(Under the Decision No.16/2007QD-UBND issued on April 27, 2007 by Ha Tinh Provincial People’s Committee)

Policies on investment preferences

1. All projects on investment in Vung Ang economic zone of domestic and foreign individuals and organizations enjoy preferences on tax rate of enterprise income tax and other taxes under the Provision of Articles 1, 2 and 3, Clause 14 of Regulation 72/2006/QD-TTg of April 3, 2006, specifically as following:
A. Enjoying the 10% enterprise income rate for 15 years after the project begins its business operation; enjoying the enterprise income tax exemption for four years after the taxable income and its 50% reduction of the payable tax amount for nine subsequent years.
During the production and business process, if the enterprise suffers losses after making tax settlement with tax bodies, it is allowed to carry forwards losses to subsequent years for deduction from taxable income. The duration of carrying forwards losses will not exceed five years.
B. Being exempt from import tax for 5 years as from the time when the enterprise begins its production for raw materials, supplies, components and semi-finished products which have not been yet produced in the country and must be imported.
C. Enjoying the 50% reduction of personal income tax for high-income earners, including regular and irregular income, for both Vietnamese and foreigners working in Vung Ang economic zone.

2. Projects on high-technologies under the Provisions of Clause 2, Article 5, of the Regulation on High-tech Parks,  promulgated together with Decree No. 99/2003/ND-CP of August 28, 2003 of the Government enjoy the 10% enterprise income tax rate throughout  the process of implementing the projects, including:
- Information, communication and IT software technologies.
- Bio-technology in service of agriculture, aquaculture and healthcare.
- Micro-electronic precision-tool, mechanical-electronics, optoelectronics and automation technologies.
- New materials and Nano technologies.
- Environment technology and new energy technology.
- Other special technologies under the regulations of competent bodies.

3. Investment projects on building and dealing in infrastructure in non-tariff zone, Vung Ang and Son Duong Ports and other large-scale investment projects of important significance for the development of sectors, domains or the socio-economic development of the region or the whole country, meeting one of the following criteria, will be submitted by the Provincial People’s Committee to the Prime Minister for consideration and permission to enjoy the 10% enterprise income tax rate throughout the process of implementing projects:
a. Projects capitalized 70 million USD or more;
b. Projects employing 1,500 workers or more;
c. Projects with direct export turnover of 70 million USD/year or more.

Investment Support Policies

1. Land Rent and Land Use Levy Supports 

a. Encouraging investors to invest and deal in infrastructure in non-tariff zones, post-port service zones, industrial parks, urban centres, tourist resorts and sea ports.
b. Investment projects on building and dealing in technical infrastructure, public facilities in service of Vung Ang economic zone and other industrial parks of the Province in areas meeting with exceptional socio-economic difficult ties are exempt from land use levies or land rents for the entire assigned land areas throughout the implementation of the projects.
The rents of land invested with technical infrastructure and the changes for use of technical infrastructure and service and public facilities in Vung Ang economic zone and other industrial parks will be determined by enterprises that develop and deal in the infrastructure after reaching agreement with Vung Ang economic zone’s management board.
c. Land for construction of dormitories of labourers of production and business projects in Vung Ang economic zone and other industrial parks of the Province, approved by competent state bodies are exemption from land use levies or land rents throughout the project implementation.
d. Other projects of investment in Vung Ang economic zone are liable to pay the land rent equal to 0.40% and for investment in other industrial parks 0.50% of the land prices currently prescribed for assigned land. The price of land in Vung Ang economic zone and other places having industrial zones is annually issued under the regulations of Law on Land in 2003.
e. Based on the nature of their respective projects and the position of leased land, subjects leasing land in Vung Ang economic zone or industrial parks of the Province in areas meeting with exceptional socio-economic difficulties, enjoy land rent exemption for 11 or 15 years after the land renting contracts tale legal effect.
f. Based on the nature of their respective projects, subjects leasing land the province’s industrial parks at the remaining enjoy land rent exemption for three or seven years after the land renting contract take effect.
- The land leasing duration shall not exceed 70 years and the areas of lease land depend on the project’s actual demands.

2. Supports for Damage Compensation, Ground Clearance and Resettlement 

The Provincial People’s Committee instructs the People’s Committees at all levels to coordinate with the Vung Ang economic zone’s management board and relevant sectors and branches in ground clearance and hand-over according to project’s schedule.
- Individuals and organizations with investment projects in Vung Ang economic zone and industrial parks are assigned land by the state with the collection of land use levies or leased land shall advance the money for compensation support and resettlement, which will be subtracted from their payable land use levies or land rents.
- Foreign organizations, or individuals, overseas Vietnamese having investment projects in Vung Ang economic zone or industrial parks are exempt from money for compensation, ground clearance support and resettlement. To step up the process of projects, the Province encourages investors to advance the compensation, support and resettlement money, which will be subtracted from their payable land use levies on lend rents.

3. Technical Infrastructure Support

a. The State supports investment in building technical infrastructural and functional zones; fences; waste water and waste treatment facilities in functional zones of Vung Ang economic zone and industrial parks under the national target programmes on investment supports, ensuring the sustainable operation and development of Vung Ang economic zone and industrial parks.

b. Investment projects on building and dealing in technical infrastructure, service and public facilities in service of Vung Ang economic zone and industrial parks of the Province are provided with electricity and water supply services, and allowed to use the common transport infrastructure, water drainage and supply facilities to fence of functional zones in Vung Ang economic zone and industrial parks; apply the following forms to mobilize investment capital:
- Giving priorities to ODA capital sources and investment preference credit capital
- Attracting investment capital in forms of BOT, BT, BTO and other forms in accordance with current regulations.
- Mobilizing capital from the land fund under the legal provisions on land for development investment.
- Mobilizing direct investment capital from domestic and foreign individuals and organizations; advance capital of those who have the demand of using infrastructure, capital of enterprises having the functions to build and deal in technical infrastructure. Expanding co-financing credit of credit organizations and mobilizing all capital sources in other forms in accordance with the provision law.

4. Human resource training supports  

a. Training courses to raise enterprise managers’ qualification such those on business administration; business strategy formulation; technical management; human resource management; finance and accounting; skills for negotiation; and conclusion of contracts; leaders’ skills for lecturing; product quality management; information technology application; new product development; and new market development which are provided with support at the maximum level of one million VND/person/course.
b. For training courses on improving the  professional skills of  cadres and employees of enterprises: The Provincial People’s Committee encourages investors to recruit local labourers who were trained at vocational-training institutions. For labourers, who are employed but have not been trained or trained in other occupations, not meeting the employment requirement of the projects, if the investors wish to train or retrain them at the Province’s vocational training institution, they are provided with funding supports follows:
- The projects regularly employing 50 labourers or more are provided with support equal to 50% of training expenditure but not exceeding one million VND/person/course.
- The projects regularly employing between 20 and 40 labourers are supported with 50% of training expenditure but not exceeding 700,000 VND/person/course.
- Supporting source: from the Province’s annual training budget and supports are provided via the Province’s vocational training institutions.

5. Advertisement expense support:

- The expense for advertisement on Ha Tinh newspapers and Ha Tinh radio and television for new products of enterprises in Vung Ang economic zone and industrial parks in the Province is reduced 50% for once year but for not more than 10 times on each kind of means of communication, counting for the first advertisement. The advertisement area in each newspaper doesn’t exceed one fourths of page and the duration for each advertisement on radio and television doesn’t exceed one minute and thirty seconds.
- Supporting source: From the Province’s budget (items on investment promotion) and the agencies providing the advertising information are supported under the current regulations.

Information guidance and supply:

Vung Ang economic zone’s management board and relevant sectors and branches, People’s Committees of districts and towns, have to guide and supply necessary information free of charge to investors, excluding the compulsory expenditure under the current regulations of State, during the process of conducting surveys and formulating investment projects.

Commending and Rewarding Organizations and Individuals Who Have Merits in Investment Promotion:

a. Organizations and individuals having merits in mobilizing, promoting and attracting domestic and foreign investment projects each with a total capital of at least 20 billion VND in Vung Ang economic zone or industrial parks of the Province (excluding enterprises investing, developing and dealing in industrial parks’ infrastructure, non-tariff zones and other functional zones calling for investment in their respective business domains) are commended and rewarded by the Provincial People’s Committee. The reward level is decided by the Provincial People’s Committee but will not exceed 50 million VND.
b. 50% of the above reward will be paid when the project’s investment procedures are completed and the project begins being under construction in accordance with the regulations and the remainder will be paid when the project is completed and put into operation.

Administrative procedure on investment

Implementing the “One stop and on-the spot” mechanism at Vung Ang economic zone’s management board.
- Instructing and settling in time the procedures for granting investment licences to organizations and individuals investing in Vung Ang economic zone.
- The duration for granting an investment licence will not exceed five working days after the receipt of complete and valid dossiers from investors.
- The process of granting investment licences and settling the administrative procedures at Vung Ang economic zone and industrial parks is publicized at the administrative offices.
- Concerned sectors, departments and branches have responsibilities to fully prepared for the necessary contents and documents and coordinates in settling in time related administrative procedures at the request of competent bodies or investors within three working days.
- Investors are exempted from all relevant expenses in the course of filling in the administrative procedures for investment in Vung Ang economic zone and industrial parks, excluding fees currently prescribed by the State.