Decree 7/1998/ND-CP

DECREE No DECREE No.7/1998/ND-CP OF JANUARY 15, 1998 DETAILING THE IMPLEMENTATION OF THE LAW ON PROMOTION OF DOMESTIC INVESTMENT (AMENDED) THE GOVERNMENT Pursuant to the Law on Organization of the Government of September 9, 1992; Pursuant to the Law on Promotion of Domestic Investment of June 22, 1994; At the proposal of the Minister of Planning and Investment, DECREES: Chapter I GENERAL PROVISIONS Article 1.- To encourage various economic sectors to invest in production and business for socio-economic development, the State creates a uniform and stable legal framework, a liberal and favorable environment for investment, business and equal competition by enterprises of all types in all economic sectors, adopts a "one door" mechanism in the relationship between investors and State agencies, and ensures the regime of investment preferential treatment for investment projects to be encouraged under the Law on Promotion of Domestic Investment. Article 2.- Forms of investment to be encouraged under the Law on Promotion of Domestic Investment: 1. Investment projects on the establishment and development of production and business establishments, including: a/ Investment in setting up production and business establishments; b/ Investment in developing new production and business lines and trades or manufacturing new products at the same location; c/ Investment in developing the manufacture and trading of the existing products or new products in new places; Forms of investment mentioned in Points b and c, Clause 1 of this Article shall not require permits for the establishment of enterprises but shall only require additional registration of new business lines and trades. 2. Investment projects on the expansion of production scale and increase of production acity, on research, development and renewal of technologies of the existing production and business establishments. 3. Share purchase to mobilize or increase ital of enterprises, contribution of ital to enterprises. 4. Investment in the form of Build- Operate- Transfer (BOT) contracts. Article 3.- Subject to the regulation of the Law on Promotion of Domestic Investment shall include: 1. Enterprises set up under the Law on Companies, the Law on Private Enterprises, the Law on Cooperatives and the Law on State Enterprises; enterprises of political organizations, socio-political organizations, professional societies, individuals and business groups operating under Decree No.66-HDBT of March 2, 1992 of the Council of Ministers (now the Government). 2. Vietnamese organizations and citizens, Vietnamese residing abroad and foreigners permanently residing in Vietnam that buy shares or contribute ital to domestic enterprises, including State enterprises allowed to diversify forms of ownership or investment funds with financial autonomy. 3. Vietnamese enterprises which are directly invested in by Vietnamese residing abroad. 4. Vietnamese enterprises which are directly invested in by foreigners permanently residing in Vietnam. 5. Enterprises established jointly by Vietnamese citizens and Vietnamese residing abroad or foreigners permanently residing in Vietnam. Article 4.- Production and business lines and trades, fields of culture, education, training, health care and social affairs shall be entitled to investment promotion under the provisions of List A issued together with this Decree; districts of ethnic minorities, mountain and island areas shall be entitled to investment promotion under the provisions of List B issued together with this Decree; other difficult areas shall be entitled to investment promotion under the provisions of List C issued together with this Decree (hereafter referred to as List A, List B and List C for short). Article 5.- Vietnamese residing abroad (hereafter referred to as overseas Vietnamese for short) include people with Vietnamese citizenship who reside abroad and people of Vietnamese origin but with foreign citizenship. Overseas Vietnamese directly investing into the country shall be entitled to opt for the application of either the Law on Foreign Investment in Vietnam or the Law on Promotion of Domestic Investment, but each investment project shall be entitled to apply only one of these two laws. Investors being overseas Vietnamese that meet conditions prescribed in Article 9 of this Decree shall be entitled to set up enterprises in the form of company or private enterprise and have the rights and obligations as defined in the Law on Companies or the Law on Private Enterprises as well as relevant legal documents. Article 6.- To make direct investment in Vietnam under the Law on Promotion of Domestic Investment, persons with Vietnamese stock and with foreign citizenship shall have to obtain written certification of their Vietnamese origin from one of the following agencies: the overseas Vietnamese diplomatic mission; the Committee for Overseas Vietnamese; or the competent agency of the foreign countries where their passports are issued. Article 7.- Foreigners permanently residing in Vietnam are those who have registered their permanent residence in Vietnam. Investors being foreigners permanently residing in Vietnam who meet conditions prescribed in Article 9 of this Decree shall be entitled to set up enterprises in the form of company or private enterprise and have the rights and obligations as defined in the Law on Companies or the Law on Private Enterprises as well as the relevant documents. Article 8.- The percentages of shares or contributed ital owned by Vietnamese organizations and citizens, overseas Vietnamese and foreigners permanently residing in Vietnam that buy shares or contribute ital to domestic enterprises, including State enterprises allowed to diversify forms of ownership or State investment funds, shall be specified by the Government in each period depending on each production or business line or trade, each field and geographical area for investment. Article 9.- To be allowed to directly invest in the establishment of enterprises in Vietnam, overseas Vietnamese and foreigners permanently residing in Vietnam shall have to fully meet the following conditions: 1. Having full acity for civil acts according to Vietnam's Civil Code. 2. Having enough legal ital as defined in Vietnam's Law on Private Enterprises or Law on Companies. Chapter II INVESTMENT GUARANTY AND SUPPORT Article 10.- Enterprises which make investment under the Law on Promotion of Domestic Investment shall be entitled to land allocation or land lease, be guaranteed in term of the rights and obligations of organizations with land allotted or leased by the State according to the land legislation and shall be granted land use right certificates. Article 11.- Enterprises owned by overseas Vietnamese and enterprises of foreigners permanently residing in Vietnam, which operate under the Law on Promotion of Domestic Investment and this Decree, shall be treated as enterprises of the same type in the country, like they shall be eligible for the same prices set by the State for input commodities and services, for the same tax rates, the same investment privileges and the land allocation or land lease by the State, and shall have to perform obligations as provided for domestic organizations by laws. Article 12.- The State encourages economic sectors, social organizations and individuals inside and outside the country to contribute ital to set up development investment funds and manage such funds according to the principle of financial autonomy. The Government shall promulgate regulations on the operation of investment funds, policies and measures on investment promotion and privileges so as to ensure the ital contributors' interests. Article 13.- The State shall directly support investment activities through the National Investment Support Fund, development investment funds and other programs of the State. Objects of investment support, the mode of management and the support duration shall be stipulated by the Government for each specific program or project. The State encourages economic or social organizations, and individuals inside and outside the country to contribute ital to the National Investment Support Fund on the principle of voluntariness. The State shall ensure the ital contributors' rights and interests according to the Fund's Statute. Article 14.- The National Investment Support Fund shall support investment projects in branches, trades, fields and areas eligible for preferential treatment as follows: 1. Providing mid-term and long-term soft loans for investment projects on List B and List C. The project owners shall be entitled to use assets purchased by this loaned ital for mortgages. The lending interest rates shall be decided by the Prime Minister, based on the proposal of the Minister of Finance; 2. Providing investment credit guaranty for investment projects on List A, List B and List C; 3. Partially subsidizing the lending interest rates for loans granted by the Bank for Investment and Development and State-owned commercial banks to investment projects in the branches and trades on List A. The subsidy level shall be equal to the difference between the lending interest rate set by the Bank for Investment and Development or the Sate-owned commercial bank in the locality where the project owner borrows ital and the lending interest rate set by the National Investment Support Fund at the time of ital borrowing, and such subsidy shall be given to the project owner only after he/she has repaid the principal of the loan. Article 15.- The contribution of State ital to enterprises shall be made in the form of Build-Operate-Transfer contracts (referred to as BOT enterprises for short) and other forms through the National Investment Support Fund, the Bank for Investment and Development, the State-owned commercial banks and/or State-owned financial companies. The contribution of State ital to BOT enterprises for Group A projects (according to investment classification) shall be decided by the Prime Minister at the proposal of the Ministry of Planning and Investment; the presidents of the People's Committees of the provinces and cities directly under the Central Government shall decide the contribution of the local budget ital as investment ital to BOT projects of Groups B and C (according to investment classification) at the proposal of the provincial/municipal Planning and Investment as well as Financial Services. Article 16.- Enterprises involved in the production of goods for export shall be entitled to directly export goods produced by themselves. The minimum level of working ital set for import-export enterprises which have registered their operations in the areas on List B or List C shall be 50% lower than the common prescribed level of working ital. Article 17.- Establishments involved in the production of goods for export or production of raw materials and/or materials in direct service of the production of goods for export, which are entitled to investment privileges according to List A, List B or List C, shall be provided with guaranty or export-related credit loans by the Bank for Investment and Development and the State-owned commercial banks, including loans for the purchase of export goods and loans for the expansion of establishments producing export goods. In cases where such banks fail to have enough ital for lending, the State Bank of Vietnam shall have to provide them with loans as reallocated ital in accordance with the current provisions of the State Bank of Vietnam. Regarding a number of important export commodities eligible for development priority according to the List prescribed by the Government, in cases where the international market prices of such commodities fall or the domestic prices of materials and raw materials for the production of such export commodities rise, thus causing big losses for the establishments which produce export goods, the State shall consider support for such establishments through the Price Stabilization Fund. The Government Pricing Committee shall assume the prime responsibility and coordinate with the concerned agencies in submitting to the Prime Minister for decision the support level and duration according to the objectives and management regulation of this Fund. Article 18.- The investors shall be entitled to select geographical areas for the realization of investment projects or opening of branches, irrespective of the locations where they have registered their current permanent residence. After obtaining a certificate of investment preferential treatment, a project owner with his/her name stood on the business license shall have the right to transfer the permanent residence register or certificate of his/her own and his/her family to the locality where the new investment project is to be realized. Laborers with university degrees or professional skills of grade four or higher and with labor contracts for 2 years or more with production, business establishments which are eligible for investment preferential treatment under the Law on Promotion of Domestic Investment, shall have the right to transfer their permanent residence to the new working place(s). Article 19.- Investors under the Law on Promotion of Domestic Investment shall have the right to hire foreign laborers and experts and pay them wages according to the labor contracts. Article 20.- Investors being overseas Vietnamese, after obtaining certificates of investment preferential treatment, shall enjoy the same water, railway, road and air freight and service charges for dwelling houses, hotels, electricity and water supply and post and telecommunications fees as Vietnamese residing in the country. Article 21.- Overseas Vietnamese investing in Vietnam shall be granted multiple entry and exist visas during the time of preparation, construction and management of their production establishments. Article 22.- After fulfilling financial obligations prescribed by Vietnamese law, overseas Vietnamese directly investing in Vietnam shall be entitled to transfer abroad their lawful profits, borrowed ital, investment ital and other lawful monies and property, like the cases for foreigners investing in Vietnam under the Law on Foreign Investment in Vietnam. Article 23.- When transferring abroad profits, borrowed ital and investment ital as prescribed in Article 22 of this Decree, overseas Vietnamese directly investing in Vietnam shall be entitled to convert them into foreign currency(ies) at the banks licensed to deal in foreign currencies. Overseas Vietnamese who buy shares or contribute ital to enterprises or investment funds, after fulfilling tax obligations prescribed by Vietnamese law, shall be entitled to buy foreign currency(ies) at the banks licensed to deal in foreign currency(ies) so as to transfer abroad their dividends or investment ital, if their contributed ital or shares are transferred to other persons. Article 24.- The State encourages organizations and individuals to set up organizations or enterprises to provide consultancy services on investment, management, technological transfer, vocational training, technical and managerial skill training and information provision in support of domestic investment. The State management agencies are strictly forbidden to directly provide investment consultancy services for profits. Article 25.- The State agencies shall, within their respective powers and tasks, have to provide information, guidance and support for domestic investors in carrying out their investment activities. The Ministry of Finance shall assume the prime responsibility and coordinate with the Ministry of Science, Technology and Environment in stipulating in detail the use of the Fund for Technological Development and financial-support measures to renew technologies of enterprises subject to the regulation of this Decree. Article 26.- In cases where damage is caused to the interests of enterprises entitled to investment preferential treatment under the Law on Promotion of Domestic Investment and this Decree due to changes in law provisions, the State shall take measures to reasonably settle the investors' interests. The Ministry of Planning and Investment shall assume the prime responsibility and coordinate with the Ministry of Finance and the concerned agencies in submitting to the Prime Minister the basic principles for the implementation of this Article. Chapter III INVESTMENT PREFERENTIAL TREATMENT Article 27.- Enterprises involved in agricultural production, forestry, aquaculture and salt making and enterprises with List A investment projects to be carried out in districts mentioned in List B or in the areas mentioned in List C, if allocated land by the State, shall not have to pay the land use levy; if renting land, shall be entitled to the land rent exemption for five years and a 50% reduction of the land rent for five (5) more years after signing the land-renting contracts. Article 28.- Enterprises with investment projects for infrastructure construction and business in industrial parks, export processing zones or high-tech parks shall be entitled to a 50% reduction of the land rent for five (5) years after signing the land-renting contracts. Enterprises with investment projects for List A - branches or trades in industrial parks, export processing zones or high-tech parks shall be entitled to a 50% reduction of the land ground rent at the original renting price set by the State, excluding the value of infrastructure constructions owned by domestic infrastructure development companies, for five (5) years after signing the ground-renting contracts. Article 29.- Investment projects for the production of export goods or import substitutes or the production of raw materials and materials in direct service of the production of export goods or import substitutes shall be entitled to: 1. Export - related credit loans granted by the State-owned commercial banks at preferential interest rates; 2. Guaranty provided by the National Investment Support Fund for export - related credits; 3. Shortening by half the duration for depreciation of fixed assets which are used in the production, processing or assembly of export goods. Article 30.- The following investment projects shall be eligible for tax privileges: 1. Investment in branches and trades prescribed in List A attached to this Decree. 2. Investment in production establishments that use technologies with one of the following factors: a/ Technology to produce export goods or import substitutes; b/ Technology, which, when being applied, is able to give rise to the renovation of technology and equipment in other branches; c/ Technology that use domestic raw materials to turn out products with quality higher than the quality of the existing products of the same type. d/ Clean technology; technology that use solid, liquid and gas waste matters. The Ministry of Science, Technology and Environment shall assume the prime responsibility and coordinate with the concerned State agencies in studying and promulgating a list of technologies that meet the requirements mentioned in Clause 2 of this Article. 3. Investment in production and/or business projects which annually employ at least an average number of: a/ 100 persons for urban areas of the 1st and 2nd categories. b/ 20 persons for districts on List B and areas on List C. c/ 50 persons for other areas. The Ministry of Labor, War Invalids and Social Affairs shall determine the method of calculating the average number of laborers prescribed in this Clause. 4. Investment in districts on List B. 5. Investment in areas on List C. 6. Investment in industrial parks and/or export processing zones. Article 31.- Production, transport, trade and service establishments investing in the forms prescribed in Clause 1, Article 2 of this Decree in districts other than those in areas of ethnic minorities, mountain or island areas (List B) or in other difficult areas (List C), if meeting one of the conditions prescribed in Clauses 1, 2 and 3, Article 30 of this Decree, shall be entitled to a 50% reduction of the payable turnover tax amount for one (1) year from the month the taxable turnover is made; be exempt from profit tax for the first two years, from the time the taxable profit is generated and entitled to a 50% reduction of the payable profit tax amount for the next three years. For establishments that meet two or more conditions, they shall be eligible for a 50% reduction of payable profit tax amount for one (1) more year. Article 32.- Production, transport, trade and service establishments with investment projects in the forms stipulated in Clause 1, Article 2 of this Decree in districts of ethnic minorities and high-mountain areas as prescribed in Part I of List B, if meeting one of the conditions prescribed in Clauses 1, 2 and 3, Article 30 of this Decree, shall be entitled to a 50% reduction of the payable turnover tax amount for four (4) years from the month the taxable turnover is generated; be exempt from profit tax for the first four (4) years from the time the taxable profit is made and be entitled to a 50% reduction of the payable profit tax amount for the next seven (7) years. For production establishments that meet two or more conditions, they shall be entitled to a 50% reduction of the payable profit tax amount for two (2) more years. Article 33.- Production, transport, trade and service establishments with investment projects to be carried out in the forms stipulated in Clause 1, Article 2 of this Decree in districts of ethnic minorities, mountain and island areas as described in Part II of List B, if meeting one of the conditions prescribed in Clauses 1, 2 and 3, Article 30 of this Decree shall be entitled to a 50% reduction of the payable turnover tax amount for three (3) years from the month when a taxable turnover is made; be exempt from profit tax for the first four (4) years from the time the taxable profit is made, and be entitled to a 50% reduction of the payable profit tax amount for the next five (5) years. For production establishments that meet two or more conditions, they shall be entitled to a 50% reduction of the payable profit tax amount for two (2) more years. Article 34.- Production, transport, trade and service establishments with investment projects to be carried out in the forms stipulated in Clause 1, Article 2 of this Decree in other difficult areas (List C), if meeting one of the conditions prescribed in Clauses 1, 2 and 3, Article 30 of this Decree shall be entitled to a 50% reduction of the payable turnover tax for two (2) years from the month the taxable turnover is generated; be exempt from profit tax for the first three (3) years from the time the taxable profit is made and be entitled to a 50% reduction of the payable profit tax amount for the next five (5) years. For production establishments that meet two or more conditions, they shall be entitled to a 50% reduction of the payable profit tax amount for two (2) more years. Article 35.- Production, transport, trade and service establishments with investment projects to be carried out in the forms stipulated in Clause 2, Article 2 of this Decree shall be exempt from profit tax on the excess profit for one year from the year the taxable profit is generated. The profit used for re-investment shall not be included in the taxable profit. Article 36.- The provisions on tax exemption and reduction for production, transport, trade and service establishments entitled to investment preferential treatment as prescribed in Articles 31, 32, 33, 34 and 35 of this Decree shall comply with the provisions on tax exemption and reduction in the Law on Promotion of Domestic Investment and the current Law on Turnover Tax and Law on Profit Tax. Article 37.- The import tax exemption for the already licensed investment projects is stipulated as follows: 1. The already licensed investment projects shall be eligible for import tax exemption only once, regarding the import of the following equipment, machinery and means of transport: a/ Equipment and machinery (including electricity, water supply and discharge and information systems) imported to form fixed assets of enterprises; b/ Specialized transport means included in technological lines imported to form fixed assets of enterprises and means of conveyance to be used for carrying workers (cars of 24 seats or more), and water transport means; c/ Components, details, spare parts, implements, models and accessories accompanied with the above- mentioned equipment, machinery and specialized means of transport and means of conveyance. The import tax exemption for the above-said equipment, machinery and means of transport shall also apply to cases of expansion of the project's scale, replacement or renewal of technologies; d/ Raw materials and materials imported to implement BOT projects; e/ Plant seeds and animal breeds, agricultural pharmaceuticals of special category, imported for the implementation of agricultural, forestrial or fishery projects; f/ Laboratory equipment, equipment in service of the production of school equipment, medical equipment and equipment for environmental protection; g/ Other goods and supplies used for projects where investment is specially encouraged as stipulated by the Prime Minister. 2. Raw materials and supplies imported to form enterprises' fixed assets shall be entitled to import tax exemption under the following conditions: a/ Being imported for the manufacture of equipment to form fixed assets of the enterprises. b/ Being imported for construction to form fixed assets of the enterprises if such raw materials and supplies have not yet been manufactured in the country or have been domestically produced but failed to meet the technical requirements of the projects. c/ Being imported for experimental production according to the explanation report, which are considered and approved by the Ministry of Trade on a case-by-case basis. 3. Raw materials, knockdown parts, accessories and supplies, which are imported for the production of export goods shall subject to import tax when they are imported into Vietnam and when finished products made thereof are exported, the import tax shall be refunded with the amount corresponding the percentage of such export finished products. The tax reimbursement shall be made according to the prescribed time-limit at the agency and place where the investors have paid the import tax. 4. Basing themselves on investment licenses and decisions on import-duty free goods issued by the Ministry of Trade, the customs agencies shall quickly complete import-export procedures in accordance with the provisions of the customs legislation. 5. Import goods mentioned in Clauses 1 and 2 of this Article must be used for the right purposes of projects. In cases where the goods are transferred or re-sold on market, they shall be subject to import tax and other taxes prescribed by law. 6. Patents, technical know-how, technological processes and technical services used for ital contribution shall be exempt from technological transfer related taxes. Article 38.- Investment projects on List A or carried out in areas on List B or List C, if involving in the exploitation of mineral resources (except for oil and gas), shall be entitled to a maximum 50% reduction of natural resources tax for the first three (3) years from the time the exploitation commences. Article 39.- Organizations and individuals directly buying shares from enterprises or contributing ital to enterprises or investment funds shall be exempt from profit tax (enterprise income tax) or personal income tax, including additional income tax, for high-income earners, regarding their eligible dividends for three (3) years from the first time they receive them. Article 40.- Overseas Vietnamese who invest their ital in the investment forms prescribed in Article 2 of this Decree, foreigners permanently residing in Vietnam who buy shares, mobilize ital, increase ital or contribute ital to enterprises in accordance with Clause 3, Article 2 of this Decree, when transferring their profits abroad, shall only have to pay a tax amount equivalent to 5% of the amount of money transferred abroad. Chapter IV POWERS AND RESPONSIBILITIES OF AGENCIES PERFORMING THE STATE MANAGEMENT OVER THE DOMESTIC INVESTMENT PROMOTION Article 41.- The Ministry of Planning and Investment shall assist the Government to perform the function of State management over domestic investment promotion, and have the following tasks and powers: 1. To work out and submit to the Government for supplement or change lists of branches, trades and areas eligible for investment preferential treatment (as defined in Lists A, B and C attached to this Decree); 2. To coordinate with the State management agencies in each branch in guiding, monitoring and supervising the application of measures for investment support and preferential treatment; 3. To define the order, procedures, application forms and certificates of investment preferential treatment for uniform application in the whole country; 4. To decide to grant or not to grant investment preferential treatment certificates to enterprises set up by decision of the Prime Ministers; enterprises set up by decision of the Minister under the Prime Minister's authorization. Article 42.- The Ministry of Finance shall provide guidance on tax exemption and reduction as provided for in this Decree. Basing itself on the certificate of investment preferential treatment granted to the investor, the tax agency directly managing tax payment by the enterprise eligible for investment preferential treatment shall have to make the exemption or reduction of tax(es) or land rent for the enterprise as provided for in this Decree. Article 43.- The People's Committees of the provinces and cities directly under the Central Government (hereafter collectively referred to as the provincial People's Committees) shall have to perform the function of State management over the investment in their respective localities in conformity with the provisions of the Law on Promotion of Domestic Investment, including the determination of the lists of projects eligible for investment preferential treatment; decide to grant or not to grant certificates of investment preferential treatment; to monitor and supervise the implementation of measures to promote domestic investment. The granting of investment preferential treatment certificates to newly-established enterprises shall be done simultanously with the granting of their establishment permits or their business registration certificates. The Planning and Investment Services of the provinces and cities directly under the Central Government (hereafter collectively referred to as the provincial Planning and Investment Services) shall assist their respective provincial People's Committees in performing the function of State management over the investment in the localities; consider and submit to the provincial People's Committees for decision the granting of investment preferential treatment certificates under to the Law on Promotion of Domestic Investment and permits for the establishment of private enterprises and/or companies. Article 44.- 1. The procedures to apply for the establishment of private enterprises or companies in the branches or trades which are restricted from business and require permission from the Prime Minister as defined in Article 5 of the Law on Private Enterprises and Article 11 of the Law on Companiess shall continue to comply with current provisions. 2. The procedures to apply for the establishment of enterprises in the branches and trades other than those defined in Article 5 of the Law on Private Enterprises and Article 11 of the Law on Companies shall comply with the following provisions: a/ The applicant for the establishment of a private enterprise or company shall submit his/her application to the Planning and Investment Service of the province where the head-office of the enterprise or company shall be located. The written application for the establishment of an enterprise shall also include the request (if any) for investment preferential treatment under the Law on Promotion of Domestic Investment and this Decree. b/ The provincial Planning and Investment Service shall receive the dossiers of application for the establishment or additional registration of production or business lines and trades, and consult the branch-managing services; in case of a request for investment preferential treatment, it shall consult and get written opinions from the Taxation Department, the Department for Investment and Development and the concerned agencies when necessary, and submit them to the president of the provincial People's Committee for consideration and decision to grant or not to grant the permit for the establishment of the private enterprise or company as well as the certificate of investment preferential treatment. In case of a denial to grant a permit for the establishment of a private enterprise or company or a certificate of investment preferential treatment, the provincial Planning and Investment Service shall have to notify the concerned applicant of the reasons therefor. For projects with certificates of investment preferential treatment to be granted by the Ministry of Planning and Investment, before granting, the Ministry of Planning and Investment shall consult and get written opinions from the Ministry of Finance. The consulted agencies shall have to give their opinions within 10 days after receiving the written request therefor; past this time-limit, their failure to reply shall be considered their consent. 3. An investment preferential treatment certificate clearly stating the privileges is a document of legal value showing the investor's eligibility for investment preferential treatment under this Decree. 4. The granting or denial of the granting of a permit for the establishment of a private enterprise and the granting of a certificate of investment preferential treatment (if any) for a private enterprise must be completed within 30 days for the case that does not involve the land lease, and 60 days for the case that involves the land lease. The granting or denial of the granting of a permit for the establishment of a company and the granting of a certificate of investment preferential treatment (if any) must be completed within 60 days, for both cases where the land lease is involved or not. The above-mentioned time-limit shall be counted from the date of receipt of the valid dossier if such dossier is directly submitted to the provincial Planning and Investment Service or from the date of its receipt according to the post mark of the sending post office if the dossier is mailed. In cases where the dossier is invalid, the provincial Planning and Investment Service shall, within five (5) days after receiving it, notify the applicant for the establishment of an enterprises or company thereof and request him/her to make supplements or amendments to the dossier's contents, making them conform to the provisions of the Law on Companies and the Law on Private Enterprises. The time-limit for granting or refusing to grant a permit for the establishment of an enterprise shall be counted from the date the provincial Planning and Investment Service receives a full and valid dossier. Article 45.- The establishment and business registration of cooperatives, State enterprises managed by local administration and enterprises owned by political organizations, socio-political organizations, socio-professional organizations, individuals, business and investment construction groups of people-funded education and training establishments, medical establishments and public-utility organizations allowed to set up by the State, shall comply with the order and procedures provided for in current legal documents of the State. The provincial Planning and Investment Service shall be the body to receive applications for investment preferential treatment from subjects mentioned in this Article and handle dossiers of application for investment preferential treatment according to the order and procedures as provided for private enterprises in Article 44 of this Decree. Article 46.- With regard to investment projects in industrial parks, export-processing zones or high-tech parks, the provincial Board for Management of Industrial Parks shall assist the provincial People's Committee in performing the function of State management over the investment in industrial parks, consider and report to the president of the provincial People's Committee for the granting of enterprise establishment permits and investment preferential treatment certificates. The time-limit for receiving dossiers, granting or refusing to grant enterprise establishment permits and/or investment preferential treatment certificates shall be the same as the timelimit applicable to companies or private enterprises mentioned in Clause 4, Article 44 of this Decree. Article 47.- The establishment of enterprises and the application for investment preferential treatment by subjects mentioned in Clauses 3, 4 and 5 of this Decree shall comply with conditions prescribed in Article 9 and with the provisions on the procedures for the establishment of enterprises and on the consideration for granting the investment preferential treatment prescribed in Article 44 of this Decree. Article 48.- State officials and employees are strictly forbidden to abuse their powers, causing difficulties, troubles or obstacles to investment activities under the legislation on promotion of domestic investment; all violators of such legislation shall, depending on the extent of seriousness of their violations, be disciplined or examined for penal liability. The investors shall have the right to lodge complaints and/or denunciations with the competent State agencies against violations of provisions of the legislation on promotion of domestic investment committed by State officials and agencies. Article 49.- The inspection and examination of operations of enterprises are stipulated as follows: 1. The inspection or examination of operations of enterprises as well as production and business establishments must be carried out in accordance with the prescribed function, competence and provisions of law. It is forbidden to organize more than one examination or inspection team for examining or inspecting the same content, at the same moment or repeatedly in the same enterprise. The extraordinary examination or inspection shall be made only when there appear signs of violations of law in the operations of enterprises as well as production and business establishments. 2. When an examination or inspection is made, there must be a decision of the competent agency; each examination or inspection must be recorded in a report upon its completion; the head of the examination or inspection team shall take responsibility for the examination or inspection conclusions. 3. Organizations or individuals that make decision to conduct unlawful examination or inspection or that abuse the examination or inspection to cause troubles business activities of enterprises, shall, depending on the seriousness of their violation, be disciplined or examined for penal liability. 4. Enterprises as well as production, business establishments shall have the right to lodge complaints and denunciations to the competent State agencies against the State bodies that have conducted unlawful examination or inspection about acts committed by inspectors or procurators as well as examination or inspection results which they deem improper as they deem; to request compensation for damage due to unlawful handling measures taken by inspectors or procurators. Chapter V IMPLEMENTATION PROVISIONS Article 50.- This Decree shall replace Decree No.29-CP of May 12, 1995 of the Government that details the implementation of the Law on Promotion of Domestic Investment. This Decree takes effect 15 days after its signing; the earlier provisions issued by the ministries, the ministerial-level agencies and the agencies attached to the Government which are contrary to the provisions of this Decree are now annulled. Investment projects which are enjoying investment preferential treatment under the Law on Promotion of Domestic Investment shall continue to enjoy investment privileges till the end of the remaining duration prescribed in the investment preferential treatment certificates already granted to them. Regarding the additional privileges in terms of land rent exemption and reduction mentioned in Articles 27 and 28, privileges in terms of on import tax mentioned in Article 37 and privileges in terms of natural resources tax reduction mentioned in Article 38 of this Decree for projects with investment preferential treatment certificates granted before the date this Decree takes effect, such privileges shall apply to the remaining grace period after this Decree takes effect. Investment privileges for investment projects arising from the date this Decree takes effect shall comply with this Decree. Article 51.- The Ministry of Planning and Investment shall have to supervise and urge the implementation of this Decree and make a review every six months and report to the Government on the implementation situation and the newly-arising issues which need to be settled. Within 30 days after this Decree takes effect, the Ministry of Planning and Investment, the Ministry of Finance, the Ministry of Trade, the State Bank of Vietnam, the Ministry of Labor, War Invalids and Social Affairs, the Ministry for Foreign Affairs, the Ministry of Science, Technology and Environment, the Ministry of Education and Training, the Ministry of Industry, the Commission on Ethnicities and Mountains, the General Land Administration and the Ministry of Justice shall have to issue circulars guiding the implementation of this Decree. Article 52.- The ministers, the heads of the ministerial-level agencies and the agencies attached to the Government, the presidents of the People's Committees of the provinces and cities directly under the Central Government shall have to implement this Decree. On behalf of the Government The Prime Minister PHAN VAN KHAI LIST A BRANCHES AND TRADES ELIGIBLE FOR INVESTMENT PREFERENTIAL TREATMENT Issued together with Decree No.07/1998/ND-CP of January 15, 1998 of the Government detailing the implementation of the Law on Promotion of Domestic Investment (amended). Investment projects in branches and trades in the following domains shall be eligible for preferential treatment: I. Afforestation and planting of trees on unused or used land, on waste land or bare hills for business purposes; aquaculture in unexploited water areas, off-shore fishing and concentrated cattle ranching. 1. Planting protection forests (in headwaters or coastal areas, or for ecological protection), and special-purpose forests. 2. Planting rubber, coffee, tea, mulberry for silkworm, cashew, pepper, fruit trees or pharmaceutical plants on natural and untransformed land. 3. Raising aquatic animals for business purpose in natural water areas which have not been transformed and used for aquaculture yet. 4. Off-shore fishing. 5. Concentrated cattle ranching in mountain and mid-land areas. II. Construction of technical infrastructure; development of public transport, education and training, health care and national culture, scientific and technological research. 1. Construction of technical infrastructure. - Building, renovating or expanding of electric power plants, developing electric grids and building establishments which consume solar energy, wind power and biological gas. - Building or upgrading roads; building, expanding, upgrading or modernizing airports and harbors; restoring, upgrading or building railways. - Renovation and development of communications networks. - Building water plants and water supply and discharge system in service of production and people's life; projects for environmental protection and waste treatment for urban areas, industrial zones, mountainous, deep-lying and far-flung areas. - Constructing technical infrastructure in concentrated population areas. 2. Developing cargo transport and mass transit. 3. Developing education and training, health care and national culture. - People-funded schools at different educational levels; private schools for pre-school education, secondary education, professional secondary education and tertiary education. - Establishments in service of job training, raising workers' skills and fostering technicians; fostering and raising skills of managerial cadres. - People-funded and private establishments in such fields as medical examination and treatment, health care for the elderly and disabled people. - National culture houses; national art troupes. 4. Scientific and technological research. - Research into theoretical and applied natural science, technology, social sciences and humanities. - Research on the renewal of equipment and modernization of production lines. - Application and development of information technologies, bio-technology and technologies for manufacturing and processing materials from domestic raw material sources. - Development of the network of technological services: metrology, standardization, product quality control, technological assessment and appraisal, technological information, technological transfer of support. 5. Investment in the procurement of building equipment in service of the construction of projects. Investment in the construction of trade centers and department stores. Investment in the construction of dwelling houses of different types to meet the demand of people in cities and urban areas. III. Processing of agricultural, forest and aquatic products, technical services in direct service of agriculture, forestry and fishery. 1. Processing of food, meat, dairy products, fish, shrimp, edible oil, sugar, vegetables and fruits, rubber, natural silk, tea, coffee, refreshment and fruit juice. 2. Processing of pharmaceuticals and aromatics. 3. Processing of forest products for export. 4. Plant and animal protection and supply services; hybridization and multiplication of new strains and breeds; services in storage of agricultural, forest and marine products preservation service. IV. Production of export goods and import substitutes. Building or expanding establishments specialized in the production and processing of materials and auxiliary materials for the production of export goods and import substitutes and raising of their production acities, research, development and renovation of their technologies. V. Industries with priority given to their development (in the 1995-2000 period), outside those mentioned above. 1. Production of consumer goods: Textile, leather ware, rubber, high-quality plastics, garments, household utensils, papers and school utensils. 2. Mechanical engineering, electronics and informatics: Manufacturing, assembling and repairing machines and equipment for production and processing of agricultural, forest and aquatic products and industrial consumer goods; manufacturing construction and mining equipment and means; building of river and sea-going ships; manufacturing locomotives and carriages; equipment for power lines and transformer stations; manufacturing electronic components for export, research and production of computer software. 3. Production of raw materials, fuel and materials: Oil and gas prospection, exploitation and processing; coal exploitation and processing; steel refining and rolling; production of non-ferrous metals, cement and other construction materials; production of fertilizers (nitrogenous, phosphate, composite, micro-biological and oligoelement); and production of basic chemicals. 4. Traditional crafts which need to be promoted: carving, mother-of-pearl inlaying, lacquer ware, wickerwork, carpet making, pottery, ceramics and silk weaving. IV. Investment in industrial parks, export processing zones and high-tech parks in various branches and trades, including: 1. Enterprises investing in, building and dealing in technical infrastructure of industrial parks, export processing zones and high-tech parks. 2. Enterprises investing in different production and service sectors within industrial parks, export processing zones and high-tech parks. LIST B DISTRICTS IN AREAS OF ETHNIC MINORITIES, MOUNTAIN AND ISLAND AREAS ELIGIBLE FOR INVESTMENT PREFERENTIAL TREATMENT Issued together with Decree No.07/1998/ND-CP of January 15, 1998 of the Government detailing the implementation of the Law on Promotion of Domestic Investment (amended). I. LIST OF DISTRICTS IN AREAS OF ETHNIC MINORITIES AND HIGH-MOUNTAIN AREAS 1. Ha Giang province: 1. Dong Van district 2. Meo Vac district 3. Yen Minh district 4. Quan Ba district 5. Vi Xuyen district 6. Bac Me district 7. Xin Man district 8. Hoang Su Phi district. 2. Cao Bang province 1. Bao Lac district 2. Thong Nong district 3. Ha Quang district 4. Tra Linh district 5. Trung Khanh district 6. Nguyen Binh district 7. Hoa An district 8. Quang Hoa district 9. Thach An district 10. Ha Lang district 11. Ngan Son district 12. Ba Be district. 3. Son La province: 1. Quynh Nhai district 2. Thuan Chau district 3. Mai Son district 4. Song Ma district 5. Bac Yen district 6. Moc Chau district 7. Muong La district. 4. Lai Chau province: 1. Muong Te district 2. Phong Tho district 3. Sin Ho district 4. Muong Lay district 5. Tua Chua district 6. Tuan Giao district. 5. Lao Cai province: 1. Bat Sat district 2. Muong Khuong district 3. Bac Ha district 4. Sa Pa district 5. Than Uyen district 6. Van Ban district 7. Cam Duong town. 6. Gia Lai province: 1. Kong Chro district 2. An Khe district 3. Mang Yang district 4. Ayun Pa district 5. Chu Pah district 6. Duc Co district 7. Chu Prong district 8. Krong Pa district 9. Chu Se district 10. Kbang district. 7. Kon Tum province: 1. Konplong district 2. Dak To district 3. Dak Glei district 4. Sa Thay district. 8. Dak Lak province: 1. Ea Sup district 2. Krong Buk district 3. Krong Pac district 4. Dak Mil district 5. Ma DRak district 6. Lak district 7. Dak Nong district 8. EaH'Leo district 9. Krong Bong district 10. Krong ANa district 11. Cu M'gar district 12. Dak Rlap district 13. Ea Kar district 14. Krong Nang district 15. Krong No district 16. Cu Jut district. 9. Lam Dong province:: 1. Don Duong district 2. Duc Trong district 3. Di Linh district 4. Bao Loc district 5. Lac Duong district 6. Lam Ha district. 10. Yen Bai province: 1. Mu Cang Chai district 2. Tram Tau district. 11. Hoa Binh province: 1. Cang Chai district 2. Mai Chau district. 12. Lang Son province: 1. Trang Dinh district 2. Binh Gia district 3. Dinh Lap district 4. Van Lang district 5. Bac Son district 6. Van Quan district 7. Cao Loc district. 13. Bac Kan province: 1. Na Ri district 2. Cho Don district. 14. Thai Nguyen province: 1. Vo Nhai district. 15. Tuyen Quang province: 1. Na Hang district. 16. Quang Ninh province: 1. Ba Che district 2. Binh Lieu district. 17. Bac Giang province: 1. Son Dong district. 18. Thanh Hoa province: 1. Quan Hoa district 2. Ba Thuoc district 3. Lang Chanh district 4. Thuong Xuan district. 19. Nghe An province: 1. Ky Son district 2. Tuong Duong district 3. Con Cuong district 4. Quy Chau district 5. Que Phong district. 20. Quang Binh province: 1. Minh Hoa district. 21. Quang Tri province: 1. Huong Hoa district. 22. Thua Thien- Hue province: 1. A Luoi district. 23. Quang Nam province: 1. Tra My district 2. Hien district 3. Giang district 4. Phuoc Son district. 24. Quang Ngai province: 1. Tra Bong district 2. Son Ha district 3. Ba To district 4. Minh Long district. 25. Ninh Thuan province: 1. Ninh Son district. 26. Kien Giang province: 1. Ha Tien district. II. LIST OF DISTRICTS IN AREAS OF ETHNIC MINORITIES, MOUNTAIN AND ISLAND AREAS 1. Ha Giang province: 1. Bac Quang district 2. Ha Giang provincial town. 2. Cao Bang province: 1. Cao Bang provincial town. 3. Son La province: 1. Yen Chau district 2. Phu Yen district 3. Son La provincial town. 4. Lai Chau province: 1. Dien Bien district. 5. Lao Cai province: 1. Bao Thang district 2. Bao Yen district 3. Lao Cai provincial town. 6. Kon Tum province: 1. Kon Tum provincial town. 7. Lam Dong province: 1. Da Huoai district 2. Da Teh district 3. Cat Tien district 4. Da Lat city. 8. Gia Lai province: 1. PleiKu provincial town. 9. Dak Lak province: 1. Buon Ma Thuat provincial town. 10. Yen Bai province: 1. Yen Bai provincial town 2. Yen Binh district 3. Tran Yen district 4. Van Chan district 5. Luc Yen district 6. Van Yen district. 11. Hoa Binh province: 1. Hoa Binh town 2. Tan Lac district 3. Lac Son district 4. Ky Son district 5. Luong Son district 6. Kim Boi district 7. Lac Thuy district 8. Yen Thuy district. 12. Lang Son province: 1. Lang Son provincial town 2. Van Lang district 3. Bac Son district 4. Van Quan district 5. Cao Loc district 6. Loc Binh district 7. Chi Lang district 8. Huu Lung district. 13. Bac Kan province: 1. Bach Thong district 2. Bac Kan provincial town. 14. Thai Nguyen province: 1. Dinh Hoa district 2. Phu Luong district 3. Dai Tu district 4. Vo Nhai district5. Dong Hy district. 15. Tuyen Quang province: 1. Tuyen Quang town 2. Ham Yen district 3. Chiem Hoa district 4. Yen Son district 5. Son Duong district. 16. Quang Ninh province: 1. Cam Pha provincial town 2. Tien Yen district 3. Quang Ha district 4. Hoanh Bo district 5. Dong Trieu district 6. Hai Ninh district. 17. Bac Giang province: 1. Luc Nam district 2. Yen The district 3. Luc Ngan district. 18. Phu Tho province: 1. Thanh Son district 2. Yen Lap district 3. Doan Hung district 4. Song Thao district. 19. Hai Duong province: 1. Chi Linh district. 20. Ninh Binh province: 1. Nho Quan district 2. Gia Vien district 3. Tam Diep provincial town 4. Yen Mo district. 21. Thanh Hoa province: 1. Ngoc Lac district 2. Nhu Xuan district 3. Cam Thuy district 4. Thach Thanh district. 22. Nghe An province: 1. Quy Hop district 2. Nghia Dan district 3. Anh Son district 4. Tan Ky district 5. Thanh Chuong district. 23. Quang Binh province: 1. Tuyen Hoa district. 24. Ha Tinh province: 1. Huong Khe district 2. Huong Son district 3. Ky Anh district 4. Cam Xuyen district 5. Nghi Xuyen district. 25. Thua Thien- Hue province: 1. Nam Dong district. 26. Quang Nam province: 1. Hiep Duc district. 27. Binh Dinh province: 1. An Lao district 2. Vinh Thanh district 3. Van Canh district. 28. Phu Yen province: 1. Son Hoa district 2. Song Hinh district 3. Dong Xuan district. 29. Khanh Hoa province: 1. Khanh Son district 2. Khanh Vinh district. 30. Binh Thuan province: 1. Tanh Linh district 2. Bac Binh district 3. Duc Linh district. 31. Binh Phuoc province: 1. Bu Dang district 2. Phuoc Long district 3. Loc Ninh district. 32. Dong Nai province: 1. Tan Phu district 2. Xuan Loc district 3. Dinh Quan district. 33. An Giang province: 1. Tinh Bien district 2. Tri Ton district. 34. Island districts in coastal provinces and cities: - Quang Ninh province: 1. Van Don district 2. Co To district. - Hai Phong city: 1. Cat Hai district 2. Bach Long Vi district. - Da Nang city: 1. Hoang Sa district. - Quang Ngai province: 1. Nghi Son district. - Khanh Hoa province: 1. Truong Sa district. - Binh Thuan province: 1. Phu Quy Island district. - Kien Giang province: 1. Kien Hai Island district 2. Phu Quoc Island. - Ba Ria - Vung Tau province: 1. Con Dao district. LIST C OTHER DIFFICULT AREAS Issued together with Decree No.07/1998/ND-CP of January 15, 1998 of the Government detailing the implementation of the Law on Promotion of Domestic Investment (amended). 1. Hoa Binh province (excluding Hoa Binh provincial town and districts on List B) 2. Nghe An province (excluding Vinh city and districts on List B) 3. Thanh Hoa province (excluding Thanh Hoa city, Sam Son provincial town, Bim Son provincial town and districts on List B) 4. Ha Tinh province (excluding Ha Tinh provincial town and districts on List B) 5. Quang Binh province (excluding Dong Hoi provincial town and districts on List B) 6. Quang Tri province (excluding Dong Ha provincial town and districts on List B) 7. Quang Ngai province (excluding Quang Ngai provincial town and districts on List B) 8. Binh Dinh province (excluding Quy Nhon city and districts on List B) 9. Phu Yen province (excluding Tuy Hoa provincial town and districts on List B) 10. Ninh Thuan province (excluding Phan Rang - Thap Cham provincial town and districts on List B) 11. Binh Thuan province (excluding Phan Thiet town and districts on List B) 12. Districts inhabited by Cham and Khmer ethnic minority groups in south-Central Vietnam and sourthern provinces (excluding districts on List B): the list thereof shall be issued by the Commission on Ethnicities and Mountains Areas. 13. Ho Chi Minh City: 1. Can Gio district 2. Nha Be district. 14. Kien Giang province: 1. An Bien district (U Minh Thuong deep-lying area) 2. An Minh district (U Minh Thuong deep-lying area) 3. Vinh Thuan district (U Minh Thuong deep-lying area) 4. Go Quao district (the submerged areas of Long Xuyen quadrangle and western part of Hau river) 5. Giong Rieng district (the submerged area of Long Xuyen quadrangle and western part of Hau river) 6. Hon Dat district (the submerged areas of Long Xuyen quadrangle and western part of Hau river) 7. Chau Thanh district (the submerged areas of Long Xuyen quadrangle and western part of Hau river) 8. Tan Hiep district (the submerged areas of Long Xuyen quadrangle and western part of Hau river) 9. Rach Gia town (the submerged areas of Long Xuyen quadrangle and western part of Hau river) 15. Ha Noi City: 1. Soc Son district. 16. Ha Nam province: 1. Kim Bang district 2. Thanh Liem district. 17. Tra Vinh province: 1. Chau Thanh district 2. Tra-Cu district.-