Circular 162: Incentives for Infrastructure Development in Border Economic Zone in Vietnam

Circular 162: Incentives for Infrastructure Development in Border Economic Zone in Vietnam (Illustration)

To be specific, Circular 162/2007/TT-BTC stipulates that the Border Economic Zone in An Giang province is entitled to incentives for infrastructure development. The investment in the construction of socio-economic infrastructure of the Border Economic Zone in An Giang province must not disrupt the planning and defense posture ensuring national defense tasks at the border gate area. The specific incentives are as follows:

1. Investment support from the state budget for infrastructure construction in Vietnam

- The state budget (hereinafter referred to as State budget) supports investment in constructing technical-social infrastructure projects and important public service and utility projects serving the entire Border Economic Zone according to targeted programs arranged in the estimates approved by the competent authority. State budget only supports investment in the construction of general infrastructure projects for the entire Border Economic Zone, including projects outside the Border Economic Zone but directly serving the Border Economic Zone, excluding infrastructure dedicated to each functional area within the Border Economic Zone (Urban and residential area, Tourism and service area, and Agricultural and forestry development area);

- The state budget (An Giang provincial budget and the central budget) ensures investment in constructing the infrastructure of the Border Economic Zone in An Giang province. Annually, the central budget targets partial support for An Giang provincial budget to invest in important technical-social infrastructure projects of the Border Economic Zone. The estimation, management, and use of investment capital from the state budget are carried out following regulations on basic construction investment management, the Law on the State Budget, and current guiding documents.

2. Regime of using land funds to create capital for infrastructure development

Capital mobilized from land funds through the form of auctioning land use rights, bidding for projects including land use rights in land allocation and land lease is the source of capital for investing in the infrastructure development of the Border Economic Zone.

3. Mobilizing capital by issuing Government of Vietnam bonds, construction bonds, and Official Development Assistance (ODA) funds, and other sources of capital for infrastructure development of the Border Economic Zone in Vietnam

- The Management Board of the Border Economic Zone submits to the An Giang Provincial People's Committee a plan to issue construction bonds to build large-scale projects that play an important role in the development of the Border Economic Zone;

- Technical-social infrastructure projects, necessary public utility service projects of the Border Economic Zone, and other technical assistance for the Border Economic Zone are included in the list of projects calling for ODA loans. The use of ODA capital is carried out following current regulations.

Details can be found in Circular 162/2007/TT-BTC which comes into effect in Vietnam from January 29, 2008.

Ty Na

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE