1. The Hon La economic zone, with functional zones, socio-economic infrastructure works, public utilities within the territory and under the sovereignty of the country, has an exclusive economic space and a favorable and fair investment and business environment with stable and long-term preferential and incentive policies and open management mechanisms to create favorable conditions for domestic and foreign organizations and individuals to feel at ease when investing in developing production and trading of goods and provision of services.

2. The Hon La economic zone covers six coastal communes of Quang Dong, Quang Phu, Quang Tung, Canh Duong, and Quang Hung and Quang Xuan of Quang Trach district. The nuclear area of the Hon La Economic Zone covering Quang Dong and Quang Phu has a natural land area of about 10,000 hectares, of which mainland are of about 8,900 hectares and island area of about 1,100 hectares. Its geographical boundaries are delimited as follows:

Bordering on Ha Tinh province to the north;

Bordering on Quang Tho commune, Quang Trach district to the south;

Bordering on Quang Kim, Quang Tien and Quang Chau communes, Quang Trach district to the west;

Bordering on the East Sea to the east.

3. Major development objective of the Hon La economic zone:

3.1. To efficiently exploit natural, geographical, economic and political advantages in international and domestic trade and services with a view to promoting socio-economic development in Quang Binh province, the northern Central Vietnam, contributing to reducing the gap between this area with other areas nationwide.

3.2. To build and develop the Hon La Economic Zone into a general economic zone with major industries of auxiliary industry, electricity production, shipbuilding, cement industry, glass production together with other subsidiary industry; Hon La seaport services, development of Vung Chua - Dao Yen tourism, urban areas and other economic sectors.

3.3. To build and trade in non-tariff zone in coordination with investment in effectively exploiting Hon La seaport together with National Highway No.1A, 12A, border gates of Cha Lo, Cau Treo and Lao Bao to form an important gateway through East Sea of the south of Laos, the northeast of Thailand and Mekong sub-regions.

3.4. To create jobs, promote training to raise the quality of human resources, contributing to improving the income for laborers.

3.5. Objective in the forthcoming five years is to continuously invest in building Hon La seaport, building infrastructure and attracting investment in Hon La seaport economic zone. Form some basic items according to the master plan of Vung Chua - Dao Yen tourist area. Develop residential areas and step by step build a modern and civilized urban area in accordance with an active economic zone. Complete construction of inter-regional and internal traffic axis, functional zones subject to the approved detailed planning, attract foreign and domestic investment projects into nuclear areas (Quang Dong and Quang Phu) of the Hon La Economic Zone, initially exploit the port, non-tariff zone, industrial park and tourist sites.

3.6. In the following periods, objective is to develop towards from Quang Dong to Quang Xuan with various adequate steps. Step by step shift economic structure and prepare the premises for development in accrodance with the master plan for four communes of Canh Duong, Quang Tung, Quang Hung and Quang Xuan. Conntinue to build and invest in development of infrastructure of the Hon La Economic Zone. Implement subject to the approved detailed planning and continuously invest in building infrastructure and business production of industrial parks, tourist sites, ammusement parks and non-tariff zone.

4. The Government encourages and protects domestic and foreign organizations and individuals to invest and carry out production and business activities in the Hon La economic zone in the following domains: investment in and commercial operation of industrial parks and urban infrastructures, development of industries, seaports, airport, trade business, services, tourism, recreation and entertainment, finance and banking, transportation, insurance, education and training, culture, sport, science and technology, healthcare, housing, goods export and important other production and business activities in accordance with the provisions of this Regulation, other provisions of Vietnamese laws and treaties to which Vietnam is a contracting party.

5. Rights and obligations of investors in Hon La Economic Zone:

5.1. Rights and obligations of investors in the Hon La Economic Zone shall be subject to the regulations specified in Articles from article 11 to article 21 of Decree No.108/2006/ND-CP, dated September 22 2006 of the Government on providing guidelines for implementation of a number of articles of Law on Investment.

5.2. Investors (excluding entities specified at Point d, Clause 4, Article 3 of the Investment Law) investing in building and commercially operating infrastructures in functional zones, technical infrastructure works, service facilities and public utilities in the Hon La Economic Zone (hereinafter collectively referred to as infrastructures building and operation enterprises) shall have the rights to:

a) Be leased or assigned land with collection of land use levies by the Management Board of the zone according to relevant provisions of land law for investment in building and commercially operating in functional zones, technical infrastructure works, service facilities and public utilities in the Hon La Economic Zone;

b) Transfer land use rights and sub-lease land in the zone on which technical infrastructure has been built to investors for investment in producing, trading in goods and/or providing services in the Hon La Economic Zone according to relevant provisions of land law;

c) Collect levies for the use of infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the Hon La Economic Zone in which they have made investment under the contracts signed with lessees;

d) Build workshops, storehouses and storing yards in the zone for sale or lease;

e) Fix charge rates for the sub-lease of land on which technical infrastructure has been built, levies for the use of technical infrastructure works, service facilities and public utilities in the zone, with the agreement of the Management Board of the Hon La Zone; fix prices for the lease or sale of workshops, storehouses and storing yards, and service charges;

f) For investors (excluding entities specified at Point d, Clause 4, Article 3 of the Investment Law) having financial capacity and experience of calling for invested capital shall be leased and sub-leased land according to the provisions of land law;

g) To enjoy incentives and other legitimate interests in accordance with the provisions of this Regulation, other provisions of Vietnamese laws on land, investment, tax and treaties to which Vietnam is a contracting party.

5.3. Enterprises investing in building and commercially operating infrastructures in the Hon La economic zone shall have the obligations:

a) To build infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the zone according to the approved detailed planning, design and schedule.

The Management Board of Hon La Economic Zone decides the operation termination of investment projects and commercially operating infrastructures in functional zones, technical infrastructure works, service facilities and public utilities in the Hon La Economic Zone for cases specified at Decree No.108/2006/QD-CP, dated September 22 2006 of the Government on providing guidelines for implementation of a number of articles of Law on Investment; concurrently petition competent authorities to withdraw assigned land for the project according to the provisions of land law.

b) To maintain infrastructure works in functional zones, technical infrastructure works, service facilities and public utilities in the zone in order to ensure their quality;

c) To observe the provisions of this Regulation; the detailed planning on functional zones already approved by competent authorities; use land for the allocation or lease purposes as set;

d) To perform tax and customs and other obligations according to the provisions of law;

e) To implement the regime of reporting on a monthly, quarterly and annual basis to the Management Board of the Hon La Economic Zone.

6. Yearly, to base on investment projects of socio-economic infrastructure approved by the competent authority, project implementation progress and the central budget supplemented for provincial budget to invest in building socio-economic infrastructure works, service facilities and public utilities in the Hon Le Economic Zone according to the provisions of law on state budget.

7. The following modes of capital mobilization shall be permitted for the purpose of investment in and development of the Hon La economic zone:

a) To prioritize the use of various sources of ODA capital and preferential credit capital for investment in building socio-technical infrastructure, crucial service facilities and public utilities in service of the Hon La economic zone as well as for other technical support structures;

b) To attract investment capital in the BOT, BT, BTO and other forms in accordance with current regulations;

c) To mobilize capital from the land funds according to the provisions of land law for investment in building socio-technical infrastructure in common service of the Hon La economic zone;

d) To mobilize direct investment capital of organizations and individuals at home and abroad; advance capital of the subjects that need to use infrastructure, capital of enterprises having the function of building and commercially operating technical infrastructure works. To expand the form of co-financing by credit institutions and mobilize capital of all sources in other forms in accordance with the provisions of law;

e) To issue local bonds to mobilize invested capital with investment projects in building large-scale infrastructures which play an important role to the development of Hon La Economic Zone according to the provisions of law.

By N.Y