The resolution to pilot a number of special mechanisms and policies for the development of Hai Phong city was passed by the National Assembly on the morning of June 27 with 447/449 delegates in favor (93.51% of the total number of National Assembly delegates).
The notable point in this resolution is that the National Assembly agreed to establish the Hai Phong Free Trade Zone with a series of special policies.
According to the National Assembly's resolution, the free trade zone is organized into functional areas such as production, ports and port logistics, logistics centers, trade and service areas... Qualified functional areas will operate as duty-free zones, under the supervision of customs and relevant state management agencies.
The Hai Phong City People's Committee has the right to establish and adjust the boundaries of the Free Trade Zone, linked to the Dinh Vu - Cat Hai Economic Zone and the Southern Coastal Economic Zone. The Hai Phong Economic Zone Management Board will directly manage the Free Trade Zone, provide public administrative services and support businesses in investment, production and business.
The new political and administrative center of Hai Phong City. (Photo: Nguyen Hue)
The free trade zone prioritizes high-tech fields such as semiconductor integrated circuits, design and manufacturing of components, chips, semiconductor materials, biotechnology, new material technology, automation, supporting industries for high-tech industries, logistics, trade, exhibitions, etc.
Foreign investors are allowed to establish economic organizations in the Free Trade Zone like domestic investors, without having to go through the procedures for obtaining an Investment Registration Certificate before establishment. Enterprises in the zone enjoy preferential customs treatment and are exempted from specialized inspections for goods that have been certified as conforming to international or regional standards.
A series of special mechanisms and policies
According to the recently passed resolution, Hai Phong Free Trade Zone will enjoy a series of preferential policies on administrative procedures, land and water surface rents, and tax incentives...
Specifically, projects in the Free Trade Zone are exempted from all land and water surface rents for the entire lease term (except for commercial housing and trade-service projects); corporate income in priority sectors is subject to a tax rate of 10% for 30 years, exempted for 4 years and reduced by 50% for the next 9 years. After the preferential period, the applicable tax rate is 15%.
Income from projects not in priority sectors will be subject to a 10% tax rate for 15 years, tax exemption for 4 years and a 50% reduction in tax payable for the next 9 years.
Notably, the resolution allows visa exemption and 10-year temporary residence cards for experts, scientists, exceptionally talented people, managers, highly skilled workers and family members working at enterprises in the Free Trade Zone. The City People's Committee is allowed to allocate land and lease land without auction or bidding for projects using land for investment projects in the zone.
In addition, experts, scientists, talented people, managers, and highly skilled workers working in the Free Trade Zone receive a 50% reduction in personal income tax for 10 years.
In addition to the special mechanism for the Free Trade Zone, the National Assembly also resolved many other special policies to create a breakthrough for Hai Phong City.
Specifically, Hai Phong is allowed to borrow through the issuance of local government bonds, loans from domestic financial institutions and foreign loans from the Government, with the total outstanding loan balance not exceeding 120% of the local budget revenue enjoyed according to decentralization. The total loan amount and annual budget deficit are decided by the National Assembly according to the State Budget Law.
The central budget will target to supplement Hai Phong's budget with 70% of the increase in revenue from import-export activities (excluding VAT) compared to the estimate assigned by the Prime Minister. This capital source will be used to invest in infrastructure of economic zones, industrial parks, free trade zones and socio-economic works on Bach Long Vi island, but not exceeding the total increase in revenue compared to the previous year.
Hai Phong also decided to apply fees and charges not yet included in the list of the Law on Fees and Charges, and adjust the collection rates of fees and charges already included in the list.
The city is reclaiming land to implement the logistics center project (scale over 50 hectares) and logistics services (scale up to 50 hectares) serving seaports and airports.
The city also reclaimed small, narrow plots of land located in residential areas to create a land fund for auction.
In addition, Hai Phong established a Venture Capital Fund from the budget to invest capital in high-tech enterprises and creative startups. Officials and civil servants using capital from this Fund are exempted from liability in case of damage due to objective risks, have fully implemented the process and are not self-interested.
Special mechanisms and policies for Hai Phong will officially take effect from July 1 (the time the resolution takes effect).
Source: https://vtcnews.vn/quoc-hoi-dong-y-lap-khu-thuong-mai-tu-do-hai-phong-ar951299.html
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