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WT/ACC/VNM/13/Add.17 January 2002

(02-0061)

Working Party on theAccession of Viet Nam

Original: English

ACCESSION OF VIET NAM

New and Updated Notifications Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures

(Period covered by the Notification: 1999-2000)

Addendum

The Government of the Socialist Republic of Viet Nam has submitted the following New and Updated Notifications Pursuant to Article XVI:1 of the GATT 1994 and Article 25 of the Agreement on Subsidies and Countervailing Measures, with the request that it be circulated to the members of the Working Party.

_______________

The following notification provides details of programmes for the years 1999 through 2000. It serves as the new subsidies notification for programmes as well as the updated notification regarding this period. This notification may be supplemented, in due time, to incorporate further elements or clarifications.

In this notification, Viet Nam has included certain measures which may not constitute “subsidies” under Article 1 of the Agreement on Subsidies and Countervailing measures (“the Agreement” hereinafter) and certain subsidies which may not be “specific” under Article 2 of the Agreement in order to achieve the maximum transparency with regard to the relevant programmes and measures effective within its territory during the notified period.

WT/ACC/VNM/13/Add.1Page i

TABLE OF CONTENTS

I. SUPPORT MEASURES IN AGRICULTURAL SECTOR.....................................1

II. IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-ELECTRONIC INDUSTRIES.............................................................5

III. INVESTMENT INCENTIVES APPLIED TO VIETNAMESE ENTERPRISES’ LABOUR-INTENSIVE PROJECTS.........................................................................9

IV. SUPPORT FOR ENTERPRISES EMPLOYING A GREAT NUMBER OF FEMALE EMPLOYEES..........................................................................................11

VI. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH PRODUCE GOODS FOR EXPORT 16

VII. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH HAVE PROJECTS TO PRODUCE GOODS FOR EXPORT..............19

VIII. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS..........................................................................................22

IX. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS........24

X. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN AREAS....27

XI. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH HAVE PRODUCTION OR BUSINESS PROJECTS LOCATED IN CERTAIN AREAS....................................................................................................29

XII. EXPORT SUPPORT FUND.....................................................................................33

XIII. DEVELOPMENT ASSISTANCE FUND................................................................37

XIV. INVESTMENT ASSISTANCE FOR SCIENCE AND TECHNOLOGY DEVELOPMENT......................................................................................................40

XV. SUPPORT FOR THE IMPLEMENTATION OF THE SCHEMES FOR DEVELOPMENT OF PRIORITY INDUSTRIAL PRODUCTS.........................45

XVI. ASSISTANCE FOR THE DEVELOPMENT OF SOFTWARE INDUSTRY....49

XVII. ASSISTANCE FOR VIETNAMESE NEWLY ESTABLISHED PRODUCTION AND TRADING BUSINESSES, FOR VIETNAMESE EXPANDED PRODUCTION BUSINESSES, AND FOR VIETNAMESE TRADING BUSINESSES MOVING TO MOUNTAINOUS, ISLAND AND OTHER DISADVANTAGED AREAS....................................................................................52

XVIII. ASSISTANCE FOR VIETNAMESE BUSINESSES HAVING SPECIAL ACTIVITIES..............................................................................................................55

WT/ACC/VNM/13/Add.1Page 1

I. SUPPORT MEASURES IN AGRICULTURAL SECTOR1

1. Title of the subsidy program

Support measures in the agricultural sector.

2. Policy objectives and/or purposes of the subsidy

To provide support for organisations, individuals, and households engaging in agriculture-related activities.

3. Background and authority for the subsidy

a. Background

- Law on Agricultural Land Use Tax dated 10 July 1993; - Decree No.74-CP of the Government dated 25 October 1993 providing details to

implement the Law on Agricultural Land Use Tax dated 10 July 1993;- Circular No.89TC/TCT of Ministry of Finance dated 9 November 1993 guiding the

implementation of Decree No.74-CP of the Government dated 25 October 1993;- Circular No.60TC/TCT of Ministry of Finance dated 14 July 1994 providing further

guidelines on the calculation of reduction or exemption of agricultural land use tax;- Government Resolution No.03/2000/NQ-CP dated 2 February 2000 on farms’

economic activities;- Circular No.82/2000/TT-BTC of Ministry of Finance dated 14 August 2000 guiding

financial policies to promote farms’ economic activities;- Government Resolution No.09/2000/NQ-CP dated 15 June 2000 on some orientations

and policies related to the change of economic structure and the disposal of agricultural products;

- Circular No.91/2000/TT-BTC of Ministry of Finance dated 6 September 2000 guiding the implementation of the Government Resolution No. 09/2000/NQ-CP dated 15 June 2000;

- Decree No.15-CP of the Government dated 21 February 1997 on policies to encourage the development of cooperatives;

- Circular No.44/1999/TT-BTC of Ministry of Finance dated 26 April 1999 guiding tax incentives applicable to cooperatives;

b. Authority

- Ministry of Finance;- Ministry of Agriculture and Rural Development.

4. Form of the subsidy

- Preferential treatment with respect to value-added tax (VAT);- Preferential treatment with respect to corporate income tax;- Reduction, exemption of land rental;- Reduction, exemption of agricultural land use tax.

1 This Program includes other agricultural support measures, in addition to those provided in the Notification on Agricultural Domestic support and Export subsidy (in the format of document WT/ACC/4) and those notified under other programs hereinafter.


5. To whom and how the subsidy is provided

a. Organisations, individuals dealing in long-distance wholesale trading activities:

- Organisations, individuals dealing in long-distance wholesale trading activities are exempted from VAT and corporate income tax payable on long-distance wholesale trading activities with respect to unprocessed basic agricultural products grown or raised in Viet Nam.

- Unprocessed basic agricultural products include:

- Horticultural products: rice, maize, taro, fresh vegetables, tubers and fruits, forestry products such as timbers, oilseed/oil-bearing plants.

- Animal husbandry products: Poultry, cattle, poultry eggs, farmed aquacultural products.

- Duration: since 6 September 2000.

b. Cooperatives:

- Cooperatives, cooperative associations, People’s credit funds (hereunder referred as cooperatives) whose incomes are accrued from farm horticulture, animal husbandry and aquacultural cultivation activities are not subject to corporate income tax liability;

- Cooperatives providing direct technical services for agriculture, forestry, fishery production and salt production such as: water conservancy, soil working, goods storage, animal and plant protection, manufacture and reparation of salt-producing tools, farming tools, fishing tools, irrigation services, etc. shall be exempt from corporate income tax payable for the income attributable to these activities;

- Cooperatives in rural areas which provide electricity to farmer households, cooperatives which provide simple load/unload services are exempt from corporate income tax for the first 2 years from the date when the taxable incomes accruing from those activities are made;

- Cooperatives in rural, mountainous, island areas which provide direct services for agriculture, forestry, fishery production and salt production, if renting the State’s land to establish offices or production units, are exempt from land rental for the first 5 years from the date of issuance of Business Registration Certificate in accordance with the Law on Cooperatives; Cooperatives other than the afore-mentioned cooperatives which have been issued Business Registration Certificate in accordance with the Law on Cooperatives and are land-renting entities in accordance with land legislation are entitled to a 50% reduction of land rental for the first 2 years from the date of issuance of Business Registration Certificate in accordance with the Law on Cooperatives;

- Duration: since 1 January 1999.

c. Reduction, exemption of agricultural land use tax

- Agricultural land use tax shall be exempted for:

- Barren hills and mountains used for agriculture, forestry production, land for growing prevention forests and special-purpose forests;

- Reclaimed land used for growing annual crops (for a duration of 5 years);- Reclaimed land in mountainous areas, marshes and transgressed areas to the

sea used for growing annual crops (for a duration of 7 years);


- Reclaimed land used for growing perennial plants (for the whole time of capital construction and a further 3-year duration from the time of first harvest);

- Reclaimed land in mountainous areas, marshes and transgressed areas to the sea used for growing perennial plants (for the entire period of capital construction and a further 6-year duration from the time of first harvest);

- Land for regrowing perennial plants, land converted to growing perennial plants and fruit trees from annual crop growing (for the entire period of capital construction and a further 3-year duration from the time of first harvest);

- Land reclaimed by the State-allocated fund in mountainous areas, marshes and transgressed areas to the sea used for growing annual crops (for a duration of 3 years); in other areas used for growing annual crops (for a duration of 2 years);

- Land reclaimed by the State-allocated fund used for growing or regrowing perennial plants, except for timber (for the entire period of capital construction and a further 1-year duration); in mountainous areas, marshes and transgressed areas to the sea used for growing perennial plants (for the entire period of capital construction and a further 2-year duration);

- Reclaimed land used for growing perennial plants with only one harvesting crop per year is subject to agricultural land use tax of 4% of the harvesting output value only from the time of first harvest;

- Households moving to new economic areas to reclaim land for agricultural production are exempt from agricultural land use tax for further 2 years in addition to the respective duration as specified above in specific relevant cases. If the allocated land is being cultivated for agricultural production, they are exempt from agricultural land use tax for 3 years from the date of receiving the allocated land in case of using that land for growing annual crops and for the entire period of capital construction, and a further 5-8 year duration from the time of first harvest in case of using that land for growing perennial plants.

- Households that are subject to agricultural land use tax liability are entitled to tax reduction or exemption per crop in case of crop damages by natural calamities or war as follows:

- Damage level of 10% to less than 20%: tax reduction corresponding to the damage level;

- Damage level of 20% to less than 30%: 60% tax reduction;

- Damage level of 30% to less than 40%: 80% tax reduction;- Damage level of 40% or more: 100% tax exemption.

6. Subsidy per unit, or in case where this is not possible, the total amount or the annual amount budgeted for the subsidy

Data not available.

7. Duration of the subsidy and/or any other time-limit attached to it

Refer to Section 5 above for specific measures.


8. Statistic data permitting an assessment of the trade effects of the subsidy

Data not available.


II. IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-ELECTRONIC INDUSTRIES


Import tariff rates contingent upon localisation ratios with respect to products and parts of mechanical-electric-electronic industries.


To encourage enterprises to invest in domestic production, manufacture of components, spare parts, accessories and products as import substitutes.


a. Background

- Inter-Ministerial Circular No.176/1998/TTLT-BTC-BCN-TCHQ dated 25/12/1998 of Ministry of Finance, Ministry of Industry and General Department of Customs guiding the implementation of tariff policy contingent upon localisation ratios with respect to products and parts of mechanical-electric-electronic industries;

- Inter-Ministerial Circular No.120/2000/TTLT-BTC-BCN-TCHQ dated 25/12/2000 of Ministry of Finance, Ministry of Industry and General Department of Customs on supplements of and amendments to tariff policy contingent upon localisation ratios with respect to products and parts of mechanical-electric-electronic industries stipulated in Inter-Ministerial No.176/1998/TTLT-BTC-BCN-TCHQ dated 25/12/1998 of Ministry of Finance, Ministry of Industry and General Department of Customs;

- Decision No.1944/1998/QD/BTC dated 25/12/1998 of Minister of Finance on promulgating regulations on import tariff rates contingent upon localisation ratios with respect to products and parts of mechanical, electric and electronic industries;

- Decision No.71/1999/QD-BTC dated 6/7/1999 of Minister of Finance on modifying Article 3 of Decision No.1944/1998/QD/BTC dated 25/12/1998 of Minister of Finance;

- Circular No.01/1999/TT-BCN dated 12/3/1999 guiding registration to be certified the conditions for applying import tariff contingent upon localisation ratios with respect to products of mechanical-electric-electronic industries;

- Decision No.159/2000/QD-BTC dated 26/9/2000 on removing import tariff rates applied to CKD, IKD components of certain products and parts of mechanical-electric-electronic industries.

b. Authority

- Ministry of Finance;- Ministry of Industry; - General Department of Customs.


Preferential import tariff rates.



- Applicability: Vietnamese and foreign-invested enterprises operating in production, assembly of complete products and/or parts of these complete products of mechanical-electric-electronic industries, which are subject to MFN import tariff rates of 30% or above, shall be subject to MFN import tariff rates contingent upon localisation ratios.

- Conditions to be met by applicant enterprise for being applied MFN import tariff rates contingent upon localisation ratios:

- Meeting the technical conditions and technology capacity to manufacture products in accordance with guidelines issued by Ministry of Industry;

- Having a registration document of implementing localisation program in production of complete products and parts, which is certified by Ministry of Industry;

- Having documents certifying the legitimate use of industrial properties issued by the competent authorities with respect to the product which is registered for applying tariff policy contingent upon localisation ratios;

- Directly importing assembling kits, components, spare parts, accessories and materials for its own production;

- Making payments for the full value of its import consignments via banks;- Using deductive method in paying VAT.

- MFN import tariff rates contingent upon localisation ratios with respect to products and parts of mechanical-electric-electronic industries are as follows:

a. Motorcycles and parts of automobiles and motorcycles:

i) Motorcycles (MFN import tariff rate applied to complete imported motorcycles is 60%):

Achieved localisation ratio (%) MFN import tariff ratescontingent upon localisation ratios (%)

1. Above 0 and up to 202. Above 20 and up to 30 3. Above 30 and up to 404. Above 40 and up to 505. Above 50 and up to 606. Above 60

60503015105

ii) Parts of automobiles and motorcycles:

Achieved localisation ratio (%)

MFN import tariff ratescontingent upon localisation ratios (%)

With respect to parts which are subject to MFN import tariff rate

of 30%


of 40%


of 50%


of 60%1. Above 0 to 152. Above 15 to 303. Above 30 to 404. Above 40 to 505. Above 50

20151053

20151053

30201053

40201053


b. Electronic complete products and parts:

i) Electronic products:


MFN import tariff rates contingent uponlocalisation ratios (%)


of 30%


of 40%


of 50%



20151053

30201053

403015103

403015103

ii) Electronic parts:


MFN import tariff rates contingent upon localisation ratios (%)With respect to parts which are subject to MFN import tariff rate

of 30%


of 40%


of 50%



20151053

20151053

30201053

40201053

c) Mechanical-electric products and parts:

i) Mechanical-electric products:


MFN import tariff rates contingent uponlocalisation ratios (%)


of 30%


of 40%


of 50%



20151053

30201053

403020103

504020103


ii) Mechanical-electric parts:


MFN import tariff rates contingent upon localisation ratios (%)With respect to parts which are subject to MFN import tariff rate

of 30%


of 40%


of 50%



20151053

20151053

30201053

40201053


Data not available.


From 1 January 1999 -


Data not available.


III. INVESTMENT INCENTIVES APPLIED TO VIETNAMESE ENTERPRISES’ LABOUR-INTENSIVE PROJECTS


Support for Vietnamese enterprises’ labour-intensive investment projects.


To encourage investment projects in domestic labour-intensive industries primarily for generating employment around the location of projects in order to improve income and living conditions of labourers.


a. Background

- Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998;

- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to implement the Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998.

b. Authority

- Ministry of Finance;- Ministry of Planning and Investment.


- Exemption, reduction of land rental;- Exemption, reduction of land use tax;- Longer periods of corporate income tax exemption and reduction.


- Investment projects in manufacturing and/or trading sectors that are not prohibited by laws will be eligible for labour-intensive investment incentives if they annually employ at least an average number of:

- 100 employees in those cities falling into Category 1 and Category 2;- 20 employees in socially and economically difficult areas or areas under socially and

economically harsh conditions;- 50 employees in areas other than above cities and areas.

a. Exemption, reduction of land rental:

- Investment projects meeting the labour-intensive criteria mentioned above are entitled to an exemption of land rental for 3 years from the time the land-renting contract is signed;

- Investment projects in sectors subject to investment incentives and satisfying at the same time the labour-intensive criteria (i) and (iii) above are entitled to an exemption of land rental for 6 years from the time the land-renting contract is signed;


- Investment projects in sectors subject to investment incentives in socially and economically difficult areas, which annually employ 20 employees on average, are entitled to an exemption of land rental for 13 years from the time the land-renting contract is signed.

b. Exemption, reduction of land use tax:

- Investment projects in sectors subject to investment incentives in socially and economically difficult areas, which annually employ 20 employees on average, are entitled to an exemption of land use tax for 15 years from the time of land allocation.

c. Longer periods of corporate income tax exemption and reduction applied to investment projects in which new production or business establishments are formed:

- Investment projects satisfying the labour-intensive criteria mentioned above are entitled to a corporate income tax exemption for 2 years and a 50% reduction of payable corporate income tax for the 2 subsequent years;

- Investment projects in sectors subject to investment incentives and satisfying at the same time the labour-intensive criteria mentioned above are entitled to a corporate income tax exemption for 2 years and a 50% reduction of payable corporate income tax for the 4 subsequent years;

- Investment projects in sectors subject to investment incentives in socially and economically difficult areas, which annually employ 20 employees on average, are entitled to a corporate income tax exemption for 3 years and a 50% reduction of payable corporate income tax for the 7 subsequent years;

- Investment projects in sectors subject to investment incentives in areas under socially and economically harsh conditions, which annually employ 20 employees on average, are entitled to a corporate income tax exemption for 4 years and a 50% reduction of payable corporate income tax for the 9 subsequent years.


Data not available.




Data not available.


IV. SUPPORT FOR ENTERPRISES EMPLOYING A GREAT NUMBER OF FEMALE EMPLOYEES


Support for enterprises employing a great number of female employees.


To relieve the financial burden for enterprises employing a great number of female employees, whereby to help to protect the reproductive health and solve female-related social problems.


a. Background

- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997; - Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details

to implement the Law on Corporate Income Tax;- Circular No.99/1998/TT-BTC of Ministry of Finance dated 14 July 1998 providing

details to implement the Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details to implement the Law on Corporate Income Tax.

b. Authority

- Ministry of Finance;- Ministry of Labour, Invalids and Social Welfare.


- Reduction of corporate income tax;- Deduction of expenses spent for female employees from taxable income resulting

from production, trading and services activities.


- Vietnamese businesses and foreign-invested enterprises engaged in production, construction, transportation sectors are regarded as employer of a great number of female employees if satisfying one of the following conditions:

- Employing on a regular basis from 10 to 100 female employees, who then, in aggregate, constitute at least 50% of the enterprise’s permanent workforce;

- Employing on a regular basis more than 100 female employees, who then, in aggregate, constitute at least 30% of the enterprise’s permanent workforce.

a. Reduction of corporate income tax:

- Vietnamese businesses and foreign-invested enterprises engaged in production, construction, transportation sectors, which are employer of a great number of female employees, are entitled to a reduction of corporate income tax equivalent to the additional costs spent only on female employees. The extent of reduction is commensurate with the actual spending for female employees as specified below:


- Additional spending on female employee retraining, if their previous jobs are no longer apt to the enterprise’s development plan. This additional spending includes: tuition fees (if any) plus the salary/wage differentials according to different ranks of employment (to assure that the female employee attending retraining programs earn 100% of her salary/wage);

- Salary and salary allowance (if any) spent on female teachers at kindergartens, and pre-school establishments under direct organisation and management of the enterprise. The number of these eligible female teachers is specified in regulations of educational and training system;

- Expenses for organising an additional check-up in the year (in addition to the number of normally prescribed check-ups), primarily for examining occupational diseases, chronic diseases or gynecological diseases that are usually caught by female employees;

- Expenses for one additional payment for improving female employees’ health after her first or second baby delivery. The payment should not exceed 300,000 VND with respect to enterprises located in urban areas and 500,000 VND with respect to enterprises located in remote, mountainous or island areas. The purpose of this payment is to help the mother employees to partially overcome birth-related difficulties;

- During the breast-feeding period, female employees can be paid overtime allowances in accordance with existing regulations if they accept to stay at work to complete the work and therefore, cannot return home to feed their babies.

- The employers shall be eligible for a corporate income tax reduction commensurate with the above listed expenses for the sake of female employees if these expenses are accompanied by valid documents signed by the employee recipients to prove the actual spending.

b. Deduction of expenses spent for female employees from taxable income resulting from production, trading and services activities.

Data not available.


Data not available.




Data not available.


V. DEVELOPMENT ASSISTANCE FOR SOME PRODUCTION PROJECTS OF MECHANICAL INDUSTRY


Development assistance for some production projects of mechanical industry.


To provide development assistance for some production projects of mechanical industry to meet the demand for equipment and machinery of agriculture, agricultural processing production, bicycle, electric fans manufacturing and maritime transportation.


a. Background

- Decision No.29/1998/QD-TTg of the Prime Minister dated 9 February 1998 on development assistance solutions for some production projects of mechanical industry;

- Circular No.71/1998/TT-BTC of Ministry of Finance dated 23/5/1998 on the implementation of profit tax exemption and reduction in accordance with Decision No.29/1998/QD-TTg;

- Decision No.178/1998/QD-TTg of the Prime Minister dated 19 September 1998 on interest rate support for certain export products.

b. Authority

- Ministry of Industry;- Ministry of Finance;- Ministry of Transport;- Ministry of Fishery;- Ministry of Planning and Investment;- State Bank of Viet Nam.


- Preferential credit terms;- Exemption, reduction of profit tax2;- Exemption of export duties;- Exemption of import duties on components, accessories, materials and incomplete

equipment;- Interest rate support.

2 Profit tax has been replaced by corporate income tax (pursuant to the Law on Corporate Income Tax) since 1 January 1999. Preferential treatment with respect to exemption and reduction of profit tax which has still been valid in accordance to the Law on Profit tax shall be entitled to exemption and reduction of corporate income tax for the remaining eligible period. The extent of exemption and reduction of corporate income tax is specified in Article 5, 6, 7, 8, 9 and 10 of the Law on Corporate Income Tax and its implementation documents.



- Investment projects in mechanical industry to manufacture bicycles, electric fans, small-size power engines of from 6 to 15 CV and to build maritime ships are eligible recipients.

a. Preferential credit terms:

- The State’s mid-term and long-term preferential credits as from 1998 are available for investment projects to manufacture the above mechanical products under the following conditions:

- Credits are provided by the National Investment Assistance Fund3 at preferential interest rate of 0.7%/month4. The value and progress of disbursement of these preferential credits are assured to be in accordance with the approved project;

- Credit duration shall not be longer than 10 years, of which the construction time plus a production cycle (grace period) shall be free of interest;

- Borrowing enterprises shall not have to use their assets as collateral for loans. However, they are not allowed to transfer their assets before full repayment of their debts;

b. Exemption, reduction of profit tax:

- Eligible recipients are entitled to a profit tax exemption for the first 2 years from the time when the taxable profit begins to be earned and a 50% reduction for the 2 subsequent years.

c. Exemption of export duties:

- Mechanical products under this program shall be entitled to export duty exemption.

d. Exemption of import duties on components, accessories, materials and parts of equipment:

- Eligible recipients are entitled to import duty exemption for components, accessories and parts of equipment which have not yet been produced domestically or which have been produced domestically but of unsatisfactory quality.

e. Interest rate support:

- Commercial banks provide interest rate support to enterprises manufacturing or trading such mechanical products for export as diesel engines, electric engines, bicycles, electric fans in form of charging interest rate of 0.2% lower than the prevailing interest rate normally charged by these banks on other export credits. This form of support was in force from 19/9/1998 to 12/10/1999.


Data not available.

3 The National Investment Assistance Fund has been replaced by the Development Assistance Fund (pursuant to the Government’s Decree No.50/1999/ND-CP dated 8 July 1999 on the organisation and operation of the Development Assistance Fund) since 23 July 1999.

4 The prevailing market interest rate at the same moment was 1.1%/month.



From 24 February 1998 -


Data not available.


VI. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH PRODUCE GOODS FOR EXPORT


Investment incentives offered to enterprises with foreign owned capital5 which produce goods for export.


To encourage foreign investment in export-producing sectors.


a. Background

- Law on Foreign Investment in Viet Nam dated 12 November 1996;- Law on supplements of and amendments to some Articles of the Law on Foreign

Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000;- Decree No.24/2000/ND-CP of the Government dated 31 July 2000 providing detailed

regulations on the implementation of the Law on Foreign Investment in Viet Nam;- Law on Corporate Income Tax No.03/1997/QH9 dated 10 May 1997; - Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details



b. Authority



- Preferential corporate income tax rates6;- Exemption, reduction of corporate income tax;- Exemption of import duties.


a. Preferential corporate income tax rates; Exemption, reduction of corporate income tax:

- A corporate income tax rate of 15% for a period of 12 years from the time when the project commences its production or business activities and an exemption of corporate income tax payable for 2 years commencing from the time when its operations start to earn profits and a 50% reduction for the 3 subsequent years shall be applied to investment projects which satisfy one of the following criteria:

5 Enterprises with foreign owned capital include joint venture enterprises and enterprises with one hundred (100) per cent foreign owned capital (Article 2.6, Law on Foreign Investment in Viet Nam dated 12 November 1996)

6 Normal corporate income tax rate generally applied to enterprises with foreign owned capital and foreign parties to business cooperation contracts is 25%.


- Producing, processing for export at least fifty (50) per cent of products;- Producing, processing for export at least thirty (30) per cent of products and

using significant domestic raw materials and materials (with a value of at least thirty (30) per cent of total production costs);

- Producing high-quality raw materials for manufacturing footwear and garments for export;

- Producing high-quality packages for exported products.

- A corporate income tax rate of 10% throughout the duration of investment project and an exemption of corporate income tax payable for 4 years commencing from the time when its operations start to earn profits and a 50% reduction for the 4 subsequent years shall be applied to investment projects which satisfy one of the following criteria:

- Producing, processing for export at least eighty (80) per cent of products;- Processing agricultural, forestry (except for wood) and aquacultural products

from domestic material sources for export of at least fifty (50) per cent of products;

- Particularly with regard to enterprises investing in Industrial Zones or Export Processing Zones:

- If their investment project exports more than 80% of products: it is entitled to a corporate income tax rate of 10% throughout the duration of investment project and an exemption of corporate income tax payable for 4 years commencing from the time when its operations start to earn profits and a 50% reduction for the 4 subsequent years;

- If their investment project exports from 50% to 80% of products: it is entitled to a corporate income tax rate of 15% throughout the duration of investment project and an exemption of corporate income tax payable for 2 years commencing from the time when its operations start to earn profits and a 50% reduction for the 3 subsequent years;

- If their investment project exports less than 50% of products: it is entitled to a corporate income tax rate of 15% throughout the duration of investment project and an exemption of corporate income tax payable for 2 years commencing from the time when its operations start to earn profits.

b. Exemption of import duties:

- Investment projects in producing, processing for export at least eighty (80) per cent of products; processing agricultural, forestry (except for wood) and aquacultural products from domestic material sources for export of at least fifty (50) per cent of products shall be entitled to an exemption from import duties in respect of raw materials for production for five (5) years from the time when production commences.


Data not available.



- 1 January 1999 – 31 July 2000: In conformity with the Notification on Industrial Subsidies of Viet Nam for the period of 1996-1998 (document WT/ACC/VNM/13);

- From 1 August 2000: In conformity with this Notification.


Data not available.


VII. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH HAVE PROJECTS TO PRODUCE GOODS FOR EXPORT


Investment incentives offered to Vietnamese enterprises which have projects to produce goods for export.


To encourage Vietnamese enterprises to produce and trade goods and services for export.


a. Background


- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to implement the Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998;




b. Authority



- Exemption, reduction of land use payment;- Exemption, reduction of land rental;- Exemption, reduction of land use tax;- Preferential corporate income tax rates;- Longer periods of corporate income tax exemption and reduction;- Exemption, reduction of corporate income tax payable for the income attributable to

expansion and/or enhancement investments;- Exemption of supplementary corporate income tax;- Exemption of import duties for equipment, machinery forming the enterprise’s fixed

assets;- Additional preferential treatment with respect to corporate income tax.


- Eligible recipients of the following investment incentives are domestic investors in producing, trading goods, services for export whose value of exported goods and services exceeds 30% of the value of their total production and trade activities in a fiscal year (pursuant to the Law on Domestic Investment Promotion).


a. Exemption, reduction of land use payment:

- Investors who are allocated land by the State to conduct their production, trading activities shall be entitled to a 50% reduction of land use payment.

g. Exemption, reduction of land rental:

- Investors are entitled to an exemption of land rental for 3 years from the date of signing land-renting contract;

- Investors in production projects for export in socially and economically difficult areas which annually employ 20 employees on average, are entitled to an exemption of land rental for 13 years from the date of signing land-renting contract.

c. Exemption, reduction of land use tax:

- Investors implementing production projects for export in socially and economically difficult areas which annually employ at least an average number of 20 employees are entitled to an exemption of land use tax for 15 years from the time of land allocation.

d. Preferential corporate income tax rates:

- Eligible recipients are entitled to preferential corporate income tax rate of 25%7.

e. Longer periods of corporate income tax exemption and reduction applied to investment projects in which new production or business establishments are formed:

- Eligible recipients are entitled to an exemption of corporate income tax for 2 years from the first profit making year and a 50% reduction of payable corporate income tax for the 2 subsequent years.

- Investors implementing production projects for export in socially and economically difficult areas which annually employ 20 employees on average, are entitled to an exemption of corporate income tax for 3 years from the first profit making year and a 50% reduction of payable corporate income tax for the 7 subsequent years.

- Investors implementing production projects for export in areas under socially and economically harsh conditions which annually employ 20 employees on average, are entitled to an exemption of corporate income tax for 4 years from the first profit making year and a 50% reduction of payable corporate income tax for the 9 subsequent years.

f. Exemption, reduction of corporate income tax payable for the income attributable to expansion and/or enhancement investments:

- Eligible recipients are entitled to an exemption of corporate income tax for 1 year and a 50% reduction of payable corporate income tax for the 4 subsequent years.

g. Exemption of supplementary corporate income tax:

- Eligible recipients are exempted from supplementary corporate income tax otherwise payable on the portion of income attributable to objective advantages in accordance to relevant legislation8.

7 Normal corporate income tax rate applied to Vietnamese enterprises is 32%.8 Refer to the Government’s Decree No.30/1998/ND-CP dated 13 May 1998 providing details to

implement the Law on Corporate Income Tax for provisions related to supplementary corporate income tax.


h. Exemption of import duties for equipment, machinery forming the enterprise’s fixed assets:

- Eligible recipients are entitled to import duty exemption in respect of the following goods provided that they have not yet been domestically produced or which have been domestically produced but of unsatisfactory quality:

- Specialized transportation means, machinery and equipment (included in technological lines) imported forming enterprises’ fixed assets or to extend the investment project, to renovate technology;

- Specialized transportation means used to transport workers.

i. Additional preferential treatment with respect to corporate income tax:

- In addition to the above mentioned preferential treatment with respect to corporate income tax, investors in production of and trading in exports are entitled to the following incentives with respect to corporate income tax:

- A 50% reduction of corporate income tax payable for the portion of income earned in the following cases:

- Export income earned in the first years in the form of direct exportation;- Export of new products with economic-technical, application characteristics

different from those of the products previously exported by the enterprise;- Export to a new country’s or territory’s markets different from the

enterprise’s traditional markets.

- A 50% reduction of corporate income tax payable for the increased portion of export income in a fiscal year as a result of export turnover of that year being greater than that of the previous year;

- A 20% reduction of corporate income tax payable for the portion of export income earned in a fiscal year in the following cases:

- Export turnover accounts for more than 50% of total turnover;- Export markets are maintained in terms of stable export quantity or export

value during the previous 3 consecutive years.


Data not available.


From 1 January 1999 –


Data not available.


VIII. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS9


Investment incentives offered to enterprises with foreign owned capital which operate in certain business fields and sectors.


To encourage and promote foreign investment in certain business fields and sectors for the industrialization, modernization and national economic development on the basis of full and effective exploitation and utilization of the resources.


a. Background






b. Authority



- Preferential corporate income tax rates10;- Exemption, reduction of corporate income tax;- Exemption of import duties.


a. Preferential corporate income tax rates, reduction and exemption of corporate income tax:

- Industrial zone enterprises engaged in the service sector shall enjoy the corporate income tax rate of 20% for a period of ten (10) years from the time when the project

9 Annex 1 provides the List of foreign-invested projects eligible for investment incentives, Annex 2 provides the List of foreign-invested projects eligible for special investment incentives (issued together with Decree No.24/2000/ND-CP dated 31 July 2000).

10 Normal corporate income tax rate generally applied to enterprises with foreign owned capital and foreign parties to business cooperation contracts is 25%.


commences its production or business activities, be exempt from corporate income tax for one (1) year commencing from the time when their operations start to earn profits and be granted a fifty (50) percent reduction for the two (2) subsequent years;

- Investment projects satisfying one of the following criteria shall be entitled to the corporate income tax rate of 15% for a period of twelve (12) years from the time when the project commences its production or business activities, an exemption of corporate income tax for a period of two (2) years commencing from the time when operations start to earn profits and a fifty (50) percent reduction for the three (3) subsequent years:

- Being included in the List of foreign-invested projects eligible for investment incentives (except for those projects involving export which have been notified under the Program VI);

- Service enterprises in export processing zones.

- Investment projects satisfying one of the following criteria shall be entitled to the corporate income tax rate of 10% throughout the duration of investment project, an exemption of corporate income tax for a period of four (4) years commencing from the time when operations start to earn profits and a fifty (50) percent reduction for the four (4) subsequent years:

- Being included in the List of foreign-invested projects eligible for special investment incentives (except for those projects involving export which have been notified under the Program VI);

- Enterprises engaged in infrastructure development of industrial zones, export processing zones or high-tech zones; export processing enterprises;

- Being engaged in the fields of medical examination and treatment, education and training, or scientific research.


- Projects included in the List of foreign-invested projects eligible for special investment incentives (except for those projects involving export which have been notified under the Program VI) are entitled to an import duty exemption with respect to production materials for a period of five (5) years from the time when the project commences its production.


Data not available.





Data not available.


IX. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH OPERATE IN CERTAIN BUSINESS FIELDS AND SECTORS11


Investment incentives offered to Vietnamese enterprises which operate in certain business fields and sectors.


To encourage Vietnamese investors in certain business fields and sectors, which are of national development priority.


a. Background






b. Authority




expansion and/or enhancement investments;- Exemption of supplementary corporate income tax;- Exemption of import duties for equipment, machinery forming the enterprise’s fixed

assets.

11 Annex 4 provides the List of business fields and sectors eligible for investment incentives (issued together with Decree No.51/1999/ND-CP dated 8 July 1999).



- Eligible recipients include domestic investors in certain business fields and sectors subject to investment incentives pursuant to the Law on Domestic Investment Promotion.


- Investors who are allocated land by the State to conduct their production, business activities shall be entitled to a 50% reduction of land use payment.

b. Exemption, reduction of land rental:

- Investors are entitled to an exemption of land rental for 3 years from the date of signing land-renting contract;

- Investors in the encouraged business fields in the socially and economically difficult areas who annually employ at least 20 employees on average, are entitled to an exemption of land rental for 13 years from the date of signing land-renting contract.


- Investors in the encouraged business fields in the socially and economically difficult areas who annually employ at least 20 employees on average, are entitled to an exemption of land use tax for 15 years from the date of land allocation.

- Investors who are allocated land by the State and are implementing investment projects in infrastructure construction, development of public transportation; development of education and training, health care, national culture shall be entitled to a 50% reduction of payable land use tax for 7 years from the date of land allocation;

- Investors who are allocated land by the State and are implementing investment projects in afforestation and re-afforestation; planting of perennial trees on unused land, waste land or barren hills; virgin land reclamation; salt-production; aquaculture in unexploited water areas are entitled to an exemption of land use tax throughout the duration of the investment project.


- Eligible recipients are entitled to the corporate income tax rate of twenty-five (25) percent.12

e. Longer periods of corporate income tax exemption and reduction:

- Eligible recipients are entitled to an exemption of corporate income tax for two (2) years from the first profit-making year and a fifty (50) per cent reduction of corporate income tax payable for the two (2) subsequent years;

- Investors in the encouraged business fields in the socially and economically difficult areas who annually employ at least 20 employees on average, are entitled to an exemption of corporate income tax for 3 years and a 50% reduction of corporate income tax payable for the 7 subsequent years;

- Investors in the encouraged business fields in the socially and economically harsh areas who annually employ at least 20 employees on average, are entitled to an

12 The normal corporate income tax rate generally applied to Vietnamese enterprises is 32%


exemption of corporate income tax for 4 years and a 50% reduction of corporate income tax payable for the 9 subsequent years;


- Investors implementing projects of expansion and/or enhancement investment are entitled to an exemption of corporate income tax for one (1) year and a 50% reduction of corporate income tax payable for the increased portion of income attributable to this investment.


- Eligible recipients are exempted from supplementary corporate income tax otherwise payable on the portion of income attributable to objective advantages in accordance to relevant legislation13.

h. Exemption of import duties for equipment, machinery forming the enterprise’s fixed assets:

- Eligible recipients are entitled to import duty exemption in respect of the following goods which have not yet been domestically produced or which have been domestically produced but of unsatisfactory quality:

- Specialized transportation means, machinery and equipment (included in technological lines) imported forming enterprises’ fixed assets or to extend project investment size, to renovate technology;



Data not available.




Data not available.

13 Refer to the Government’s Decree No.30/1998/ND-CP dated 13 May 1998 providing details to implement the Law on Corporate Income Tax for provisions related to supplementary corporate income tax.


X. INVESTMENT INCENTIVES OFFERED TO ENTERPRISES WITH FOREIGN OWNED CAPITAL WHICH OPERATE IN CERTAIN AREAS14


Investment incentives offered to enterprises with foreign owned capital which operate in certain areas.


To encourage and promote foreign investment in certain areas of socio-economic disadvantages or socio-economic harsh conditions.


a. Background






b. Authority



- Preferential corporate income tax rates15;- Exemption, reduction of corporate income tax;- Exemption of import duties;- Preferential remittance (withholding) tax rates.


a. Preferential corporate income tax rates, reduction and exemption of corporate income tax:

- Investment projects in socially and economically difficult areas are entitled to the corporate income tax of 15% for twelve (12) years from the time when the project commences its production or business activities, an exemption of corporate income

14 Annex 3 provides the List of areas of socio-economic disadvantages and socio-economic harsh conditions (issued together with Decree No.24/2000/ND-CP dated 31 July 2000).

15 Normal corporate income tax rate generally applied for enterprises with foreign owned capital and foreign parties to business cooperation contracts is 25%.


tax for four (4) years commencing from the time when its operations start to earn profit and a fifty (50%) percent reduction for the four (4) subsequent years;

- Enterprises investing in areas with socially and economically harsh conditions are entitled to the corporate income tax of 10% throughout the duration of investment project, an exemption of corporate income tax for four (4) years commencing from the time when its operations start to earn profit and a fifty (50%) percent reduction for the four (4) subsequent years;

- BOT, BTO, and BT enterprises investing in areas included in the List of areas of socio-economic disadvantages and socio-economic harsh conditions; afforestation projects, projects for construction and operation of infrastructure facilities in areas of socio-economic harsh conditions are entitled to the corporate income tax of 10% throughout the duration of investment project, and an exemption of corporate income tax for eight (8) years commencing from the time when their operations starts to earn profits.


- Enterprises with foreign owned capital investing in areas of socio-economic harsh conditions shall be entitled to an import duty exemption with respect to raw materials for production for five (5) years from the time when production commences.

c. Preferential remittance (withholding) tax:

- Foreign investors investing in areas of socio-economic harsh conditions included in the List of areas of socio-economic disadvantages and socio-economic harsh conditions are entitled to the remittance (withholding) tax rate of three (3) per cent16.


Data not available.





Data not available.

16 Normal remittance (withholding) tax rate is 7%.


XI. INVESTMENT INCENTIVES OFFERED TO VIETNAMESE ENTERPRISES WHICH HAVE PRODUCTION OR BUSINESS PROJECTS LOCATED IN CERTAIN AREAS17


Investment incentives offered to Vietnamese enterprises which have production or business projects located in certain areas.


To encourage Vietnamese investors in certain areas of socio-economic disadvantages and socio-economic harsh conditions.


a. Background






b. Authority




expansion and/or enhancement investments;- Exemption of supplementary corporate income tax;- Exemption of personal income tax;- Exemption of import duties for equipment, machinery forming the enterprise’s fixed

assets.

17 Annex 5 and 6 provides the List of areas of socio-economic disadvantages and socio-economic harsh conditions (issued together with Decree No.51/1999/ND-CP dated 8 July 1999).




- Investors making land use payment in return for the land allocated by the State to conduct their production or business activities shall be entitled to a 75% reduction of land use payment if their investment projects are implemented in areas of socio-economic disadvantages;

- Investors making land use payment in return for the land allocated by the State to conduct their production or business activities shall be entitled to an exemption of land use payment if their investment projects are in business sectors subject to investment incentives and are implemented in areas of socio-economic disadvantages or socio-economic harsh conditions.

b. Exemption, reduction of land rental:

- Investors in areas of socio-economic disadvantages are entitled to an exemption of land rental for 7 years from the date of signing land-renting contract if their projects are implemented in districts of mountainous provinces or plain areas; for 10 years from the date of signing land-renting contract if their projects are implemented in districts of high mountainous provinces;

- Investors in areas of socio-economic disadvantages are entitled to an exemption of land rental for 11-13 years from the date of signing land-renting contract if their projects are in business sectors subject to investment incentives;

- Investors in business fields subject to investment incentives in areas of socio-economic disadvantages which annually employ at least 20 employees on average, are entitled to an exemption of land rental for 13 years from the date of signing land-renting contract.

- Investors in areas of socio-economic harsh conditions are entitled to an exemption of land rental for 11 years from the date of signing land-renting contract if their investment projects are implemented in districts of mountainous provinces, or ethnic minority plain areas; for 15 years from the date of signing land-renting contract if their investment projects are implemented in districts of high mountainous provinces, islands areas.

- Investors in business fields subject to investment incentives in areas of socio-economic harsh conditions are entitled to an exemption of land rental throughout the duration of investment project.


- Investors in areas of socio-economic disadvantages are entitled to an exemption of land use tax for 7 years from the date of land allocation if their investment projects are implemented in districts of mountainous provinces or plain areas; for 10 years from the date of land allocation if their investment projects are implemented in districts of high mountainous provinces;

- Investors in areas of socio-economic disadvantages are entitled to an exemption of land use tax for 11-15 years from the date of land allocation if their investment projects are in business fields/sectors subject to investment incentives;

- Investors in business fields subject to investment incentives in areas of socio-economic disadvantages which annually employ at least 20 employees on average, are entitled to an exemption of land use tax for 15 years from the date of land allocation.


- Investors in areas of socio-economic harsh conditions are entitled to an exemption of land use tax for 11 years from the date of land allocation if their investment projects are implemented in districts of mountainous provinces or ethnic minority plain areas; for 15 years from the date of land allocation if their investment projects are implemented in districts of high mountainous provinces, islands areas.

- Investors in business fields subject to investment incentives in areas of socio-economic harsh conditions are entitled to an exemption of land use tax throughout the duration of investment project.


- Investors in areas of socio-economic disadvantages are entitled to the preferential corporate income tax rate of 25%; in socio-economic harsh conditions are entitled to the preferential corporate income tax rate of 20%;

- Investors in business fields subject to investment incentives are entitled to the preferential corporate income tax rate of 20% if these projects are implemented in areas of socio-economic disadvantages and 15% if these projects are implemented in areas of socio-economic harsh conditions.

e. Longer periods of corporate income tax exemption and reduction applied to investment projects in which new production, business establishments are formed:

- Investors in business fields subject to investment incentives in areas of socio-economic disadvantages are entitled to an exemption of corporate income tax for three (3) years and a 50% reduction of the corporate income tax payable for the 5-7 subsequent years;

- Investors in business fields subject to investment incentives in areas of socio-economic disadvantages which annually employ at least 20 employees on average, are entitled to an exemption of corporate income tax for three (3) years and a 50% reduction of the corporate income tax payable for the 7 subsequent years;

- Investors in business fields subject to investment incentives in areas of socio-economic harsh conditions are entitled to an exemption of corporate income tax for four (4) years and a 50% reduction of the corporate income tax payable for the 7-9 subsequent years;

- Investors in business fields subject to investment incentives in areas of socio-economic harsh conditions which annually employ at least 20 employees on average, are entitled to an exemption of corporate income tax for four (4) years and a 50% reduction of the corporate income tax payable for the 9 subsequent years.


- Investors having expansion and/or enhancement investment projects in business fields subject to investment incentives in areas of socio-economic disadvantages are entitled to an exemption of corporate income tax for three (3) years and a 50% reduction of the corporate income tax payable for the income attributable to this investment for the 5 subsequent years;

- Investors having expansion and/or enhancement investment projects in business fields subject to investment incentives in areas of socio-economic harsh conditions are entitled to an exemption of corporate income tax for four (4) years and a 50% reduction of the corporate income tax payable for the income attributable to this investment for the 7 subsequent years;



- Investors in areas of socio-economic disadvantages or areas of socio-economic harsh conditions are entitled to an exemption of supplementary corporate income tax.

h. Exemption of personal income tax:

- Investors being individuals are entitled to an exemption of personal income tax payable for the income attributable to his/her capital contribution to or stock purchase of enterprises located in areas of socio-economic disadvantages or areas of socio-economic harsh conditions for 10 years commencing from the time when he/she is liable for personal income tax in accordance with law on personal income tax.

i. Exemption of import duties for equipment, machinery forming the enterprise’s fixed assets:

- Investors in areas of socio-economic disadvantages or areas of socio-economic harsh conditions are entitled to import duty exemption in respect of the following goods provided that they have not been domestically produced or have been domestically produced but of unsatisfactory quality:

- Specialized transportation means, machinery and equipment (included in technological lines) imported forming enterprises’ fixed assets or to extend project investment scale, to renovate technology;



Data not available.




Data not available.


XII. EXPORT SUPPORT FUND


Export Support Fund.


To expand the export markets and improve competitiveness for Vietnamese export products, to support, encourage and promote exportation.


a. Background

- Decision No.195/1999/QD-TTg of the Prime Minister dated 27 September 1999 on establishment, utilization and management of Export Support Fund;

- Circular No.150/1999/TT-BTC of Ministry of Finance dated 21 December 1999 guiding the implementation of Decision No.195/1999/QD-TTg of the Prime Minister dated 27 September 1999 on establishment, utilization and management of Export Support Fund;

- Decision No.1555/1999/QD-BTM of Minister of Trade dated 30 December 1999 on issuance of Regulations for export reward in accordance with Decision No.195/1999/QD-TTg of the Prime Minister dated 27 September 1999 on establishment, utilization and management of Export Support Fund.

b. Authority

- Ministry of Finance;- Ministry of Trade.


- Interest rate support;- Interest differential support;- Financial support;- Export reward;- Other forms of support.


- Eligible recipients are exporting-importing enterprises (mainly those trading in agricultural products), manufacturing enterprises who export their products directly, and other enterprises as decided by the Prime Minister.

a. Interest rate support:

- Exporting – importing enterprises can be provided with partial or full support for the interests incurred on those banks’ loans to purchase agricultural products for export at the floor (reference) price or at a price reasonable for producers as specified by the Prime Minister;


- Enterprises which assume the duty of reserving goods for circulation under the Prime Minister’s direction can be provided with partial or full support for the interests incurred on those banks’ loans to implement their duty.

b. Interest differential support:

- Trading enterprises can be provided with partial or full support for the difference between short-term interest rate charged by commercial banks and the eligible preferential rate for the purchase and storage of agricultural products for export under the Prime Minister’s direction;

- Enterprises which purchase, process and directly export seasonal agricultural products can be provided with partial or full support for the difference between short-term interest rate charged by commercial banks and the eligible preferential rate under the Prime Minister’s direction.

c. Financial support:

- Partial financial support can be provided for a definite duration for a number of export items that suffer from losses or financial difficulties due to their low competitiveness or objective risks in the following cases:

- Goods exported for the first time;- Goods exported to new market which is not yet stable;- Goods already purchased but not yet exported due to sharp decreases in

world prices;- Goods directly exported by producers which suffer from temporary losses

due to low competitiveness resulting from the newly engaged investment.

- Exporting-importing enterprises which have contributed to the Export Support Fund (in the form of import/export price differential surcharge) and are now suffering from financial difficulties due to price fluctuations can be provided with partial financial support.

d. Export reward:

- Export reward includes (i) reward for finding or expanding export markets; (ii) reward for first-time exported items; (iii) reward for export goods with high quality recognized and certified by international organisations; (iv) reward for export goods with high value of domestic material and labor; (v) reward for high and efficient export turnover.

- Eligibility: Lawfully established enterprises of all forms of ownerships which directly export goods with high and efficient performance, and satisfy one of the above-mentioned criteria (export reward is separately granted for each criterion satisfied, provided that the total reward granted to any enterprise satisfying more than one criterion will not exceed VND 300 million):

- Exporting a new item (or a new category of goods), which has, for the first time, been penetrated and marketed abroad and hence been added to the list of Viet Nam’s export goods (not the item or category of goods that the enterprise has, for the first time, exported abroad) and/or which has, for the first time, been efficiently marketed in the new export markets with the annual export value of at least USD 100,000. However, the respective annual export value threshold with regard to enterprises operating in mountainous


and island provinces is only USD 50,000. This criterion shall be applied to both cases (new commodity, new market). If either of these two cases reaches the threshold level of export value of USD 100,000 per year (or USD 50,000 per year), or the combined export value of both cases reaches the above-mentioned target level, the enterprise shall be considered for export reward. The reward value is equivalent to 1% of the FOB export value converted into the Vietnamese Dong at the average exchange rate between the Vietnamese Dong and the US Dollar on the inter-bank foreign currencies market, announced by the State Bank of Viet Nam at the time of reward consideration. However, the reward value must not exceed VND 150 million for one case.

- Expanding the existing export market or opening new markets or exporting efficiently new item with the current year’s export value being higher than that of the preceding year (this growth rate is, for the immediate future, specified generally as 20%, particularly as 15% for mountainous and island provinces; with the export value of current year increasing by between USD 200,000 and USD 500,000 as compared with that of the preceding year, depending on product line and geographical area. The Top 10 enterprises in the reward list shall be granted for a reward of between VND 50 to VND 100 million for each enterprise; the other enterprises in the list which also satisfy this criterion shall be granted rewards at lower levels which must not exceed 50 percent of the lowest reward level among the Top 10 enterprises;

- High-quality export commodities which are awarded medals at international fairs and exhibitions held overseas or granted certificates or written certification by international quality control organizations. Enterprises satisfying this criterion shall be rewarded VND 40 million for each medal or certificate for good quality obtained;

- Exporting goods with domestic content of at least 60 %; or goods regarded as labor-intensive products in accordance with existing regulations such as: fine art handicraft articles; processed agricultural, forestry and aquatic products; garments, footwear,…with the enterprise's annual aggregate export value of all these export items reaching USD 10 million or more, and USD 3 million or more for fine art handicraft articles. The Top 10 enterprises in the reward list shall be granted a reward of between VND 50 to VND 100 million for each enterprise; the other enterprises in the list which also satisfy this criterion shall be granted rewards at lower levels which must not exceed 50 percent of the lowest reward level among the Top 10 enterprises;

- Exporting non-quota commodities or amount in excess of allocated quota with the annual value reaching USD 50 million or more. The Top 10 enterprises in the reward list shall be granted a reward of between VND 50 to VND 100 million for each enterprise; the other enterprises in the list which also satisfy this criterion shall be granted rewards at lower levels which must not exceed 50 percent of the lowest reward level among the Top 10 enterprises.


e. Other form of support under the Prime Minister’s decisions

Data not available.


- Total outlay from Export Support Fund in 2000: VND 128.4 billion (equivalent to roughly USD 9.2 million at the exchange rate of VND 14000/USD 1).

- Export reward:

Year Total value of export rewardNumber of

reward recipients (enterprises)

Average export reward per enterprise

1998 (Under the Export Reward Fund which no longer exists)

VND 4.7 billion(USD 323,103)

85 USD 3,800

1999 (Export Support Fund)

More than VND 6.2 billion(USD 427,586)

148 USD 2,900

2000 (Export Support Fund)

VND 10.6 billion(approximately USD 706,667)

158 USD 4,470

7. Duration of the subsidy and/or any other time limit attached to it

From 12 October 1999 –


Data not available.


XIII. DEVELOPMENT ASSISTANCE FUND


Development Assistance Fund.


To assist the implementation of the State’s important economic projects and schemes and assist difficult areas.


a. Background

- Decree No.43/1999/ND-CP dated 29 June 1999 of the Government on the State’s development investment credits;

- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organisation and functions of Development Assistance Fund;

- Decision No.231/1999/QD-TTg dated 17 December 1999 of the Prime Minister on approval of Charter of organisation and functions of the Development Assistance Fund;

- Decision No.232/1999/QD-TTg dated 17 December 1999 of the Prime Minister on issuance of Financial Management Regulation of the Development Assistance Fund;

- Circular No.42/2000/TT-BTC dated 23 May 2000 of Ministry of Finance guiding the implementation of financial management on the Development Assistance Fund.

b. Authorities

- Ministry of Finance;- Ministry of Industry;- Ministry of Agriculture and Rural Development;- Ministry of Transport;- Ministry of Fishery;- Ministry of Planning and Investment.


- Investment loans;- Post-investment interest-rate support;- Investment credit guarantee.


a. Investment loans

- Eligible borrowers are development investment projects, which are capable of directly recouping capital (including projects for the establishment of new enterprises, or on technological renovation for production expansion) of all economic sectors, including:

- Investment projects in the areas listed herein in Annex 5 and Annex 6, which fall into one of the following business fields:


- Electricity generation; minerals exploitation (except for oil and gas, mineral water, gold and gems); basic chemicals; fertilizers; micro-biological insecticides;

- Manufacturing of machine tools and motor machines serving agriculture;

- Construction of processing establishments: agriculture, forestry, aquaculture and salt making establishments;

- Production of export goods, especially labor-intensive projects;- Planting of material-supplying forest; perennial industrial crops, fruit

trees;- Infrastructure projects in transportation, water supply and housing,

which can directly recoup capital.

- Aquatic farming and milky cow raising projects;- Projects to implement the Government’s policies on the expansion of

medical, educational, cultural, physical training and sports activities;- Projects using the re-lent capital of official development assistance (ODA);- A number of other investment programs and/or projects under the Prime

Minister’s decisions.

- Loan conditions: eligible borrowers which have completed the investment procedures in accordance with the State’s regulations;

- The loan amount of each project shall comply with the provisions of the Law on Domestic Investment Promotion (amended);

- The credit term shall be determined in accordance with the capital repayment capability, compatible with each project’s production and business characteristics and the investor’s debt repayment capability, but shall not exceed 10 years;

- The interest rate of the State’s development investment credit was 9%/year and 7%/year in 1999 and in 2000 respectively.

b. Post-investment interest-rate support

- Eligible recipients are projects which: (i) included in the List of business fields/ sectors subject to investment incentives (Annex 4); (ii) the investors of which have borrowed capital from credit institutions lawfully operating in Viet Nam to make investment therein; (iii) the investment of which has been completed and put into use; and (iv) loan capital for making investment has been repaid;

- Conditions for enjoying the post-investment interest rate support: the project has not been provided with investment loans or investment credit guarantees through the State’s development investment credits;

- The amount of the post-investment interest-rate support shall be equal to the total investment capital borrowed from the credit institutions multiplied by 50% of the interest rate of the State’s development investment credits.

c. Investment credit guarantee

- Eligible recipients are investors having investment projects included in the List of business fields/ sectors subject to investment incentives (Annex 4) which have not yet provided with the post-investment interest-rate support or investment loans from the State’s development investment credits, or which have just borrowed a part of capital therefrom;

- The guarantee value for a single project shall be equal to the loan capital amount provided by the credit institutions within the total investment capital of the project but


shall not exceed the level prescribed by the Law on Domestic Investment Promotion (amended);

- The guaranteed investors shall have to pay to the Development Assistance Fund a guarantee fee of 0.5%/year of the guarantee value.


Specific data not available.


From 23 July 1999 –


Data not available.


XIV. INVESTMENT ASSISTANCE FOR SCIENCE AND TECHNOLOGY DEVELOPMENT


Assistance for science and technology development.


To encourage enterprises to invest in research and development of science and technology with a view to upgrading, improving technology, increasing product quality and production efficiency.


a. Background

- Decree No.119/1999/ND-CP dated 18 September 1999 of the Government on policies and financial mechanisms to encourage enterprises to invest in science and technology development;

- Inter-Ministerial Circular No.2341/2000/TTLT-BKHCNMT-BTC dated 28 November 2000 of Ministry of Science, Technology and Environment and Ministry of Finance guiding the implementation of Decree No.119/1999/ND-CP dated 18 September 1999 of the Government on policies and financial mechanisms to encourage enterprises to invest in science and technology development;




Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000;- Decree No.24/2000/ND-CP dated 31 July 2000 of the Government providing detailed




b. Authority

- Ministry of Finance;- Ministry of Science, Technology and Environment.


- Preferential corporate income tax rates;- Exemption, reduction of corporate income tax;- Exemption of supplementary corporate income tax;- Preferential treatment with respect to land use payment, land rental, land use tax;


- Exemption of import duty;- Preferential credit terms;- Other forms of assistance.


a. Preferential corporate income tax rates:

- Enterprises operating under the Law on Domestic Investment Promotion (amended) which apply high-tech or use science and technology services in their operation are eligible to enjoy corporate income tax rates for the income earned from these activities as follows:

- The tax rate of 25%;- The tax rate of 20% with respect to enterprises invested in areas of socio-

economic disadvantages (Annex 5);- The tax rate of 15% with respect to enterprises invested in areas of socio-

economic harsh conditions (Annex 6).

- Enterprises with foreign-owned capital and business co-operation parties operating under the Law on Foreign investment in Viet Nam, which have investment projects in high-tech industries, high-tech service in high-tech zones; scientific research; applying new bio-technology and new technology for manufacturing information and telecommunications equipment; investment in research and development are eligible to enjoy corporate income tax rates of 10% throughout the duration of the investment project.

- Enterprises with foreign-owned capital and business co-operation parties operating under the Law on Foreign investment in Viet Nam, which have investment projects in fields of applying and developing high-tech, science and technology services are eligible to enjoy corporate income tax rates of 20% for 10 years from the time when the project starts its operation.

b. Exemption, reduction of corporate income tax:

- Exemption of corporate income tax in the following cases:

- Income earned from the implementation of contracts relating to research and development;

- Income earned from the implementation of contracts relating to technical services that are of direct service to agricultural production;

- Income earned from the capital contribution in the form of intellectual property rights, technical know-how and technological processes.

- Enterprises operating under the Law on Domestic Investment Promotion (amended), which have investment projects in the fields of science and technology services; projects on the investment and establishment of new production lines, expansion of production scale and technology renovation shall be entitled for the following preferences:

- Exemption of corporate income tax for the increased income owing to this new investment for the 1st year and a 50% reduction of the payable corporate income tax for the 4 subsequent years.


- Exemption of corporate income tax for the increased income owing to this new investment for the first 3 years and a 50% reduction of the payable corporate income tax for the 5 subsequent years with regard to production or business units located in the areas of socio-economic disadvantages (Annex 5);

- Exemption of corporate income tax for the increased income owing to this new investment for the first 4 years and a 50% reduction of the payable corporate income tax for the 7 subsequent years with regard to production or business units located in the areas of socio-economic harsh conditions (Annex 6).

- Enterprises with foreign-owned capital and business co-operation parties operating under the Law on Foreign investment in Viet Nam which have investment projects in the fields of high-tech industry, high-tech service in high-tech zones shall be entitled to an exemption of corporate income tax for 8 years from first profit-making year;

- Enterprises with foreign-owned capital and business co-operation parties operating under the Law on Foreign investment in Viet Nam which have investment projects in the fields of scientific research; applying new bio-technology and new technology for manufacturing information and telecommunications equipment; investment in research and development shall be entitled to an exemption of corporate income tax for 4 years from first profit-making year and a 50% reduction of corporate income tax for the 4 subsequent years;

- Enterprises with foreign-owned capital and business co-operation parties operating under the Law on Foreign investment in Viet Nam which have investment projects in the fields of science and technology shall be entitled to an exemption of corporate income tax for 1 year from the first profit-making year and a 50% reduction of corporate income tax for the 2 subsequent years;

- Foreign investors who use their distributed profits to reinvest will be entitled to a specific ratio of refund of corporate income tax already paid.

c. Exemption of supplementary corporate income tax:

- Enterprises, which invest in the field of science and technology, shall be entitled to an exemption of supplementary corporate income tax payable for the activities in the field of science and technology.

d. Preferential treatment with respect to land use payment, land rental, land use tax:

- Enterprises operating under the Law on Domestic Investment Promotion (amended), which invest in the field of science and technology, shall be entitled to the preferential treatment with respect to land use payment, land rental and land use tax for the area of allocated or leased land if they use the land to build science and technology research base, experimental laboratories or stations as follows:

- In case that they are allocated land and hence subject to liability of land use payment:

- A 50% reduction of land use payment;- Exemption of land use payment if the allocated land is in areas of

socio-economic disadvantages (Annex 5) or in areas of socio-economic harsh conditions (Annex 6);

- In case that they rent land and hence subject to payment of land rental:


- Exemption of land rental for 6 years from the time of signing of land-renting contract;

- Exemption of land rental for 15 years from the time of signing of land-renting contract if the leased land is in areas of socio-economic disadvantages (Annex 5);

- Exemption of land rental throughout the duration of investment project if the leased land is in areas of socio-economic harsh conditions (Annex 6).

- In case that they are allocated land and hence subject to payment of land use tax:

- Exemption of land use tax for 6 years from the time of land allocation.

- Exemption of land use tax for 15 years from the time of land allocation if the allocated land is in areas of socio-economic disadvantages (Annex 5);

- Exemption of land use tax throughout the duration of investment project if the leased land is in areas of socio-economic harsh conditions (Annex 6).

- Investors in the field of science and technology under the Law on Foreign Investment in Viet Nam, shall be entitled to the preferential treatment with respect to land rental for the area of leased land in accordance with the existing regulations if they use the land to build experimental laboratories, product development workshops or to conduct experimental research or studies.

e. Exemption of import duty:

- Imported machinery, equipment, materials, scientific and technological equipment with automatic control devices, experimental samples, measurement and experiment devices directly used in projects, contracts of research and development, which have not yet been domestically manufactured or have been domestically manufactured but failed to meet the prescribed requirements, shall be entitled to an exemption of import duty.

f. Preferential credit terms:

- Enterprises operating under the Law on Domestic Investment Promotion (amended) in the field of science and technology shall be entitled to access to medium and long-term credits which can satisfy at a maximum 70% of their projects’ investment capital at preferential interest rate at Development Assistance Fund, Export Support Fund and Science and Technology Development Assistance Fund. In the event that the enterprise has been guaranteed by the Development Assistance Fund to borrow medium and long term credits at the Bank for Investment and Development, it shall be refunded the difference between the preferential interest rate and the normal borrowing rate.

g. Other forms of assistance:

- The financial support provided by the State for Vietnamese enterprise shall not exceed 30% of the total implementation cost of the research projects carried out by the Vietnamese enterprise itself or in coordination with other science agencies to


create new technology in the business fields/sectors subject to the State’s priority incentives.


Data not available.

7. Duration of the subsidy and/or any other time limit attached to it

From 3 October 1999 –


Data not available.


XV. SUPPORT FOR THE IMPLEMENTATION OF THE SCHEMES FOR DEVELOPMENT OF PRIORITY INDUSTRIAL PRODUCTS


Support for the implementation of the schemes for development of priority industrial products.


To support for the development of priority industrial products.


a. Background

- Decision No.37/2000/QD-TTg dated 24 March 2000 of the Prime Minister on issuance of policies on development assistance for priority industrial products (i.e. maritime ships with the capacity of 11,500 tones, internal combustion engines of below 30 CV, colour television sets);

- Circular No.86/2000/TT-BTC dated 16 August 2000 of Ministry of Finance guiding the implementation of policies on financial support and preferential treatment to develop those priority industrial products in accordance with Decision No.37/2000/QD-TTg dated 24 March 2000 of the Prime Minister;


- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organisation and functions of Development Assistance Fund;


to implement the Law on Corporate Income Tax;- Circular No.99/1998/TT-BTC dated 14 July 1998 of Ministry of Finance providing


b. Authority

- Ministry of Finance;- Ministry of Industry;- Ministry of Transport.


- Exemption of import duty;- Preferential corporate income tax rates;- Preferential access to the State’s development investment credits;- Reduction of land rental.


- Eligible recipients include:


- Enterprises which are assigned to be principally responsible for the implementation of the schemes for development of priority industrial products:

- Viet Nam Shipping Industry Corporation – scheme for building maritime ships with the capacity of 11,500 tonnes;

- Viet Nam Engine and Agriculture Machinery Corporation (VEAM) – scheme for manufacturing internal combustion engines of below 30 CV;

- Hanoi Electronics Company (HANEL) – scheme for producing colour television sets.

- Enterprises assigned to participate in the schemes for developing priority industrial products include enterprises (including both Vietnamese and foreign-invested enterprises), which serve as suppliers of materials, semi-products, units, components and accessories, etc. (and even suppliers to manufacturers of unfinished products, units, components and accessories, etc.), that are used in the production of priority industrial products, and which are endorsed by the Ministry of Industry.

a. Maritime ships with the capacity of 11,500 tonnes:

- Preferential treatment with respect to tax:

- Exemption of import duty until 31 December 2003 for specialised machinery, equipment, means of transportation of the technological line to establish enterprises’ fixed assets and necessary materials that have not yet been domestically produced in order to be used in the building of maritime ships with the capacity of 11,500 tonnes;

- Enterprises implementing the scheme for building maritime ships with the capacity of 11,500 tonnes shall be entitled to corporate income tax rate of 25% for the income earned therefrom and an exemption of corporate income tax for 2 years from the time of having taxable income and a 50% reduction of the payable corporate income tax for the 2 subsequent years.

- Preferential access to credits:

- Enterprises shall be entitled to access to the State’s development investment credits via the Development Assistance Fund to satisfy its investment demand for construction of production premises. The credit term shall not exceed 10 years for each loan. No collateral is required for the loan. However, borrowers are not allowed to transfer their assets before full repayment of their debts (including the principal and interests) for each loan;

- Enterprises using domestically-built maritime ships with the capacity of 11,500 tonnes are entitled to access to the State’s development investment credits at maximum level of 85% of the ship’s purchase value from the Development Assistance Fund. The credit term must not exceed 10 years;

- Approved research and development schemes are entitled to capital support from the State’s budget for science and technology research.

- Other preferences:


- Eligible enterprises are entitled to a 50% reduction of land rental throughout the duration of the investment project.

b. Internal combustion engines of below 30 CV:

- Preferential treatment with respect to tax::

- Exemption of import duty until 31 December 2003 for specialised machinery, equipment, means of transportation of the technological line to establish enterprises’ fixed assets and necessary materials that have not yet been domestically produced;

- Enterprises implementing the scheme for manufacturing internal combustion engines of below 30 CV shall be entitled to corporate income tax rate of 25% for the income earned therefrom and an exemption of corporate income tax for 2 years from the time of having taxable income and a 50% reduction of the payable corporate income tax for the 2 subsequent years.


- Enterprises shall be entitled to access to the State’s development investment credits via the Development Assistance Fund to satisfy its investment demand for construction of production premises. The credit term shall not exceed 10 years for each loan. No collateral is required for the loan. However, borrowers are not allowed to transfer their assets before full repayment of their debts (including the principal and interests) for each loan;



- Eligible enterprises are entitled to a 50% reduction of land rental throughout the duration of the investment project.

c. Colour television sets:

- Preferential treatment with respect to tax:

- Exemption of import duty until 31 December 2003 for specialised machinery, equipment, means of transportation of the technological line to establish enterprises’ fixed assets;

- Enterprises implementing the scheme for manufacturing colour television sets shall be entitled to corporate income tax rate of 25% for the income earned therefrom and an exemption of corporate income tax for 2 years from the time of having taxable income and a 50% reduction of the payable corporate income tax for the 2 subsequent years.

- Eligible for priority index with the adjustment factor of 0.5 when calculating import duty contingent upon localisation ratio.


- Enterprises shall be entitled to access to the State’s development investment credits via the Development Assistance Fund to satisfy its investment demand for construction of production premises. The credit term shall not


exceed 10 years for each loan. No collateral is required for the loan. However, borrowers are not allowed to transfer their assets before full repayment of their debts (including the principal and interests) for each loan;



- Eligible enterprises are entitled to a 50% reduction of land rental throughout the duration of investment project .


Data not available


From 8 April 2000 –


Data not available.


XVI. ASSISTANCE FOR THE DEVELOPMENT OF SOFTWARE INDUSTRY18


Assistance for the development of software industry.


To encourage domestic organizations and individuals of all economic sectors, overseas Vietnamese and foreign organizations, individuals to invest in software production and supply of software-related services in Viet Nam (hereinafter called software enterprises).


a. Background

- Government Resolution No.07/2000/NQ-CP dated 5 June 2000 on establishment and development of software industry for the period of 2000-2005;

- Decision No.128/2000/QD-TTg dated 20 November 2000 of the Prime Minister on policies and measures to encourage investment and development of software industry;


- Decree No.50/1999/ND-CP dated 8 July 1999 of the Government on the organization and functions of Development Assistance Fund;




Investment in Viet Nam (Law No.18/2000/QH10) dated 9 June 2000;- Decree No.24/2000/ND-CP dated 31 July 2000 of the Government providing detailed




b. Authority

- Ministry of Finance;- Ministry of Science, Technology and Environment.

18 Some of the activities covered in this programme may be services and hence are not subject to the WTO Agreement on Subsidies and Countervailing Measures.



- Preferential corporate income tax rates;- Exemption of corporate income tax;- Preferential treatment with respect to VAT;- Exemption of export duty;- Exemption of import duties on materials;- Preferential access to the State’s development investment credits;- Preferential treatment with respect to land use and land renting;- Other forms of support.


- Software enterprises are eligible to the following incentives and preferential treatment:

a. Preferential corporate income tax rates:

- Vietnamese software enterprises and foreign software enterprises operating in Viet Nam that are not subject to the Law on Foreign Investment in Viet Nam shall enjoy the corporate income tax rates as follows:

- The tax rate of 25%;- The tax rate of 20% for enterprises investing in areas of socio-economic

disadvantages (Annex 5);- The tax rate of 15% for enterprises investing in areas of socio-economic

harsh conditions (Annex 6).

- Foreign invested software enterprises that are subject to the Law on Foreign Investment in Viet Nam shall enjoy the corporate income tax rate of 10%.

b. Exemption of corporate income tax:

- Newly established software enterprises are entitled to an exemption of corporate income tax payable for the income earned from software services and production activities for 4 years from the time of having the taxable income. Established software enterprises are entitled to an exemption of corporate income tax payable for the income earned from software services and production activities for 4 consecutive years commencing from January 1, 2001;

- Software enterprises are entitled to an exemption of supplementary corporate income tax payable for the income earned from software production and service activities.

c. Preferential treatment with respect to VAT:

- Software products and software services supplied by software enterprises to consumers in Viet Nam are not subject to VAT;

- Software products and services for export shall enjoy the VAT tax rate of 0%.

d. Exemption of export duty:

- Software products for export shall be exempt from export duty.


e. Exemption of import duties on materials:

- Import duty and VAT on import stage shall be exempt for materials directly used for production of software products which have not yet been domestically produced.

f. Preferential access to the State’s development investment credits:

- Software enterprises are entitled to access to various forms of investment supports from the Development Assistance Fund.

g. Preferential treatment with respect to land use and land renting:

- Vietnamese software enterprises are entitled to exemption, reduction of land use payment, land rental and land use tax in accordance with the Government Decree No. 51/1999/ND-CP dated July 8, 1999 providing details on the implementation of the Law on Domestic Investment Promotion (amended) No. 03/1998/QH 10;

- Software enterprises subject to the Law on Foreign Investment in Viet Nam are entitled to preferential treatment with respect to land rental in accordance with existing regulations.

h. Other forms of support:

- Professional Vietnamese employees directly engaging in software production and services activities are entitled to the same minimum taxable personal income level and progressive level prescribed for foreigners;

- Organizations and individuals of all forms of ownership are allowed to establish information technology training establishments. Such establishments are entitled to the same preferential treatment for their information technology training activities as for software enterprises.


Data not available


From 5 December 2000 –


Data not available.


XVII. ASSISTANCE FOR VIETNAMESE NEWLY ESTABLISHED PRODUCTION AND TRADING BUSINESSES, FOR VIETNAMESE EXPANDED PRODUCTION BUSINESSES, AND FOR VIETNAMESE TRADING BUSINESSES MOVING TO MOUNTAINOUS, ISLAND AND OTHER DISADVANTAGED AREAS


Assistance for Vietnamese newly established production and trading businesses, for Vietnamese expanded production businesses, and for Vietnamese trading businesses moving to mountainous, island and other disadvantaged areas.


To assist newly-established domestic production and trading businesses to start and develop their businesses steadily. To encourage domestic production and trading businesses to invest in new production line, scope expansion, technology renovation, environment amelioration, productivity improvement. To assist domestic trading businesses when they move to disadvantaged areas.


a. Background



details to implement the Decree No.30/1998/ND-CP of the Government dated 13 May 1998 providing details to implement the Law on Corporate Income Tax;


- Decree No.51/1999/ND-CP of the Government dated 8 July 1999 providing details to implement the Law on Domestic Investment Promotion (amended) No.03/1998/QH10 dated 20 May 1998.

b. Authority

- Ministry of Finance.


- Exemption and reduction of corporate income tax;


a. Newly established domestic production establishments:

- Newly-established production establishments are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated, and a 50% reduction of the payable corporate income tax for the 2 subsequent years. In mountainous, island or other disadvantaged areas, t owHhe duration of 50% reduction of the payable corporate income tax applied to newly-established production establishments shall be extended for further 2 years;


- Newly-established production establishments in business fields/sectors subject to investment incentives (Annex 4) in districts other than mountainous, island or other disadvantaged areas are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 3 subsequent years;

- Newly-established production establishments in business fields/sectors subject to investment incentives (Annex 4) in districts of ethnic minority in high mountainous areas are entitled to an exemption of corporate income tax for the first 4 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 9 subsequent years;

- Newly-established production establishments in business fields/sectors subject to investment incentives (Annex 4) in districts of ethnic minority areas or mountainous, island areas are entitled to an exemption of corporate income tax for the first 4 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 7 subsequent years;

- Newly-established production establishments in business fields/sectors subject to investment incentives (Annex 4) in disadvantaged areas are entitled to an exemption of corporate income tax for the first 3 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 5 subsequent years.

b. Newly established domestic trading, services businesses:

- Newly-established trading, services businesses in business fields/sectors subject to investment incentives (Annex 4) in districts other than areas of ethnic minority, mountainous, island or other disadvantaged areas are entitled to a 50% reduction of payable corporate income tax for the first 2 years from the time the taxable income is generated;

- Newly-established trading, services businesses in business fields/sectors subject to investment incentives (Annex 4) in districts of ethnic minority in high mountainous areas are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 5 subsequent years;

- Newly-established trading, services businesses in business fields/sectors subject to investment incentives (Annex 4) in districts of ethnic minority, mountainous, island areas are entitled to an exemption of corporate income tax for the first 2 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 4 subsequent years;

- Newly-established trading, services businesses in business fields/sectors subject to investment incentives (Annex 4) in disadvantaged areas are entitled to an exemption of corporate income tax for the first 1 years from the time the taxable income is generated and a 50% reduction of payable corporate income tax for the 3 subsequent years.

c. Domestic production businesses investing in new production line, scope expansion, technology renovation, environment amelioration, productivity improvement

- are entitled to an exemption of corporate income tax on the increased income attributable to the new investment for 1 year and a 50% reduction of payable corporate income tax for the 2 subsequent years.


d. Domestic trading businesses moving to mountainous, island and other disadvantaged areas

- are entitled to an exemption of corporate income tax for the first 3 years from the time the taxable income is generated.


Data not available.




Data not available.


XVIII. ASSISTANCE FOR VIETNAMESE BUSINESSES HAVING SPECIAL ACTIVITIES


Assistance for Vietnamese businesses having special activities.


To assist domestic businesses in conducting special activities.


a. Background




b. Authority

- Ministry of Finance;


- Exemption of corporate income tax;


- Vietnamese businesses are entitled to an exemption of corporate income tax payable on the incomes earned from:

- The performance of scientific research contracts;- The performance of technical services contracts in direct service of agriculture

production;- Production, trading or services activities of businesses or establishments reserved

only for disabled laborers;- Vocational training activities exclusively reserved for disabled, ethnic minority

people, children from especially difficult families and people committed to social evils;

- Production, trading or services households that have monthly average incomes in a year less than the minimum salary level prescribed by the State for State employees.


Data not available.





Data not available.


ANNEX 1

LIST OF FOREIGN-INVESTED PROJECTS ELIGIBLE FOR INVESTMENT INCENTIVES

(issued together with Decree No.24/2000/ND-CP dated 31 July 2000)

- Producing, processing for export at least fifty (50) per cent of products;- Producing, processing for export at least thirty (30) per cent of products and using many

domestic raw materials and materials (with a value of at least thirty (30) per cent of total production costs);

- Intensively using labour and effectively utilising natural resources available in Viet Nam;- Processing agricultural, forestry (except for wood) and aqua-cultural products;- Preserving foodstuffs; post-harvest preservation of agricultural products;- Exploration, mining and down-stream processing of minerals;- Development of petro-chemical industry; construction and operation of oil and gas pipelines,

oil storage and ports;- Manufacturing of equipment and component packs for oil and gas exploitation, mining, and

energy fields; manufacturing of large-size lifting equipment;- Production of high-quality steel, alloy, non-ferrous metal, and special metal, steel billet and

sponge iron used in industry;- Manufacturing machine tools for metal processing, metallurgy equipment;- Manufacturing precision mechanical equipment, equipment for safety examination and

control; manufacturing jig and dies for metal and non-metal products;- Manufacturing high and medium voltage electric devices;- Manufacturing diesel engines with advanced techniques and technology; manufacturing

dynamic and hydraulic machinery, parts and compressing machines;- Manufacturing automobile and motorcycle parts; manufacturing and assembly of equipment,

vehicles and machinery for construction; technical equipment for transportation;- Building ships; manufacturing equipment and parts for transportation ships and fishing ships;- Manufacturing communications and telecommunications equipment;- Manufacturing electronic and informatics equipment and components;- Manufacturing agricultural equipment, parts and machines, irrigation equipment;- Producing various types of materials for pesticides;- Producing basic chemicals of various kinds, purified chemicals and dyes; various kinds of

specialised chemicals;- Producing materials for cleansing chemicals and additives for chemical industry;- Producing special cement, composite materials, and sound, electricity and heat insulating

materials, and wood-substitute synthetic materials, fire-proof materials, construction plastic and fibreglass;

- Manufacturing light construction materials;- Producing paper pulp;- Producing silk and fibres of various kinds; special fabric for industry;- Producing high-quality raw materials for manufacturing footwear and garments for export;- Producing high-quality packages for exports;- Producing medical equipment for analytical and extractive technologies in medical sector;- Producing medicine materials; producing medicines with international GMP standard;- Upgrading and developing energy sources;- Public passenger transportation;- Construction and upgrading of bridges, roads, airports, ports, railway stations, bus stations

and railways;- Construction of water plants and water supply and drainage systems;- Construction and operation of infrastructure facilities of industrial zones, export processing

zones and high-tech zones.


ANNEX 2

LIST OF FOREIGN-INVESTED PROJECTS ELIGIBLE FOR SPECIAL INVESTMENT INCENTIVES


- Producing, processing for export at least eighty (80) per cent of products;- Processing agricultural, forestry (except for wood) and aqua-culture products from domestic

material sources for export of at least fifty (50) per cent of products;- Producing various kinds of new strains with high quality and high economic efficiency;- Cultivation of agricultural, forestry and aqua-culture products;- Manufacturing new materials and precious and rare materials; applying new bio-technology

and new technology for manufacturing communications and telecommunications equipment;- High-tech industry;- Investment in research and development;- Producing equipment for waste treatment;- Producing materials for antibiotic drugs;- Treatment of pollution and protection of environment; treatment of waste;- Investment under BOT, BTO and BT contracts.


ANNEX 3

LIST OF AREAS OF SOCIO-ECONOMIC DISADVANTAGES ANDSOCIO-ECONOMIC HARSH CONDITIONS


No. Province/CitySection A

Areas with specially difficult socio-economic conditions

Section BAreas with difficult socio-economic

conditions1. Ha Giang All districts and towns2. Cao Bang All districts and towns3. Lai Chau All districts and towns4. Lao Cai All districts and towns5. Son La All districts and towns6. Bac Kan All districts and towns7. Tuyen Quang All districts and towns8. Lang Son All districts and towns9. Yen Bai All districts and towns10. Thai Nguyen All districts and towns and Thai

Nguyen City11. Bac Giang All districts and towns12. Vinh Phuc Lap Thach, Tam Duong and Binh

Xuyen DistrictsDistricts not in Section A

13. Phu Tho All districts and towns and Viet Tri City

14. Hoa Binh All districts and towns15. Bac Ninh Que Vo, Yen Phong, Gia Binh, Luong

Tai and Thuan Thanh Districts 16. Hanoi Soc Son District17. Ha Tay Ba Vi, My Duc, Phuc Tho, Quoc Oai,

Thach That and Ung Hoa Districts18. Quang Ninh Ba Che, Binh Lieu, Quang Ha, Hoanh

Bo, Tien Yen and Dong Trieu Districts and Mong Cai Town

Yen Hung District and Cam Pha and Uong Bi Towns

19. Hai Phong Vinh Bao and Tien Lang Districts20. Hai Duong Chi Linh District All districts not in Section A21. Hung Yen All districts and towns22. Thai Binh All districts and towns23. Ha Nam All districts and towns24. Nam Dinh All districts and Nam Dinh City25. Ninh Binh Nho Quan, Yen Mo and Gia Vien

DistrictsTam Diep Town and districts not in Section A

26. Thanh Hoa Lang Chanh, Thuong Xuan, Quan Hoa, Ba Thuoc, Ngoc Lac, Nhu Xuan, Cam Thuy, Thach Thanh, Quan Son and Muong Lat Districts

Districts not in Section A

27. Nghe An Ky Son, Tuong Duong, Con Cuong, Quy Chau, Que Phong, Quy Hop, Nghia Dan, Anh Son, Tan Ky, Thanh Chuong and Do Luong Districts

Cua Lo Town and other districts not in Section A

28. Ha Tinh All districts Ha Tinh Town29. Quang Binh All districts Dong Hoi Town30. Quang Tri Quang Tri Town and All districts Dong Ha Town31. Thua Thien Hue All districts Hue City


No. Province/CitySection A

Areas with specially difficult socio-economic conditions

Section BAreas with difficult socio-economic

conditions32. Da Nang Hoa Vang, Thanh Khe, Ngu Hanh Son

and Lien Chieu Districts33. Quang Nam All districts and Hoi An Town Tam ky Town34. Quang Ngai All districts Quang Ngai Town35 Binh Dinh All districts Quy Nhon Town36. Phu Yen All districts Tuy Hoa Town37. Khanh Hoa Khanh Son and Khanh Vinh Districts District not in Section A38. Binh Thuan All districts Phan Thiet Town39. Ninh Thuan All districts Phan Rang Town40. Kon Tun All districts and towns41. Gia Lai All districts and towns42. Dak Lak All districts and Buon Ma Thuot City43. Lam Dong All districts and towns and Da Lat

City44. Dong Nai Dinh Quan, Tan Phu and Xuan Loc

Districts45. Binh Phuoc All districts and towns46. Binh Duong Ben Cat, Phu Giao, Tan Uyen and

Dau Tien districts47. Tay Ninh All districts48. Ho Chi Minh City Can Gio and Cu Chi Districts49. Ba Ria - Vung Tau Long Dat and Xuyen Moc Districts50. Long An All districts Tan An Town51. Dong Thap All districts and towns52. Tien Giang All districts and towns My Tho City53. Ben Tre All districts and towns54. Vinh Long All districts and towns55. Tra Vinh All districts and towns56. An Giang All districts and Long Xuyen City57. Can Tho All districts and towns Can Tho City58. Soc Trang All districts and towns59. Bac Lieu All districts and towns60. Ca Mau All districts and towns61. Kien Giang All districts and towns


ANNEX 4

LIST OF BUSINESS FIELDS AND SECTORS ELIGIBLE FOR INVESTMENT INCENTIVES


Investment projects in branches and trades of the following domains shall be eligible for preferences:

I. Afforestation and zoning for forest regeneration; planting of perennial trees on unused land, waste land or bare hills; virgin land reclamation; salt-making; aquaculture in unexploited water areas:

1. Planting protection forests (in headwaters or coastal areas, or for ecological protection), special purpose forests and production forests, zoning for forest regeneration;

2. Planting perennial trees (industrial trees. fruit trees, pharmaceutical plants and other plants) on newly reclaimed or reused land and bare hills;

3. Making salt from sea water, exploiting rock-salt and producing industrial salt;

4. Raising aquatic animals in natural water areas which have not been transformed and used yet;

5. Land reclamation, making full use of unused land for agricultural, forestry and fishery production.

II. Infrastructure construction, development of public transportation; development of education and training, health care and national culture

1. Construction of technical infrastructure:

- Building, renovating or expanding electric power plants; developing power networks, building establishments operated by solar energy, wind power or bio-gas;

- Building, improving, upgrading and modernizing bridges, roads, airports, harbors, railway and bus stations, building new railways;

- Improving and developing information and communication networks;

- Building water plants and water supply, and discharge systems; as well as projects for environmental protection and waste treatment;

- Building technical infrastructure in densely populated areas (in the localities defined in Annex 5 or Annex 6).

2. Developing public transportation;

3. Developing education and training, health care and national culture;


- Opening people-funded schools and private schools at different levels: pre-school education, primary education, junior and senior high education. professional secondary education, college and tertiary education;

- Setting up vocational training establishments and establishments for raising workers' skills, fostering and raising their managerial skills and business knowledge;

- Setting up people-funded and private medical establishments for medical examination and treatment, health care for the elderly and disabled people;

- Setting up houses of national culture and art troupes; preserving, developing and popularizing national culture; making national musical instruments.

4. Investment projects in the forms of Build-Operate -Transfer (BOT); Build -Transfer-Operate (BTO) and Build-Transfer (BT) contracts.

5. Investment in the construction of trade areas, department stores and dwelling houses to meet the urban population's demand.

III. Export goods production and trading

Producing and trading in export goods and/or services with a value exceeding 30% of that of the goods and services produced and/or traded in by the enterprises in a fiscal year.

IV. Offshore fishing processing of agricultural, forest and aquatic products; technical services directly for agricultural, forestry and fishery production.

1. Offshore fishing;

2. Processing of agricultural, forest and aquatic products;

3. Technical services directly for agricultural production: soil preparation. watering and flood water drainage, cultivation, harvesting, protection and preservation of agricultural products;

4. Technical services directly for forestry: soil preparation, supply of seeds, saplings, watering and forest protection;

5. Technical services directly for fishery: stores for the preservation of aquatic products and salvage of offshore fishing ships and boats;

6. Other services on plant and animal protection; hybridization and multiplication of new strains and breeds; storage and preservation of agricultural, forest and maritime products.

V. Scientific, technological research and development as well as services; consultancy on legal matters, investment, business, business administration, intellectual property right protection and technology transfer

1. Technological research and development;

2. Construction and exploitation of research institutions: laboratories, experimental stations and farms, aimed at applying new technologies to production;


3. Applying and developing high technologies; producing and processing materials from domestic raw material sources:

- Information technology: creating computer software for use in different domains of the economy;

- Biological technologies, applied on industrial scale to the production of plant varieties, animal breeds, curative medicines for men, animals and plants, food for men and fodder for domestic animals, reproduction stimulants and biological fertilizers that meet the advanced economic-technical criteria;

- Technologies for the production of new materials with special properties;

- Technologies using solid, liquid and gas wastes;

- Manufacturing technologies which consume less fuels, raw materials, materials or energy, or discharge less waste per product unit; technologies which create those products, that, when operating consume less energy, fuels, materials and raw materials, than other products of the same type;

- Clean technologies, technologies that consume or produce equipment consuming wind power, solar, earth, tide or biological energy;

- Technologies for the production of electronics, semiconductors and laser products.

4. Consultancy on legal matters, investment, business, business administration and technology transfer:

- Consultancy on investment, management and technology transfer, vocational training, training of technical and managerial skills;

- Supply of market information, scientific, technical and technological information;

- Intellectual property right and technology transfer;

- Marketing and trade promotion.

VI. Investment in the establishment of production chains, business/production expansion and technology renovation; ecological and environmental improvement and sanitation in urban areas; relocation of production establishments out of urban areas; diversification of branches, trades and products.

1. Investment in the procurement of equipment in service of the construction of projects, investment in the construction of trade areas, department stores and dwelling houses to meet the urban population's demand.

2. Investment in the establishment of new workshops, installation of new production chains, addition of more machinery to the existing production chains and installation of new machinery and equipment in replacement of all machinery and equipment of the existing production lines; application of new technologies to production;

3. Investment in ecological and environmental improvement; urban sanitation;


4. Investment in the relocation of production establishments from urban areas;

5. Investment in the diversification of branches, trades and products.

VII. Other branches and trades which need to be developed with priority

1. Concentrated livestock and poultry breeding on an industrial scale; processing of feed for livestock and aquatic animals.

2. Mechanical engineering for manufacturing and repairing farm machines and machines for the production of textiles, leathers, high-quality plastics', learning and teaching aids, children's toys and other products made of natural rubber;

3. Manufacturing, assembling and repairing machinery and equipment for the production and processing of agricultural, forest and aquatic products, measuring equipment for laboratories; manufacturing construction and mining equipment and means, building river and sea-going ships; manufacturing locomotives and carriages; manufacturing equipment for power transmission lines and transformer stations; manufacturing electronic components and computer software;

4. Production of raw materials, fuels and materials; production of veterinary medicines, plant seeds and animal breeds; oil and gas exploration, exploitation and refinery; coal exploitation and processing; steel refining and rolling; production of non-ferrous metals and construction materials; production of fertilizers and basic chemicals;

5. Traditional crafts: carving, mother-of-pearl inlaying, lacquer ware, intaglio, wickerwork, carpet making, pottery, ceramics- silk weaving, bronze casting and hammering;

6. Investment in the construction and business of infrastructure of industrial parks, export-processing zones and hi-tech parks; as well as in the production and services therein.


ANNEX 5

LIST OF AREAS OF SOCIO-ECONOMIC DISADVANTAGES


1. Districts in highly mountainous provinces

1. Bac Kan Province Bac Kan town2. Cao Bang Province Cao Bang town3. Ha Giang Province Bac Quang district

Ha Giang town4. Lai Chau Province Dien Bien Phu town

Dien Bien districtLai Chau town

5. Son La Province Mai Son districtSon La townYen Chau district

II. Districts in mountainous and plain areas

1. Bac Giang Province Luc Ngan districtLuc Nam districtYen The district

2. Hoa Binh Province Kim Boi districtKy Son districtLac Son districtLuong Son districtLac Thuy districtTan Lac districtYen Thuy district

3. Lang Son Province Bac Son districtCao Loc districtChi Lang districtHuu Lung districtLoc Binh districtTrang Dinh districtVan Lang districtVan Quan district

4. Phu Tho Province Doan Hung districtHa Hoa districtSong Thao districtThanh Ba districtTam Thanh district

5. Quang Ninh Province Hoanh Bo district


Hai Ninh districtQuang Ha districtTien Yen districtVan Don district

6. Tuyen Quang Province Ham Yen districtSon Duong districtYen Son district

7. Thai Nguyen Province Dong Hy districtDai Tu districtDinh Hoa districtPhu Luong district

8. Yen Bai Province Tran Yen districtVan Yen districtVan Chan districtYen Binh district

9. Binh Phuoc Province Dong Phu districtLoc Ninh districtPhuoc Long districtBinh Long district

10. Dac Lak Province Buon Don districtCu Jut districtCu M’gar districtDak R’Lap districtDak Mil districtEa H’leo districtEa Kar districtEa Sup districtKrong Pac districtKrong Buk districtKrong Bong districtKrong Ana districtKrong Nang districtLak districtM’Drak district

11. Gia Lai Province An Khe districtAyun Pa districtChu Se districtChu Prong districtChu Pah districtIa Grai district

12. Kon Tum Province Dak Ha districtKon Tum townNgoc Hoi district

13. Lam Dong Province Bao Lam districtCat Tien districtDi Linh districtDa Teh districtDon Duong districtDuc Trong districtDa Huoai districtLam Ha district

14. Binh Thuan Province Bac Binh district


Duc Linh districtHam Thuan Bac districtTanh Linh district

15. Binh Dinh Province Hoai An district16. Hai Duong Province Chi Linh district

17. Ha Tinh Province Huong Khe districtHuong Son district

18. Ninh Binh Province Tam Diep townNho Quan district

19. Nghe An Province Anh Son districtNghia Dan districtTan Ky districtThanh Chuong district

20. Ninh Thuan Province Ninh Hai district

21. Phu Yen Province Dong Xuan districtSong Hinh district

22. Quang Tri Province Dak Rong district23. Quang Nam Province Hiep Duc district

Tien Phuoc district24. Quang Ngai Province Minh Long district25. Thanh Hoa Province Cam Thuy district

Nhu Thanh districtNgoc Lac districtThach Thanh district

26. Thua Thien Hue Province Nam Dong district27. An Giang Province An Phu district

Tri Ton districtTinh Bien district

28. Bac Lieu Province Bac Lieu townVinh Loi district

29. Ca Mau Province Thoi Binh districtTran Van Thoi district

30. Dong Nai Province Dinh Quan districtTan Phu districtXuan Loc districtLong Khanh district

31. Kien Giang Province Chau Thanh districtHon Dat district

32. Khanh Hoa Province Van Ninh districtCam Ranh district

33. Soc Trang Province Long Phu districtMy Xuyen districtSoc Trang district

34. Tra Vinh Province Cau Ngang districtCau Ke districtTieu Can district


ANNEX 6

LIST OF AREAS OF SOCIO-ECONOMIC HARSH CONDITIONS


I. Districts in highly mountainous and islands areas

1. Bac Kan Province Ba Be districtBach Thong districtCho Moi districtCho Don districtNgan Son districtNa Ri district

2. Cao Bang Province Bao Lac districtHa Lang districtHa Quang districtHoa An districtNguyen Binh districtQuang Hoa districtThong Nong districtTra Linh districtThach An districtTrung Khanh district

3. Ha Giang Province Bac Me districtDong Van districtHoang Su Phi districtMeo Vac districtQuan Ba districtVi Xuyen districtXin Man districtYen Minh district

4. Lai Chau Province Muong Lay districtMuong Te districtPhong Tho districtTua Chua districtTuan Giao districtSin Ho districtDien Bien Dong district

5. Lao Cai Province Bac Ha districtBat Sat districtMuong Khuong districtThan Uyen districtVan Ban districtSa Pa districtBao Yen district

6. Son La Province Bac Yen districtMoc Chau districtMuong La districtQuynh Nhai district


Thuan Chau districtSong Ma districtPhu Yen district

7. Binh Thuan Province Phu Quy district8. Ba Ria – Vung Tau Province Con Dao district9. Da Nang City Hoang Sa island district10. Hai Phong City Bach Long Vi district

Cat Hai district11. Khanh Hoa Province Truong Sa district12. Kien Giang Province Kien Hai district

Phu Quoc district13. Quang Ninh Province Co To district14. Quang Ngai Province Ly Son district


II. Districts in mountainous and plain areas

1. Bac Giang Province Son Dong district2. Hoa Binh Province Da Bac district

Mai Chau district3. Lang Son Province Binh Gia district

Dinh Lap district4. Phu Tho Province Thanh Son district

Yen Lap district5. Quang Ninh Province Ba Che district

Binh Lieu district6. Tuyen Quang Province Chiem Hoa district

Na Hang district7. Thai Nguyen Province Vo Nhai district8. Yen Bai Province Luc Yen district

Mu Cang Chai districtTram Tau district

9. Dak Lak Province Dak Nong districtKrong No district

10. Gia Lai Province Duc Co districtK Bang districtKrong Pa districtKon Chro districtMang Yang district

11. Kon Tum Province Dak To districtDak Glei districtKon Plong districtSa Thay district

12. Lam Dong Province Lac Duong district13. Kien Giang Province An Bien district

Go Quao districtVinh Thuan district

14. Soc Trang Province My Tu districtThanh Tri districtVinh Chau district

15. Tra Vinh Province Chau Thanh districtTra Cu district

16. Binh Dinh Province An Lao districtVinh Thanh districtVan Canh district

17. Khanh Hoa Province Khanh Vinh districtKhanh Son district

18. Ninh Thuan Province Ninh Son district19. Ba Ria-Vung Tau Province Tan Thanh district20. Bac Lieu Province Hong Dan district21. Binh Phuoc Province Bu Dang district22. Ca Mau Province U Minh district23. Thanh Hoa Province Quan Hoa district

Ba Thuoc districtLang Chanh districtThuong Xuan district


Quan Son districtMuong Lat districtNhu Xuan district

24. Nghe An Province Ky Son districtTuong Duong districtCon Cuong districtQue Phong districtQuy Hop districtQuy Chau district

25. Quang Binh Province Minh Hoa districtTuyen Hoa district

26. Quang Tri Province Huong Hoa district27. Thua Thien – Hue Province A Luoi district28. Quang Nam Province Hien district

Giang districtPhuoc Son districtTra My district

29. Quang Ngai Province Ba To districtTra Bong districtSon Tay districtSon Ha district

30. Phu Yen Province Son Hoa district

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