THE PRIME MINISTER

DECISION No. 177/1998/QD-TTg OF SEPTEMBER 15, 1998 ON THE EXPERIMENTAL APPLICATION OF A NUMBER OF POLICIES IN THE CAU TREO INTERNATIONAL BORDER-GATE AREA, HA TINH 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 Ha Tinh province in Report No.891/CV-UB of July 31, 1998 and proceeding from opinions of the concerned ministries and branches at the central level,

DECIDES:

Article 1.- To allow the experimental application of a number of policies in the Cau Treo international bordergate area, Ha Tinh province, covering Kim Son commune and Tay Son township, Huong Son district, Ha Tinh province.

- The Cau Treo international bordergate area shall be given priority for the development of trade, export, import, services, tourism and industry in accordance with the law of the Socialist Republic of Vietnam and the international practices.

- The Government of the Socialist Republic of Vietnam respects and protects the legitimate interests of Vietnamese and foreign investors in the Cau Treo international bordergate area in accordance with the current laws and policies of Vietnam and the international treaties which the Socialist Republic of Vietnam has signed or acceded to.

Article 2.- Trade activities and trade services in the Cau Treo international bordergate area shall be conducted in accordance with the current regulations, and include: export and import activities, temporary import for re-export, goods transit services, duty-free shops, bonded warehouses, showrooms, trade fairs and exhibitions, sorting and packing, assembly, processing of export goods, branches and representative offices of domestic and foreign companies, goods transport or preservation services, warehouses, tourism, restaurants, banks, and bordergate markets.

- Enterprises of all economic sectors, which are established in accordance with the provisions of law, shall be allowed to conduct direct export and/or import of goods of all kinds (except for those banned from export and/or import by the State). The export and/or import of goods items subject to the State management by quotas and those subject to conditional export and/or import shall comply with the current regulations of the State and guidance of the Ministry of Trade.

- Foreign goods temporarily imported into the Cau Treo international bordergate area shall, pending their re-export, be consigned into the bonded warehouses, and when they are re-exported to other countries, the re-export procedures therefor shall be filled; in cases where the goods consigned into the bonded warehouses at the Cau Treo international bordergate area are not further forwarded, they shall be sent back to their place(s) of origin.

- The Ministry of Trade shall authorize and guide the People's Committee of Ha Tinh province to grant permits for trade fairs and goods exhibitions to domestic and foreign organizations in Cau Treo international bordergate area.

- The People's Committee of Ha Tinh province shall be entitled to take initiative in discussing with the authority of Bolikhamsay province the coordination in the building and management of bordergate markets under the Regulation on Vietnam-Laos border markets.

Article 3.- The policy on investment preferences:

- The domestic and foreign investors are encouraged to invest in production and business development as well as infrastructure construction in the Cau Treo bordergate area under the Law on Domestic Investment Promotion and the Law on Foreign Investment in Vietnam. In addition to preferences provided for by the current laws, they shall also be entitled to the following:

+ Investors in the Cau Treo bordergate area shall enjoy a 50% reduction of the land rent as compared to the State's rent rate bracket currently applied in the Cau Treo international bordergate area.

+ Foreign investors in the Cau Treo international bordergate area, when remitting profit abroad, shall be entitled to enjoy the lowest tax rate in the tax bracket prescribed by law.

- The president of the People's Committee of Ha Tinh province shall be entitled to sign decisions approving capital construction projects of Groups B and C in the bordergate area after consulting the Ministry of Planning and Investment.

Article 4.- Regarding the investment capital sources for the Cau Treo international bordergate area:

- In order to accelerate the building of the Cau Treo international bordergate area with strong socio-economic development, security and national defense, the State shall, annually in the five-year period (from the date of promulgation of preferential mechanisms and policies), provide separate investment via the provincial budget for the bordergate area with 50% of the total amount of export and import taxes collected during the year in the Cau Treo international bordergate area. The investment capital level and the list of infrastructure projects entitled to the separate investment from such capital source shall proposed by the People's Committee of Ha Tinh province and decided by the Ministry of Planning and Investment after consulting the Ministry of Finance.

- Investors in the Cau Treo bordergate area are allowed to mobilize capital from domestic and foreign sources in all appropriate forms for the construction of infrastructure as well as the production, business and/or service establishments in line with the socio-economic development planning of Ha Tinh province, while ensuring the security and national defense.

- The investment in the construction of industrial, civil and infrastructure projects in the Cau Treo international bordergate area shall comply with the provisions of Vietnam's current legislation on investment and construction management.

- The People's Committee of Ha Tinh province shall be entitled to consider and reward a sum of money to organizations and/or individuals that have merits in calling for non-refundable investment capital (capital outside the State budget sources) for economic and social projects in the bordergate area under the specific regulations of the Ministry of Finance.

Article 5.- Regarding the entry and exit through the Cau Treo international bordergate

- Foreigners and overseas Vietnamese shall be allowed to enter or leave the country through the bordergate in accordance with the provisions of Vietnam's legislation on entry and exit and the treaties or agreements on entry and exit visas which Vietnam has signed with other countries.

- Citizens of the People's Democratic Republic of Laos (hereafter referred to as Laos for short), who reside in districts bordering on the Cau Treo international bordergate area, are allowed to enter the bordergate area with border identity cards or border laissez-passers granted by the competent agency(ies) of Laos. The duration of their temporary stay in the bordergate area shall not exceed 7 days.

- Citizens of the People's Democratic Republic of Laos and other foreigners holding unofficial passports to enter the bordergate area shall be exempt from entry-exit visas. The duration of their temporary stay in the bordergate area shall not exceed 15 days. If they wish to travel to other places within Ha Tinh province or to other Vietnamese provinces, the entry and exit management body (the Ministry of Public Security) shall consider and grant them visas at the Cau Treo international bordergate area in accordance with the current regulations on entry and exit.

- Foreign traders and investors, and overseas Vietnamese, who participate in the investment, production, business, tourist and other service activities in the bordergate area, shall be allowed to enter and leave the bordergate area with passports or permits granted by Ha Tinh province's Police Department under the authorization of the entry and exit management body (the Ministry of Public Security).

Article 6.- Regarding the organization of management of the Cau Treo international bordergate area

- The People's Committee of Ha Tinh province shall set up the Management Board of the Cau Treo international bordergate area to perform the centralized and uniform management of this area.

- The Ministry of Trade, the Ministry of Defense, the Ministry of Public Security, the Ministry of Construction, the Ministry of Finance, the General Department of Customs, the General Department of Tourism and the concerned agencies shall coordinate with the People's Committee of Ha Tinh province in well organizing the management of operation of the Management Board of the Cau Treo international bordergate area.

- After two years' implementation, the People's Committee of Ha Tinh province shall have to coordinate with the concerned ministries and branches at the central level in reviewing the application of the above-mentioned preferential policies and reporting to the Prime Minister for timely and necessary adjustments and supplements.

Article 7.- 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 Ha Tinh province shall, within their respective functions, tasks and powers, have to take initiative in organizing the implementation of and implement this Decision.

Prime Minister

PHAN VAN KHAI