THE PRIME MINISTER

DECIDES:

Article 1.- To establish the Vung Ang economic zone, Ha Tinh province.

Article 2.- To promulgate together with this Decision the Operation Regulation of the Vung Ang economic zone, Ha Tinh province.

Article 3.- This Decision takes effect 15 days after its publication in "CONG BAO."

Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and the president of the People's Committee of Ha Tinh province shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI

Article 1.- This Regulation provides for activities, policies and state management of the Vung Ang economic zone, Ha Tinh province; rights and obligations of Vietnamese organizations and individuals of all economic sectors, overseas Vietnamese, foreign organizations and individuals, and foreign-invested enterprises (hereinafter referred to as domestic and foreign organizations and individuals for short) producing and trading in goods and/or providing services, and enterprises investing in building and commercially operating the zone's infrastructure.

1. The Vung Ang economic zone has a land area of about 22,781 hectares, covering Ky Nam, Ky Phuong, Ky Loi, Ky Long, Ky Lien, Ky Thinh, Ky Trinh, Ky Ha and Ky Ninh communes of Ky Anh district, Ha Tinh province. Its geographical boundaries are delimited as follows:

Bordering on the East Sea to the north;

Bordering on Quang Binh province to the south;

Bordering on the East Sea to the east;

Bordering on Ky Khang, Ky Tho, Ky Hai, Ky Hung communes and Ky Anh township, Ky Anh district to the west.

2. The Vung Ang economic zone, with functional zones, socio-economic infrastructure works, public utilities within the territory and under the sovereignty of the country, has an exclusive economic space and a favorable and fair investment and business environment with stable and long-term preferential and incentive policies and open management mechanisms to create favorable conditions for domestic and foreign organizations and individuals to feel at ease when investing in developing production and trading of goods and provision of services.

Article 3.- Major development objectives of the Vung Ang economic zone

1. The Vung Ang economic zone will be built and developed into an integrated, multi-branch and multi-domain economic zone, focusing on:

a/ Developing metallurgical industries in connection with advantages in natural resources and material sources (Thach Khe iron mine, titanium mine'); industries in connection with seaport operation; labor-intensive industries, and export-oriented industries;

b/ Comprehensively developing the combined zone of Vung Anh port-Son Duong, including investment in and efficient operation of the combined port zone, development of port services and ocean-shipping services so that this zone will become an important gateway to the sea for the northern Central Vietnam.

c/ Building the new urban zone of Vung Ang and, at the same time, prioritizing the development of eco-tourist and sea holiday resorts (Ky Ninh tourist resort, Ky Nam tourist resort, Deo Con tourist resort) into important tourist destinations in the northern Central Vietnam coastal tourist tour.

2. To speed up investment in building and developing the Vung Ang economic zone together with other economic zones in central Vietnam so that after 2010 they will form a chain of closely interrelated economic zones, step by step becoming growth elements and a center of metallurgical industry-seaport services-tourism of the northern Central Vietnam; serving as a crucial international exchange hub, contributing to expanding the markets in the northern Central Vietnam, and acting as a bridge linking with the markets in Laos and the northeast of Thailand.

3. To create jobs, promote training to raise the quality of human resources in the region, contributing to labor restructuring in Ha Tinh, meeting the economic zone's manpower demands.

4. To efficiently exploit natural, geographical, economic and political advantages in international and domestic trade and services with a view to promoting socio-economic development in Ha Tinh province and the northern Central Vietnam.

Article 4.- To encourage and protect domestic and foreign organizations and individuals to invest and carry out production and business activities in the Vung Ang economic zone in the following domains: investment in and commercial operation of industrial parks and urban infrastructures, development of industries, seaports, goods export and import, trade business, finance and banking, tourism, post and telecommunications, transportation, insurance, recreation and entertainment, education and training, healthcare, housing and other production and business activities in accordance with the provisions of this Regulation, other provisions of Vietnamese laws and treaties to which Vietnam is a contracting party.

1. Domestic economic organizations, households and individuals, overseas Vietnamese; foreign organizations and individuals, foreign-invested enterprises, and parties to business cooperation contracts under the Law on Foreign Investment in Vietnam, which are engaged in producing, trading in goods and/or providing services (hereinafter collectively referred to as enterprises producing, trading in goods and/or providing services) in the Vung Ang economic zone, shall have the rights to:

a/ Be transferred the rights to use, lease or sublease land on which technical infrastructure has been built in the zone from infrastructure-building and commercially operating enterprises according to relevant provisions of land law for building workshops and architectural works in service of production and trading of goods and/or provision of services;

b/ Rent or buy workshops, storehouses or storing yards already built in the Vung Ang economic zone for production and trading of goods and/or provision of services under contracts signed with infrastructure-building and commercially operating enterprises;

c/ Use and pay charges for technical infrastructure works, service facilities and public utilities in the Vung Ang economic zone, including the system of roads, seaports, electricity supply, water supply and drainage, communication, waste water and waste matter treatment, etc., and other general services in the zone under contracts signed with infrastructure-building and commercially operating enterprises;

d/ Enjoy investment preference policies provided for in this Regulation;

e/ Enjoy other legitimate interests according to the provisions of law on land, domestic investment promotion, foreign investment, other provisions of Vietnamese law and treaties to which Vietnam is a contracting party.

2. Enterprises producing, trading in goods and/or providing services in the Vung Ang economic zone shall have the obligations to:

a/ Observe the provisions of this Regulation, the detailed plannings on functional zones already approved by competent state authorities, and the provisions of their investment registration certificates, investment preference certificates or investment licenses, business registration certificates and charters; use land for the allocation, lease or sub-lease purposes already set;

b/ Create conditions for infrastructure-building and commercially operating enterprises to maintain and upgrade infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the land areas being used by organizations and individuals in the Vung Ang economic zone;

c/ Pay rents for the lease or sub-lease of land, rents for the lease or money for the purchase of workshops, storehouses, storing yards, charges for the use of infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the Vung Ang economic zone to infrastructure-building and commercially operating enterprises under the signed contracts;

d/ Fulfil tax and customs, environmental protection and other obligations provided for by law;

e/ Domestic economic organizations, households and individuals investing in production and business in the Vung Ang economic zone shall register their activities with the Managing Board of the zone;

f/ Implement the regime of reporting on their activities on a monthly, quarterly and annual basis to the Managing Board of the zone.

1. Domestic and foreign organizations and individuals investing in building and commercially operating infrastructures in functional zones, technical infrastructure works, service facilities and public utilities (collectively referred to as infrastructure building and operation enterprises) shall have the rights to:

a/ Be leased or assigned land with collection of land use levies by the Managing Board of the zone according to relevant provisions of land law for investment in building and commercially operating in functional zones, technical infrastructure works, service facilities and public utilities in the zone;

b/ Transfer land use rights and sub-lease land in the zone on which technical infrastructure has been built to domestic organizations and individuals, overseas Vietnamese, foreign organizations and individuals, foreign-invested enterprises, or parties to business cooperation contracts under the Investment Law for investment in producing, trading in goods and/or providing services in the zone according to relevant provisions of land law;

c/ Collect levies for the use of infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the zone in which they have made investment under the contracts signed with lessees;

d/ Build workshops, storehouses and storing yards in the zone for sale or lease;

e/ Fix charge rates for the sub-lease of land on which technical infrastructure has been built, levies for the use of technical infrastructure works, service facilities and public utilities in the zone, with the agreement of the Managing Board of the zone; fix prices for the lease or sale of workshops, storehouses and storing yards, and service charges;

f/ To enjoy other legitimate interests according to the provisions of law.

2. Enterprises investing in building and commercially operating infrastructures in the Vung Ang economic zone shall have the obligations:

a/ To build infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the zone according to the approved detailed planning, design and schedule.

In cases where land is assigned with collection of land use levies by the Managing Board of the zone according to relevant provisions of land law for the execution of investment projects to build and commercially operate infrastructure in functional zones, technical infrastructure works, service facilities and public utilities in the zone but is left unused for 12 consecutive months or used more than 24 months behind the schedule specified in the investment projects, counting from the time of on-site hand-over and receipt of land, without the extension permission of the Managing Board of the zone, the Managing Board of the zone may propose competent bodies to recover the land in accordance with the provisions of the Land Law without paying any land compensations.

b/ To maintain infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the zone in order to ensure their quality.

c/ To observe the provisions of this Regulation; the detailed planning on functional zones already approved by competent authorities; use land for the allocation or lease purposes as set.

d/ To perform tax and customs and other obligations according to the provisions of law.

e/ To implement the regime of reporting on a monthly, quarterly and annual basis to the Managing Board of the zone.

1. The Vung Ang economic zone consists of major functional zones: the non-tariff zone and the tariff zone.

The non-tariff zone of the Vung Ang economic zone is a zone delimited in the general planning and connected with part of the Vung Ang seaport.

The tariff zone is the remaining zone of the Vung Ang economic zone outside the non-tariff zone. In the tariff zone there are other functional zones such as industrial parks, export processing zones, port and port logistics service areas, urban zones, service-tourist zones, residential areas and administrative zones.

The size and location of each functional zone are specified in the general planning of the Vung Ang economic zone approved by the Prime Minister.

2. To ensure the quality of the long-term development planning in response to the requirements of international economic integration, the Managing Board of the Vung Ang economic zone may hire foreign consultants to participate in making detailed plannings on functional zones such as urban zone, non-tariff zone, tourist zone and other functional zones in line with the general planning.

1. The non-tariff zone is a zone delimited in the general planning for building the Vung Ang economic zone and the detailed land use planning.

2. The non-tariff zone is separated from the tariff zone in the Vung Ang economic zone and Vietnam's inland with a fencing system, has gates and entrances to ensure the control by concerned functional agencies. In the non-tariff zone, there is a customs office to supervise, check and carry out customs procedures for goods taken into and out of the zone. There will be no permanent or temporary residents (including foreigners).

3. In the non-tariff zone, the following major production and business activities may be carried out:

a/ Producing, processing, recycling, assembling exports, imports and goods for on-spot use;

b/ Trade in goods and services (including also export, import, border-gate shift, temporary import for re-export, temporary export for re-import, distribution, duty-free shops and department stores; sorting, packaging and forwarding of goods in transit, preservation, storage, bonded warehouse, post, telecommunications, finance, banking, transportation, insurance, recreation and entertainment, restaurants);

d/ Trade promotion (fairs and exhibitions, product display shops, branches and representative offices of domestic and foreign companies, and financial-banking institutions); and other commercial activities.

1. Relations of exchange of goods and services between the non-tariff zone and non-tariff zones of other economic zones with foreign countries and among economic organizations in the non-tariff zone shall comply with regulations on relations of exchange among foreign countries and the provisions of law on customs. Economic organizations operating in the non-tariff zone may export abroad and import from abroad all goods and services not banned by Vietnamese law from import and export.

2. The storage of goods in the non-tariff zone shall not be subject to temporal restrictions.

3. Foreign ships may directly enter the non-tariff port zone in the Vung Ang port for goods handling, with people onboard not required to go through entry/exit procedures. Only ships are required to go through entry/exit procedures at buoy zero.

1. Relations of exchange of goods and services between the non-tariff zone and the tariff one (excluding the export-processing zone) in the Vung Ang economic zone and Vietnam’s inland shall comply with regulations on relations of exchange between foreign countries and Vietnam as well as current provisions of law, including those of tax, customs and commercial laws. Relations of exchange of goods and services between the non-tariff zone and the export-processing zone in the Vung Ang economic zone shall comply with regulations on relations of exchange among foreign countries.

2. Domestic and foreign organizations and individuals engaged in producing and trading in goods or providing services in the tariff zone in the Vung Ang economic zone and Vietnam’s inland may only import from the non-tariff zone goods and services not banned or restricted by Vietnam from import and may only sell into the non-tariff zone goods and services not banned by Vietnam from export.

3. Goods may be freely circulated between the tariff zone and Vietnam's inland.

1. Goods exported or imported in the following cases shall not be liable to export or import tax:

a/ Goods imported from abroad or other non-tariff zones into the non-tariff zone in the Vung Ang economic zone;

b/ Goods exported from the non-tariff zone to abroad;

c/ Goods moved or sold from the non-tariff zone to the export-processing zone or export-processing enterprises in the Vietnamese territory;

d/ Export tax-free goods originating from Vietnam's inland taken into the non-tariff zone (excluding goods specified in Clause 2 of this Article).

2. Export tax-liable goods originating from the tariff zone in the Vung Ang economic zone and Vietnam's inland and brought into the non-tariff zone for export without undergoing through production, processing, recycling or assembly into products in the non-tariff zone shall be liable to export tax, go through export procedures according to current regulations and be subject to customs inspection and supervision.

3. Goods of foreign origin and goods not on the list of goods banned or restricted from import, when imported from the non-tariff zone into the tariff zone (excluding the export-processing zone) in the Vung Ang economic zone and Vietnam's inland, shall be liable to import tax, go through import procedures according to current regulations and be subject to customs inspection and supervision.

4. Goods produced, processed, recycled or assembled in the non-tariff zone with imported materials or components, when imported into the tariff zone (excluding the export-processing zone) in the Vung Ang economic zone and Vietnam's inland, shall be only liable to import tax on the portion of imported materials or components constituting the goods or products, go through import procedures according to current regulations and be subject to customs inspection and supervision.

5. Goods and services produced or consumed in the non-tariff zone and goods and services imported from abroad into the non-tariff zone shall not be liable to value-added tax. Goods and services taken from Vietnam's inland and the tariff zone in the Vung Ang economic zone into the non-tariff zone shall enjoy the value-added tax rate of 0%. Goods and services taken from the non-tariff zone into Vietnam's inland and the tariff zone (excluding the export processing zone) in the Vung Ang economic zone shall be liable to tax according to tax laws.

6. Special consumption tax-liable goods and services produced or consumed in the non-tariff zone or imported from abroad into the non-tariff zone shall not be liable to special consumption tax (excluding goods items subject to special consumption tax under separate provisions of special consumption tax law).

7. Special consumption tax-liable goods and services taken from the non-tariff zone into the tariff zone (excluding the export-processing zone) in the Vung Ang economic zone and Vietnam's inland shall be liable to special consumption tax.

8. Production materials, commercial supplies imported from abroad by domestic and foreign organizations and individuals engaged in producing, trading in goods or providing services into the non-tariff zone but not used up and sub-products of commercial value shall be permitted to be sold into the tariff zone (excluding the export-processing zone) in the Vung Ang economic zone and Vietnam's inland, after completion of customs procedures and payment of import tax according to current regulations.

9. Investment projects on production of goods for export and the transportation of goods in transit shall comply with general provisions.

1. Domestic and foreign organizations and individuals shall be entitled to select and implement investment projects in the Vung Ang economic zone (excluding projects on the list of domains where investment is banned). Conditional investment projects in the tariff zone (outside the non-tariff zone) in the Vung Ang economic zone shall comply with current regulations.

2. Foreign investors are encouraged to invest in building infrastructures in the non-tariff zone, the Vung Ang port and the steel metallurgy and lamination complex.

Article 13.- Investment projects in the Vung Ang economic zone shall enjoy preferences applicable to geographical areas with exceptionally difficult socio-economic conditions and economic zones under the provisions of the Investment Law, the Enterprise Income Tax Law and other current provisions of law.

1. All investment projects of domestic and foreign organizations and individuals in the Vung Ang economic zone shall enjoy the enterprise income tax rate of 10% for 15 years, counting from the time they commence business activities; exemption from enterprise income tax for 4 years, counting from the time they generate taxable income, and 50% reduction of payable tax for 9 subsequent years; enjoy preferences related to other taxes applicable to geographical areas with exceptionally difficult socio-economic conditions under the provisions of the Investment Law, other tax laws, and other preferences under treaties to which Vietnam is a contracting party.

2. Production investment projects of domestic and foreign organizations and individuals, located in the Vung Ang economic zone, shall enjoy exemption from import tax on production materials, supplies, components and semi-finished products which must be imported because they cannot not yet be made in the country for 5 years, counting from the time of commencement of production.

3. High-income earners (both Vietnamese and foreign) working in the Vung Ang economic zone, shall enjoy 50% reduction of personal income tax.

4. Investment projects in hi-tech fields meeting the requirements stated in Clause 2, Article 5 of the Regulation on Hi-tech Parks, promulgated together with the Government's Decree No. 99/2003/ND-CP of August 28, 2003, in the Vung Ang economic zone shall enjoy the enterprise income tax rate of 10% throughout their execution duration.

Article 15.- Domestic enterprises of all economic sectors which have production or business investment projects in the Vung Ang economic zone shall be eligible for preferential State credits of different forms in accordance with current provisions of law on development investment credits of the State.

Article 16.- Domestic organizations and individuals, overseas Vietnamese, foreigners permanently residing in Vietnam, foreign-invested enterprises, and foreign organizations and individuals may invest in building dwelling houses for sale or lease; invest in building infrastructures in functional zones for lease, sub-lease or transfer the rights to use land on which infrastructure has been built in the Vung Ang economic zone according to relevant provisions of land law. Overseas Vietnamese may purchase dwelling houses associated with the rights to use land in the Vung Ang economic zone, excluding the non-tariff zone and the export-processing zone. Foreigners permanently residing in Vietnam and foreign investors may lease land in the zone, excluding the non-tariff zone and the export-processing zone.

Article 17.- The single-price policy for State-controlled goods and services and land rents shall be applied to organizations and individuals, both domestic and foreign, engaged in production and/or business activities in the Vung Ang economic zone.

1. The entire area of land and water surface reserved for investment in building and developing industrial parks, port and port logistic service areas, the non-tariff zone; the tourist resort; and the new urban center already determined in the general planning of the Vung Ang economic zone approved by the Prime Minister and the detailed land use planning approved by the People's Committee of Ha Tinh province shall be allocated once to the Managing Board of the Vung Ang economic zone for organization of the building and development thereof. The People's Committee of Ha Tinh province shall direct the recovery of land with regard to land and water surface areas already planned for the building of industrial parks, port and port logistic service areas, the non-tariff zone; the tourist resort; and the new urban center in the Vung Ang economic zone.

2. The People's Committee of Ha Tinh province shall direct the recovery of land and water surface areas according to the approved detailed land use plans for use for remaining functional zones and for other purposes in the Vung Ang economic zone and allocate them to the Managing Board of the zone according to the approved detailed land use plans for the latter to organize the building and development of the zone.

3. The People's Committee of Ha Tinh province shall direct the People's Committees of Ky Anh district, in coordination with the Managing Board of the Vung Ang economic zone, to pay compensations and conduct ground clearance with regard to land areas recovered by competent authorities, then allocate such land areas to the Managing Board of the zone for re-allocation or lease to those who have demands for land use and for resettlement of households whose land has been recovered according to relevant provisions of land law. The Managing Board of the Vung Ang economic zone shall manage and efficiently use the allocated fund of land and water surface for proper use purposes and in line with the general planning of the Vung Ang economic zone already approved by the Prime Minister and the detailed land use planning and plan already approved by the People's Committee of Ha Tinh province.

4. For cases of re-allocation of land or lease of land not through auction for land use rights or bidding for projects involving land use: on the basis of land prices and land use levy exemption or reduction levels; land rent exemption or reduction levels set by the People's Committee of Ha Tinh province, and relevant provisions of law, the Managing Board of the Vung Ang economic zone shall decide on the levels of land and water surface use levies or land and water surface rents; land use levy or land rent exemption and reduction levels for each investment project with a view to encouraging investment.

5. For cases of re-allocation of land with collection of land use levy or lease of land in the form of auction for land use rights or bidding for projects involving land use: on the basis of the financial plan and land prices approved by the People's Committee of Ha Tinh province, the Managing Board of the Vung Ang economic zone shall decide to re-allocate and lease land for which compensations have been paid and ground clearance has been completed to those who have demands for use according to the provisions of land law.

6. Domestic organizations and individuals, overseas Vietnamese may be allocated or leased land; foreign organizations and individuals, foreign-invested enterprises, parties to business cooperation contracts under the Investment Law may be leased land for execution of investment projects in the Vung Ang economic zone, and have the rights and obligations corresponding to the forms of land allocation or lease as provided for by the land law.

Article 19.- The State shall provide supports for investment in building technical infrastructure works within the fences of functional zones in the Vung Ang economic zone; for compensation and clearance of grounds in functional zones, and resettlement for households whose land is recovered; for investment in building concentrated facilities for treatment of wastewater and waste discharged from functional zones according to national target programs on investment support.

1. Domestic and foreign organizations and individuals, before building works in service of production and business, infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the Vung Ang economic zone, must submit dossiers of application for permission to the Managing Board of the zone according to the provisions of construction law. The time limit for consideration and decision by the Managing Board of the zone is 7 working days, as from the date of receipt of complete and valid dossiers.

2. The management of construction of works in service of production and business, infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the Vung Ang economic zone shall comply with the provisions of construction law.

1. The State shall earmark investment capital of the state budget and preferential credits as supports for planning and making investment in developing the system of socio-technical infrastructure and crucial service facilities and public utilities to ensure the operation and development of the Vung Ang economic zone.

2. Allocation of capital construction investment capital to be expended on building the system of socio-technical infrastructure and crucial service facilities and public utilities provided for in Clause 1 of this Article shall comply with the provisions of the State Budget Law.

3. The following modes of capital mobilization shall be permitted for the purpose of investment in and development of the Vung Ang economic zone:

a/ To prioritize the use of various sources of ODA capital and preferential credit capital for investment in building socio-technical infrastructure, crucial service facilities and public utilities in service of the Vung Ang economic zone as well as for other technical support structures;

b/ To attract investment capital in the BOT, BT, BTO and other forms in accordance with current regulations;

c/ To mobilize capital from the land funds according to the provisions of land law for investment in building socio-technical infrastructure in common service of the Vung Ang economic zone;

d/ To mobilize direct investment capital of organizations and individuals at home and abroad; advance capital of the subjects that need to use infrastructure, capital of enterprises having the function of building and commercially operating technical infrastructure works. To expand the form of co-financing by credit institutions and mobilize capital of all sources in other forms in accordance with the provisions of law.

Article 22.- To permit commercial banks and credit institutions established and operating under the Law on Credit Institutions to open their branches in the Vung Ang economic zone to provide credits in Vietnam dong and foreign currencies for economic activities in the zone according to current regulations.

Article 23.- Purchase, sale, payment, transfer and other transactional relations among economic organizations and individuals in the non-tariff zone may be effected in freely convertible currencies via bank accounts. Purchase and sale of ordinary goods in service of daily life shall be effected in Vietnam dong.

1. Foreigners and overseas Vietnamese working or carrying out investment and business activities in the Vung Ang economic zone and their family members shall be issued multiple visas with a validity period compatible with the period of working or investment and business activities in the Vung Ang economic zone and be allowed to reside or sojourn in the zone.

2. Foreign tourists arriving by sea at the seaport of the Vung Ang economic zone under contracts with domestic tourist companies may carry out entry procedures at the port.

The Public Security Ministry shall provide guidance to the police of Ha Tinh province for implementation.

3. The Managing Board of the Vung Ang economic zone may grant work permits to foreigners and overseas Vietnamese working or carrying out investment and business activities in the Vung Ang economic zone in accordance with the provisions of Vietnamese law.

The Labor, War Invalids and Social Affairs Ministry shall guide the Managing Board of the Vung Ang economic zone to implement the provisions of this Clause.

1. The State shall support the promotion of investment, tourism and trade in the Vung Ang economic zone and the wide introduction of the investment environment of the zone to potential investors at home and abroad.

2. The Managing Board of the Vung Ang economic zone and concerned state agencies shall reform administrative procedures related to investment, land management, construction, bidding, tax, customs, management of labor and enterprises in the Vung Ang economic zone.

3. The Managing Board of the Vung Ang economic zone shall coordinate with local administrations in organizing propaganda and education for local officials and people about the Vung Ang economic zone in order to win their support and involvement in the process of building and developing the Vung Ang economic zone.

Article 26.- Organizations and individuals that render merits in the mobilization of official development assistance capital, foreign direct investment projects and domestic investment projects in the Vung Ang economic zone shall be rewarded according to the provisions of the Law on Emulation and Commendation.

Article 27.- The ministries of: Planning and Investment, Finance, Home Affairs, Police, Labor, War Invalids and Social Affairs, Trade, Construction, Transport, Natural Resources and Environment, the Vietnam National Administration of Tourism and concerned agencies shall, within the ambit of their respective functions, tasks and powers, issue regulations guiding the operation of functional zones of the Vung Ang economic zone.

1. The Managing Board of the Vung Ang economic zone shall be established by decision of the Prime Minister at the proposal of the president of the People's Committee of Ha Tinh province and the Home Affairs Minister.

2. The Managing Board of the Vung Ang economic zone is a state management agency attached to the People's Committee of Ha Tinh province, performing the centralized and unified management of construction investment and economic development activities in the zone according to its Operation Regulation, planning, plan and schedule already approved by competent state agencies.

3. The Managing Board of the Vung Ang economic zone has the legal person status, a national-emblem seal, a working office, a payroll, funds for non-business activities and development investment capital allocated from the state budget according to annual plans; being a focal point of planning and budget with its development investment capital exclusively allocated from the central budget.

4. The chairman of the Managing Board of the Vung Ang economic zone shall be appointed by the Prime Minister at the proposal of the president of the People's Committee of Ha Tinh province and the Home Affairs Minister. Vice-chairmen shall be appointed by the president of the People's Committee of Ha Tinh province.

Article 29.- The Managing Board of the Vung Ang economic zone shall perform tasks and powers defined for provincial-level industrial park managing boards, border-gate economic zone managing boards, and defined in this Regulation.

The Managing Board of the Vung Ang economic zone shall have the following tasks and powers:

1. To assume the prime responsibility for, and coordinate with functional agencies of Ha Tinh province in, formulating a general planning to be submitted by the People's Committee of Ha Tinh province to the Prime Minister for approval; drawing up a detailed planning for functional sub-zones, detailed planning and plan for the use of land in the Vung Ang economic zone and submitting them to the People's Committee of Ha Tinh province for approval; organize, disseminate, guide, supervise and inspect the implementation of the Operation Regulation, planning and plan already approved by competent state agencies.

2. To draw up lists of investment projects and annual development investment capital plans, submit them to competent agencies for approval, and organize the implementation thereof.

3. To grant, adjust and withdraw business registration certificates, licenses to establish trading representative offices or branches of foreign organizations and traders; investment licenses; investment preference certificates; work permits of foreigners and overseas Vietnamese working or doing business in the zone; certificates of origin of goods in the zone; assess and approve environmental impact assessment reports or certify environmental standard compliance registration papers of investment projects in the zone and other licenses and certificates as authorized by competent state agencies.

4. To allocate land with collection of land use levy, lease land and water surface to organizations and individuals that have demand for use of land in the Vung Ang economic zone for proper use proposes according to relevant provisions of land law.

5. To formulate price brackets and charge and fee rates to be applicable in the Vung Ang economic zone and submit them to competent authorities for consideration and promulgation according to the provisions of law.

6. To act as the sole body responsible for settling matters arising in the course of forming, deploying and implementing investment and business projects in the Vung Ang economic zone.

7. To coordinate with local administrations and concerned agencies in ensuring that all activities in the Vung Ang economic zone comply with this Operation Regulation, plannings and plans already approved by competent state agencies.

8. To perform the tasks of managing and using various sources of development investment capital within the Vung Ang economic zone, and managing construction projects funded with state budget capital in the zone according to regulations.

9. To formulate investment, trade, tourism and service promotion programs and submit them to competent agencies for approval, and organize, carry out, introduce, negotiate and promote investment, trading, tourism and services at home and abroad.

10. To report on a periodical basis to concerned ministries and branches and the People's Committee of Ha Tinh province on the implementation of the plannings and plans on construction and development of the Vung Ang economic zone.

11. To perform other tasks assigned by the People's Committee of Ha Tinh province in each period.

Article 30.- The People's Committee of Ha Tinh province is responsible for:

1. Organizing the formulation of the general planning of the Vung Ang economic zone and submitting it to the Prime Minister for approval, and approving the detailed planning of functional sub-zones in the zone.

2. Approving the detailed planning and plan on the use of land in the Vung Ang economic zone; recovering land and allocating land to the Managing Board of the Vung Ang economic zone for building and development of the zone according to the provisions of Clauses 1 and 2, Article 18 of this Regulation.

3. Setting land price frames, and assigning the Managing Board of the Vung Ang economic zone to set land use levy and land rent rates; levels of land use levy exemption and reduction and levels of land rent exemption and reduction for application to each specific project to meet investment promotion requirements with regard to cases of allocation or lease of land without auction for land use rights or bidding for projects involving the use of land, and approving price and financial plans with regard to cases of auction for land use rights or bidding for projects involving the use of land.

4. Performing state management of investment projects in the Vung Ang economic zone according to the approve planning; authorizing the Managing Board of the zone to approve domestic investment projects under its competence; submitting for approval or approving according to its competence lists of development investment projects and annual development investment plans in the zone.

5. Promulgating specific preferential and incentive policies in compliance with current regulations for priority recruitment and use of on-spot labor; supporting vocational training for local laborers; creating conditions for local laborers to work for enterprises in the Vung Ang economic zone; encouraging and attracting specialized and skilled laborers from elsewhere to work in the Vung Ang economic zone; supporting the building of dwelling houses for workers; supporting the building of resettlement areas; supporting investment in developing the system of socio-economic infrastructure, service facilities and public utilities according to the provisions of the State Budget Law; supporting investment and trade promotion; supporting compensation and ground clearance so as to speed up the process of investment and development of the Vung Ang economic zone.

6. Directing and making arrangements for local administrations at all levels and the province's functional agencies to coordinate with the Managing Board of the Vung Ang economic zone in performing compensation and ground clearance work and taking measures to ensure security, social order ad safety, thus facilitating the smooth operation of enterprises in the Vung Ang economic zone.

7. Providing funds for administrative and non-business activities and development investment capital to the Managing Board of the Vung Ang economic zone from the budget of Ha Tinh province according to annual plans.

8. Directing the province's functional agencies to collaborate with and create conditions for the Managing Board of the Vung Ang economic zone to fully perform its tasks and powers defined in this Regulation; coordinate with concerned ministries and branches in organizing the management of the zone, ensuring its quick and sustainable development.

1. Ministries, ministerial-level agencies, Government-attached agencies and the People's Committee of Ha Tinh province shall, within the scope of their respective functions, tasks and powers, perform the tasks of state management of branches, domains and administrative territories concerning the Vung Ang economic zone; authorize and guide the Managing Board of the zone to perform a number of tasks of state management of investment and construction, planning, natural resource and environment, urban management and development, land, labor and export, import management and other domains according to the provisions of law and this Regulation on the principle of the "one-stop shop and on-spot" mechanism with a view to facilitating investment, production and business activities of domestic and foreign organizations and individuals in the Vung Ang economic zone and meeting the requirements of investment development of the zone.

2. For domains not decentralized and authorized to the Managing Board of the Vung Ang economic zone, ministries, ministerial-level agencies, and the People's Committee of Ha Tinh province shall perform the state management of the zone by setting up their attached units within the zone and formulate regulations on their coordination with the Managing Board of the zone in performing their assigned powers.

Article 32.- The Vung Ang economic zone customs office shall supervise and manage goods circulated between the tariff zone and non-tariff zone and foreign countries and goods circulated between the non-tariff zone and other areas in the Vietnamese territory.

Article 33.- Activities, rights and obligations of domestic and foreign organizations and individuals engaged in producing and trading in goods and/or providing services and enterprises investing in building and commercially operating infrastructure in the Vung Ang economic zone not yet provided for in this Regulation shall comply with relevant legal provisions on investment, enterprises, cooperatives, customs, land, construction, trade, environmental protection, taxes, other provisions of Vietnamese law, and treaties to which Vietnam is a contracting party.

Article 34.- Preferences granted to domestic and foreign organizations and individuals engaged in producing and trading in goods and/or providing services in the Vung Ang economic zone according to this Regulation shall be applied to domestic and foreign organizations and individuals engaged in producing and trading in goods and/or providing services in the Vung Ang economic zone before the date of promulgation of this Regulation throughout the remaining preference duration as from the date this Regulation takes effect.