On the morning of June 27, the National Assembly voted to pass the National Assembly Resolution on piloting a number of specific mechanisms and policies for the development of Hai Phong City with 447/449 delegates in favor. The Resolution takes effect from July 1.
In the resolution, the National Assembly agreed to establish the Hai Phong Free Trade Zone with a series of specific policies.
According to the National Assembly's resolution, the Free Trade Zone is an area with determined geographical boundaries, established to pilot outstanding and breakthrough specific mechanisms and policies.
The National Assembly's Resolution clearly states that the Hai Phong City Free Trade Zone will be decided by the City People's Committee to establish and adjust the boundary associated with Dinh Vu - Cat Hai Economic Zone and the Southern Coastal Economic Zone of Hai Phong.
According to the recently passed resolution, Hai Phong Free Trade Zone will enjoy a series of preferential policies on administrative procedures, land rental, water surface and tax incentives...
Enterprises investing in new investment projects, expanding in priority areas (R&D, semiconductors, high technology, etc.) in Hai Phong Free Trade Zone will be subject to a tax rate of 10% for 30 years, tax exemption for 4 years and a 50% reduction in taxes payable for the next 9 years.
Income from projects not in priority areas in Hai Phong Free Trade Zone is subject to a tax rate of 10% for 15 years, a 4-year tax exemption and a 50% reduction in taxes payable for the next 9 years, according to the National Assembly's resolution.
Experts, scientists, people with special talents, managers, and highly qualified workers with income from salaries and wages arising from performing work in the Hai Phong Free Trade Zone will also receive a 50% reduction in personal income tax for 10 years.
Investment projects in the Free Trade Zone are exempted from all land and water surface rents for the entire lease term, except for commercial housing construction projects and commercial service land.
Regarding administrative procedures, foreign investors establishing economic organizations in the Hai Phong Free Trade Zone do not have to carry out procedures for granting investment registration certificates before establishing economic organizations.
The National Assembly also agreed to exempt visas and issue temporary residence cards for 10 years to foreigners who are experts, scientists, people with special talents and family members (wives, husbands, children under 18 years old) working at enterprises headquartered in the Hai Phong Free Trade Zone...
The city is allowed to borrow with a total outstanding loan balance not exceeding 120% of the budget revenue received according to decentralization.
Hai Phong also decided to apply fees and charges not included in the list of the Law on Fees and Charges, and adjust the collection rate of fees and charges included in the list.
The city will reclaim land to implement a logistics center project (scale over 50ha) and logistics services (scale up to 50ha) serving seaports and airports.
The city also reclaimed small, narrow plots of land, interspersed in residential areas to create a land fund for auction.
Hai Phong also established a Risk Investment Fund from the budget to invest capital in high-tech enterprises and innovative 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 for profit.
