On mechanisms, policy to attract investment
in socialization in Lam Dong province
(Issued together with Decision No. 26/2008/QD-UBNN dated
July 07, 2008 of the People’s Committee of Lam Dong province)
Article 1. Scope and Subjects for application
1. Scope for application
Socializing fields include: Education and training, vocational training, health, culture, Gymnastics, sports and environment.
2. Subjects for application:
a) Private institutions established and operating according to the state agencies competent in the field of socialization;
b) Organizations and individuals operating in accordance to Business Law, having projects, joint ventures, co-operations or establishments operating in the area of socialization, and having sufficient conditions to operate as regulated by the competent state agencies.
c) The institution of the public service with capital contribution, capital raising, joint ventures under the provisions of law establish the basis of independent accounting or business activities in the areas of socialization under the decisions of the authorized state agencies;
(Hereinafter referred to as socializing institution or institutions/areas that socialize)
3. As for foreign investment projects in the fields of socialization, priority policies as stated in this Decision are implemented based on the recommendation of the Ministry of Planning and Investment, and other concerned ministries.
4. The content which is not defined in this Decision shall apply the provisions of Decree No. 69/2008/ND-CP of the Government on 30.05.2008 concerning the policies to encourage socialization for work in the field of education, vocational training, health, culture, sports, environment (hereinafter referred to as Decree No. 69/2008/ND-CP) and Decision No. 09/2008/QD-UBNN dated 03/20/2008 by the PPC of Lam Dong promulgating regulations on the order, procedures, mechanisms and policies to attract investment in the province of Lam Dong (hereinafter referred to as Decision No. 09/2008/QD-ND).
Article 2. Conditions for entitlement of the policies to encourage socialization
Conditions for socializing institutions to enjoy the policy of encouraging socialization development according to the provisions in this Decision are the institutions belonging to the list of types, size criteria and standards prescribed in Decision by the Prime Minister.
Article 3. Principles in implementing the policy of encouraging socialization
1. Socializing institutions which are founded and licensed should guarantee the planning, and the prescribed criteria in scopes and standards so as to develop education-training, vocational training, health, culture, sports and environment.
2. The State and society respect and equally treat the products and services of socializing institutions.
3. The State is charged with land assignment, cleared land renting to socializing institutions in line with the planning, the land use plans; with the reimbursement-aid policy, land clearing for investment projects in the field of socialization which themselves reimburse or clear the land since this Decision takes effect.
4. The State shall apply the preferential enterprise income tax for the socializing institutions to encourage increased investment in infrastructure, improving service quality.
5. The State shall support policies for social policy beneficiaries as beneficiaries of services provided by socializing institutions. Methods of support are in accordance with the Prime Minister’s Provisions.
6. Socializing institutions can joint-venture, cooperate with domestic and foreign organizations and individuals according to their functions, missions so as to mobilize the capital, labour, and technology; and enhance the service quality.
7. Assets the State supports, donates, or aids in the operation of the institution must not be distributed to individuals, but are just for common use and the benefit of community
8. Socializing institutions are allowed to provide State-funded public services, make an order; bid contracts, projects with domestic and foreign capitals that suit their functions, duties as specified by law.
9. Private institutions of health, health-related enterprises with sufficient conditions for examination and treatment as prescribed by State health management agencies are allowed to organize the examination and treatment for those with health insurance cards and choose their own health institution.
Policy on Encouraging Socialization
Article 4. Renting and building infrastructures
1. Provincial People’s Committee use the availability of houses, infrastructures, or constructs houses, infrastructures for socializing institutions to rent in long terms at incentive prices. The maximum incentive price does not include the land rent, the fee for clearing the site and the interest of housing and infrastructure businesses.
2. Provincial People’s Committee is responsible for facilitating socializing institutions in their investment in the construction of schools, hospitals, amusement centers, museums, libraries, cultural houses, theaters, movies and so on to the planning approved by competent agencies.
Article 5. Renting and allocating land
1. Socializing institutions are handed over or rented the entirely-cleared land by the State so as to build socialized works in the following ways:
a) Handover the land without collecting fee for land use;
b) Rent the land without land fee;
c) Handover the land with collecting land-use fee and land-use fee exemption;
d) Investment projects in the field of socialization on the land of urban area, living land; the socializing institutions are handed over or rented the land, and free from the land-use fee, the land rent during the operation of the project.
2. Socializing institutions handed over by the State the land without land-use fee, or rented the land without land rent, or handed over the land with exemption from land-use fee must not calculate the value of the land in use into their properties value and must not use the land as the mortgage for a loan. The land legally transferred by organizations and individuals can count for the value of the land in use in their properties.
3. For investment programs in socialization that need to clear forest trees for the site, the State will exploit the forest before handing over the land to the investor. In this case, the investor do not have to compensate for the forest loss.
4. The State retrieves the land allocate or rented to socializing institutions in the following situations:
a) Not putting the land into use 12 months since the day being handed over the land
b) Proceeding in land use 12 months slower than the project issued with Investment Certificate;
c) Not using the land as proposed;
d) The time being handed or rented the land is overdue, and the socializing institution no long need for use;
e) Socializing institutions must not transfer the land handed over by the State for the purpose of socialization. If allowed to transfer the land according to authorized state agencies, there must be the warranty that the use of the land after the transfer does not change the purpose of land use for socialization. In this case, the provincial People’s Committee implements the retrieval of the land given to the old investor in order to hand over or rent to the new investor according to the current law on land.
5. The institution is handed over the land with land-use fee and land-use fee exemption, but the institution desires to implement in the way of handing over the land with land-use fee or renting the land paying the rent for the whole rental time to carry out the investment project (no implementing exemption from land-use fee), the institution can implement the process according to the current regulations on collection of land-use fees or rent paid for the whole rental time and and deducted the cost of land compensation, advanced support (if any)to land use fee, land rent to be paid.
In this case, the institution can calculate the value of land use in the property value of the investment project and have the rights and obligations as economic organizations allocated land by the State with collection of land use fee according to the regulations of law on land.
6. In the case two or more investors are signing up with a location chosen for the implementation of investment projects in the area of socialization, the selection of investors by means of bidding to select the project that best meets the criteria of scale, quality and efficiency.
The bidding for selection of the project in socialization is implemented under the guidance of the Ministry of Planning and Investment, Ministry of Natural Resources and Environment, and other concerned ministries and departments.
7. Socializing institutions that use land lawfully are granted the Certificate for land use right, the State protects the lawful land use rights, ownership and property in accordance with the law. The process and procedures of land allocation, land lease; the issue of Certificate of land use shall comply with the provisions of current law on land.
8. For the land legally transferred by organizations and individuals, socializing institutions can count for the value of the land in use in the investment project’s properties and are depreciated capital withdrawal in accordance with the law.
9. The PPC shall plan and regularly review and adjust the construction plan, planning land use, planning sectors, planning residential areas, planning industrial zones, giving priority to set aside land for investment projects in the field of socialization.
Article 6. Infrastructure Policy
1. Provincial People’s Committee use the availability of houses, infrastructures, or constructs houses, infrastructures for socializing institutions to rent in long terms at incentive prices.
a) The time for investors to rent house and infrastructure up to 50 years’
b) Socializing institutions enjoy a discount of 50% of charge for infrastructure use for the cases to pay infrastructure fees.
2. For the properties on the land of the public or semi-public establishments the competent body decides to move into non-public types or other organizations and individuals to invest in public establishments depending on the specific conditions, the State would support the rental for state-owned facilities from 3 to 5 years.
3. Depending on the scale and location of project, the provincial People’s Committee has the policies about the investment to the infrastructure as well as the fence of projects (including the roads, water supply systems, system of electricity) to ensure for project to operate.
Article 7: The policy of the compensation, support of clearing the ground and resettlement:
1. The State hold to clear the ground before allocating for the investors. Most of the cost of the compensation, support of clearing the ground and resettlement payments is paid by the state
2. The provincial People’s Committee encourages the owners to socialize before the funds to pay for the compensation, support of clearing the ground and resettlement to speed up the allocation and the hire of land in the case of the state has not arranged the expense yet. The fund is socialized and then the provincial budget will refund within the period not exceeding five years.
3. When the investors are on account the cost of the compensation, support of clearing the ground and resettlement the social projects according to the plan which has been approved by the authority before the date of Decree No. 69/2008/ND-CP has the effect, the cost of the compensation, support of clearing the ground and resettlement to the area of land for social activities will be refunded by the budget of the state within five years.
4. Developmental Center of Provincial Land, Developmental Center of District Land (if any) and the other organizations which are chosen to carry out clearing the ground have the duty to implement the compensation, support of clearing the ground from the fund of the budget.
Article 8: The fees of registration, the value-added tax, the tax of export, the tax of import:
1. The areas which are socialized have the exemption of fees when registered the right of using the land, the right of owning of assets attaching to the land and are exempted from fees and other charges relating the right of using the land, the right of owning of assets attaching to the land.
2. The areas which are socialized have the preference about value-added tax, the tax of export, the tax of import according to the current regulations.
Article 9: On the application of the income tax of the companies:
The socialized areas have the income from social activities are applied the income tax of 10% during the operation.
1.The socialized areas are founded from the Decree No. 69/2008/ND-CP have the effect of the exemption of income tax of the companies in 4 years from implementing the income tax and the reduction of 50% of the income tax of the companies in the next five years.
2. The socialized areas are founded from the Decree No. 69/2008/ND-CP have the effect in the areas of investment incentives according to the stipulation in Appendix B and Decree No. 1008/2006/ND-CP on September, 22nd, 2006 of the government. These areas will be exempted from the income tax of companies in four years from the implementing tax income and reduced the 50% of the income tax of companies in next 9 years and applied the income tax of 10% during operation.
3. The socialized areas are founded before the Decree No. 69/2008/ND-CP have the effect in implementing. They have the preference of income tax of companies according to the principle: The time of preferences in accordance with previous stipulation is defined; they may be entitled to the tax of 10% from the Decree No. 69/2008/ND-CP which is affected. The time of previous preferences is still continuing, they have the incentives according to the stipulation in Decree No. 69/2008/ND-CP after subtracting the time they have the preference before.
4. The socialized areas which have many different types of business have to account the income from social activities to have the income tax of companies in Decree No. 69/2008/ND-CP. The socialized areas which have the income from other activities outside the scope of this Decision have the rate of tax according to the rules of law.
Article 10: The preferential policies for the credit:
1. The socialized areas of the scope and objects in Article 1, Article 2 of this Decision are applied the highest level of the preferential policies according to the Decree No. 151/2006/ND-CP on December 20th, 2006 of the Government's about the credit of investment, the credit of export and the support after the investment of the State.
2. In the hospital projects, to the investments about the garbage, the system of handling the garbage according to the approved projects: The Investors may borrow the credit of state with the rate of interest to the projects that borrow from the Fund for protection environment in Vietnam.
Article 11: Raising capital
The socialized areas are allowed to raise capital in the form of buying stock, the capital from employees in the unit and other capitals through the cooperation and partnership with enterprises, economic organizations, the financial institutions, domestic and foreign individuals to invest in building infrastructure.
Article 12: The Policies of Training
1.The socialized areas which hold to train the jobs are supported for the cost of training by the province support under the Decision No. 87/2004/QD-UBNN on August 15th, 2004 of the People’s Committee of Lam Dong province about promulgating the regulations to support businesses and cooperatives in Lam Dong province to train for workers.
If the employees who are the beneficiary of social welfare are supported the cost of training according to No. 448/QD-UBNN on February, 19th, 2008 of provincial People’s Committee about approving the project on supporting of training jobs for rural workers, the disabled and other beneficiary of social welfare in the Lam Dong province from 2008 to 2010.
Provincial budget supports 50% for training and retraining for the staff for the office about the field of the socialization.
Article 13. Social Insurance, Health Insurance
The employees of the socialized areas have the mode of social insurance and health insurance under the regulations of the state.
Article 14. Reward
1. Collectives and workers in the socialized areas that have the outstanding achievements are rewarded by the state according to the rules of law.
2. The individuals and collectives who have the contributions to the social activities recognized, encouraged and rewarded by the state according to the rules of law.
Article 15. Dealing with the property after the transformation of activities
1. For the land: the basis of public or semi-public has the right to decide to move into non-public or the enterprises are allocated land by the state for the base of operations. The lands which don’t use or the usage is improper shall be returned to the state.
2. For the properties on the land: the assets which invested from the budget of state or had the origin from the budget of state are inventoried and re-evaluated according the rules and let the non-public basic hire or purchase.
The offices which decide to move public and semi-public establishments into non-public establishments may sell and rent the property owning of the state for non-public basics in accordance with the rules of the current assets.
3. When the semi-public establishments of public establishments which have the right to decide to move into public establishments have to conduct the inventory and valuation of assets according to the rules to supervise and manage under the management of current assets.
The assets from raising capital outside the budget of state to buy something, construct in the process of operation of the semi-public establishments as follows:
a) If the contributors of capital want to get back the assets, the assets will be returned to them.
b) When the public establishments receive and want to use and agree to receive the assets, the council of valuation will determine to have the basis for the contributors of capital;
c) When public establishments do not have the need to use the assets and the contributors of capital do not want to receive, the assets will be sold to return to the contributors of capital.
4. When public establishments converted into private basis, the assets which are accumulated from the performance of public establishments are owned collectively, are identified and transferred to private basis and use of the principle of conservation and development, are not divided by individual and are protected by state according to the rules of law.
Article 16. A number of other policies
1. For the projects to build the kindergarten and high school, schools in the area of the communes which have the economic and social difficulties. Lam Dong province will support the tuition for students who are exempted and reduced fees include the ethnic minorities, poor children, difficult families etc. In addition, the investors are exempted or reduced taxes to invest more services of teaching and learning of the school such as organizing day-broader, cooking in schools, stationery services, books and equipments for teaching and learning, activities and entertainments for teachers and students.
2. The public health basis cooperate with other economic sectors to invest in the construction, purchase of equipment to improve facilities for the treatment of the people.
3. The State encourages the people who have the right to use their land lands to contribute the capital to build factories, infrastructures aim to sale or give organizations and individuals who hire to operate in socialized fields. The projects of construction also have the privileges of this provision.
Revenues and distribution of financial results.
Article 17. Revenues of the socialized areas.
1. The Revenues of fees.
The socialized areas have the right to decide the rate to cover the necessary expenses for the operation and accumulation for the investment and development.
2. Revenues from the provision of goods and other services.
3. The Profit from dividing the operation of joint venture; the interest from bank and the bonds.
4. The Fund is provided by the budget of state (if any) including:
a) The Fund implements the duties which are ordered by the state;
b) The Fund supports the implementation of the research of science and technology;
c) The Fund for the implementation of national target;
d) The Fund for the training of the employees;
đ) The financial assistance, the support of interest;
e) Other funds;
5. Other funds: aid, sponsor, presents
Article 18. Distribution of the financial results of the institutions that socialize
1. Based on the results of annual financial activities, income of the institutions that socialize, after covering all expenses, interest payments, and full payment to the State budget as prescribed by law, it is distributed to appropriate funds and profits for the joint partners.
2. For non-public institutions, established under the Law on Enterprises operating in the areas of socialization: the appropriation of funds, the income paid to employees and dividends to members who have capital contribution is set up by the Board (or school councils) or the head (for facilities without Board) of non-public facilities, facilities for socialization was established under the Enterprise Law to decide appropriately with the Charter on organization and operation of facilities (for non-public facilities), the Law on Enterprises (for the socialized institutions which were established under the Enterprise Law).
Order, Investment-Calling Procedures
Article 19. The agreement on locations of investment
1. Authority to agree on investing locations:
The projects invested in social sectors negotiated by the provincial People's Committee of Lam Dong on locations of investment agreement under paragraph 2, Article 2, Section 1, Chapter II of the Decision No. 09/2008/QD-UBND.
2. Time and settlement processes:
a) Time limit for agreement on locations of investment is no more than 12 working days
b) Procedure for settlement:
-Department of Planning and Investment Services will receive dossiers will evaluate and hand in documents for the PPC: 08 days;
-Provincial People's Committee’s time for consideration and approval: 03 days;
-Department of Planning and Investment and return results to the investors: 01 days.
Article 20. Verification of investment certificates
1. The investment projects have conditions included in social areas must be verified to meet the project's investment conditions to get the certificates used in Article 8, 9, 10 and 12, paragraph 2 of Decision 09/2008/QD-UBND on procedures, records verifying the granting of investment certificates.
2. Time and settlement processes:
a) The time for granting investment certificates of projects in the field of socialization is for 28 working days for the institutions that have to verify the explanations of the project conditions.
b) Procedure for settlement:
The agency consulted on written examination documents: 10 days;
-Department of Planning and Investment report to the province: 10 days;
-The remaining processes operated following Decision No. 09/2008/QD-UBND.
3. The establishment of non-public facilities can be done when investors are granted investment certificates. Dossiers, order and procedures and criteria established in scope, institutions operating under the current regulations of the professional management of the socialized sector.
Article 21. Evaluation of institutions design
Before approving investment projects in the field of socialization, the investor must submit the State agencies with competent to evaluate basic specific designs
1. For Group A projects:
-Ministry of Construction will evaluate basic designs of investment projects for construction of civil works for Group A projects in the field of socialization.
-Time evaluation of the basic design does not exceed 30 days (as prescribed in Clause 8, Article 9, Chapter II of Decree No. 16/2005/ND-CP dated 07/02/2005 of the Government on managing construction works).
2. For projects in groups B, C:
-Department of Construction is responsible for evaluating the basic design of the project construction of civil works in the field of socialization for group projects.
-Department of Construction will organize the evaluation of basic designs, will have a written opinion of the management of major projects and related agencies or organizations to verify the basic design.
-Time evaluation of the basic design does not exceed 12 working days for groups B and project no more than 7 working days for projects of group C.
3. The contents of the basic design: To comply with the provisions in Article 7, Chapter II of Decree No. 16/2005/ND-CP dated 07/02/2005 of the Government on management of investment projects on construction.
Article 22. Report on environmental impact assessment
1. Time and resolution process to report on environmental impact assessment:
a) Time for reporting on environmental impact assessment of investment projects in social areas is no more than 35 days.
b) Procedure for resolution:
-Department of Natural Resources-Environment receive records, will evaluate and give the documents to the PPC: 30 days;
-Provincial People's Committee’s consideration and approval: 05 days.
2. Time and settlement processes of additional evaluation reports on environmental impact:
a) Evaluation time for additional reports on environmental impact assessment of the investment in social areas is no more than 25 days.
b) Procedure for resolution:
-Department of Natural Resources-Environment receive records, will evaluate and give documents to the PPC: 20 days;
-Provincial People's Committee’s consideration and approval: 05 days.
Article 23: Renting and Handover of land
1. For cases not subjected to the clearance:
a) For investment projects in social areas, time limit for paper work process is not more than 15 working days after receiving complete and valid dossiers.
b) Procedure for settlement:
-Department of Natural Resources and Environment, after receiving dossiers, evaluates and prepare report for the Provincial People’s Committee: 12 days;
-Provincial People's Committee consider on approval: 02 days;
-Department of Natural Resources and Environment send result to investors: 01 days.
2. For cases not subjected to clearance: Following the provisions in Article 22 of Decision No. 09/2008/QD-UBND and Decision No. 15/2008/QD-UBND of Lam Dong Provincial People’s Committee on 05/05/2008 on the issuance of regulations on compensation, support and resettlement when the Government retrieve land in the province.
Assignment of Responsibilities
Article 24. Departments of Education and Training, of Health Care Services, of Culture, Sports and Tourism, and of Labour, Invalids and Social Affairs.
Leading and coordinating with the Department of Planning and Investment and People's Committees to review and construct master plan of developing in 2015 with a vision to 2020 within the management scope of their industries. The plans must specify the essential areas to promote socialization, the targets to be achieved, implementation schedule, manpower requirements, equipment, funding, location, land use;
Perform the Governmental management function in implementation of socializing professional management.
Article 25. Department of Planning and Investment
a) Consulting the Provincial People's Committee on reporting to the People’s Council about decision on the mechanism and funds for investing in building infrastructure for the project of socialization;
b) Conducting evaluation master plan for the industry professionals in 2015 to 2020 and 2020 vision to show the Provincial People’s |Committee;
c) Disclosure of the social needs of each industry, each locality in each year; coordinating with the Centre of Promoting Investment, Trade and Tourism to attract investment in the area of socialization.
Article 26. Department of Natural Resources and Environment
a) To lead in appraising environmental impact assessment reports and additional environmental impact assessment reports;
b) To coordinate with the planning and announcing of professional and public institutions on locations and the amount of land will be used in socialization activities.
Article 27. Department of Finance
Lead and coordinate with the Department of Planning and Investment and related branches, every year, the PPC proposed to the Council to allocate funding of reciprocal compensation, land clearance, resettlement support for the land for social works from the sources of land-use, retained lottery revenues and local budgets.
Article 28. Department of Construction
To evaluate the basic designs of investment projects for civil construction in the field of socialization, for projects of Groups B and C.
Article 29. Provincial Land Fund Development Center, the Land Fund Development Center of district (if any) and other selected institutions are in charge of compensation and site clearance
To organize the implementation of compensation, support clearance and resettlement for the project in the field of socialization with funds allocated from the guarantee budget.
Article 30. People's Committees of Bao Loc district and Dalat city
a) Coordinating with Departments of professional industry management to construct master plan of development and defining socialization tasks;
b) Coordinating with the Department of Natural Resources and Environment to plan on land use in socialization activities;
c) Disclosure of social needs, attraction mechanism of socialization investment, processes, procedures, and the process of handling the dossier in the areas of socialization;
d) Performing Governmental functions to the institutions implementing socialization.