THE PRIME MINISTER

DECIDES:

Article 1.- To approve the scheme on Phu Quy island economic zone, Binh Thuan province, which shall serve as the objective for orientating the development of Phu Quy island district.

Phu Quy island economic zone embraces Tam Thanh, Ngu Phung and Long Hai communes of Phu Quy island district.

Article 2.- Apart from the regimes and policies currently applicable to offshore islands, Phu Quy island economic zone shall also be allowed to apply the following preferential policies:

- Being given priority to develop itself into an offshore exploiting and fishing center; aquatic product-producing and -processing establishments; fishery logistic services, salvage, trade, transport, ecological tourism, medical services and some other services to serve the people�s production and daily life.

- To encourage domestic and foreign investors to invest in building aquatic product-processing establishments, and production and business services in Phu Quy island economic zone. When they rent land and/or water surfaces, apart from the current preferences, they shall also enjoy the 50% reduction of land and water surface rents as compared to the rent rates currently applied to Phu Quy island district.

- From 2002 to 2006, the State shall leave all revenues collected in Phu Quy island district (excluding value added tax and special consumption tax on import goods; revenues not calculated for local budget balance according to the assignment such as revenue from confiscation of smuggled goods, contributions mobilized from people, tuition fees, hospital fees, aids,�) for investment in building infrastructure of the island economic zone; besides, more investment from the central budget shall be channeled through the provincial budget in projects on development of socio-economic infrastructure of Phu Quy island economic zone, at the rate equivalent to 100% of the annual budget revenues collected in Phu Quy island district.

Article 3.- Implementation organization

1. The People�s Committee of Binh Thuan province shall have to:

- Elaborate investment projects to be submitted for approval according to the current regulations on capital construction investment management. Arrange the order of priority for investment in building projects and project items so that the projects, when completed and put to use, can yield results.

- Closely coordinate with the Ministry of Defense and the Ministry of Public Security in well implementing projects related to the defense strategy for socio-economic development and national security maintenance.

- Annually, make reports and submit them to the Prime Minister. After two years of implementation, the province shall assume the prime responsibility and coordinate with the concerned ministries and branches in evaluating the results of implementation of the project and propose necessary amendments and/or supplements to the Prime Minister.

2. Responsibilities of the central bodies:

The ministries of Planning and Investment; Trade; Defense; Public Security; Construction; Finance; Communications and Transport; and Aquatic Resources, the General Department of Customs, the National Administration of Tourism and the concerned ministries and branches shall have to provide specific guidance and coordinate with the People�s Committee of Binh Thuan province in implementing the mechanisms and policies mentioned in this Decision.

Article 4.- Implementation provisions

This Decision takes effect 15 days after its signing.

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 Binh Thuan province shall have to implement this Decision.

Prime Minister
PHAN VAN KHAI