- Based on Investment Law;

- Pursuant to Decree N⁰ 108/2006/NĐ-CP dated September 22, 2006 of the Government on detailing and guiding the implementation of some Articles in Investment Law;

- Pursuant to Decree N⁰ 69/2008/NĐ-CP dated May 30, 2008 of the Government on policy on socialization encouragement for the operations in the domain of education, vocational training, health, culture, sport and environment;

- Having considered the proposal of Planning and Investment Department by the written request N⁰ 660/KHĐT-VX on March 31, 2008,

Article 1: To promulgate in conjunction with this Decision the Regulations on Policies on investment encouragement in some socialized domains in Lam Dong Province.

Article II: This decision comes into force 10 days later from the day it is signed

The Chief of the Provincial People’s Committee Secretariat, Directors of Departments and branches directly under the province, Chairpersons of People’s Committee of Districts, Bao Loc town and Dalat City; Managers of organizations, units and individuals concerned take responsibility to carry out this Decision.  

 

 

1.      Scope to be applied

The domains in which the socialization is applied are: education – training, vocational training, health, culture, gymnastics, sport and environment.

2.      Subject to be applied:

a)   Private establishments which are set up and meet all requirements to operate according to the regulations of the competent authorities in the socialized domains;

b)   Organizations, individual business run operation according to Business Law and have investment or joint-venture projects or set up establishment which runs in the socialized domains in accordance to regulations of state competent authorities;

c)   Public establishments which make the financial contribution mobilize capital and incorporate as prescribed by law to set up the establishment which enters in the accounts independently or enterprises which operate in the socialized domains in conformity with the appropriate authorities.

3.As regards foreign projects which invest in socialized fields will get the preferential policies according to this Decision and decision of the Prime Minister on the basis of the proposal of Ministry of planning and investment, ministries and branches concerned.

4.All the contents which are not mentioned in this Decision will be carried out according to Decree N⁰: 69/2008/NĐ-CP dated May 30, 2008 of the Government on policies on socialization encouragement for the domains related to education, vocational training, health, culture, sport and environment (hereafter called Decree N⁰: 69/2008/NĐ-CP) and Decision N⁰: 09/2008/QĐ-UBND dated March 20, 2008 of Lam Dong People’s Committee on promulgating the regulations on the orders, procedures and polices on investment encouragement in Lam Dong (hereafter called Decision N⁰: 09/2008/QĐ-UBND).

The socialized establishment only could enjoy the policies on socialization encouragement when it satisfies the requirement of this Decision, it should be in the list of form, size and standard according to the Decision the Prime Minister.

1.Socialized establishment which is set up and granted business certificate should meet all requirements on plan and criteria about size and standards as prescribed by law in order to develop the career of education-training, vocational training, health, culture, sport and environment.

2.The State and society will highly appreciate and equally treat the products and services of the socialized establishment.

3.The State has to allocate and lease land of which the premises are already cleared to the socialized establishment according to the plan and program to use land; to promulgate the policy on support of compensation and premises clearance expenses for the projects which invested in socialization and carried out the compensation and premises clearance from the day this Decision comes into force.

4.The State will apply the preferential rate of business income tax to socialized establishment in order to encourage investment, intensify material facilities and improve the quality of service.

5.The State implements the policy on support to beneficiaries of social welfare when they enjoy the services provided by socialized establishment. The support mode will be based on the regulations of the Prime Minister.

6.Socialized establishment is entitled to associate with domestic or foreign units and individuals according to its function and task in order to mobilize capital, manpower and technology to improve the quality of services.

7.Unreturnable property supported, donated or provided by the State on the execution of socialized establishment should be not divided up among individuals but should be used for the interest of the establishment and the public.

8.Socialized establishment is entitled to provide public services sponsored or ordered by the State; to make a tender for contracts or projects which use domestic or foreign capital according to its function and operation as prescribed by law.

9.Private health care centers or medical business which answer all condition, examine and treat medically according to the regulations of the state management on health care are entitled to examine and treat medically all the patients who have certificate of health insurance and chosen by these holders of certificate of health insurance.

1.The Provincial People’s Committee use available building and infrastructure or build bases and infrastructures to lease to socialized establishment in long-term at preferential price. The maximum preferential price does not include expenses of land lease, compensation for premises clearance and interest of housing and infrastructure business.

2.The provincial People’s Committee bears responsibility to create favorable condition for socialized establishment to invest in building of school, hospital, entertainment center, museum, library, culture center, theater and cinema, etc. according to the project approved by competent authorities.

1.The state will allocate or lease land to the socialized establishment which finished clearing premises to build socialization works according to the following modes:

a)       Land is allocated without cost of land use;

b)       Land is leased free of rent;

c)       Land is allocated with cost of land use and exempt from cost of land use.

d)       The project invests in socialization domain in the urban or housing area, the land will be allocated or leased without cost of land use and free of rent during the whole execution of the project.

2.When the state allocates land without cost of land use, leases land free of rent or allocates land exempt from cost of land use to the socialized establishment which must not count the value of using land as its assets value or give land as security for loan. Land which is transferred legally from units or individuals will be considered as property.

3.Project which invests in socialization domain should chop down trees in forest for premises clearance; the state will chop down trees before handing over the premises. In this case, the investor is not required to compensate for the forest damage.

4.The state recovers land which is leased or allocated land to socialized establishment in the following cases:

a)      Land is not used after 10 months from the day of land allocation;

b)      The progress of land use is slower than 24 months in comparison with the project of which the Investment Certificate was granted;

c)      Land is used incorrectly;

d)      The socialized establishment does not need to use land after the expiry date;

e)      The socialized establishment fails to transfer the land use purpose of the allocated land in order to carry out the socialization. In case the land use purpose was transferred by state appropriate bodies, it is advisable that this land should be used only for socialization not for other purposes. Otherwise, the provincial People’s Committee will resume allocated land from former investors to allocate or lease to the new ones according to the current law on land.

f)        In case the state allocates land with cost of land use and exempt from cost of land use but the socialized establishment wants to pay for cost of land use or pay for rent once for the whole time of project execution (do not apply regulations on exemption or reduction of land use cost), it is possible to apply the current rules on cost of land use or land rent which will be paid once for the whole time of lease and expenses of land compensations or advance (if any) will be deducted from cost of land use or land rent.

In this case, socialized bodies are entitled to count the value of the right to use land as the value of property and have all rights and obligations as other economic organizations to which the state allocate land with cost of land use in accordance to the current law on land.

g)      In case two investors and more over apply for the same location for the investment project in socialization, the selection of the investor will be based on the tender in order to choose the most suitable investor to criteria on size, quality and effect.

The tender for selection of project in socialization will comply with the instruction of the Ministry of Planning and Investment, Ministry of Resources and Environment, and other ministries and branches concerned.

5.The socialized establishment which uses land legally will have Certificate of the right to use land, the legal right to use land; housing and property ownership will be protected by the state as prescribed by law. The orders and procedures of land allocation, land lease and the issue of the Certificate of the right to use land shall be implemented in accordance to the current law on land.

6.Land which is transferred legally from socialized organizations, individuals or bodies will be counted as property of the investment project and be depreciated to recover investment capital as prescribed by law.

7.The provincial People’s Committee shall make the plan, regularly check and adjust projects in building, land use, residential area and industrial zone. Of which, the projects which invest in socialization will be given preference for land allocation.

1.The provincial People’s Committee uses available land and infrastructure or builds workshop and infrastructure for long-term lease at preferential price to invest and trade in socialization fields.

a)      The maximum duration the investors lease housing and infrastructure is 50 years.

b)       Socialized establishment enjoys 50% deduction of infrastructure use cost in case infrastructure use cost is required.

2. As regards assets on land of public or semi-state owned establishment which is transferred to private establishment by appropriate authorities or organizations and individuals which invest in public establishment will be given support in rent for state owned material facilities from 03 to 05 years depending on specific condition.

3.According to size and location of investment project, the provincial People’s Committee has policy on investment in infrastructure and project fence (such as route, system of water supply, drainage and electrical system) to assure the operation of the project.

1.The state clears the premises before allocating land to investors. All expenses of compensation for and support to premises clearance and resettlement will be paid by the state.

2.The provincial People’s Committee encourages the investors to give advance the compensation for and support to premises clearance and resettlement to hasten the progress of land allocation and lease in case the state has not arranged expense yet. All advances given by the socialized establishment will be paid within five years by the provincial budget.

3.In case the investors gave advance the compensation for and support to premises clearance and resettlement for the socialization projects according to the instruction approved by the competent authorities before the day Decree N⁰ 69/2008/NĐ-CP becomes effective, all compensation for and support to premises clearance and resettlement for the area used for socialization will be given back by the state budget within 05 years.

4.The provincial land extension center or district land extension center (if any) and premises clearance bodies shall carry out the compensation for and support to premises clearance and resettlement for the project in socialization by the state budget.

1.The socialized establishment is entitled the exemption from registration fee while doing the registration of the right to use land and ownership of the assets on land; is exempt from all other fees related to the right to use land and ownership of the assets on land.

2.The socialized establishment is entitled the reference in value-added tax, import-export tax according to the current regulations.

The socialized establishment which has income from socialization activities will be applied tax rate of business income of 10% during the whole operation.

1.The socialized establishment which is newly set up from the day the Decree N⁰ 69/2008/NĐ-CP is valid is entitled the exemption from business income tax during 04 years from the day it has taxable income and the deduction of 50% business income tax in the next 05 years.

2. In case the socialized establishment which is newly set up from the day the Decree N⁰ 69/2008/NĐ-CP is valid in the area which is given the preference in investment according to B appendix promulgated in conjunction with Decree N⁰ 108 / 2006/NĐ-CP  dated September 22, 2006 by the Government is entitled the exemption from business income tax during 04 years from the day it has taxable income and the deduction of 50% business income tax in the next 09 years and is applied tax rate of business income of 10% during the whole operation.

3. In case the socialized establishment which is set up after the day the Decree N⁰ 69/2008/NĐ-CP is valid will be given the preference in business income tax according to the following principle: in case the time the preference given by the previous regulations is over, the tax rate of business income of 10% will be applied from the day the Decree N⁰ 69/2008/NĐ-CP is valid; in case the time the preference given by the previous regulations is still effective, it is given the preference according to the Decree N⁰ 69/2008/NĐ-CP from the day the preference given by the previous regulations is over.

4.As regards the socialized establishment which carries out different business forms has to enter various incomes from socialization activities in the accounts separately in order that the tax rate of business income will be applied according to the Decree N⁰ 69/2008/NĐ-CP. The socialized establishment which has income from other activities which is beyond this Decision will fulfill tax obligation as stipulated by law.

1.The socialized establishment which is the object and within the limits of the regulations in Articles 1 and 2 of this Decision is given the credit preference at highest level as prescribed by Decree N⁰ 151/2006/NĐ-CP dated December 20, 2006 of the Government on investment credit, export credit and support after investment.

2.As regards investment projects in hospital, the works invested in waste treatment and system of waste treatment as plan approved will be carried out as follows: The investors is allowed to borrow investment credit capital from the state with the interest rate which is applied for borrowers of Vietnam environment protection Fund.

The socialized establishment is allowed to mobilize capital in the form of share contribution from laborers in the company and other legal source of capital by cooperation, association with domestic and foreign business, economic organizations, financial bodies and individuals to invest in material facilities.

1. The socialized establishment which carries out the vocational training will be given support in training fee according to Decision N⁰ 87/2004/QĐ-UBND dated May 18, 2004 of Lam Dong Province on promulgating the regulations on support to vocational business and co-operative in Lam Dong to organize vocational training for workers. The trainee worker who is beneficiary of social welfare will be given support in training fee according to Decision N⁰ 448/QĐ-UBND dated February 19, 2008 of the provincial People’s Committee on consideration and approval of the support project in vocational training for the rural workers, the handicapped and beneficiaries of social welfare in Lam Dong in the period 2008-2010.

2. The provincial budget shall give support 50% in domestic training fee and refesher course for cadres in the socialized establishment.

Workers of in the socialized establishment are entitled to receive social security and health insurance according to the current regulations.

1. Team and workers in the socialized establishment, who recorded brilliant achievements will be praised and rewarded by the state as stipulated by law.

2. Individual or team who makes contribution to socialization activities will be acknowledged, encouraged and rewarded by the state according to the current regulations.

1. As regards land: public and semi-state owned establishment which is transferred to private establishment or business by competent authorities will be allocated land for operation. Land which is not used or is sued incorrectly will be recovered by the state.

2. As regards property on land: Property which is purchased by state budget or has the origin of state budget will be inventoried and revalued as stipulated by law then it will be leased or sold to this private establishment at preferential price.

Bodies which have competence to transfer public and semi-state owned establishment to private one have the right to sell and lease the state-owned property to private establishment according to the current regulations on property management.

3.In case private establishment which, directly under public units, is transferred to public establishment by competent authorities should inventory and revalue the property according to the law in force in order that it is checked and managed according to the current regulations on property management.

Property which is purchased by capital mobilized from source out of state budget on the execution of the semi-state owned party will be handled as follows:

a)      In case the capital contributor wants to take back the property, this property will be given back to the capital contributor;

b)      In case the public establishment concerned needs to use this property and agrees to receive it, the property shall be passed to the assessment council to value it to pay to the capital contributor;

c)       In case the public establishment concerned does not need to use this property and the capital contributor does not want to take back this, the property will be liquidated to pay back to the capital contributor.

4.In case people funded establishment is transferred to private one, of which the property which is accumulated by the operation of private establishment is under collective ownership and will be assessed and passed to private establishment for management and use on the principle of conservation and development. This property could not be divided up among individuals and be protected according to the law in force.

1. For projects which invest in construction of infant schools and high schools in the area which has the socio-economic conditions in deeply difficulties will be supported by Lam Dong Province in school fees for pupils who are entitled the exemption from or deduction of school fees such as pupils of ethnic minority and poor household or beneficiary of social welfare, etc. At the same time, the investor is entitled to be exempt and deducted all taxes while making further investment in services belonging to activities of education and teaching in the school such as day-boarding, canteen, office supplies service, books and school equipment, entertainment activities for teachers and pupils.

2. Public health care stations are allowed to associate with other economic sectors to invest in building, material facilities in order to strengthen the infrastructure used to examine and treat medically on people request.

3. The state encourages land owners to use their land to contribute capital or build workshop or infrastructure to sell or lease to organizations or individuals for socialization activities. These investment projects will be given the preference according to this decision.

1. Fees collection

The socialized establishment is entitled to determine fees level in order to ensure to cover all necessary expenses on the execution and have accumulation for investment and development.

2. Receipts from commodities and other services supplies.

3. Interest from cooperation and association activities; interest from bank deposit and bond.

4. Expense supported by the state (if any) including:

a) Expense to implement the obligation ordered by the state;

b) Supplementary expense to finance the subject of scientific and technological research;

c) Expense to carry out the programme of national target;

d) Expense to pay training and refresher course for the workers

e) Support to and aid of interest;

f) Other expenses.

5. Other sources: aid, sponsor, gift and giving.

1. On the basis of annual financial achievements, income of the socialized establishment will be distributed and deducted to raise fund after covering all expenses, paying all debts and paying all taxes to the state budget as stipulated by law.

2. As regards socialized private establishment or establishment which is set up according to Business law and runs business in socialization domain: the deduction to raise fund, wages level of workers and the division of interest among capital contributors will be determined by board of directors ( or school board) or the Chief officer (for establishment which does not have board of directors) in accordance to organization Regulations and its operations (for private establishment), in accordance to Business Law (for socialized establishment which is set up according to Business Law).

1. Competence in agreeing the investment location:

Lam Dong People’s Committee will come to an agreement about investment location of the projects which invest in socialization according to Item 2, Article 2, Section 1 and Chapter II of the Decision N⁰ 09/2008/QĐ-UBND.

2. Time and process

a) The agreement about investment location shall be reached within 12 working days.

b) Process:

- Planning and Investment Service receives, assesses dossier and makes written statement then submit it to the provincial People’s Committee within 08 days;

- The provincial People’s Committee considers and approves within 03 days;

- Planning and Investment Service returns the result to the investors within 01 day.

1. Investment projects which are under conditions of socialization should be examined before issuing the Investment Certificate according to Articles 8, 9, 10 and 12, Section 2 of the Decision N⁰ 09/2008/QĐ-UBND on process, procedures and examination dossier for the issue of Investment Certificate.

2. Time and process

a) The Investment Certificate of project in socialization will be granted within 28 working days for the establishment of which the condition explanation should be examined.

b) Process

- Written examination will be set up during 10 days;

- Planning and Investment Service makes report on examination then passes it to the provincial People’s Committee: 10 days;

- The remainder process will be implemented according to the Decision N⁰ 09/2008/QĐ-UBND.

3. The private establishment is only set up when the investor receives the Investment Certificate. Dossier, process, procedures in setting up a private establishment and criteria on size and operations will be complies with law in force of the Ministry of specialized management in socialization domains.

Before approving the projects which invest in socialization, the investors should submit the basic design to the state competent authorities for consideration as follows:

1. For projects in group A:

- Ministry of Construction will assess the basic design of the projects which invest in civil building for projects in group A.

- The assessment of basic design will be carried out within 30 working days (according to Item 8, Article 9, Chapter II, Decree N⁰ 16/2005/NĐ-CP dated February 07, 2005 of the Government on management of the project in building).

2. For projects in groups B and C:

- Construction Service will assess the basic design of the projects which invest in civil building for projects in groups B and C.

- Construction Service which carries out the assessment of basic design has to collect written suggestions from specialized services of project management and bodies concerned or hold a meeting to assess the basic design.

Basic design will be considered within 12 working days for projects in group B and within 07 working days for projects in group C.

3. The contents of basic design: To observe Article 7, Chapter II, Decree N⁰ 16/2005/NĐ-CP dated February 07, 2005 of the Government on management of the project in building.

1. Duration and process to settle report on assessment of environmental effect:

a) Report on assessment of environment effect of projects which invest in socialization will be considered within 35 working days.

b) Process

- Service of Resources and Environment receives, assesses dossier and makes written statement then submit it to the provincial People’s Committee within 30 days;

- The provincial People’s Committee makes consideration and approval within 05 days;

2. Duration and process to settle report on supplementary assessment of environmental effect:

a) Report on supplementary assessment of environment effect of projects which invest in socialization will be considered within 25 working days.

b) Process

- Service of Resources and Environment receives, assesses dossier and makes written statement then submit it to the provincial People’s Committee within 20 days;

- The provincial People’s Committee makes consideration and approval within 05 days;

1.Case which does not need to clear the premises:

a)      Land lease and allocation of the projects which invest in socialization shall be handled within 15 working days counting from the day the legal documents are received fully.

b)      Process:

- Planning and Investment Service receives, assesses dossier and makes written statement then submit it to the provincial People’s Committee within 18 days;

- The provincial People’s Committee makes consideration and approval within 02 days;

- Planning and Investment Service returns the result to the investors within 01 day.

2. Case which has not cleared the premises yet: To comply with Article 22, Decision N⁰ 09/2008/QĐ-UBND and Decision N⁰ 15/2008/QĐ-UBND dated May 05, 2008 the Lam Dong People’s Committee on promulgating regulations on compensation, support and resettlement when the state recovers land in the provincial area.

Working with Planning and Investment Service, the People’s Committee of districts, communes and city to check and draw out the general development project of the speciality to 2015 and the general development project of vision line to 2020 within its branch. Of which it is advisable to specify the contents which should be concentrated on socialization, objective which should be attained, implementation progress, manpower, equipment, expenses, location and area of land to be used to make statement then submit it to the provincial People’s Committee;

To fulfill state management function towards socialized establishment in accordance to specialized management.

a)Consulting with the Provincial People’s Committee to make statement then submit it to People’s Council for consideration and approval on mechanism, level of financial support in building infrastructure of socialized establishment;

b)      Presiding over the assessment of general project in each speciality to 2015 and line of vision to 2020 then submitting it to the provincial People’s Committee;

c)Informing publicly socialization needs to each branch, locality every year and working with Center of Trade and Tourism Investment Promotion to appeal to and attract investment in socialization.

a)Presiding over the assessment of report on environmental effect and supplementary report on environmental effect;

b)      Working with Services specialized in project and informing publicly location and land area used for socialization.

Working annually with Planning and Investment Service and other branches concerned, and proposing the provincial People’s Committee to submit to People’s Council the statement on expense of compensation for premises clearance and support in resettlement in the area used for socialization which has income from land use fee and lottery remained and source of local budget.

Presiding over assessment of basic design of the projects which invest in civil building belonging socialization domains for projects in groups B and C.

To carry out the compensation for and support to premises clearance and resettlement for projects which invest in socialization by state budget.

a)      Working with management specialized in drawing out general project in branch development and specifying socialization tasks;

b)      Working with Service of Resources and Environment to set up project in land area used for socialization;

c)      Informing publicly socialization needs, methods to encourage investment in socialization and order, procedures and process to settle socialization dossier.

d)      Fulfilling state management function towards socialized establishment in the region.