PEOPLE’S COMMITTEE OF KIEN GIANG PROVINCE PROMOTION CONFERENCE CALLING FOR INVESTMENT INTO PHU QUOC PART 1 INCENTIVE POLICIES ON INVESTMENT PART 2 PROJECTS CALLING FOR INVESTMENT HCMC, May 9,2006 PEOPLE’S COMMITTEE OF KIEN GIANG PROVINCE INTRODUCTION : INCENTIVE POLICIES ON INVESTMENT AND PROJECTS CALLING FOR INVESTMENT INTO 2 THE DECISIONS OF PRIME MINISTER ABOUT THE DEVELOPMENT OF PHU QUOC ISLAND (From November 5, 2004 to now) PRIME MINISTER Decision no 178/2004/QĐ-TTg date October 5 ,2004 Decision no229/2005/QÑ-TTg date November 16,2005 Decision no 1197/QÑ-TTg date November 9,2005 Decision no14/QÑ-TTg date January 4,2006 Decision no 38/2006/QÑ-TTg date February 14,2006 THE DECISIONS OF PRIME MINISTER ABOUT THE DEVELOPMENT OF PHU QUOC ISLAND (From November 5, 2004 to now) 178/2004/QĐ-TTg PREFERENTIAL POLICIES date October 5 ,2004 PART 1 THE REGULATION ON 229/2005/QÑ-TTg FOREIGNERS ENTRY INTO, EXIT date November 16,2005 PART 2 FROM AND RESIDENCE IN 38/2006/QÑ-TTg ENCOURAGING POLICIES date February 14,2006 PART 3 ON INVESTMENT PART 1 PREFERENTIAL POLICIES The Decision no. 178/2004/QD-TTg dated October 5, 2004 of the Prime Minister, the content of this Decision is to determine the target of the overall scheme on development of Phu Quoc Island, Kien Giang province till 2010 with a vision toward 2020. At article 7, the Prime Minister permitted Phu Quoc to apply the highest preferential mechanisms and policies promulgated by the Vietnamese State. In the other words, any places in the territory of Vietnam is permitted to apply the highest preferential mechanisms and policies promulgated by the Vietnamese State, Phu Quoc island of Kien Giang province shall be applied the same preference. PART 2 THE REGULATION ON FOREIGNERS ENTRY INTO, EXIT FROM AND RESIDENCE IN Foreigners and Vietnamese holding foreign passports, entering, exiting from, and residing in, Phu Quoc Island, for a stay period not exceeding 15 days shall be exempt from visas; foreigners who enter the Decision no. 229/2005/QD-TTg dated September 16, 2005 of an other international border-gate of Vietnam and stay in its transit the Governmentalholding valid foreign crew member's books or Decision is Crew members Prime Minister, the main content of this crew lounge before traveling to Phu Quoc island shall also be exempt from that the passport may promulgated the regulation on foreigners entry member's Prime Minister enter, exit from, and reside in, Phu Quoc island instance, foreigners who enter Phu Quoc island. visas. For period when their ships anchor atPhu Quoc Island from into, exit from, and residence in, Phu Quoc Island, Kien Giang during the Bangkok or Phnom Penh can transit in Tan Son Nhat International province. Airport, Ho Chi Minh City shall also be exempt from visas and can stay in Phu Quoc not exceeding 15 days. PART 3 ENCOURAGING POLICIES ON INVESTMENT The Decision no. 38/2006/QD-TTg on February 14, 2006 of the Prime Minister, the main content of this I. POLICY ON LAND of Decision consists TAX2 parts: II. POLICY ON III. POLICY organization and operation of Phu Quoc Statute for ON NON-CUSTOM AREA Development Investment Management Island POLICY ON BUSINESS REGISTRATION Board. IV. Preferential and encouraging policies for investment into AND ISSUING THE INVESTMENT Phu Quoc Island LICENCE 7 ENCOURAGING POLICIES ON INVESTMENT I. POLICY ON LAND Foreign investors investors have 1.a Domestic and foreign have the rights: operations on tourism, 1. To land lease, land sub-leasecommodities or construction of services, production, business of for land with invest on Foreignersinfrastructure composition of the enterprises for investors permanently in Vietnam and foreign technical works in Phu residingIsland have the rights: infrastructure Quoc are entitled construction and business onand lease resident land investment, to purchase dwelling-house composition of for long-term in Phu Quoc Island. infrastructure; To transfer the renting land use right and property attached to land during the term of land lease or land sub-lease; to mortgage, guarantee, and contribute capital by the renting land use right in case of the total rental land is paid once; ENCOURAGING POLICIES ON INVESTMENT I. POLICY ON LAND 1.bDomestic investors have the rights: - To transfer land use right, land lease, land sub-lease for land with construction of technical infrastructure composition; - To mortgage, guarantee and contribute capital by the value of land use right and property attached on land during the remaining term of land use; - Vietnamese living abroad is entitled to purchase dwelling-house attached to the land use right in Phu Quoc. Island. ENCOURAGING POLICIES ON INVESTMENT I. POLICY ON LAND 1.2/ The maximum exemption for rental land is 15 years from the date to finish the construction. 1.3/ The unit price of land rental per year equals 50% unit price of land rental regulated by Government in Decree no. 142/2005/ND-CP on November 14, 2005. However, the least price equals 0,25% of land price according to the using purpose of renting land promulgated by People’s Committee; the rental land is stable in 5 years. To apply the policy of one price for commodities, services and land rental towards organizations, individuals without discrimination of inland people from foreigners, who have the operation of production, business in Phu Quoc Island. ENCOURAGING POLICIES ON INVESTMENT II. POLICY ON TAX Government regulated all invested projects into the Phu Quoc Island are entitled to enjoy preferences for areas having specially difficult economic-social conditions (List C). Government determined Phu Quoc Island to be as the national main-point tourist zone, so the investment projects on tourism business in Phu Quoc Island belong to List A. ENCOURAGING POLICIES ON INVESTMENT II. POLICY ON TAX 2.1/Preferences of income tax: - Investment projects of domestic and foreign organizations and individuals into the Phu Quoc Island District are entitled to enjoy a tariff on enterprise income tax of 10% applied during the period of the project implementation (the present income tax is 28% for all enterprises). - The maximum exemption is 4 years since getting income tax and 50% tax-reduction for 9 years following. ENCOURAGING POLICIES ON INVESTMENT II. POLICY ON TAX Preferences of of income 2.3/2.2/ Preferences import tax: tax for people having high income: - Reduce 50% income tax are exempt from import tax including - Domestic and foreign investorsfor people having high income,towards one- imported and foreigner working create Quoc Island. time Vietnamesecommodities in order to in Phu the fixed property during the time of investment to projects; mechanism of the above preferences to be applied even to cases of enlarging scale of project, substitution and renovation of technology. - As for BOT project, it is still exempt from import tax towards fuel, raw material, material and means imported of kinds not yet to be produced in the country, for serving the construction, operation of BOT project ENCOURAGING POLICIES ON INVESTMENT II. POLICY ON TAX 2.4/ Preferences of VAT tariff: - Commodities, services manufactured, consumed in the Non- customs Areas and those imported from foreign country into the Non-customs Areas are not to pay value added tax. Commodities, services from the interior of Vietnam and other functional zones on the Phu Quoc Island bringing into the Non-customs Areas will be applied a VAT tariff of 0%. ENCOURAGING POLICIES ON INVESTMENT III. POLICY ON NON-CUSTOM AREA Commerce of Quoc Island, export, import, transfer construct 2 b) 3.1/ On the Phugoods (including Government allowed to through border gate, temporary import, which will be attached to An Thoi Port and Non-customs Areas re-export, Airport. The Non-customs Area for Phu Quoc distribution, shops and supermarket has hard fence retail, shops and supermarkets of In the Non-customs Area has separated with surrounding areas.non-duties); no residential areas c) Commerce of services (classification, packaging, transport, forwarding and receiving of transit goods, maintenance, warehouse, bonded warehouse, finance, banking, transport, insurance, entertainment services, restaurant); 3.2/ Types of main production and business in Non-customs Areas d) Trade promotion (fair, exhibition, showroom, branches and representative including: offices of domestic and foreign companies and finance-banking a) Production, processing, re-production, assembling of export organizations) and other trade operations. goods, import goods, and goods for serving on the spot; ENCOURAGING POLICIES ON INVESTMENT III. POLICY ON NON-CUSTOM AREA 3.3/ Progress of the implementation: - From 2006-2010, some works shall be implemented with the average and small investment scale such as duty-free stores, retail supermarket, services of finance and banking in An Thoi Port and Duong Dong Airport. - After 2010 the Non-customs Areas will be invested completely according to the planning in An Thoi Port and Duong To Airport. ENCOURAGING POLICIES ON INVESTMENT IV. POLICY ON BUSINESS REGISTRATION AND ISSUING THE INVESTMENT LICENCE. Foreign direct investment projects into Phu Quoc Island are approved as per the process of registration for issuing the Investment Licence. Domestic invested projects are considered, approved as per the current regulations with the simplest procedures. Decision no. 38/2006/QD-TTg dated February 14, 2006 of the Governmental Prime Minister allowed to establish Phu Quoc Island Development Investment Management Board. People’s Committee of Kien Giang province co-ordinated Ministry of the Interior to finish the project for the establishment of Phu Quoc Island Development Investment Management Board and aslo submited this project to the Governmental Prime Minister. ENCOURAGING POLICIES ON INVESTMENT IV. POLICY ON BUSINESS REGISTRATION AND ISSUING THE INVESTMENT LICENCE. Decisionpresent, Phu Quoc Island dated FebruaryInvestment of the At the no. 38/2006/QD-TTg Development 14, 2006 After the project for the establishment of Phu Quoc Island Management Prime Minister allowed establish Phu Giang Governmental Board is not established.to Therefore Kien Quoc Island Development Investment Management Board is approved, all Department Planning Management Board. People’s office, will DevelopmentofInvestment and Investment, the direct keyCommittee of procedures of business registration, issuing the Investment Licence, contact with the investors in order to carry the Interior to Kien Giang province co-ordinated Ministry ofout investment finish the land delivery... to investors is implemented quickly and passed one- procedures for establishment project for the the investors. of Phu Quoc Island Development door office at Phu Quoc Island Development Investment Management Investment Management Board and aslo submited this project to the Board. This is the key office to solve problems of the investors so Governmental Prime Minister. that they do not need to contact with other provincial departments in the mainland.
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