly, for areas of stone, bare hill, and poor, exhausted and hard-to-be-exploited land where is utilized for projects not belonging to industry production, service, tourism, trade, exploration and exploitation of minerals, the land rent is 30 USD/ha/year.

• The lease price of water surface of rivers and lakes is 75 USD/ha/year (excluding projects where architecture building shall be constructed above water surface in urban areas).
• The lease price of sea surface is 150 USD/km2/year. In cases where area of surface lease is not fixed, the price is 1,500 USD/km2/year.

• By 50% if projects belong to the List A/ND 51 and are carried out in plain villages.
• By 75%, if projects are carried out in mountainous villages of plain districts and 4 low mountainous districts.
• By 100% if projects belong to the List A/ND 51 and are carried out in 4 low mountainous districts.
• By 100% for all projects carried out in 6 high mountainous districts.

• If satisfying one of two conditions: exemption in duration of 05 years.
• If satisfying two conditions: exemption in duration of 10 years.

• If satisfying one of two conditions: exemption in duration of 09 years.
• If satisfying two conditions: exemption in duration of 15 years.

• If satisfying one of two conditions: exemption in duration of 13 years.
• If satisfying two conditions: exemption in duration of 15 years.

• If satisfying one of two conditions: exemption 100% of land rent.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 11: Solutions in investment process:

1. Investment projects in Nghe An Province shall enjoy preferential treatment provided in this Regulation; within 12 months from the day of issuance of investment licenses or certificates of preferential treatment on investment, if projects are not carried out or have been carried out not in accordance with progress and not accepted by the People’s Committee of Nghe An Province, investors must return and refund all special treatment provided in this Regulations.

2. After 12 months from the day of receipt of certificates of land use right, if investors do not carry out projects or scale of projects does not comply with the commitment and implementation of projects is not in accordance with progress and accepted by the People’s Committee of Nghe An Province in printed documents, the Committee shall withdraw the allocated land, all cost shall be born by investors.

 Article 12: Responsibility of related bodies:

1. The Office of Provincial People’s Council – Provincial People’s Committee shall be responsible for receiving files of investors; supervising and speeding up offices, departments, branches and People’s Committees of districts, towns on the basis of their responsibilities and functions to complete necessary investment procedures and hand over them to investors so that investor shall carry out projects in accordance with the progress.

2. The Office of Planning and Investment shall be responsible for:

• Presiding over implementation of investment promotion.

• Presiding over advising the Provincial People’s Committee in its assessment of investment projects.

• Presiding over co-ordination with Service of Finance and Goods Price, based on requirement and annual budget, in balancing support capital to investment promotion, site clearance, site levelling and infrastructure investment.

• Guiding procedures, organization of monitoring and implementation assessment and making report on implementation process of this Regulation to the Provincial People’s Committee.

3. The Construction Service shall be responsible for:

• Co-ordination with special services, districts, towns in leading investors to identify locations and procedures relating to construction.

4. The Service of Finance and Goods Price shall be responsible for:

• Presiding over co-ordination with the Land Office and the Construction Service to assess compensation projects, site clearance to submit the Provincial People’s Committee.

• Balancing and providing support cost, tax in annual budget plan in accordance with this Regulation.

5. The Land Office shall be responsible for:

• Guiding and completing legal land procedures in accordance with the progress and time as provided in this Regulation.

6. The Provincial Department of Tax shall be responsible for:

• Co-ordination with the Service of Finance and Goods Price in complying with necessary formalities in re-granting enterprises all kinds of tax in accordance with this Regulation.

7. The Trade Service shall be responsible for:

• Complying with necessary formalities for export-import of materials and equipment of projects, based on investment licenses, project files, and identification of list of imported materials, equipment given by the Service of Planning and Investment.

8. The Department of Custom shall be responsible for:

• Complying with necessary custom formalities for projects based on approved plans of export-import of materials and equipment.

9. The People’s Committees of districts, towns where there are investment projects shall be responsible for co-ordination with investors in presiding over compensation, site clearance and location hand-over for investors.

 (For large scale and key projects, the Provincial People’s Committee shall establish a Council at provincial level in charge of compensation of site clearance particularly for those projects).

Article 13: Implementation provisions:

• In implementation of this Regulation, if any impediment arises, investors, related offices, departments and persons shall be requested to report in printed documents to the People’s Committee of Nghe An Province (Telephone Number: 038.844645, Facsimile: 038.843048)

• The Provincial People’s Committee shall be responsible for consideration and replying, after 03 days at the latest from the day of receipt.

• Investors, related offices, departments and persons shall be responsible for implementation of this Regulation. Any organization, person who do effectively shall receive an award, and any organization, person who violate this Regulation shall be punished in accordance with Vietnam’s Laws.