GOVERNMENT DECREE On some measures to encourage and guarantee investment activities directly in Vietnam the GOVERNMENT pursuant to the law on Government Organization, 30 September 1992;
Pursuant to the law on foreign investment in Vietnam on November 12, 1996;
To encourage, create a favourable environment for attracting foreign direct investment, improve the efficiency of foreign investment activity;
According to the recommendation of the Minister of planning and investment, the DECREE: chapter I GENERAL PROVISIONS article 1.
1. Vietnam Government ensure stable, long term implementation of the policy on foreign direct investment in Vietnam; at the same time modify, supplement the policy of foreign direct investment under the principle of creating more favorable conditions for investors.
2. The Government of Vietnam to encourage and set aside for special projects of export production, using high technology, investment projects in the portfolio of special projects to encourage investment and list of encouraged investment are specified in annex I attached to this Decree.
3. In the case of the new provisions of the law do damage to the interests of the enterprises and foreign-invested business parties (hereinafter enterprise) has been defined in the investment license, the provisions will not apply to projects that have been granted investment licenses.
The new rules more incentives to be issued after the enterprise has granted investment licenses will be licensing agency for business investment are entitled under the provisions of this Decree.
Article 2.
1. The ministries, government agencies, provincial people's Committee, the central cities (hereafter called provincial people's committees) have the responsibility to guide foreign investment activity in the sector and geographical area; improve your operating procedure to ensure investment procedures are simple, quick to follow the principle of "one-stop", "a clue".
The heads of the relevant agencies are responsible for monitoring, checking and responsible for the operation of the agencies, officers in his administration and timely processing of all violations of the provisions of the law.
2. The ministries, government agencies and provincial people's committees before the enactment of the legal documents relating to the operation of foreign direct investment need to unify with the Ministry of planning and investment; the case has a different opinion must promptly report the Prime Minister.
 
CHAPTER II-FORMATION PROJECT article 3. In addition to the fields in the list are not licensed for investment and the investment fields have the conditions specified in annex I attached to this Decree, foreign investors are choosing investment projects, investment form, the geographical apportionment capital, market products.
Foreign investors are choosing partners in the economic sectors of Vietnam to cooperate.
Article 4. For the project to have the rate of export products from 80% or above and a number of other areas by the Ministry of planning and investment announced, investors sign documents with the form of the Ministry of planning and investment; The Agency granted the investment license licensing investment decision within 15 days of receiving a valid profile.
Article 5. For those areas, the business that trades as a rule must have a business license or licensure, businesses only need to register with the competent State agencies to deploy its business activities according to the target, trades specified in the investment license, not to please the business license or licensure.
 
CHAPTER III ENCOURAGED and GUARANTEED INVESTMENT article 6.
1. for the project was granted the investment license before September 23, 1996, the Ministry of planning and investment to consider adjusting the tax incentives and tax exemption period, income tax reduction under the standard investment incentives provisions in Decree 18/CP dated 12 February 1997 from the Government detailing the implementation of the law on foreign investment in Vietnam (hereinafter the Decree 12/CP) or prescribed in the regulations of industrial zones, export processing zones, high-tech zones attached Decree 36/CP dated 24 April 1997 from the Government.
2. preferential income tax rates applicable to enterprises with foreign investment and foreign business investment in the projects in the portfolio of special projects to encourage investment and portfolio investment was encouraged to apply during the term of operation of the project.
Article 7. In addition to the case of 8-year income tax exemption prescribed in paragraph 4 to article 12 Decree 56/CP, invested in projects encouraged investment and special projects to encourage investment in the regulations in annex I attached to this Decree shall be exempt from tax in the 4 years since the business with interest and 50% in the next four years.
Article 8. Enterprises are temporally delayed imported taxes for the imported raw materials to produce export goods within the time limit specified in the law on the export Tax, import tax.
For some export products do require the production or manufacturing cycle time, temporally speaking on tax due the Finance Ministry decision.
Article 9. Price import tax for imported goods subject to import tax is determined on the price stated in the invoice the goods imported. No event shall invoice the price of import tax calculation is determined according to the regulations of the Ministry of finance.
Prohibiting the use of import tax rates for tax fraud; every fraudulent import tax will be handled according to strict laws.
Article 10.
1. equipment, machinery, means of transport imported fixed assets of the business are exempt from import tax according to the provisions of article 12 of the Decree 63/CP are prescribed in annex II. A bundled to this Decree. In addition to the import tax exemption for machinery, equipment, vehicles, businesses still are under no imported taxes for: construction materials imported to create fixed assets in the country have not produced;
Imported materials to manufacture, machines in the technology or to manufacture components, details, disconnected parts, spare parts, jigs, moulds, accessories comes with the equipment and machinery.
The exemption of import tax for the aforementioned material, applied to both the case expansion project, alternative, technology innovation.
2. In addition to the equipment, machinery, means of transport imported fixed assets of the business are exempt from import tax according to the provisions of article 12 of the Decree 63/CP, enterprises in the field of hotels, Office-apartment for rent, House, commercial centre, technical services , supermarkets, golf courses, resorts, sports, entertainment, medical establishments, training, cultural, financial, banking, insurance, audit, consulting services and also be imported duty-free once the equipment prescribed in annex II. B attached to this Decree.
3. investment projects in portfolio investment promotion and investment projects in mountain areas, remote areas defined in annex I attached to this Decree shall be exempt from import tax for materials manufactured in the 5 years since production started.
Article 11. During the operation, businesses invested abroad are turning losses of any tax year to the next tax year and that losses be compensated by profits of subsequent years, but not exceeding 5 years.
Article 12.

1. business loan interest rate is calculated on the basic construction cost or cost of production of the enterprise and is determined on the basis of a credit contract but no higher than the ceiling of credit interest rates by the State Bank of Vietnam announced for domestic loans and higher interest rate and no fees for foreign loans have been registered in The State Bank of Vietnam.
2. Enterprise with foreign investment and foreign business parties are deducted in determining taxable income of the grants for activities for the purposes of charity, humanitarian organizations and individuals, Vietnam.
Article 13.
1. for projects to have exported products, the rate of progress and the export rate is specified in the investment license.
In the course of business, if not yet performed the conditions of export rate stipulated in their investment licenses, enterprises must report the Ministry of trade to consider adjusting the plan to consume the product. In the case of a 3-year business continuity not perform export rate stipulated in the investment license, licensing investment agency will consider adjusting the export ratio and the incentives stipulated in the investment license or revocation of the license.
2. The business sells products manufactured by enterprises to other enterprises to directly produce export products are exempt from import duty for raw materials and the corresponding sales tax in respect of the said products.
Businesses have foreign capital investment and trustee entrusted to export under the provisions of the law.
3. enterprises are buying goods, product market in Vietnam to export processing or to export under the provisions of the Ministry of Commerce.
Article 14.
1. Number of products allowed the consumption market in Vietnam by enterprises directly or through agents and are not restricted to local consumption of products.
2. Sale of products due to business decisions. For those goods, services state price controls, the price according to the frame by the competent State agencies announced.
Article 15.
1. State Bank of Vietnam secured foreign currency balances for enterprises in the field of infrastructure, alternative production of essential imports and the significant investments by the Ministry of planning and investment announced. Ensuring the sale of foreign currencies to the aforementioned businesses are applying stable during the operation of the business.
2. enterprises in the manufacturing sector is obliged to export the products and other businesses not subject mentioned in clause 1 of this article are the State Bank of Vietnam to support a portion of foreign exchange needs in case of really necessary and reasonable in the 3 years since the business began manufacturing business according to the following order of priority : import of materials produced during the year;
Import replacement parts;
Pay interest on borrowed money.
3. Business activity in the service sector (tourism, hotel, Office, public transport, schools, health care, culture, equipment rental, ...) is the State Bank of Vietnam to consider for purchase of foreign currency in accordance with the regulations on Foreign Exchange Management.
4. The sale of foreign currency by the Bank for the objects specified in paragraphs 1, 2 and 3 of this article follow the instructions of the State Bank of Vietnam.
Article 16. In the course of business activities in Vietnam, enterprises have the right to use his assets to pledge as collateral under the provisions of the law.
Article 17.
1. Cases of land rental business to implement investment projects in Vietnam with capital contribution or value of land use, the land lease or receive money owed to the State in case Vietnam-party capital contribution by the land use value is calculated from when the business was given the right to use land according to the land lease.
2. provincial people's Committee where there are investment projects determined compensation, clearance according to the provisions of the Ministry of finance and is responsible for organizing the compensation, clearance.
Article 18.
1. Government guarantee of support to build the technical infrastructure works to fence enterprises or foreign-invested Industrial Zone. In case of need, the construction business and the business of technical infrastructure works can deal with infrastructure development business industrial Area or business for foreign-invested on the capital advance or other methods to build technical infrastructure works.
2. In addition to the business leased the land to build the business, the business development of industrial zones and infrastructure allowed for domestic and foreign enterprises to hire back the lands for renting to these businesses for other businesses to hire again.
 
CHAPTER IV ADMINISTRATION of BUSINESS ACTIVITIES article 19.
1. The ministries, government agencies and provincial people's committees implement state management of foreign investment under the provisions of the law, rectify and enhance the coordination mode in enterprise management.
2. provincial people's Committee has the responsibility to handle the problem in a timely manner under the authority and guidance of the business functioning as prescribed in the investment license and rule of law.
3. Ministry of planning and investment in General to provide information about the situation to the Ministry, government agencies and provincial people's committees concerned and to periodically work with ministries of finance, trade, State Bank, General Directorate, General Directorate of customs and provincial people's committees are related to timely handle issues arising , addressing the recommendations of the business, proposed the policy, measures to improve the investment environment.
Article 20.
1. The inspection activity of the enterprise aims to support business difficulty, resolving the problems arising, follow the right rules of the investment license and provisions of law. The inspection must follow the following rules: the people's Committee of provincial or provincial industrial management (for business in the Industrial Area) building plan and host check periodically to evaluate the implementation of the provisions of the investment license , reviews the performance of the business;
The Ministry, the Government agency building the plan and host the specialized testing to evaluate the implementation of the provisions of the law relating to jurisdiction management areas;
The State Agency has the authority to examine irregularities when business signs violate the law or when there is trouble.
2. inspection bodies have the responsibility to inform the provincial people's Committee or the Board of management of the provincial industrial zone where about business planning and test content.
Periodic inspection, check the specialization is made not more than once in a year for a business.
3. periodic inspection organs and specialized inspection responsibility to announce the plan, test content for business at least 7 working days prior to conducting the test. Check time in a business must not exceed 5 working days; the case of the time test requires longer then checks the Agency must inform the provincial people's Committee or the Board of management of the provincial industrial zone.
Any arbitrary test, not lawful, advantage checking troubling for business are dealt with under the provisions of the law. Businesses have the right to complain about checking if the inspection is not true to the rule of law.

4. within 30 days after the end of the test, the test report the test results to the Ministry of planning and investment and the relevant agencies.
 
CHAPTER V, article 21 ENFORCEMENT TERMS.
1. This Decree shall take effect after fifteen days from the date of signing.
2. where there are different rules between this Decree and the Decree of the Government related to foreign investment was issued before the date of effect of this Decree shall apply the provisions of this Decree.
3. The regulations of ministries, government agencies and the provincial people's Committee, contrary to the provisions of this Decree are repealed.
Article 22. The Ministers, heads of ministerial agencies, heads of government agencies and the Chairman of the provincial people's Committee, central cities are responsible for guiding and enforce this Decree.
 
Annex I i. LIST of SPECIAL PROJECTS to ENCOURAGE INVESTMENT to 1. Export projects 100% of the products;
2. The project produced new varieties, hybrids are high quality international standards and have high economic efficiency;
3. The project of agricultural, forestry and fisheries exports from domestic material sources has high value, use more labour;
4. The projects in the list of encouraged investment sectors in the encouraged investment;
5. The project to produce new materials, rare materials; the project application of new biological technology; electronic technology; new technology for the production of information, telecommunication equipment; information technology;
6. export processing businesses, high-tech industrial enterprises in industrial zones, export processing zones, high-tech zones;
7. The project for treatment of pollution and environmental protection, handling and processing of the waste;
8. The investment contract project BOT, BTO, BT.
 
II. list of ENCOURAGED INVESTMENT PROJECTS 1. Agriculture, forestry and fisheries: agricultural, forestry and fisheries to export;
Food technology; preservation of agricultural produce after harvest; the application technology, biological measures in agricultural, forestry and fisheries;
The production of material for pesticide safety, high results effective disease for people, pets, environment;
Production equipment, spare parts, agricultural machinery;
The project uses many workers, effective use of natural resources available in Vietnam.
2. Industry: exploration, exploitation and deep processing of minerals;
Petroleum industrial development;
Production of high grade steel, oxidized metals, alloys, special metals, steel, iron sponge industry.
The production of machine tools metal working;
The production of automotive parts, motorcycles; production, Assembly equipment, motorcycles and construction;
Production of diesel technology, advanced technical types; manufacturing industry, spare power, hydraulic, air pressure;
Close the ship; production of accessories for the transport ships, fishing vessels;
Production equipment detailed in oil and gas extraction, mining energy; production of large lifting equipment;
Manufacture of mechanical precision, production of the moulds;
The production of wastewater treatment equipment.
Production of medium-and high-voltage electricity devices;
Production of base chemicals, pure chemicals, dyes, chemical use;
Producing special cement, composite materials, soundproof material, insulation, heat, synthetic material instead of wood.
The production of silk thread, textiles for export, special fabrics used in industry;
Advanced materials manufacturing to the production of shoes, sandals, clothing exports;
Advanced packaging and manufacturing export service;
Production of material medicines;
The production of the drug GMP international standards; new pharmaceutical production by biotechnology;
 
III. List Of INVESTMENT CONDITION 1. The investment in the form of the business venture or business cooperation contract: construction, business network International Telecom, local Telecom (just follow the forms of business cooperation contract) extraction, processing of oil and gas, minerals and rare;
Building, infrastructure, Industrial Zones, export processing zones, high-tech zones;
Business building;
Air transportation, railways, sea; public passenger transport; construction of the port terminals (projects of BOT, BTO, BT has specified separately);
Cement, iron and steel production;
The production of industrial explosives;
Afforestation, planting perennial industrial crops;
Sea travel;
Culture, sport, entertainment.
2. The products must ensure at least 80% exports: industrial products that are produced in the country have meet all the requirements for quantity, quality is the Ministry of planning and investment announced in each period.
3. Investment fields are associated with the development of materials: production and processing of milk;
The production of vegetable oil, sugar cane;
Wood processing.
 
IV. list FIELDS NOT LICENSOR to INVEST 1. The projects cause harm to national security, defence and public interests;
2. The project harm to cultural, historic, customs of Vietnam;
3. The project harm to the ecological environment; the waste disposal project toxic brought from outside into Vietnam;
4. The project produced the kind of toxic chemicals or use toxic agent banned by international treaties.
 
V. list of ENCOURAGED INVESTMENT in mountain areas a., deep and remote mountainous and i. du Tonkin: 1. Ha Giang;
2. Tuyên Quang;
3. High by;
4. Lang son;
5. Lai Chau;
6. Lao Cai;
7. Son La;
8. the yen Bai;
9. Bac;
10. Thai Nguyen;
11. Peace;
12. Quang Ninh district, Quang Binh lieu, Three Ha, Cam Pha, Raging, East, Hai Yen, First Security;
13. Phu Tho;
14. Bac Giang.
II. Red River Delta: 1. Oceanography: Chi Linh district;
2. the Ninh Binh: Grape district, Yen, Gia Vien.
III. Four old Zone: 1. Thanh Hoa District Chief Officer, Iris, Lang, Count Size, N, As Spring, cam Thuy, Thach Thanh;
2. An: District of Xiangyang, Qishan, Con Cuông district, Kneeling, Cinnamon, Kneeling, Meaning Forums, his son, Tan, Thanh Chapter;
3. Ha Tinh;
4. Quang Binh: except for Dong Hoi town;
5. Recommended: except the town of Dong HA;
6. Hue: except for hue city.
IV. Central Coast: 1. Vietnam: except for the town of Tam KY;
2. Quảng Ngãi: except the town of Quang Ngai province;
3. Specific: except for the town of Quy Nhon;
5. Hometown: except for the town of Tuy Hoa;
6. Khanh Hoa Khanh district, Khanh Vinh Son:;
7. Positive Comments: except the town of Phan Thiet;
8. Security Pros: except for the town of Phan Rang.
V.: 1. Lai;
2. Kon Tum;
3. Dac;
4. Lam Dong.
VI. South East: 1. Pacific;
2. Dong Nai: districts of Tan Phu, Dinh Quan, Xuan Loc district.
VII. In the Mekong River Delta: 1. Long An: except the town of Long An;
2. Dong Thap;
3. Tien Giang: except for my Tho city;
4. An Giang;
5. Vinh Long;
6. Ben Tre;
7. Sponsors;
8. the Kien Giang Province;
9. The rabbit: except can tho city;
10. Soc;
11. Lieu;
12. Mau.
B. geographical socio-economic difficulties (except the districts mentioned in item A) i. the Northern mountainous and Central du: 1. Quang Ninh: except in HA Long city, Cam Pha town, Uong bi, Mong Cai and the district Category A;
2. Article: except the town Yongfu and the district Category A;
3. Bac Ninh district of que Vo, Yen Phong;
II. Red River Delta: 1. HO CHI MINH CITY. Hanoi: SOC son district;
2. Haiphong: Vinh Bao, Tien Lang;
3. West: Galaxy Ba vi district, United States of America Germany, Phuc Thach, Dread Of life span, reaction;
4. Hung Yen;
5. Marine: Marine except the town;
5. Pacific;
6. Henan;
7. South;
8. the Ninh Binh: except the town Ninh Binh and the district Category a. III. The old Four areas: 1. Thanh Hóa: except for Ho Chi Minh City, Sam son town, BIM son and the district Category A;
2. An: except in Vinh City and the district Category A;
3. Ha Tinh: except the town of Ha Tinh and the district Category A;
4. Quang Binh: except for Dong Hoi town;
5. Recommended: except the town of Dong HA;
6. Contents: the exception of Hue City;
IV. Central Coast: 1. Ho Chi Minh City Da Nang: except for Hai Chau, son TRA;
2. Vietnam: except for the town of Tam KY;
3. Quảng Ngãi: except the town of Quang Ngai province;
4. Specific: except city;
5. Hometown: except for the town of Tuy Hoa;

6. Khanh Hoa: except for the home page and the city district of Category A;
7. Security Pros: except for the town of Phan Rang;
8. Positive Comments: except the town of Phan Thiet.
V.: except for the in the entry A. VI. South East: 1. Ho Chi Minh City: District Need Now, Cu Chi;
2. Ben Cat district, Binh Duong: Front;
3. Security: except Western Tay Ninh town;
4. Ba Ria-Vung Tau: Long District ground, Xuyên. VII. Mekong Delta: 1. Long An: except the town Tan An;
2. Tien Giang: except for the town of my Tho;
3. The rabbit: except can tho city.
 
ANNEX II A. CATEGORIES Of MACHINERY, Equipment, MEANS Of TRANSPORT Are EXEMPT FROM IMPORT TAX To CREATE FIXED ASSETS Of ENTERPRISES INVESTED ABROAD And The PARTIES To The CONTRACT Of COOPERATION 1. The main equipment in technology include: machinery, production equipment; materials, components, parts left comes to install system devices; the template comes with the machines, instruments of production ... to complete the operations produce products specified in the investment license.
2. the auxiliary equipment in technology include: 1. Electrical System: the entire machinery and equipment supplies to complete installation of the system power supply.
2. water supply and sewerage system: the entire machinery and pipe materials ... to complete the installation of water supply and drainage system, sewage treatment.
3. Lighting system: the entire machinery and equipment supplies to complete installation of the lighting system.
4. The system of conditioning, ventilation of the production area.
5. Laboratory equipment.
6. fire fighting equipment, lightning protection equipment, safety equipment ...
7. communications system.
8. Equipment needed for product design or production management.
3. The means of transport lies in technology include: 1. The means of transport used for production activities stipulated in the investment license.
2. Means of transport to transport raw materials and products in the technology.
B. LIST THE EQUIPMENT GROUP FREE IMPORTED TAX ONCE OF THE HOTEL BUSINESS, OFFICE-APARTMENT FOR RENT, HOUSE, COMMERCIAL CENTRE, TECHNICAL SERVICES, SUPERMARKETS, GOLF COURSES, RESORTS, SPORTS, ENTERTAINMENT, MEDICAL ESTABLISHMENTS, TRAINING, CULTURE, FINANCIAL , Bank, Insurance, Audit, CONSULTING SERVICES 1. Office equipment (computer, printer, fax, telex, fotocopy, tables and chairs, Cabinet documents, etc.).
2. The equipment room (tables, chairs, carpets, decorative object ...).
3. kitchen equipment, dining room, a restaurant, a bar (the kind of kitchen, microwave, range hood, kitchen tools, deodorizers, glass, plate, Cup, Cup...).
4. Equipment and hotel furniture (cabinets, beds, tables and chairs, tv, refrigerator, phone, paintings, statues, carpets ...).
5. audiovisual equipment (recorders, audio, speakers, microphone, video ...).
6. Sanitary (bathtubs, pedestal ugly, lavabo, the supplies and sanitary system installation, mirrors ...).
7. the water supply system (pump, air filter, water meters, boilers ...).
8. The system of air conditioning and ventilation (local or central conditioners and spare parts supplies...).
9. fire and fire system.
10. electrical systems and lighting (lights, lights ...).
11. system of handling garbage and sewage.
12. communications system.
13. transport systems (Elevator, trams, trolleys).
14. the laundry system.
15. The protection system.
16. The equipment of the sports room, swimming pool, tennis, cutting hair, nightclub, karaoke, entertainment, physical therapy.
17. Machines and equipment related to the lawn care (mower, phung pesticides ...).
18. water spray systems, irrigation and drainage.
19. golf tools (gloves, golf sticks, golf ...).
20. Machinery equipment of the sports, entertainment, 21. Machinery, equipment, medical instruments, laboratory instruments.
22. Equipment for teaching and learning (including tables and chairs, table, teaching supplies, laboratory etc. ..).
23. Spare attached to machinery, equipment mentioned above.
24. Machines, equipped with specialized types apply to business banking, finance (the safe protection, computer types, cash, counterfeit money detectors, information systems, machines protect, transport money)./.