Chương 2 Nghị định 71/2001/NĐ-CP: Tạo điều kiện và ưu đãi đối với các doanh nghiệp trong nước

Chapter II

CREATING CONDITIONS FOR AND GIVING PREFERENCES TO DOMESTIC ENTERPRISES

Article 7.- Creating conditions on investment and construction procedures

The investment project owners shall be given the following favorable conditions on investment and construction procedures:

1. Basing themselves on the construction planning and plans on the use of land for housing development announced by the competent State agencies as well as their investment capabilities, enterprises having demand may register with the provincial-level People’s Committees to become investors or participate in bidding for becoming investors of housing projects that enjoy favorable conditions and preferences.

2. For the areas with general plannings and detailed plannings, already approved by the competent State agencies, the housing project owners enjoying favorable conditions and preferences shall only need to go through one step of making feasibility study reports. In cases where a general planning has been elaborated for the project area but the detailed planning to be approved by the competent agency is not available yet, the investor may draw up a detailed planning for submission together with the feasibility study report for approval. The cost of elaborating the detailed planning shall be accounted in the total investment level of the project.

3. Basing themselves on the plannings already approved by the competent agencies and the housing development programs of their respective localities, the presidents of the provincial-level People’s Committees shall decide on investment and ratify technical designs as well as total cost estimates of housing projects entitled to favorable conditions and investment preferences in their respective localities after receiving the written appraisal records from the dependent specialized bodies.

4. Projects and project items within the scope of preferential housing projects, for which technical designs have been approved by the competent State agencies, shall be exempt from construction permits.

Article 8.- Creating conditions on compensation and ground clearance

The investment project owners shall be given the following conditions on compensation and ground clearance:

1. The investment project owners shall determine the compensation and ground clearance plans as well as the land fund in service of resettlement and submit them to the provincial-level People’s Committees for approval. In case of necessity, to ensure the project implementation tempo, investors may be supported with additional relocation funding but must ensure the projects’ economic efficiency. This additional support funding must not be accounted in the expenses for land-loss compensation for deduction from the payable land use levy prescribed in Clause 2 of this Article or from other State budget remittances (if any).

2. If an investment project owner assigned with land must pay land use levy and land-loss compensation, the payable land-use levy amount shall be used to cover the whole amount of compensation for the loss of land under the project, which, however, must not exceed the total land use levy amount to be paid by the investor. In cases where the investment project owners are domestic enterprises meeting with capital difficulty, the State shall create conditions for them to borrow capital for compensation and ground clearance.

3. The investment project owners shall assume the prime responsibility and coordinate with the local People’s Committees in reaching agreement on the compensation plans, funding, ground clearance schedule and account settlement as well as final settlement for the ground clearance work. The local People’s Committees shall have to coordinate in organizing the compensation payment and ground clearance according to the set schedule and hand over the construction ground to contractors.

Article 9.- Creating conditions on bidding for construction

The investment project owners shall be given conditions on bidding as follows:

1. The bidding plans and results of bidding for the construction and installation of housing projects stipulated in Article 2 of this Decree shall be considered and approved by the competent persons or competent authorities according to the provisions of the Bidding Regulation. The investment project owners may elaborate bidding plans and submit them together with the feasibility study reports.

2. The investment project owners are allowed to build by themselves or select contractors (without bidding) for the building of projects, project items or bidding packages using more than 50% of investment capital being their own lawful capital (self-procured capital or capital advanced by organizations and/or individuals).

Article 10.- Creating conditions on investment capital mobilization

The investment project owners shall be given conditions on investment capital mobilization as follows:

1. To be entitled to mobilize advance capital of organizations and individuals that have demand for dwelling houses; to borrow capital from credit institutions and apply other lawful capital mobilization forms as prescribed by law.

2. To be considered by the State for capital loans from the Development Assistance Fund or be provided with investment credit guarantee according to the provisions of the Government’s Decree No.43/1999/ND-CP of June 29, 1999 or borrow capital from the Housing Development Fund or Urban Development Fund.

Article 11.- Creating conditions on investment in building infrastructure works

The investment project owners shall be given conditions on investment in building infrastructure works as follows:

1. The State shall invest from its budget in the building of:

a/ Technical infrastructure works or items (roads, electricity, water supply and drainage) outside the project’s premise, linking to the common technical infrastructure system of the region;

b/ The national- or provincial-level technical infrastructure works or items within the project area;

c/ A number of essential social infrastructure works or items within the project area (if any).

2. In cases where the State budget fails to apportion in time the investment capital for the works or items prescribed in Clause 1 of this Article according to the project implementation tempo, the investors may use other lawful capital sources for investment in order to put the projects into operation as scheduled. This capital amount shall be deducted from the land use levy amount and other amounts payable by the investors to the budget as prescribed. In cases where the capital amount advanced by an investor for the above-mentioned infrastructure construction is larger than the amount payable to the State budget, the difference between the advanced investment capital and the amount payable to the budget shall be refunded from the State budget.

3. Projects and project items invested with budget capital, prescribed in Clause 1 of this Article, must strictly comply with the provisions of the legislation on investment and construction management.

Article 12.- Housing development fund

1. Basing him/herself on the housing development demand, conditions and program of the locality, the president of the provincial-level People’s Committee may decide to set up a housing development fund in order to mobilize capital from various sources in service of investment in housing development in the locality according to the following stipulations:

a/ The housing development fund shall be formulated from the following sources: State budget (proceeds from the sale of State-owned houses, capital depreciation deducted from rentals of State-owned houses, residential land use levy and other budgetary sources, if any); money mobilized from or deposited by people having demand to buy dwelling houses, support money, money voluntarily contributed by organizations and/or individuals at home and abroad and other lawful capital mobilization forms prescribed by law;

b/ The housing development fund shall operate on the principle of preserving capital and covering expenses according to the Regulation issued by the Finance Minister after reaching agreement with the Minister of Construction;

c/ The housing development fund shall be used for the following purposes:

- To be lent to domestic enterprises prescribed in Clause 1, Article 3 of this Decree at low interest rates for investment in the construction of preferential housing projects;

- To be lent to subjects salaried by the State budget at low interest rates, for the purchase of dwelling houses.

- To be lent to domestic enterprises with favorable credit conditions for investment in the construction of housing projects.

2. The Finance Ministry shall coordinate with the Ministry of Construction in guiding the management and use of housing development funds in localities.

3. The Ministry of Construction shall coordinate with the Ministry of Planning and Investment and the Finance Ministry in studying a project on setting up the national housing development fund, to be submitted to the Prime Minister for consideration and decision.

Article 13.- Preferences on land use levy, land rentals and land use tax

The investment project owners shall be given the following preferences regarding the payment of land use levy and land use tax:

1. Preferences on land use levy:

a/ To be exempt from land use levy for the land acreage used for construction of condominiums;

b/ To enjoy 50% reduction of land use levy for the construction of dwelling houses other than condominiums within the project area (if any);

c/ To be exempt from the land use levy for land area used for the construction of dwelling houses of different types, provided that the projects are carried out in the areas meeting with socio-economic difficulties or exceptional socio-economic difficulties (as defined in Lists B and C of the appendix attached to the Government’s Decree No.51/1999/ND-CP of July 8, 1999).

d/ To be entitled to the deferred payment of land use levy for the land acreage subject thereto according to the construction schedule set for each project under decision of the provincial-level People’s Committee, but the duration of deferred payment of land use levy must not exceed 5 years after the land assignment.

2. Land-use tax preferences:

The investment project owners shall be exempt from land use tax for 3 (three) years after the land assignment, for the land area used for the construction of condominiums.

Article 14.- Enterprise income tax rates

1. The following enterprise income tax rates may be applied to investment project owners:

a/ 15%, for condominiums and dwelling houses of other types in the areas meeting with exceptional socio-economic difficulties (prescribed in List C of the appendix attached to the Government’s Decree No.51/1999/ND-CP of July 8, 1999);

b/ 20%, for condominiums and dwelling houses of other types in the areas meeting with socio-economic difficulties (prescribed in List B of the appendix attached to the Government’s Decree No.51/1999/ND-CP of July 8, 1999);

c/ 25%, for condominiums and dwelling houses of other types in other areas.

2. The Finance Ministry shall have to study lower preferential tax rates for condominiums and submit them to the Government for consideration and decision.