1. Investors shall be entitled to select and implement investment projects in the Hon La Economic Zone (excluding projects on the list of domains where investment is banned).

2. Domestic investment projects and foreign-invested projects invested in Hon La Economic Zone, shall be implemented subject to the quick and convenient procedures of investment registration and evaluation for the issuance of an Investment Certificate.

3. Investment projects in Hon La Economic Zone, including expanded investment projects are entitled to the same preferential policies as applicable to the geographical areas with especially difficult socio-economic conditions and other policies applicable to economic zone as stipulated in Decree No.29/2008/ND-CP, dated March 14 2008, of the Government providing on industrial park, export processing zone and economic zone.

4. Production investment projects of domestic and foreign organizations and individuals, located in the Hon La Economic Zone, shall enjoy exemption from import tax on production materials, supplies, components and semi-finished products, which must be imported because they cannot not yet be made in the country for 5 years, counting from the time of commencement of production.

5. High-income earners (both Vietnamese and foreign) working in the Hon La Economic Zone, shall enjoy 50% reduction of personal income tax.

6. Besides incentives provided for in this Regulation, the following investment projects in Hon La Economic Zone are entitled to the enterprise tax rate of 10% throughout their implementation duration:

a. Hi-tech projects which satisfy the requirements specified in Clause 2, Article 5 of the Regulation on Hi-tech Parks promulgated together with the Government’s Decree No. 99/2003/ND-CP dated August 28, 2003;

b. Projects on the List of domains eligible for particular investment incentives and with great socio-economic impacts, which are submitted by the Ministry of Finance to the Prime Minister for decision in case greater encouragement is necessary.

7. Goods exported or imported in the following cases shall not be liable to export or import tax:

a) Goods imported from abroad or other non-tariff zones into the non-tariff zone in the Hon La Economic Zone;

b) Goods exported from the non-tariff zone to abroad;

c) Goods moved or sold from the non-tariff zone to the export-processing zone or export-processing enterprises in the Vietnamese territory;

d) Export tax-free goods originating from Vietnam’s inland taken into the non-tariff zone (excluding goods specified in Clause 2 of this Article).

8. Export tax-liable goods originating from the tariff zone in the Hon La Economic Zone and Vietnam’s inland and brought into the non-tariff zone for export without undergoing through production, processing, recycling or assembly into products in the non-tariff zone shall be liable to export tax, go through export procedures according to current regulations and be subject to customs inspection and supervision.

9. Goods of foreign origin and goods not on the list of goods banned or restricted from import, when imported from the non-tariff zone into the tariff zone (excluding the export-processing zone) in the Hon La Economic Zone and Vietnam’s inland, shall be liable to import tax, go through import procedures according to current regulations and be subject to customs inspection and supervision.

10. Goods produced, processed, recycled or assembled in the non-tariff zone with imported materials or components, when imported into the tariff zone (excluding the export-processing zone) in the Hon La Economic Zone and Vietnam’s inland, shall be only liable to import tax on the portion of imported materials or components constituting the goods or products, go through import procedures according to current regulations and be subject to customs inspection and supervision.

11. Goods and services produced or consumed in the non-tariff zone and goods and services imported from abroad into the non-tariff zone shall not be liable to value-added tax. Goods and services taken from Vietnam’s inland and the tariff zone in the Hon La Economic Zone into the non-tariff zone shall enjoy the value-added tax rate of 0%. Goods and services taken from the non-tariff zone into Vietnam’s inland and the tariff zone (excluding the export processing zone) in the Hon La Economic Zone shall be liable to tax according to tax laws.

12. Special consumption tax-liable goods and services produced or consumed in the non-tariff zone or imported from abroad into the non-tariff zone shall not be liable to special consumption tax (excluding goods items subject to special consumption tax under separate provisions of special consumption tax law).

13. Special consumption tax-liable goods and services taken from the non-tariff zone into the tariff zone (excluding the export-processing zone) in the Hon La Economic Zone and Vietnam’s inland shall be liable to special consumption tax.

14. Production materials, commercial supplies imported from abroad by domestic and foreign organizations and individuals engaged in producing, trading in goods or providing services into the non-tariff zone but not used up and sub-products of commercial value shall be permitted to be sold into the tariff zone (excluding the export-processing zone) in the Hon La Economic Zone and Vietnam’s inland, after completion of customs procedures and payment of import tax according to current regulations.

15. Investment projects on production of goods for export and the transportation of goods in transit shall comply with general provisions.

16. Investors (except for entities specified at Point d, Clause 4, Article 3 of the Investment Law) may invest in building dwelling houses for sale or lease; invest in building infrastructure in the functional quarters for lease, sub-lease or transfer of the right to use land associated with infrastructure in Hon La Economic Zone according to relevant provisions of the land law. Overseas Vietnamese may purchase dwelling houses associated with residential land use rights; foreigners permanently residing in Vietnam and foreign investors may rent dwelling houses associated with residential land use rights in Hon La Economic Zone according to the law on dwelling house and land.

17. The single-price policy for State-controlled goods and services and land rents shall be applied to organizations and individuals, both domestic and foreign, engaged in production and/or business activities in the Hon La Economic Zone.

NY
(According to Decision No.79/2008/QD-TTg)