DECREE OF THE GOVERNMENT
ON A NUMBER OF ENCOURAGEMENT AND GUARANTEE MEASURES
FOR FOREIGN DIRECT INVESTMENT ACTIVITIES IN VIETNAM

THE GOVERNMENT

CHAPTER I
GENERAL PROVISIONS

>> Article 1.

1. The Government of Vietnam guarantees to implement in a stable and long term manner the policy on foreign direct investment in Vietnam; concurrently [it] will amend and supplement the policy on foreign direct investment in accordance with the principle of creating more favorable conditions for investors.
2. The Government of Vietnam encourages and makes special preferences available to projects investing in the production of goods for export, using high technology and investment projects that fall under the List of Projects For Which Investment Is Especially Encouraged and List of Geographical Areas In Which Investment Is Encouraged as provided for in Appendix I attached to this Decree.
3. In the event that new provisions of law cause damage to the interests of enterprises with foreign investment capital and business co-operation parties (hereinafter referred to as "Enterprises") that have been stipulated in [their] Investment License, such provisions shall not apply to projects for which Investment Licenses have been issued.

[If] new provisions granting greater preferences are promulgated after an Enterprise has been issued an Investment License, the Investment License Issuing Authority will make an adjustment in order to permit the Enterprise to enjoy [them] in accordance with the provisions of this Decree.

>> Article 2.

1. Ministries, authorities directly under the Government and People's Committees of provinces and cities directly under the Central Authority (hereinafter referred to as "People's Committees at the Provincial Level") are responsible for providing guidelines on foreign investment activities in the fields and geographical areas under their control; [they] shall improve [their] administration and review investment formalities in order to ensure simple and expeditious investment formalities in accordance with the principle of "one stop" and ⁽²⁾ "one focal authority" ⁽³⁾.
   • Heads of relevant authorities are responsible for overseeing and inspecting, and are responsible for the activities of the authorities and officials under their control, and shall handle all acts of violation in a timely manner in accordance with the provisions of law.
2. Before promulgating a statutory instrument pertinent to foreign direct investment activities, ministries, authorities directly under the Government and People's Committees at the Provincial Level are required to reach a consensus with the Ministry of Planning and Investment; in the event that there are different opinions, the Prime Minister of the Government must be promptly informed [thereof].

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CHAPTER II
FORMATION OF INVESTMENT PROJECTS

>> Article 3.

Except for the fields in the List of the Fields In Respect of Which Investment Licenses Will Not Be Issued and List of the Fields In Respect of Which Investment Is Subject to Conditions as provided for in Appendix I attached to this Decree, foreign investors may make a selection as to investment project, investment form, geographical area, proportion of legal capital contribution and markets for the sale of products.

Foreign investors may select a partner[s] from any [of the] economic sectors of Vietnam for investment co-operation.

>> Article 4.

With respect to investment projects with an export proportion of 80% or more of [their] products and [investment projects] in a number of other fields announced by the Ministry of Planning and Investment, investors shall register [their] documentation dossier according to the forms prescribed by the Ministry of Planning and Investment. The Investment License Issuing Authority shall decide on the issuance of an Investment License within a time limit of 15 days from the date of receipt of the properly prepared dossier.

>> Article 5.

With respect to the fields, industries and lines of business that are required under regulations to obtain a Business License or License to Practice, Enterprises are only required to register with the competent State authority in order to initiate their business activities in accordance with the objectives and lines [of business] stipulated in their Investment License without having to apply for a Business License or License to Practice.

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CHAPTER III
INVESTMENT INCENTIVES AND GUARANTEES

>> Article 6.

1. With respect to projects which were issued an Investment License prior to 23 November 1996, the Ministry of Planning and Investment shall consider adjusting the preferential business income tax rates and duration of business income tax exemption and reduction in accordance with the criteria for investment incentives provided for in Decree No. 12/CP dated 18 February 1997 of the Government Providing Detailed Regulations for Implementing the Law on Foreign Investment in Vietnam (hereinafter referred to as "Decree 12/CP") or provided for in the Regulations on Industrial Zones, Export Processing Zones and High Technology Zones promulgated under Decree No. 36/CP dated 24 April 1997 of the Government.
2. The preferential business income tax rates applicable to enterprises with foreign investment capital and foreign parties to a business co-operation investing in projects that fall under the List of Projects For Which Investment Is Especially Encouraged and List of Geographical Areas In Which Investment Is Encouraged shall be applicable during the entire term of operation of the project.

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>> Article 7.

Except for cases which are exempt from business income tax for 8 years in accordance with the provisions of Article 56(4) of Decree 12/CP, projects investing in geographical areas in which investment is encouraged and projects for which investment is especially encouraged as provided for in Appendix I attached to this Decree are granted exemption from business income tax for 4 (four) years from the time when the business commences to make a profit and a reduction of 50% for the 4 (four) subsequent years.

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>> Article 8.

Enterprises producing goods for export temporarily do not have to pay import duty yet for the raw materials imported for the production of goods for export within the time limit stipulated in the Law on Import and Export Duties.

With respect to a number of export products, due to the production requirements or production cycles, the period of time during which the duty stated above is temporarily not [required to be] paid yet shall be determined by the Ministry of Finance.

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>> Article 9.

The prices for calculating import duty with respect to imported goods that are subject to import duty shall be determined based on the prices stated in the invoices of the imported goods. In the event that there is no invoice available, the prices for calculating import duty shall be determined in accordance with the regulations of the Ministry of Finance.

It is prohibited to take advantage of the prices for calculating duty in order to commit fraud in respect of duties; all acts of tax fraud will be strictly handled in accordance with the law.

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>> Article 10.

1. The equipment, machinery and means of carriage for specific use which are imported to form the fixed assets of the Enterprises [and] are exempt from import duty under the provisions of Article 63 of Decree 12/CP are provided for in Appendix II(A) attached to this Decree. In addition to the exemption of import duty with respect to the above equipment, machinery and means of carriage for specific use, these Enterprises are also exempt from import duty with respect to:
   • Construction materials imported to form fixed assets which can not yet be produced domestically; and
   • Raw materials and materials imported for manufacturing machinery and equipment for use in technological lines or for manufacturing components, parts, detached devices, spare parts, installations, moulds and accessories which accompany equipment and machinery.
   • The exemption of import duty with respect to the types of raw materials and materials referred to above shall also apply to the circumstances of expansion of the scale of a project and replacement and renovation of technology.
2. In addition to the equipment, machinery and means of carriage for specific use which are imported to form the fixed assets of the Enterprises [and] are exempt from import duty under the provisions of Article 63 of Decree 12/CP, Enterprises operating in the field of hotels, office spaces and apartments for lease, residential houses, commercial centers, technical services, supermarkets, golf courses, tourist areas, sports areanas, amusement and entertainment parks, facilities for medical examination and treatment of diseases, training, culture, finance, banking, insurance, auditing and consultancy services may also import duty-free once, the furnishings and equipment provided for in Appendix II(B) attached to this Decree.
3. Investment projects that fall under the List of Projects for Which Investment Is Especially Encouraged and projects investing in the mountainous, remote or outlying regions stipulated in Appendix I attached to this Decree are exempt from import duty with respect to raw materials for production for five (5) years from the commencement of production.

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>> Article 11.

During the course of their operation, enterprises with foreign investment capital may carry forward losses from any tax year to the following tax year and set off such losses against the profits of the subsequent years, but not for more than five (5) years.

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>> Article 12.

1. Interest on loans of an Enterprise may be accounted to the Enterprise's costs for basic construction or production costs and is determined on the basis of the credit agreement[s], but [it] shall not be higher than the ceiling interest rates for credit announced by the State Bank of Vietnam for domestic loans and shall not be higher than the interest rates and fees for foreign loans that have been registered with the State Bank of Vietnam.
2. When determining the taxable income, enterprises with foreign investment capital and foreign parties to a business co-operation may deduct amounts of financing given to Vietnamese organizations and individuals for activities for charitable and humanitarian purposes.

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>> Article 13.

1. With respect to investment projects that must have products for export, the export proportion and schedule for implementing the export proportion shall be stipulated in the Investment License.
• During the course of doing business, if an Enterprise has not yet been able to fulfil the requirements on the export proportion as stipulated in the Investment License, the Enterprise must report [such] to the Ministry of Trade in order for it to consider an adjustment to the annual product sales plan. In the event that the Enterprise fails to fulfil the export proportion stipulated in the Investment License for 3 (three) consecutive years, the Investment License Issuing Authority will consider an adjustment of the export proportion and incentives stipulated in the Investment License or revoke the Investment License.
2. An Enterprise that sells products made by the Enterprise to other enterprises that [in turn] directly make products for export shall be exempt from import duty with respect to raw materials and exempt from the corresponding turnover tax on the products referred to above.
• Enterprises with foreign investment capital may entrust export and accept export entrustment in accordance with the provisions of law.
3. Enterprises are entitled to purchase goods and products in the Vietnamese market to process [them] for export or to export [them] in accordance with the regulations of the Ministry of Trade.

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>> Article 14.

1. The sale of the quantity of products permitted to be sold in the Vietnamese market may be undertaken by the Enterprise directly or through agencies and is not restricted in terms of geographical area for product sales.
2. Product sale prices shall be decided by the Enterprise. With respect to goods and services the prices of which are uniformly controlled by the State, the sale prices shall follow the price scale announced by the competent State authority.

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>> Article 15.

1. The State Bank of Vietnam guarantees to balance foreign currency for Enterprises operating in the fields of infrastructure and production of essential import substitutes and for important investment projects announced by the Ministry of Planning and Investment. The guarantee in selling foreign exchange in respect of the above Enterprises is applicable in a stable manner during the entire term of operation of the Enterprises.
2. Enterprises [operating] in the production sector which have the obligation to export [their] products and other Enterprises which are not the subjects referred to in Clause 1 of this Article may receive assistance from the State Bank of Vietnam for a portion of their foreign exchange needs in truly necessary and reasonable circumstances for the first 3 (three) years from when these Enterprises commence their production or business [activities] in accordance with the following priority order:
   • - Import of raw materials and materials for production in the year;
   • - Import of replacement parts; and
   • - Repayment of interest on loans.
3. Enterprises operating in the service sector (tourism, hotels, office space for lease, public transportation, schools, health, culture, equipment leasing, etc.), may receive consideration from the State Bank of Vietnam for the purchase of foreign exchange in accordance with the regulations in force on foreign exchange control.
4. The sale of foreign exchange by banks to the subjects stipulated in Clauses 1, 2 and 3 of this Article shall be undertaken in accordance with the guidelines of the State Bank of Vietnam.

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>> Article 16.

During the course of its operation in Vietnam, an Enterprise has the right to mortgage [and/or] pledge its assets in accordance with the provisions of law.

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>> Article 17.

1. In cases where an Enterprise leases land in order to implement an investment project or where the Vietnamese party contributes its capital in the form of the value of land use rights, the land rent, or the amount of debt acknowledged as being owed to the State in cases where the Vietnamese party contributes its capital in the form of the value of land use rights, will be calculated from when the Enterprise is granted the right to use land under a land lease contract.
2. The People's Committee at the Provincial Level of the locality where an investment project is located shall determine the costs for compensation and site clearance in accordance with the regulations of the Ministry of Finance and is responsible for organizing the compensation and site clearance.

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>> Article 18.

1. The Government guarantees its support by building technical infrastructure facilities up to the fences of [the sites] of enterprises with foreign investment capital or of Industrial Zones. In necessary circumstances, enterprises that build and operate technical infrastructure facilities may agree with an enterprise engaging in the development of infrastructure in Industrial Zones or an enterprise with foreign investment capital on capital advances or on other methods in order to build technical infrastructure facilities.
2. In addition to sub-leasing land to enterprises for the enterprises' construction, enterprises engaging in the development of infrastructure in Industrial Zones may permit domestic and foreign enterprises to sub-lease land which has not been leased so that these enterprises may [in turn] sub-lease such land to other enterprises.

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CHAPTER IV
STATE MANAGEMENT OVER ACTIVITIES OF ENTERPRISES

>> Article 19.

1. Ministries, authorities directly under the Government and People's Committees at the Provincial Level shall perform State management over foreign investment in accordance with the provisions of law, and shall redress and strengthen the regime on co-ordination in the management of enterprises.
2. People's Committees at the Provincial Level are responsible for handling, in a timely manner, matters within their authority and guiding Enterprises to operate in strict accordance with the stipulations in [their] Investment Licenses and the provisions of law.
3. The Ministry of Planning and Investment shall compile and supply information on the status of investment to the relevant ministries, authorities directly under the Government and People's Committees at the Provincial Level and shall periodically meet with the Ministries of Finance and Trade, State Bank, General Cadastral Department, General Department of Customs and the relevant People's Committees at the Provincial Level in order to handle, in a timely manner, matters that have arisen, resolve petitions of Enterprises and propose policies and measures to improve the investment environment.

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>> Article 20.

1. An inspection of an Enterprise's activities is for the purposes of assisting the Enterprise to overcome difficulties, to solve problems that have arisen and to strictly comply with the stipulations of [their] Investment Licenses and the provisions of law. The inspection must strictly comply with the following provisions:
   • - People's Committees at the Provincial Level or Management Boards of Industrial Zones at the Provincial Level (for Enterprises in Industrial Zones) shall formulate plans and preside over the organization of periodic inspections in order to evaluate the status of implementation of stipulations of Investment Licenses and to evaluate the efficiency of the Enterprise's operation.
   • - Ministries and authorities directly under the Government shall formulate plans and preside over the organization of periodic branch-specific inspections in order to evaluate the status of implementing provisions of law pertinent to the field controlled [by them] within their [respective] authority.
   • - Competent State authorities shall organize extemporaneous inspections when an Enterprise has manifested signs of violation of law or when there is an incident [occurred to it].
2. The inspection authority is responsible for notifying the People's Committee at the Provincial Level or Industrial Zone Management Board at the Provincial Level where the Enterprise is located, of the inspection plan and its content in advance.
   • Periodic and branch-specific inspections shall not be conducted more than once per year in respect of an Enterprise.
3. The authorities that conduct periodic and branch-specific inspections are responsible for notifying the [concerned] Enterprise of the inspection plan and its content at least 7 (seven) working days prior to conducting the inspection. The duration of an inspection at an Enterprise shall not exceed 5 (five) working days; in the event that a longer inspection period is required, the inspection authority must notify the [relevant] People's Committee at the Provincial Level or the Industrial Zone Management Board at the Provincial Level.
• Inspection operations which are arbitrary, not in accordance with the law or take advantage of the inspection to cause trouble to an Enterprise shall be handled in accordance with the provisions of law. An Enterprise shall have the right to lodge a complaint regarding the inspection if [it] considers the inspection to be inconsistent with the provisions of law.
4. Within a time limit of 30 (thirty) days from the completion of the inspection, the [concerned] inspection authority shall submit a report on the inspection results to the Ministry of Planning and Investment and relevant authorities.

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CHAPTER V
IMPLEMENTING PROVISIONS

>> Article 21.

1. This Decree shall take effect after fifteen (15) days as from the date it is signed.
2. In the event that there are inconsistent provisions between this Decree and other decrees of the Government in relation to foreign investment that have been promulgated before the date on which this Decree takes effect, the provisions of this Decree shall prevail.
3. Regulations of ministries, authorities directly under the Government and People's Committees at the Provincial Level that are inconsistent with the provisions of this Decree are all repealed.

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>> Article 22.

Ministers, heads of ministerial-level authorities and authorities directly under the Government and chairmen of People's Committees of provinces and cities directly under the Central Authority are responsible for providing guidelines and implementing this Decree.

• Recipients:
• - Standing Committee of the Politbureau;
• - Prime Minister and Deputy Prime Ministers;
• - Ministries, Ministerial-Level Authorities and Authorities Directly Under the Government;
• - People's Councils and Committees of Provinces and Cities Directly Under the Central Authority;
• - Office of the National Assembly;
• - Office of the President of State;
• - Central Office of and Commissions of the Party;
• - People's Supreme Institute of Public Prosecutions;
• - People's Supreme Court;
• - Central Bodies of Mass Associations;
• - Gazette;
• - Office of the Government: Minister and Chairman, Vice Chairmen, Instrumentalities and Departments
• - Archived at: International Relations (5) and records.

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Appendix I

I. LIST OF PROJECTS FOR WHICH
INVESTMENT IS ESPECIALLY ENCOURAGED

------- oOo -------

1. Projects that export 100% of their products;
2. Projects that produce new types of strains or hybrids of high quality that meet international standards and achieve high economic efficiency;
3. Projects that process agricultural, forestry and aquatic products for export from domestic raw materials with high added value and use much labor;
4. Projects that fall under the List of Fields In Respect of Which Investment Is Encouraged in geographical areas in which investment is encouraged;
5. Projects that produce new materials or rare and precious materials; projects that apply new biological technology; electronic technology; new technology for the manufacturing of communications and telecommunications equipment; [or] informatics technology;
6. Export processing enterprises and high technology industrial enterprises in industrial zones, export processing zones and high technology zones;
7. Projects for treatment of pollution and environmental protection, [or] for treatment and processing of waste
8. Investment projects under BOT, BTO and BT contracts.

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II. LIST OF PROJECTS FOR WHICH
INVESTMENT IS ENCOURAGED

------- oOo -------

>> Agricultural, Forestry and Fishing Sectors:

• Processing of agricultural, forestry and aquatic products for export;
• Technology for the preservation of food, [or] for the post-harvest preservation of agricultural products; and application of biological technology and measures in agriculture, forestry and fishery;
• Production of ingredients for pesticides that have high efficacy and are safe for human beings, domesticated animals and the environment;
• Manufacture of agricultural equipment, spare parts and machinery
• Projects that employ much labor and efficiently utilize natural resources available in Vietnam.

>> Industrial Sector:

• Extensive exploration, exploitation and processing of minerals;
• Development of the petrochemical industry;
• Production of high-quality steel, alloy, color metal, special metal, billet and sponge iron for industrial uses.
• Manufacture of apparatuses for processing metal;
• Manufacture of spare parts for automobiles and motorbikes; manufacture and assembly of equipment and motorized vehicles for construction work;
• Manufacture of assortments of diesel engines with advanced engineering and technology; manufacture of machinery and spare parts for the motive and hydraulic power industries and for compressing machines;
• Ship building; manufacture of equipment and spare parts for cargo ships and fishing vessels;
• Manufacture of equipment and assemblies for oil and gas exploitation and energy mines; manufacture of large-size lifting equipment;
• Manufacture of precision mechanical equipment; production of moulds;
• Manufacture of equipment for treatment of waste water;
• Manufacture of devices for mid and high electrical voltages;
• Production of basic chemicals, purified chemicals, dyes and chemicals for specific uses;
• Production of special types of cement, composite materials, sound-proof materials, electricity-proof materials, heat insulation materials and synthetic materials to substitute wood;
• Production of silk, fibres of various types and textiles for export, and special fabric for industrial uses;
• Production of high quality raw materials for production of footwear and garments for export;
• Production of high quality packages for servicing goods for export;
• Production of raw materials for medicines; and
• Production of medicines meeting the international GMP standards; and production of new pharmaceuticals using biotechnology.

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III. LIST OF THE FIELDS IN RESPECT OF WHICH
INVESTMENT IS SUBJECT TO CONDITIONS

------- oOo -------

>> Investment in the Joint Venture Enterprise or Business Co-operation Form:

• Build and operate internllational telecommunication networks and local telecommunication networks (only in the form of business co-operation contracts);
• Exploit and process oil and gas and precious and rare minerals;
• Build and operate infrastructure in industrial zones, export processing zones and high technology zones;
• Construction business;
• Air, railway and sea transport; public passenger transportation; construction of seaports and airports (BOT, BTO and BT projects are subject to separate regulations);
• Production of cement, steel and iron;
• Production of industrial explosives;
• Afforestation and planting of perennial industrial crops;
• Tourist trips; and
• Culture, sports and entertainment.

>> Products In Respect of Which an Export Proportion of at Least 80% Must Be Ensured:

Industrial products in respect of which the domestic production has adequately satisfied the requirements on quantity and quality, which are announced by the Ministry of Planning and Investment from time to time.

>> Fields In Respect of Which Investment Must Be Coupled With the Development of a Source of Raw Materials:

• Milk production land processing;
• Production of vegetable oil and cane sugar; and
• Wood processing.

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IV. LIST OF THE FIELDS IN RESPECT OF WHICH
INVESTMENT LICENSES WILL NOT BE ISSUED

------- oOo -------

1. Projects that cause harm to national security [and] defence and the public interests;
2. Projects that cause detriment to the historical and cultural vestiges and good customs and tradition of Vietnam;
3. Projects that cause damage to the ecological environment; projects for treatment of toxic wastes imported from foreign countries to Vietnam; and
4. Projects that produce toxic chemicals or use toxic agents which are prohibited under international treaties.

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V. LIST OF GEOGRAPHICAL AREAS
IN WHICH INVESTMENT IS ENCOURAGED

------- oOo -------

A. MOUNTAINOUS, OUTLYING AND REMOTE REGIONS I. NORTHERN MOUNTAINOUS AND MIDLAND AREAS Ha Giang; Tuyen Quang; Cao Bang; Lang Son; Lai Chau; Lao Cai; Son La; Yen Bai; Bac Can; Thai Nguyen; Hoa Binh; Quang Ninh: Ba Che, Binh Lieu, Quang, Ha, Hoanh Bo, Cam Pha, Tien Yen, Dong Trieu and Hai Ninh Districts; Phu Tho; and Bac Giang. II. RED RIVER DELTA Hai Duong: Chi Linh District; and Ninh Binh: Nho Quan, Yen Mo and Gia Vien Districts. III. FORMER FOURTH ZONE Thanh Hoa: Lang Chanh, Thuong Xuan, Quan Hoa, Ba Thuoc, Ngoc Lac, Nhu Xuan, Cam Thuy and Thach Thanh Districts; Nghe An: Ky Son, Tuong Duong, Con Cuong, Quy Chau, Que Phong, Quy Hop, Nghia Dan, Anh Son, Tan Ky and Thanh Chuong Districts; Ha Tinh; Quang Binh: except Dong Hoi Township; Quang Tri: except Dong Ha Township; and Thua Thien-Hue: except Hue City. IV. CENTRAL COASTAL AREAS Quang Nam: except Tam Ky Township; Quang Ngai: except Quang Ngai Township; Binh Dinh: except Quy Nhon Township; Phu Yen: except Tuy Hoa Township; Khanh Hoa: Khanh Son and Khan Vinh Districts; Binh Thuan: except Phan Thiet Township; and Ninh Thuan: except Phan Rang Township. V. WESTERN HIGHLAND AREA Gia Lai; Kon Tum; Dac Lac; and Lam Dong. VI. EASTERN AREAS IN THE SOUTH Binh Phuoc; and Dong Nai: Tan Phu, Xuan Loc and Dinh Quan Districts. VII. MEKONG RIVER DELTA Long An: except Long An Township; Dong Thap; Tien Giang: except My Tho City; An Giang; Vinh Long; Ben Tre; Tra Vinh; Kien Giang; Can Tho: except Can Tho City; Soc Trang; Bac Lieu; and Ca Mau.

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B. AREAS WITH DIFFICULT SOCIO-ECONOMIC CONDITIONS (except the districts already specified in Part A) I. MOUNTAINOUS AND MIDLAND AREAS IN THE NORTH Quang Ninh: except Ha Long City, Cam Pha, Uong Bi and Mong Cai townships and the districts included in Part A; Vinh Phuc: except Vinh Phuc Township and the districts included in Part A; and Bac Ninh: Que Vo and Yen Phong Districts. II. RED RIVER DELTA Hanoi City: Soc Son District; Hai Phong: Vinh Bao and Tien Lang Districts; Ha Tay: Ba Vi, My Duc, Phuc Tho, Quoc Oai, Thach That and Ung Hoa Districts; Hung Yen; Hai Duong: except Hai Duong Township; Thai Binh; Ha Nam; Nam Dinh; and Ninh Binh: except Ninh Binh Township and the districts included in Part A. III. FORMER FOURTH ZONE Thanh Hoa: except Thanh Hoa City, Sam Son and Bim Son Townships and the districts included in Part A; Nghe An: except Vinh City and the districts included in Part A; Ha Tinh: except Ha Tinh Township and the districts included in Part A; Quang Binh: except Dong Hoi Township; Quang Tri: except Dong Ha Township; and Thua Thien-Hue: except Hue City. IV. CENTRAL COASTAL AREAS Da Nang City: Hai Chau and Son Tra Districts; Quang Nam: except Tam Ky Township; Quang Ngai: except Quang Ngai Township; Binh Dinh: except Quy Nhon City; Phu Yen: except Tuy Hoa Township; Khanh Hoa: except Nha Trang City and districts included in Part A; Ninh Thuan: except Phan Rang Township; and Binh Thuan: except Phan Thiet Township. V. WESTERN HIGHLAND AREAS Except the provinces included in Part A. VI. EASTERN AREAS IN THE SOUTH Ho Chi Minh City: Can Gio and Cu Chi Districts; Binh Duong: Ben Cat and Tan Uyen Districts; Tay Ninh: except Tay Ninh Township; and Ba Ria-Vung Tau: Long Dat and Xuyen Moc Districts. VII. MEKONG RIVER DELTA Long An: except Tan An Township; Tien Giang: except My Tho Township; and Can Tho: except Can Tho City.

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Appendix II

A. LIST OF MACHINERY, EQUIPMENT AND MEANS OF CARRIAGE WHICH ARE EXEMPT FROM IMPORT DUTY TO FORM FIXED ASSETS OF ENTERPRISES WITH FOREIGN INVESTMENT CAPITAL AND PARTIES TO BUSINESS CO-OPERATION CONTRACTS >> Main Machinery and Equipment in Lines of Technology Shall Include: Machinery and equipment for production; accompanying materials, parts and detached components for the installation of equipment systems; moulds accompanying equipment, machinery and apparatuses for production, etc., in order to complete the activity of manufacturing the products set forth in the Investment License. >> Support Machinery and Equipment in Lines of Technology Shall Include: Power system: all equipment, machinery and materials for complete installation of power supply systems. Water supply and drainage systems: all equipment, machinery, materials, pipelines, etc., for complete installation of water supply and drainage systems and waste water treatment systems. Lighting system: all equipment, machinery and materials for complete installation of lighting systems. Air conditioning and ventilation systems for production areas. Apparatuses and equipment for laboratories. Devices and equipment for fire fighting and prevention, anti-lightning devices and equipment and labor safety gear and equipment. Communication systems. Machinery and equipment necessary for the design of products or management of production. >> Means of Carriage for Specific Use Which Are Parts of Lines of Technology Shall Include: Means of carriage specifically used for the production activities set forth in the Investment License. Means of carriage for the transport of raw materials and products in the lines of technology.

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B. LIST OF GROUPS OF FURNISHINGS AND EQUIPMENT WHICH MAY BE IMPORTED DUTY FREE FOR ONE TIME BY ENTERPRISES IN [THE FIELDS OF] HOTELS, OFFICE SPACES AND APARTMENTS FOR LEASE, RESIDENTIAL HOUSES, COMMERCIAL CENTERS, TECHNICAL SERVICES, SUPERMARKETS, GOLF COURSES, TOURIST AREAS, SPORTS ARENAS, AMUSEMENT AND ENTERTAINMENT PARKS, FACILITIES FOR MEDICAL EXAMINATION AND TREATMENT OF DISEASES, TRAINING, CULTURE, FINANCE, BANKING, INSURANCE, AUDITING AND CONSULTANCY SERVICES Office furnishings and equipment (computers, printers, facsimile machines, telexes, photocopiers, desks, chairs, filing cabinets, etc.). Furnishings and equipment for reception rooms (tables, chairs, carpet, decorations articles, etc.). Furnishings and equipment for kitchens, dining rooms, restaurants, bars (assortments of stoves, microwave ovens, smoke ventilators, deodorizers, kitchen utensils, glasses, plates, cups, etc.). Furnishings and equipment for hotel rooms and for interior decoration (beds, wardrobes, tables, chairs, televisions, refrigerators, telephones, paintings, statuettes, carpet, etc.). Audio-visual equipment (cassette players, amplifiers, speakers, video cassette recorders, microphones, etc.). Sanitary ware (bathtubs, toilet bowls, washbasins, materials for installation of sanitary systems, mirrors, etc.). Assortments of water supply systems (water pumps, filtering machines, water meters, steam boilers, etc.). Air-conditioning and ventilation systems (central or local air-conditioning and corresponding materials and spare parts). Fire prevention and fighting systems. Electrical and lighting systems (assortments of lamps and lights, etc.). Systems for treatment of garbage and waste water. Communication systems. Transport systems (elevators, electric vehicles and assortments of dollies). Laundry and ironing systems. Security systems. Furnishings and equipment for exercise and fitness rooms, swimming pools, tennis courts, hairdressing salons, dance halls, karaoke parlours, entertainment centres and physiotherapy centres. Machinery and equipment for taking care of grass (cutting grass, spraying insecticides, etc.). Water sprinkler, irrigation and drainage systems. Golf equipment (gloves, golf clubs, golf balls, etc.). Machinery, equipment and furnishings for sports and entertainment areas. Medical machinery, equipment and apparatuses and laboratory implements. Equipment and furnishings for teaching and educational purposes (including tables, chairs, boards, teaching aids, testing instruments, etc.). Spare parts of various types accompanying the above machinery, equipment and furnishings. Machinery, equipment and furnishings specifically for banks [and] financial institutions (including safes, computers of various types, currency note counting machines, counterfeit note checking machines, communication systems, security equipment and trucks for transporting money4.)

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(FOOTNOTE) The Vietnamese text does not include the word "and".  The English word "and" is added here and elsewhere throughout the translation to conform with English language convention The Vietnamese version uses a comma (,) here. In Vietnamese, the comma may be conjunctive or disjunctive, but in this context it is interpreted as "and". Throughout this translation, the same principle is adopted and such commas are translated either as "and", "or" or "and/or" according to the context. "one stop" and "one focal authority" is a slogan that has been used by the Government in recent years to advocate the streamlining of administrative procedures and elimination of red tape and bureaucracy. The Vietnamese words here may also be translated as "money carts".