DECISION No. 158/1998/QD-TTg OF SEPTEMBER 3, 1998 ON THE EXPERIMENTAL APPLICATION OF A NUMBER OF POLICIES IN HA TIEN BORDER-GATE AREA OF KIEN GIANG PROVINCE

THE PRIME MINISTER

Pursuant to the Law on Organization of the Government of September 30, 1992;

At the proposal of the president of the People's Committee of Kien Giang province in Document No.26/TT-UB of May 25, 1998 and after considering opinions of the relevant ministries and branches at the central level,

DECIDES:

Article 1.- To allow the experimental application of a number of policies in Ha Tien border-gate area (hereafter referred to as Ha Tien border-gate economic area), including To Chau, Dong Ho, Binh San, Phao Dai wards and My Duc commune of Ha Tien provincial town, Kien Giang province.

Ha Tien border-gate economic area shall be given priority for trade, import-export, tourist service and industrial development in accordance with the laws of the Socialist Republic of Vietnam and international practices.

The Socialist Republic of Vietnam respects and protects the legitimate interests of Vietnamese and foreign investors in Ha Tien border-gate economic area in accordance with current laws and policies of Vietnam as well as international agreements which the Socialist Republic of Vietnam has signed or acceded to.

Article 2.- Trade activities and trade services in Ha Tien border-gate economic area shall comply with the current provisions of law and shall include such activities as export, import, temporary import for re-export, goods transit services, bonded warehouses, duty-free shops, exhibitions-cum-fairs, show rooms, export goods production and processing establishments, branches and representative offices of domestic and foreign companies, and border-gate markets.

Enterprises of different economic sectors, established under the provisions of law and headquartered in Ha Tien border-gate economic area, are allowed to conduct direct import and/or export of goods (except for goods banned from import and/or export by the State). The trading in goods controlled by the State with quotas and in import-export goods subject to norms and/or conditions shall comply with the current stipulations of the State.

Article 3.- Domestic and foreign investors are encouraged to invest in production and business development and infrastructure construction in Ha Tien border-gate economic area in accordance with the Law on Domestic Investment Promotion and the Law on Foreign Investment in Vietnam. In addition to the prescribed preferences, they shall also enjoy the following:

1. Domestic and foreign investors investing in Ha Tien border-gate economic area shall enjoy 50% land rent and/or sea surface rent reduction, compared with the current rent brackets set by the State and applicable in Ha Tien border-gate area.

2. Foreign investors when transferring their profits abroad shall be entitled to the lowest level of tax rates in the tax bracket as prescribed by law.

The business registration procedures for domestic enterprises located in the economic border-gate area shall be carried out by the People's Committee of Kien Giang province, with simplicity and one-door regime. The Ministry of Trade shall guide and authorize the People's Committee of Kien Giang province to issue licenses to foreign enterprises for the establishment of their branches and/or representative offices for trade and/or tourist activities in Ha Tien border-gate economic area, and to allow enterprises to organize international trade exhibitions-cum-fairs in the border-gate economic area under guidance of the Ministry of Trade.

Article 4.- Investors in Ha Tien border-gate economic area are entitled to mobilize domestic and overseas capital sources in appropriate forms prescribed by Vietnamese laws for the construction of infrastructure as well as production and/or service establishments according to socio-economic development plan, ensuring national defense and security.

Investment in the construction of industrial, civil and infrastructure projects in Ha Tien border-gate economic area must comply with Vietnam's current regulation on investment and construction management.

Article 5.-

1. In the period from 1999 to 2002, the State shall annually make separate investment in Ha Tien border-gate economic area through the provincial budget, which is not below 50% of the yearly total budget revenue in Ha Tien border-gate economic area; the investment capital levels and lists of infrastructure construction projects to be separately invested with budget capital shall be proposed by the People's Committee of Kien Giang province and decided by the Ministry of Planning and Investment after consulting the Ministry of Finance.

2. The president of the provincial People's Committee of Kien Giang is entitled to sign the decisions approving capital construction projects of Groups B and C in the Ha Tien border-gate economic area, based on the consent of the Ministry of Planning and Investment.

Article 6.- Management of entry and exit.

1. Cambodian citizens residing in border provinces opposite to Kien Giang province, who have identity cards or border area entry and exit laissez-passers, issued by the Cambodian competent agency(ies) shall be allowed to travel in and out of Ha Tien border-gate economic area and stay there for not more than 7 days;

2. Cambodian citizens residing outside the above-said area, who hold unofficial passports, shall be allowed to travel in and out of Ha Tien border-gate economic area with the exemption of entry/exit visas if their stay duration does not exceed 15 days. If they wish to travel to other places in Kien Giang province and other provinces, the Entry-Exit Management Agency (the Ministry of Public Security) shall consider and issue them with visas at the border gate.

3. Foreign citizens (other than Cambodian citizens), if having valid passports, shall be exempt from Vietnamese entry/exit visas and shall be allowed to stay in Ha Tien border-gate economic area for not more than 15 days. If they wish to travel to other places in Kien Giang province or other provinces of Vietnam, the Entry-Exit Management Agency (the Ministry of Public Security) shall consider and issue them with entry/exit visas at Ha Tien border gate, except for cases where bilateral visa exemption is applied.

4. Foreign crew members, ships and/or boats that have valid papers shall be allowed to enter Ha Tien border-gate economic area for the delivery and/or receipt of contractual goods with their crew members' registers or crew members' passports issued by the foreign competent agencies. If they want to deliver and/or receive goods at other ports of Kien Giang province, the current provisions of law shall apply.

Article 7.- The People's Committee of Kien Giang province shall set up a Steering Committee for the implementation of policies mentioned in this Decision. After two years' implementation, the People's Committee of Kien Giang province shall have to assume the prime responsibility and coordinate with the relevant ministries and branches at the central level in reviewing the experimental application of the above-said policies in the Ha Tien border-gate economic area and proposing necessary amendments and/or supplements thereto to the Prime Minister.

Article 8.- This Decision takes effect from January 1st, 1999. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government and the president of the People's Committee of Kien Giang province shall, within their respective functions, tasks and powers, take initiative in preparing related conditions for the implementation of this Decision and have to implement it.

Prime Minister

PHAN VAN KHAI