The LAW on investment incentives in the country To mobilize and effectively use all sources of capital, 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 article 84 of the Constitution of the Socialist Republic of Vietnam in 1992;
This law regulates investment incentives in the country.
Chapter I GENERAL PROVISIONS article 1 the State protectionism and encourage organizations, citizen of Vietnam, Vietnam people settled abroad, foreigners residing in Vietnam to invest in the socio-economic sector on the territory of Vietnam under the provisions of the law of Vietnam.
The Government specifies the investment of Vietnam who settled abroad and by foreigners residing in Vietnam.
Article 2 Of this law, the terms below are interpreted as follows: 1-"domestic investment" which is in production, business in Vietnam of the Organization, the individual provisions of article 1 of this law.
2-"owner" is the individual or organization specified in article 1 of this law directly quit the capital to make investments provided for in article 4 of this law.
Article 3 the investment is Vietnam money; foreign currency conversion; Gold, silver, precious stones; transferable securities; buildings, constructions, equipment, machines, production facilities or value of land use, industrial property rights are used to invest in Vietnam.
Article 4 applicable investment under this law include: 1-investing in established production base, sales of all economic sectors;
2-the expansion investment, production capacity, research and development and technological innovation of the production base, existing business;
3-Buy shares of enterprises, which is in the business, including State enterprises are allowed to diversify forms of ownership.
CHAPTER II GUARANTEE and INVESTMENT SUPPORT article 5 State recognition and protection of the right to own property, capital, profits, the other rights and legitimate interests of the owner.
Article 6 property, capital and profit of the investor not being nationalized.
In case of real necessity for reasons of Defense, security and national interests, the State decided to featured buy or requisition the property of the owner, the owner is paid or compensated according to market value and created favorable conditions for investments in the field of , the appropriate localities.
Article 7 the State implemented the following measures to support domestic investment activities: 1 land or rent land under the provisions of the law of the land;
2-building the infrastructures of industrial zones to make rental of premises to build production facilities, business;
3-Establish and encourage investment support funds to lend to medium-term and long-term investment. The Government regulation on organization and operation of the investment fund;
4-raising capital through investment support funds, commercial banks, financial companies in the manufacturing, business in the economic sectors on the basis of mutual benefit;
5-regulations the guarantee of investment credit banks, credit institutions and financial companies;
6-support the implementation of the program, the service encourages investment, including: a) business management and consultation;
b) legal advice;
c) holds vocational and technical training;
d) advanced training and knowledge management;
DD) provides economic information;
7-dissemination and transfer of technology, enabling the client to be used with new technologies incentives created by the State budget.
Article 8 the owner is hiring professionals is the alien, who settled in Vietnam working for foreign investment projects in the country. The sequence and exit and entry procedures are applied as regulations on exit and entry for foreigners working in the enterprises of foreign investment.
Foreign experts, Vietnam people settled abroad working for investment projects in the country, after tax according to the provisions of the law of Vietnam, was transferred abroad income of its Forex management regime of the State of Vietnam.
CHAPTER III INVESTMENT INCENTIVES article 9 The following investment projects are preferred: 1-investing in the field: a) afforestation, crops on unused land, bare land, Bare hills and mountains; aquaculture in the region of the country not yet exploited; fishery in the waters far from shore;
b) build the technical infrastructure; developing urban public transport; career development education, training, health, culture; scientific research, technology;
c) agricultural products, forest products, fisheries; technical services directly serves the production of agriculture, forestry, fisheries;
d) produced for export;
DD) The priority industries in each period of socio-economic development; the traditional lines;
2-invest in minority areas, mountains, Islands and other difficult areas;
3-investing in established production facilities using modern technologies, production facilities use more labour.
Government regulations category lines of each sector, the scope of the standard, the technology and scale of employers are entitled to investment incentives, according to the planning and development of the State.
Article 10 in addition to the preferential regime is regulated in the laws and ordinances of tax, investment projects provided for in article 9 of this law are entitled to add the tax incentives are as follows: 1-production base, new business establishment be reduced of 50% (fifty percent) more income tax from one to two years; private investment in ethnic minority regions, mountains, Islands and other difficult regions, are tax benefits more from one to two years, reduction of 50% (fifty percent) more income tax from one to five years and a remission of 50% (fifty percent) more sales tax from one to two years;
2-production facilities, business dropped more capital or use the remaining profit to reinvestment, expansion of production capacity, technological innovation are tax free income for part of the increase in profits next year by this new investment brought;
3-The project should strongly encourage the Government to allow duty-free imports of equipment, machinery, spare parts that the owner directly or mandated to build production base. In case of misuse the device purpose, machinery, spare parts are exempt from import tax, then the client must Access the filing of tariffs was long and dealt with the violation in accordance with the law;
4-profits be split from investment form specified in point 3 of article 4 of this law, are exempt from income tax or income tax within three years, since the profits are divided.
The Government specifies the level of investment incentives.
Article 11 the investor established production base, new business prescribed in article 9 of this law guarantees effective, shall be the first priority loan consideration of middle and long-term credit from the investment fund; established own production base, new business sure is effective in ethnic minority regions, mountains, Islands and other difficult areas are consideration of priorities for the medium term credit loans and long-term preferential interest from the investment fund.
Production base for export in the priority area of development is the guarantee of credits and export-credit level.
CHAPTER IV RIGHTS and OBLIGATIONS of the OWNER article 12 in accordance with the law, the owner has the right to:
1-select lines and invest on the territory of Vietnam;
2-choose this form of investment;
3-enjoy investment incentives under the provisions of this law;
4-active in investment and production activities, registered business;
5-Labour Hire is not limited in number; paid on the basis of an agreement with employees but not lower than the minimum wage stipulated by the Government;
6-exit abroad to implement investment projects according to the regulations of the Government.
Article 13 the owner is obliged to: 1-follow the business register, implement strictly the provisions of the law on accounting, statistics.
2-pay taxes and perform other financial obligations prescribed by law;
3-in compliance with the provisions of the law on defence, national security, social order and safety;
4-compliance with the provisions of the law on trade unions and other unions at the enterprise, create favorable conditions for the Organization of activities;
5-to fulfill the obligations set forth in the law on labour;
6-comply with the provisions of the law on the protection of the environment, protection of monuments of history, culture, attractions.
Article 14 in the case of change of owner within the perks that the new owner continues to implement investment projects, the new owner naturally enjoy the incentives within a period of rest and are responsible for the proper implementation of the obligations to be entitled to preferential treatment of investment projects were registered.
Article 15 in case the owner is no longer eligible to continue to enjoy the incentives under the provisions of this law, then remove a part or the whole of the incentives were approved.
Article 16 Vietnam Who settled in foreign investment under the provisions of this law are transferred abroad: 1 – the profit obtained during the production process, the business due to the use of capital from abroad to the legal transfer;
2-the Amount of principal and interest of loans from foreign countries in the process of production, business activities;
3-capital has shifted from foreign legal;
4-the funds and other assets belonging to legal ownership.
The Government transfer abroad funds and property specified in this article.
Article 17 transfer of profits abroad according to point 1 article 16 of this law, Vietnam people settled abroad, filed a tax by 5% (five percent) of the money transfer abroad.
Chapter V the STATE MANAGEMENT of INVESTMENT INCENTIVES Article 18 1-unity Government governance on investment and encourage investment.
The Government appointed the competent agency responsible for helping the Government implement state management functions of investment incentives.
2-State administration of investment incentives has the following powers and duties: a) building and the Government decided to catalogue the scope and extent of the Department was entitled to investment incentives;
b) leads and oversees the implementation of support measures and preferential investment;
c) Receive investment incentives and application within a period of thirty days from the date of receipt of the application, the decision whether to grant or refuse to grant preferential investment certificates as prescribed by the law for businesses due to the Prime Minister for allowing the establishment.
Article 19 of the province people's Committee, central cities have the following powers and duties:-perform management functions of State encouraged domestic investment on the local range prescribed by law;
2-build and publish the list of projects that need investment incentives tied to socio-economic development of the local society;
3-receive investment incentives and application within a period of thirty days from the date of receipt of the application, the decision whether to grant or refuse to grant preferential investment certificates as prescribed by the law.
CHAPTER VI HANDLING of VIOLATING article 20 investor behavior untrue to enjoy investment incentives regime or violation of the provisions of this law, they must repay the incentive clause was entitled and depending on the extent to which violations were administrative sanction or prejudice criminal liability under the law.
Article 21 The advantage of position and powers impede investment, to enjoy the preferential investment regulations are not followed, there are acts of harassment against the owner or the violation of other provisions of this Act, pay damages and depending on the extent to which violations were disciplined or arrested save for criminal liability in accordance with the law.
CHAPTER VII ENFORCEMENT PROVISIONS Article 22 of this Law in force from January 1, 1995.
The previous provisions contrary to this law are abrogated.
Article 23 production facilities in business, an investment incentive provisions in article 9 of this law were established before the law to encourage investment in the country in force, be entitled to investment incentives regime for the remainder, according to the provisions of this law.
The State does not pay taxes and other contributions that businesses have to make in the time before the law takes effect.
Article 24 the Government detailing the implementation of this law.
This law was the National Assembly of the Socialist Republic of Vietnam tags IX, 5 session through June 22, 1994.
