Law 3/1998/qh10: Encourage Investments In Water (Revised)

Original Language Title: Luật 03/1998/QH10: Khuyến khích đầu tư trong nước (sửa đổi)

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
The LAW encourages domestic investment (amendments) To the mobilization and effective use of resources, resources, labor, and the country's potential to contribute to the socio-economic development, for the cause of strong country, prosperous people society, civilization;
Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992;
This law regulates to encourage domestic investment, chapter I GENERAL PROVISIONS article 1 the State protectionism, encourage, treat equally and create favorable conditions for organizations and individuals to invest in the socio-economic sector on the territory of Vietnam under the law of Vietnam.
Article 2 Of this law, the terms below are interpreted as follows: 1. "domestic investment" is the use of capital to production, business in Vietnam of the Organization, the individual provisions of article 5 of this law.
2. "investors" is organization, personal use capital to make investments provided for in article 4 of this law.
3. "construction contract-business-transfer" (BOT) is the text signed between the competent State agencies and investors to build the business, work infrastructures within a given time limit due to the two parties to the agreement; expiry, the investor cannot transfer reimbursement that works for the State.
4. "build-transfer-business" (BTO) is the text signed between the competent State agencies and investors for the construction of infrastructure works; After construction is complete, the investors transferred that work for the State. The State Agency has the authority to sign contracts for the right investor business that works within a given time limit due to the two parties to the agreement.
5. "contract of build-transfer" (BT) is the text signed between the competent State agencies and investors for the construction of infrastructure works; After construction is complete, the investors transferred that work for the State. The State Agency has the authority to sign contracts for the project investors to withdraw capital and profit.
6. "The Vietnam settled abroad" is a native of Vietnam and Vietnam nationals reside, do business, long live abroad.
7. "foreigners residing in Vietnam," foreign citizens and stateless persons-residents, business, long live in Vietnam.
8. "geographical socio-economic difficulties" is the geographical region of minorities; Mountain time; the region has a well-developed infrastructure; areas with adverse natural conditions.
9. "geographical socio-economic conditions particularly hard" is the geographical region of minorities in a high mountain; Islands; the region has weak infrastructure; the natural conditions are not very favorable.
Article 3 the investor capital used by money, the following assets to invest in Vietnam: 1. Vietnam Money, foreign money;
2. transferable securities, Gold;
3. Workshop, buildings, equipment, machinery, means of production, the other business;
4. The value of land use under the provisions of the law of the land;
5. The value of intellectual property rights, technical know-how, technological processes;
6. The other legal property.
Article 4 scope of this law include the following investment activities: 1. investing in the establishment of production facilities, business in the economic sectors;
2. Investing in the construction of production lines, expansion, technological innovation, improve the ecological environment, moving production facilities out of town, the capacity of production, trading, production restructuring, diversification of industries, products;
3. Buy shares of businesses, raising capital to enterprises in the economic sectors;
4. investment in the form of construction contract-business-transfer; the investment in the form of construction contract-transfer-business; the investment in the form of construction contract-transfer.
Article 5 1. The object of this Law apply, including: a) institutional investors and individuals, Vietnam;
b) investor is Vietnam people settled abroad;
c) investors are foreigners residing in Vietnam.
2. The Prime Minister to decide what specific circumstances allow foreigners investors which bought shares of Vietnam businesses with no more than 30% of the Charter capital of the business.
 
CHAPTER II GUARANTEE and INVESTMENT SUPPORT Article 6 1. State recognition and protection of the right to own property, capital, income, the rights and legitimate interests of investors.
2. The property and legal capital of investors being nationalized, not seized by administrative measures.
In case of real necessity for reasons of Defense, security and national interests, the State decided to featured buy or requisition of property investors, the investors are paid or compensated by the time the market price at the time of publication the decision featured buy or requisitioning and created favorable conditions for investments in the field of , the appropriate localities.
3. In the case of regulations changes laws that do damage to the interests of investors, the State allows investors to continue to enjoy the incentives already specified for rest or satisfactorily State benefits for investors.
Article 7 the State implemented the following measures to facilitate investors by or expand production, business: 1. Land or rent land under the provisions of the law of the land and civil legislation;
2. Publicize land use planning and Land Fund was not yet in use, the soil needs are delivered and local rental;
3. The Government of the Committee on the National Assembly specifies those cases investors are right to convert, transfer of rights, the right to rent back mortgage rights, inheritance rights for land and land rent.
Article 8 the State support and create favorable conditions of infrastructures for investors as follows: 1. the construction of the industrial park with the small and medium scale in the geographical socio-economic difficulties, geographical socio-economic conditions particularly difficult for investors to use as a production business, with the preferential conditions;
2. Build the infrastructure works beyond the fences of industrial zones, export processing zones to facilitate investment, production, business activity;
3. Encourage and create favorable conditions for investors to establish production facilities, sales in industrial zones, export processing zones, special economic zones.
Article 9 the State capital contribution on the basis of production, business in the economic sectors in geographical socio-economic conditions, difficult socio-economic conditions have foul particularly hard through the State enterprises, the credit institutions of the State.
Article 10 the State establish and encourage the establishment of investment support, export support Fund from the State budget, from the source of the credit institutions, enterprises, organizations and individuals in the country and abroad. Investment support funds for medium-term investment loans and long-term preferential interest rates partial subsidies, interest for the investment project are incentives, credit guarantee investment. Export support fund granted credit with preferential interest rates to support the business development of the production of export goods, export business, expanding export markets and export credit guarantees.
Operation of the investment fund, Fund to support exports made under the law on credit institutions.
Article 11 1. The State encourages the dissemination and transfer of technology; create conditions for investors are used to the technology incentive fees generated from State budget sources.

2. State funding to support the development of science and technology from State budget sources, from the source of the credit institutions, enterprises, organizations and individuals in the country and abroad to support the investor loans with favourable conditions, interest rate incentives to research , application of technical progress, technology, technology transfer, technological innovation.
Organizational and operational regulations of the Fund to support the development of science and technology due to government regulations.
Article 12 State recommended investment support activities: 1. Advice on legal matters, investment, business and business management;
2. vocational training, technical staff; advanced training and expertise in economic management;
3. Provide information about the market, science-engineering, technology; protection of intellectual property rights and technology transfer;
4. Marketing, trade promotion;
5. the establishment of the Association of industries of production, sales, export associations.
Article 13 investment projects of investments subject to the provisions of article 5 of this law was to apply the same price for goods, services by State, subject to the same tax level, enjoy the same level of investment incentives.
Article 14 in the case of professionals, technical workers in the country do not meet the requirements of professional and business, investors are hiring professionals, technical workers are foreigners, Vietnam people settled abroad, foreigners residing in Vietnam according to production needs , business.
Professionals, technical workers are foreigners, Vietnam people settled abroad, foreigners residing in Vietnam working for production facilities, domestic business was transferred abroad income after income tax under the provisions of the law of Vietnam.
 
CHAPTER III article 15 INVESTMENT INCENTIVES for investment projects in the following areas is preferred: 1. Reforestation, tending of forest; crops on land, hills, mountains of bare; reclaimed; do salt; aquaculture in the region of the country not yet exploited;
2. The construction of infrastructure, development of public transport; career development education, training, health, culture and ethnicity;
3. Production, export business;
4. seafood caught in waters far from shore; processing of agricultural, forestry and aquatic products; technical services directly serves the production of agriculture, forestry, fisheries;
5. Research, science, technology development, scientific and technological services; advice on legal matters, investment, business, business management; protection of intellectual property rights and technology transfer; vocational, technical personnel training, fostering and improving business management knowledge;
6. Investing in the construction of production lines, expansion, technological innovation; improve the ecology and environment, urban sanitation; moving production facilities out of town; diversified industries, products; investment in the industry use many domestic workers, first investment in labor;
7. The priority lines in each period of socio-economic development.
Article 16 investment projects in the following areas is preferred: 1. geographical socio-economic conditions are difficult;
2. geographical socio-economic conditions extremely difficult.
Article 17 1. Investors have investment projects provided for in article 15 of this law are reduced by 50% in the case of land use money allocated to pay land use the land.
2. Investors have investment projects in geographical socio-economic difficulties be reduced 75% of land use in case the money was allocated the land to pay land use.
3. Investors whose investment projects in geographical socio-economic conditions particularly difficult or have investment projects provided for in article 15 of this law in the geographical socio-economic difficulties that are free use of land in the case of land assigned to pay land use.
Article 18 1. Investors have investment projects provided for in article 15 of this law are free from three years to six years, since the signing of the lease the land.
2. Investors have investment projects in the area of socio-economic difficulties that are free from seven years to ten years, since the signing of the lease the land.
Investors have investment projects provided for in article 15 of this law in the area of socio-economic difficulties that are free from eleven years to fifteen years, since the signing of the lease the land.
3. Investors whose investment projects in the area of social-economy especially hard are free from eleven years to fifteen years, since the signing of the lease the land.
Investors have investment projects provided for in article 15 of this law in the social-economic areas particularly hard are free for the duration of the project.
Article 19 1. Investors whose investment project stipulates in paragraph 1 article 15 of this law are exempt from the land use tax in case the assigned land.
Investors have investment projects stipulated in paragraph 2 of article 15 of this Law be reduced 50% of land use tax from seven years to ten years, since the assigned land.
2. Investors have investment projects in geographical socio-economic conditions were difficult land use taxes from seven years to ten years, since the assigned land.
Investors have investment projects in the areas defined in article 15 of this law in the geographical socio-economic conditions were difficult land use taxes from eleven years to fifteen years, since being handed the land.
3. Investors whose investment projects in geographical socio-economic conditions particularly difficult land use tax exemption from eleven years to fifteen years, since being handed the land.
Investors have investment projects provided for in article 15 of this law in the geographical socio-economic conditions particularly difficult land use tax exemption for the duration of the project.
Article 20 investors have investment projects provided for in article 15 and article 16 of this law, enjoy corporate income tax rates are as follows: 1. To invest in the field specified in article 15 of this law or the investment in geographical social-economic conditions of difficulty are entitled to a 25% tax rate;
2. Investment in geographical socio-economic conditions particularly difficult or invest in sectors specified in article 15 of this law in the geographical socio-economic difficulties were entitled to tax rate of 20%;
3. Invest in sectors specified in article 15 of this law in the geographical socio-economic conditions particularly difficult are entitled to a 15% tax rate.
Article 21 1. Investors have the project established production facilities in the fields of business, prescribed in article 15 of this law are exempt from tax, enterprise income tax according to the provisions in article 17 paragraph 1 point b of the law on enterprise income tax.
2. Investors have established project production facilities, business in the geographical areas defined in article 16 of this law or the investment in the form of construction contract-business-transfer or build-transfer-tax exemption for business, the corporate income tax with the highest preference level specified in point b of paragraph 1 article 17 of the law on enterprise income tax.
Article 22 investors whose investment projects stipulated in paragraph 6 article 15 of this law, in addition to tax incentives, reducing corporate income tax provisions of article 18 of the law on enterprise income tax also enjoy additional incentives are as follows: 1.50% reduction of corporate income tax payable in the next two years for the income increase due to this investment bring back;

2. exemption of income tax for two years and 50% reduction of corporate income tax payable business in the next three years for the extra income brought by this investment for production facilities, business close in geographical socio-economic difficulties;
3. additional exemption three years enterprise income tax and 50% reduction of corporate income tax payable in the next five years for the extra income brought by this investment for production facilities, business close in geographical socio-economic conditions extremely difficult.
Article 23 investors whose investment project stipulates in article 15 or article 16 of this law are not additional income tax prescribed in clause 1 article 10 of the law on enterprise income tax.
Article 24 1. The investor is personal income tax exemption for income earned capital contribution, purchase of shares of the enterprises in the period of five years from when the investor is obliged to pay tax according to the provisions of the law on personal income tax.
2. The investor is personal income tax exemption for income earned capital contribution, purchase of shares of the enterprises located in the geographical areas defined in article 16 of this law within a period of ten years, since investors are obliged to pay tax according to the provisions of the law on personal income tax.
3. capital contribution by investors, intellectual property rights, technical know-how, technological processes are tax free income from the shares.
Article 25 investors whose investment project stipulates in article 15 or article 16 of this law are under no imported tax for goods here that in the country have not produced or produced do not meet the requirements: 1. The equipment, machinery, means of transportation is located in the technology to create fixed property of enterprises or early expansion investment, technological innovation;
2. the means of transport used to shuttle workers.
Article 26 in addition to the preferential enterprise income tax prescribed in this law, investors produce, export business, and enjoy more preferential enterprise income tax as follows: 1.50% reduction of corporate income tax on the income earned from export in a fiscal year, for investors to export first new items, export, export of goods out of new markets;
2.50% reduction of corporate income tax on the extra income on export in the fiscal year, for investors whose export revenue next year is higher than the previous year;
3.20% reduction of corporate income tax on the income earned from export in a fiscal year, for investors whose export earnings reached the rate of over 50% of total revenue or have a stable export market for three consecutive years;
4. Investments in production, export business enjoy enterprise income tax incentive provisions of the paragraph 1, 2 or 3 of this article, if the implementation of investment projects in geographical socio-economic conditions of difficulty are falling more 25% corporate income tax on the income earned from export in a fiscal year; If the implementation of investment projects in geographical socio-economic conditions particularly difficult then be free of corporate income tax on the income earned from export in a fiscal year.
Article 27 When the income transfer to foreign investors, was the Vietnam settled abroad, foreigners residing in Vietnam, foreign capital contribution, purchase of shares under the provisions of this law, filed a tax equal to 5% of the income transfer abroad.
Article 28 1. Investors whose investment project stipulates in article 15 or article 16 of this law was the Foundation of the State's investment credit loan review medium-term and long-term or partially subsidized interest rates for loans from credit organizations.
2. Investors whose investment project to move production facilities out of town, improve ecological environment, urban sanitation is the Foundation for investment credit loan review medium-term and long-term preferential interest rates respond to 70% of the capital.
3. Investors whose investment projects in geographical socio-economic difficulties that are the Foundation of the State's investment priority consideration for medium-term credit loans and preferential interest rates long term response to 50% of the investment of the Fund or may be considering bail to 70% of the loan amount to invest.
4. Investors have investment projects in geographical socio-economic conditions particularly difficult was the Foundation of the State's investment priority consideration for medium-term credit loans and preferential interest rates long term response to 70% of the capital invested or are considering this Fund guarantees up to 80% of the loan amount to invest.
5. Investors have produced projects, export business, in addition to the incentives of investment credit provisions in the clause 1 and 2 of this export support Fund was considering export credit loans with preferential interest rates to respond to 80% of export credits based on the export contract has been concluded or is considering guarantees up to 80% of export credits.
Article 29 based on the planning, the development orientation of social-economic country in each period, government regulations category lines of each sector investment incentives; local directory of investment incentives; technology proficiency standards; scale employers to enjoy investment incentives; the specific investment incentives provisions in chapter III of this law.
 
CHAPTER IV RIGHTS and OBLIGATIONS of article 30 INVESTORS investors have the right to the following: 1. Selection of lines and investments on the territory of Vietnam;
2. Choose form of investment; alter or transfer investment projects in accordance with the law;
3. Sign the form of incentives and incentives consistent with provisions of this law;
4. Decide in investment and production activities, registered business;
5. Labour Hire unlimited in number; paid on the basis of an agreement with employees consistent with the provisions of the law on labour;
6. Export and import of registered products directly, except prohibited items of export, import or export restrictions, import;
7. Exit the entry to implement investment projects;
8. Complaints, accusations or claims with the competent State authorities about the violations of the law of Agency, public servants in accordance with the law.
Article 31 investors have the following obligations: 1. Production, according to the business register, the full implementation of the provisions of the law on accounting, statistics; responsible before the law about the truthfulness, accuracy of the registration forms of incentives and perks;
2. Pay taxes and perform other financial obligations prescribed by law;
3. Compliance with the provisions of the law on defence, security, safety, social order;
4. Compliance with the provisions of the law on political organizations, socio-political organizations at the enterprise, create favorable conditions for the Organization of activities;
5. the full implementation of the obligations under the provisions of the law on labour;
6. In compliance with the provisions of the law on the protection of the environment, protection of monuments of history, culture, attractions.
Article 32 in the case of a change in the time limit investors enjoy preference that new investors continued to implement investment projects, the new investor was entitled to the incentives and are responsible for the proper implementation of the obligations to be entitled to preferential treatment of investment projects were registered in the remaining period.
Article 33

In the case of investors are making their investment projects are no longer eligible to continue to enjoy the incentives under the provisions of this law, the competent State Agency decided to consider investment incentives to adjust or cancel the entire deal has been approved.
Article 34 the investor is Vietnam people settled abroad, foreign capital contribution, purchase of shares under the provisions of this law are transferred abroad: 1. get income in the production process, business, income due to the reinvestment of income, have been due to purchase of shares;
2. the Amount of principal and interest of loans from foreign countries in the process of production, business activities;
3. Capital investment;
4. The funds and other assets belonging to legal ownership.
 
Chapter V the STATE MANAGEMENT of INVESTMENT INCENTIVES in the WATER Thing 35 unity Government governance on investment and encourage investment in nationwide. The Government issued the regulations on the procedures, the authority to grant investment incentives for investment projects under this law.
Article 36 the Ministry of planning and investment to implement state management function of encouraging investment in the country, have the following powers and duties: 1. Chaired and coordinated with relevant ministries of construction, additions, changes, the Government decided to list the specific investment incentives provisions of article 29 of this law;
2. Dissemination, guidance, monitoring, checks the implementation of support measures and preferential investment;
3. Grant or refuse to grant a certificate of investment incentives for businesses that have been established by decision of the Prime Minister; for businesses that have been established by decision of the Prime Minister be authorized within a period not to exceed thirty days from the date of receipt of the application preference; recommendations to the Prime Minister on measures of investment incentives for business because the Prime Minister decided to establish new; unified opinion about the preferential investment measures with the Prime Minister are authorized to decide on the establishment of new businesses. Investment incentive measures are recorded simultaneously on business registration certificates.
Article 37 provincial people's Committee, central cities have the following powers and duties: 1. Perform management functions of State encouraged domestic investment locally according to the rules of law;
2. Grant or refuse to grant a certificate of investment incentives for manufacturing facilities, business founded within a period not to exceed thirty days from the date of receipt of the application preference investment; the decision of investment incentive measures for the production facility, established business. Investment incentive measures are recorded simultaneously on business registration certificates.
Article 38 The operational inspections of manufacturing facilities, sales are defined as follows: 1. The inspection of the activity of production facilities, business must be done properly to function properly, the authority and comply with the provisions of the law.
The inspector about the economy-finance be made no more than once in a year for a business. Maximum inspection period not exceeding thirty days, in special cases, the term inspector be extended by decision of the competent superior bodies, but don't be too thirty days.
The extraordinary inspection and inspection of specialization only done when there is evidence that production facilities, business law violations;
2. When conducting the inspection must be decided by the competent person; at the end of the inspection must have inspection conclusions thereon; who chaired the delegation inspected be liable thereon and conclude the inspection;
3. The decision to implement the Inspector not lawful or taking advantage of the Inspector to service, harassment, causing troubles for the operation of production facilities, business, then depending on the nature and extent of the violation being disciplined or suffer prejudice criminal liability; If the cause of damage to investor compensation prescribed by the law.
 
CHAPTER VI REWARDS and TREATS breach of article 39 has the investors in manufacturing operations, business, contributing to boosting production, improving people's lives shall be rewarded according to the provisions of the law.
Article 40 investors have violations of the provisions of this law, in case of damage compensation, it must reimburse the account privileges have been affected and, depending on the nature and extent of the violation that sanctioned administrative violations or arrested save for criminal liability in accordance with the law.
Article 41 The advantage of position and powers impede investment, to enjoy the preferential investment regulations are not followed, there are acts of harassment, troubling for investors or violating the provisions of this law, depending on the nature and extent of the violation being disciplined or suffer prejudice criminal liability; If the damage is compensated according to the provisions of the law.
 
CHAPTER VII ENFORCEMENT PROVISIONS Article 42 1. Investors are enjoying preferential treatment under the law to encourage investment in the country on June 22, 1994 continued investment incentives for the time remaining under the preferential investment certificates have been issued.
2. The additional incentive of tax breaks, free land use, land lease, the incentives on corporate income tax, import tax exemption incentives, investment credit, export credit, credit guarantees, export credit guarantees stipulated in this law for investors whose investment incentive certificates granted prior to the date this law comes into force execution, shall be adjusted to apply for the remaining period;
3. Production facilities, business activities are in the field specified in article 15 or in geographical areas defined in article 16 are entitled to preferential treatment under the provisions of this Act, since this Act is in effect.
4. the State does not pay taxes and other financial obligations that investors have done in time before this law is in effect.
Article 43 this law has effect from January 1, 1999.
This Act replaced the Act encourages investment in water has been National Assembly IX, 5 session through June 22, 1994.
The previous provisions contrary to this law are abrogated.
Article 44 the Government detailing and guiding the implementation of this law.
 
 
This law was the National Assembly of the Socialist Republic of Vietnam X key, session 3 through May 20, 1998.

Related Laws