Decision No. 72/2013/QD-TTg of November 26, 2013, prescribing mechanisms and financial policies applicable to border-gate economic zones

 PRIME MINISTER

Decision No. 72/2013/QD-TTg of November 26, 2013, prescribing mechanisms and financial policies applicable to border-gate economic zones

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the Government’s Decree No. 108/2006/ND-CP of September 22, 2006, detailing and guiding the implementation of a number of articles of the Investment Law;

Pursuant to the Government’s Decree No. 29/2008/ND-CP of March 14, 2008, defining industrial parks, export processing zones and economic zones,

At the proposal of the Minister of Finance,

The Prime Minister promulgates the Decision prescribing mechanisms and financial policies applicable to border-gate economic zones.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decision prescribes mechanisms and financial policies applicable to border-gate economic zones.

Article 2. Subjects of application

This Decision applies to state management agencies, organizations and individuals involved in trading, investment, production and other business activities in border-gate economic zones.

Article 3. Interpretation of terms

In this Decision, the terms below are construed as follows:

1. Border-gate economic zones are economic zones formed in land border areas with international, main or bilateral border gates and established under the Prime Minister’s decisions, including also Lao Bao special economic-commercial zone in Quang Tri province and Cau Treo international border-gate economic zone in Ha Tinh province.

2. Non-tariff areas of border-gate economic zones are geographical areas with identified boundaries and separated from the outside by solid fences (excluding Lao Bao special economic-commercial zone in Quang Tri province, and Cau Treo international border-gate economic zone in Ha Tinh province), which have entrances and gates to ensure the control by customs and other functional bodies and customs offices supervising and inspecting commodities and vehicles entering and exiting the areas.

Non-tariff areas of border-gate economic zones include special economic-commercial zones, industrial- commercial zones, free-trade zones and zones under other names which are set up under the Prime Minister’s decisions and have goods and service-trading and exchange relations between these zones and the outside regarded as export and import relations.

Chapter II

SPECIFIC PROVISIONS

Section 1

INVESTMENT AND CREDIT POLICIES

Article 4. Sources of state budget investment in infrastructure

1. Investment projects for construction of technical and social infrastructures of border-gate economic zones are financed by development investment capital sources of local budgets.

2. The central budget provides support for investment projects on border-gate economic zone infrastructures under the Prime Minister’s Decision No. 60/2010/QD-TTg of September 30, 2010. Particularly in the 2013-2015 period, the support will represent at least 70% of the total capital sources from the central budget under annual plans for investment in the development of infrastructure systems of the border-gate economic zone selected for concentrated development investment under the plan approved by the Prime Minister.

3. The management, use and settlement of state budget capital supported for the construction of border-gate economic zone infrastructures comply with the law on management of capital construction investment, the State Budget Law and other relevant laws.

Article 5. Raised capital

1. Investment projects in border-gate economic zones may raise capital by issuing bonds in accordance with law:

a/ For Government-guaranteed corporate bonds: To comply with the Government’s Decree No. 01/2011/ND-CP of January 5, 2011, on the issuance of government bonds, government-guaranteed bonds and local-administration bonds; enterprises must satisfy the conditions and comply with the Law on Management of Public Debts and guiding documents.

b/ For local-administration bonds: To comply with the Government’s Decree No. 01/2011/ND-CP of January 5, 2011, on the issuance of government bonds, government-guaranteed bonds and local-administration bonds.

c/ For corporate bonds: To comply with the Government’s Decree No.90/2011/ND-CP of October 14, 2011, on the issuance of corporate bonds.

d/ All proceeds from the issuance of bonds are managed and used in accordance with law.

2. Foreign organizations and individuals and overseas Vietnamese may directly invest in border-gate economic zones in various forms, including Build-Operation- Transfer (BOT), Build-Transfer (BT), Build-Transfer-Operation (BTO) and public-private partnership forms.

3. Investment projects to construct technical infrastructure and social infrastructure facilities and projects to construct necessary public utility service facilities of border-gate economic zones are included in the list of projects calling for official development assistance (ODA) capital as provided by law.

4. Investment projects in border-gate economic zones may borrow capital of credit institutions and foreign bank branches and raise capital from domestic and foreign organizations and individuals in accordance with law.

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