Process of Perfecting Mechanisms and Policies to Attract FDI in the Land Sector in Vietnam.

This tax includes 10 tax rates ranging from 15 to 100%. In November 2005, the Law on Special Consumption Tax and the Law on Value Added Tax were passed. In December 2005, Decree 156/2005/ND-CP was issued with the following content:

The Decree is amended and supplemented compared to previous Decrees. This Decree contains detailed regulations guiding the implementation of the above tax laws.

According to Decree No. 24/2000/ND-CP dated July 31, 2000 of the Government and Decision No. 189/2000/QD-BTC dated November 24, 2000 of the Ministry of Finance

Regulation: For manufacturing and processing projects with 80% or more of products exported, they are classified in the list of projects with special investment incentives.

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Investment projects in difficult socio-economic areas, export processing projects with 50% or more of products exported, or export processing projects with 30% or more of products exported but using a lot of domestic raw materials and supplies (with a value of 30% or more of production costs), are included in the list of investment incentive projects to enjoy land rent exemption or reduction.

In addition to issuing the above policies, to increase the attraction of FDI capital for investment in the export production sector, Vietnam also focuses on providing investment cooperation and export support services. Two important trade promotion organizations established by the government are the Foreign Trade and Investment Development Center (FTDC) in Ho Chi Minh City and Viet Trade of the Ministry of Trade. FTDC has the function of providing trade and investment promotion services, providing information and supporting businesses. Viet Trade has the function of organizing and operating the development of activities to promote investment, trade and export cooperation for domestic enterprises and foreign-invested enterprises.

The improvement of mechanisms and policies to attract FDI has resulted in an increasingly large amount of FDI capital, making the sector using this capital source play an increasingly important role in the economy in general and in the economy in particular.

for Vietnam's exports in particular. The export share of this sector increased on average annually from 6.29% in the period 1991-1995 to 22.9% in 2010.

2000, 26.9% in 2002 and 30% in 2003. If crude oil exports are taken into account, this proportion is even higher, specifically reaching 51% in 2003, 54.7% in 2004 and 57.4% in 2005.

2.2.3.3. The process of perfecting mechanisms and policies to attract FDI in the land sector in Vietnam.

The goal of land mechanisms and policies in the field of FDI attraction is to create favorable and attractive conditions for foreign investors, ensuring their peace of mind and confidence in long-term investment.

The special feature in Vietnam is that land is national property, so investors

Foreign investors are not allowed to own land but only have the right to lease land for a maximum period of 70 years (mostly only 20-30 years). According to previous regulations

Here, foreign investors often have to pay land rent about 20% more expensive than domestic investors.

In 1993, the Land Law was amended and promulgated to eliminate housing subsidies, creating conditions for the formation and development of the real estate market. The provisions of this law contributed to mobilizing a huge part of the country's assets (land) for the purpose of economic and social development. Thanks to the promulgation of this law, in recent times, mortgage transactions and joint venture capital contributions using land have expanded significantly and become an important channel for capital mobilization for economic development. The expansion of mortgage is reflected in the fact that the amount of capital lent through mortgage of land use rights and real estate has increased quite strongly. According to bank statistics, outstanding loans in 1998/1993 were 7.3 times, in 2001/1998 were 3.1 times and at the end of March 2002 compared to the end of 2001 increased by 13%. Proportion of outstanding loans with mortgage value of right of use

Land and real estate attached to the total outstanding loans increased from 11.7% at the end of 2001 to 15.1% at the end of March 2002. The capital contribution of the Vietnamese side to participate in joint ventures with foreign countries is mainly in the value of land use rights and real estate. According to estimates, by mid-2003, the total value of land use rights of the Vietnamese side contributing capital to joint venture projects with foreign countries reached 3 billion USD (equivalent to more than 45,000 billion VND). Lease transactions

Real estate is increasingly diversified in form. As of December 31, 2003, the whole country had 83 industrial parks, 3 export processing zones (excluding Dung Quat and Chu Lai areas) with a total area of 16,646 hectares, of which industrial land for lease was 11,485 hectares and land for lease was 5,088 hectares (accounting for 44.3% of the area).

Previously, according to Decree 18/CP dated February 13, 1995, the land rental price

determined depending on: The starting level of regulations for each region, locality

The land area, infrastructure, industry coefficients, and land rental prices for each project shall be kept stable for at least 5 years. After 5 years, when adjusted to increase, the increase shall not exceed 15% of the previous prescribed level. In the case of foreign-invested enterprises, joint venture parties shall pay rent for the entire land lease term or for each period. If the rent increases during that term, the rent paid shall not be adjusted.

Pursuant to Decree No. 24/2000/ND-CP dated July 31, 2000 of the Government,

Foreign investors have rights to land depending on the form of land rental payment. If paid once for the entire period of operation, they have the right to use the land.

land similar to domestic enterprises. Foreign investors do not

have the right to sublease land, except for land leased in industrial parks, export processing zones, and high-tech zones. Foreign investors have the right to mortgage land use rights.

land and assets on land, if the land rent is paid for the entire lease term or

The minimum prepayment is 5 years. Domestic banks and recently foreign banks operating in Vietnam are allowed to mortgage the value of land use rights. However, in reality, it is difficult to mortgage this right to borrow capital due to the lack of guidance documents and other legal documents. Determining the value of land use rights when the term expires, liquidates, or dissolves an enterprise before the term is still an unresolved issue.

To remove obstacles and unreasonable land policies

In order to liberate land and real estate resources, in 2003 the National Assembly issued a new Land Law on November 26, 2003. Decrees guiding the implementation of the Land Law were also promptly issued in 2004 (such as Decree

Decree 181/2004/ND-CP dated October 29, 2004 on the implementation of the Land Law).

The Decree clearly defines land types and allows the registration of business names, individual names and assets attached to land on land use right certificates.

are registered for secured transactions on land use rights. In addition, the Government has issued a series of other related documents such as: Decree 182/2004/ND-CP dated October 29, 2004 on administrative sanctions for violations in the land sector, Decree 188/2004/ND-CP dated November 16, 2004 on methods for determining land prices and price frames for land types, Decree 198/2004/ND-CP dated December 3, 2004 regulating the collection of land use fees. For projects with a land use term of 70 years, the land price is calculated according to the regulations issued by the People's Committee of the province or centrally run city at the time of land allocation. For projects with a land use term of less than 70 years, the land use fee collection for each year is not reduced.

The land use fee is 1.2% of the 70-year revenue.

In 2005, the work of building laws and land policies related to foreign investment had a new step of completion, with the issuance of Decree 142/2005/ND-CP dated November 14, 2005 on land and water surface rent collection. This Decree clearly stipulates that the annual land rent unit price is calculated at 0.5% of the land price according to the purpose of land use, issued by the Provincial People's Committee according to Decree 188/2004/ND-CP dated November 16, 2004 on the method of determining land prices and price frames for land types. Decree 17/2006/ND-CP dated January 27, 2006 amends and supplements a number of articles of Decree 198/2004/ND-CP to ensure fairness and transparency in land allocation and land use fee calculation. This Decree stipulates: The price for calculating land use fees is the land price according to the assigned land use purpose as prescribed and announced by the People's Committee of the province or centrally-run city; in case at the time of land allocation, this price does not match the actual land use right transfer price on the market,

In normal conditions, the People's Committee of the province or centrally-run city shall decide on a specific land basket as appropriate. It can be said that in 2004 and 2005, a series of documents related to land were issued by the National Assembly, the Government and ministries and branches to provide detailed guidance on the implementation.

regulations in the land sector, a sector considered sensitive to business activities.

FDI attraction

2.2.3.4. The process of perfecting mechanisms and policies to attract FDI in the labor sector in Vietnam.

Labor policies are issued with the aim of solving employment, improving skills and working ability and improving income for workers.

The Labor Law dated June 23, 1994 stipulates: Foreign-invested enterprises wishing to recruit Vietnamese workers must go through an employment service organization. If the employment service organization introduces or recruits workers who do not meet the requirements, the enterprise has the right to directly recruit but must notify the provincial labor agency or other competent authority. For jobs requiring high technical skills or management jobs that Vietnamese workers cannot meet, enterprises, organizations and individuals are allowed to recruit workers.

Foreign workers can be hired for a certain period of time, but there must be a plan and training program so that Vietnamese people can soon replace them to do that job.

The amended Labor Law promulgated on April 2, 2002, compared to the 1994 law, has added the following provisions: Enterprises with foreign investment capital are allowed to directly recruit Vietnamese workers or through job placement organizations and must notify the list of recruited Vietnamese workers to the local state labor management agency. Foreigners who want to work for three months or more for enterprises, organizations, and individuals in Vietnam must have a work permit issued by the state labor management agency of the province or centrally run city. The term of the permit is the term of the labor contract, but not more than 36 months, however, the employee

Foreign workers may apply for an extension, if requested by the direct employer.

The process of perfecting the wage policy. The monthly minimum wage for workers is continuously adjusted over the years, in accordance with the actual cost of living in each period, to ensure their lives. Specifically: Circular 19/1990, Decision 242/1992 stipulates the minimum wage

The minimum wage for workers is 30-35 USD, Circular 11/1995, Decision 385/1996 is 40-45 USD, Decision 780/1999 is 556,000 - 626,000 VND, and

The most recent Decree 03/2006/ND-CP stipulates a general level of 870,000 VND (the upper level applies to Hanoi and Ho Chi Minh City, the lower level applies to localities, and the year 2006 is applied generally).

2.2.3.5. The process of perfecting mechanisms and policies to attract FDI in the market sector in Vietnam.

At the time of opening, market prices were highly distorted due to the large gap between supply and demand. Faced with this situation, Vietnam applied a series of policies to increase foreign investment attraction and promote production, thereby increasing the quantity and variety of goods appearing on the market, relatively fully meeting consumer demand, thereby giving the market the role of self-regulating prices. With the promulgation of a number of important documents (specifically Decree 64/HDBT dated June 10, 1992, Decree 114/HDBT dated April 7, 1992 and Decree 33/CP dated April 19, 1994), Vietnam expanded foreign trade business rights for enterprises, allowing them to participate in direct import and export. Until 1995, although there were still certain limitations, in general, the mechanism and policies in the field of foreign trade were basically expanded to all economic sectors. Decree 57/1988/ND-CP allowed all economic sectors to have the right to import and export goods within the scope of their registered business lines, and abolished the import and export management regime by license, thereby creating conditions for domestic and foreign investors to expand their import and export markets, and have more opportunities to promote the signing of investment cooperation documents. In January 2006, Decree 12/2006/ND-CP, detailing the implementation of the Commercial Law (amended) was issued.

The Decree (amended) was passed by the National Assembly in June 2005 and came into effect. With the appearance of this Decree, barriers to all types of enterprises in the field of foreign trade were removed. The regulations under the Decree

This provision allows all businesses to expand their markets, and affirms their freedom to conduct foreign trade. The fundamental changes

The above policies and mechanisms aim to gradually promulgate a common Investment Law for foreign and domestic investment activities, creating favorable conditions.

for Vietnam to fulfill its commitments to the WTO, thereby further enhancing its ability to attract FDI to serve the cause of industrialization and modernization of the country set forth by the Party and Government.

2.2.3.6. The process of perfecting mechanisms and policies to attract FDI in the technology sector in Vietnam.

The goal of technology policy is to attract foreign technology, machinery and modern equipment to serve the industrialization and modernization process.

modernization, training of technical staff, skilled workers, implementation of internal

Localize technology to increase endogenous capacity of technology. Attract modern technology, invest in depth in existing economic facilities, or attract high technology to produce export goods.

In recent times, the State has issued and implemented a number of policies to encourage businesses and individuals to invest in research and development activities in science and technology. The scope of these policies is very broad, covering many areas such as: Science and technology service activities, legal consultancy, business investment, business administration, intellectual property protection, technology transfer, vocational training, technical staff training, business management knowledge improvement, etc. The most prominent point in perfecting the mechanism and policies in this field is that the State always issues regulations to encourage investment in technological innovation of all businesses, especially FDI enterprises. Through incentives on land use fees, land rents, credit incentives, import tax on goods, the State encourages investment in projects applying high technology and advanced techniques. To protect the legitimate rights of enterprises, the Vietnamese Civil Code and a series of other related legal documents have provisions.

regulations on industrial property protection for many types of scientific and technological products and services such as: inventions, utility solutions, industrial designs, trademarks, appellations of origin of goods, trade secrets, geographical indications, business names

trade, rights against unfair competition related to industrial property... The novelty and creativity of some important products and services (such as inventions and utility solutions) protected under Vietnam's current industrial property law have protection standards similar to those of the Industrial Property Law of other countries in the world. With the goal of promoting the protection of intellectual property rights worldwide, Vietnam

The country participates in the World Intellectual Property Organization (WIPO). Its mission is to harmonize laws and regulations, monitor the activities of member states, and cooperate with other international institutions on related issues.

to intellectual property and help members exchange information in this field. In recent times, Vietnam has signed a number of important international treaties such as: Paris Convention for the Protection of Intellectual Property Rights, Berne Convention, Madrid Agreement, Patent Cooperation Treaty, ASEAN Framework Agreement on Intellectual Property. To fulfill its commitment after joining the WTO, Vietnam will join the Agreement on Trade-Related Intellectual Property Rights (TRIPS).

In addition to paying attention to intellectual property institutions, Vietnam also soon focused on technology transfer institutions. Related regulations

The Law on Foreign Investment in Vietnam in 1987, the Ordinance on Technology Transfer in 1988 and the regulations on technology transfer in the Civil Code in 1995 were introduced to achieve the following objectives: First , to encourage foreign organizations and enterprises to invest and transfer new and advanced technologies to Vietnamese partners to enhance competitiveness in the international market; second , to support domestic organizations to receive and master foreign technologies.

The process of perfecting mechanisms and policies to attract FDI in the field of science and technology in Vietnam in recent times has promoted a strong increase in the wave of technology transfer from abroad to Vietnam, especially from parent companies to subsidiaries, through the forms of internal purchase and transfer.

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