Resolution No. 136/2024/QH15 Organization Of Urban Government And Pilot Implementation Of Specific Regulations And Policies On Da Nang City Development

NATIONAL ASSEMBLY OF VIETNAM -------	SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom – Happiness ----------------
Resolution No. 136/2024/QH15	Hanoi, June 26, 2024

 

RESOLUTION

ORGANIZATION OF URBAN GOVERNMENT AND PILOT IMPLEMENTATION OF SPECIFIC REGULATIONS AND POLICIES ON DA NANG CITY DEVELOPMENT

NATIONAL ASSEMBLY OF VIETNAM

Pursuant to the Constitution of the Socialist Republic of Vietnam;

Pursuant to the Law on Amendments to the Law on Credit Institutions of Vietnam dated November 57/2014/QH13, 65/2020/QH14;

Pursuant to the Law on Local Government Organization No. 77/2015/QH13 amended by Law No. 21/2017/QH14 and Law No. 47/2019/QH14;

Pursuant to Law on Promulgation of Legislative Documents No. 80/2015/QH13 amended by Law No. 63/2020/QH14;

HEREBY RESOLVES:

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Resolution provides for the organization of the urban government and the pilot implementation of specific regulations and policies on the development of Da Nang City (hereinafter referred to as “City”) regarding the management of finance and state budget; management of investment; management of planning, urban matters, natural resources, and environment; prioritized professions for attracting strategic investors to the City; establishment of Da Nang Free Trade Zone; investment in the development of semiconductor circuits, artificial intelligence, information and communications, scientific and technological management, and innovation.

Article 2. Regulated entities

1. State authorities, political organizations, and socio-political organizations.

2. Socio-vocational political organizations, social organizations, and socio-vocational organizations.

3. Other relevant organizations and individuals.

Article 3. Interpretation of terms

For the purpose of this Resolution, the following terms shall be construed as follows:

1. Startups refer to enterprises established under laws to implement ideas on the basis of utilizing intellectual property, technology, and new business model with fast-growing capacity.

2. Strategic partners concerning semiconductor circuits and artificial intelligence shall meet the following conditions:

a) Being enterprises operating in fields included in the list of professions prescribed in Clause 1 Article 12 of this Resolution;

b) Having signed Memorandums of Understanding with the People’s Committee of the City concerning cooperation in semiconductor circuits and artificial intelligence;

c) Having global revenues of the nearest year of more than 25.000 billion VND;

d) Having declared to assist the City with software, hardware, personnel training, and other contents for the development of semiconductor circuits and artificial intelligence;

d) Having declared long-term development in the City for at least 5 years.

3. Incubation facilities for innovative entrepreneurship projects and startups (hereinafter referred to as “incubation facilities”) are facilities providing conditions concerning technical infrastructures, resources, and necessary services for innovative entrepreneurship projects and startups to complete their business ideas and develop enterprises during the early stages of establishment.

4. Innovative entrepreneurship support intermediaries are organizations promoting business, organizations supporting innovative entrepreneurship, centers providing services for innovative entrepreneurship support, technical facilities providing support for small and medium-sized enterprises, incubation facilities, co-working areas supporting small and medium-sized startups, centers promoting and supporting technology transfer operations, innovation support centers, innovation centers, and organizations providing general equipment.

5. Innovative spaces and co-working areas are common workplaces, spaces for exhibiting products, and areas providing utilities for supporting and connecting startups.

6. Controlled testing refers to the testing of innovative new technologies, products, services, or business models in actual conditions within a restricted scope under the control of competent state authorities in fields not stipulated or permitted by the law or in cases where current laws are not conformable with the new characteristics or features of the technologies, products, services, or business models requested for testing to encourage innovation and be the grounds for assessment and completion before official application.

7. Logistics centers refer to consistent infrastructures for implementing operations concerning transport, logistics services, and goods distribution, including services of goods receipt, transport, storage, customs procedures, other procedures, customer counseling, packaging, mark labeling, goods delivery, and other services concerning goods.

Chapter II

URBAN GOVERNMENT ORGANIZATION

Article 4. Organization of urban government in City

1. The local governments in the City include the People’s Council of the City and the People’s Committee of the City.

2. The local governments in districts of the City are the People’s Committees of districts.

People’s Committees of districts are state administrative agencies in districts carrying out tasks and entitlements under this Resolution and decentralization and authorization of the People’s Committee of the City and the President of the People’s Committee of the City.

3. The local governments in wards of districts of the City are the People’s Committees of wards.

People’s Committees of wards are state administrative agencies in wards carrying out tasks and entitlements under this Resolution and decentralization and authorization of the People’s Committee of the City, the President of the People’s Committee of the City, People’s Committees of districts, and Presidents of People’s Committees of districts.

4. The organization of local governments at other administrative divisions of the City shall comply with the Law on Local Government Organization.

Article 5. People’s Council of City

1. The People’s Council of the City shall carry out the tasks and entitlements prescribed in the Law on Local Government Organization and other relevant laws and the following tasks and entitlements:

a) Decide on the local state budget revenue estimates; estimates of local budget revenues and expenditures and allocate budget estimates of the same level, including budget estimates of inferior local governments; adjust the local budget estimates in necessary cases; approve local budget settlement;

b) Decide on long-term, medium-term, and annual socio-economic development plans of the City, including medium-term and annual socio-economic development plans of districts and annual socio-economic development plans of wards;

c) Approve guidelines on the establishment, dissolution, merger, division, and boundary adjustment of administrative divisions of districts and wards;

d) Supervise compliance with the Constitution and the law and the implementation of resolutions of the People’s Council of the City in districts and wards; supervise the operations of People’s Committees of districts, People’s Committees of wards, People’s Courts of districts, and People’s Procuracy Authorities of districts;

dd) Deputies of the People’s Council of the City may question Presidents of People’s Committees of districts, Chief Justices of People’s Courts of districts, and Procurators-General of People’s Procuracy Authorities of districts. The People’s Council of the City shall consider answering questions for questioned persons;

e) Vote for Juries of People’s Courts of districts according to recommendations from the Vietnamese Fatherland Front Committee of the City; dismiss Juries of People’s Courts of districts according to requests of the Chief Justice of the People’s Court of the City after coming to term with the Vietnamese Fatherland Front Committee of the same level;

g) Decide on the number of officials working in wards and communes based on the type of administrative divisions of communes, economic activities, local characteristics, population scales, and increased natural areas of administrative divisions of communes according to regulations of the Government of Vietnam.

2. Permanent members of the People’s Council of the City include the President of the People’s Council, 2 Vice Presidents of the People’s Council, and members who are Heads of the People’s Council of the City. The President of the People’s Council of the City may be a full-time deputy of the People’s Council; Vice Presidents of the People’s Council of the City are full-time deputies of the People’s Council.

The Department of the People’s Council of the City shall have a Head, 2 Vice Heads, and members. The Head of the People’s Council of the City may be a full-time deputy of the People’s Council; Vice Heads of the People’s Council of the City are full-time deputies of the People’s Council. The Department of the People’s Council of the City may arrange 1 full-time member. The full-time member may receive salaries according to current regulations applicable to officials, title-based allowances equivalent to those for heads of departments, and other benefits and policies according to the law.

3. The People’s Council of the City shall establish a Department of Food Safety as a specialized agency of the People’s Committee of the City; stipulate functions, tasks, entitlements, and organizational apparatus of the Department of Food Safety on the basis of transferring the state management of food safety, inspection, handling of administrative violations against regulations on food safety from the Departments of Health, Department of Agriculture and Rural Development, and Department of Industry and Trade to the Department of Food Safety.

Article 6. People’s Committee of City and President of People’s Committee of City

1. The People’s Committee of the City shall carry out the tasks and entitlements prescribed in the Law on Local Government Organization and other relevant laws and the following tasks and entitlements:

a) Develop and request the People’s Council of the City to decide on the contents prescribed in Points a and b Clause 1 Article 5 of this Resolution and implement resolutions of the People’s Council of the City. Decide to assign and adjust tasks of budget revenues and expenditures to affiliated districts and wards and decide on the guidelines and solutions to the implementation of local budgets, including budgets of districts and wards, based on resolutions of the People’s Council of the City;

b) Decide on the investment guidelines of projects and programs of groups B and C using public investment under the management of districts and wards;

c) Decide on the establishment, reorganization, dissolution, and name change and stipulate the functions and tasks of specialized agencies of People’s Committees of districts, ensuring compliance with the maximum number of specialized agencies according to regulations of the Government of Vietnam; organize the management of multiple sectors and fields, ensuring simplification, efficiency, effectiveness, and adequate implementation of the functions and tasks of state management of People’s Committees of districts.

2. The President of the People’s Committee of the City shall carry out the tasks and entitlements prescribed in the Law on Local Government Organization and other relevant laws and the following tasks and entitlements:

a) Appoint, dismiss, mobilize, transfer, send on secondment, provide commendation, impose disciplinary actions, and suspend Presidents of People’s Committees of districts, Vice Presidents of People’s Committees of districts, Presidents of People’s Committees of island districts, and Vice Presidents of People’s Committees of districts;

b) Suspend the partial or whole implementation or annulment of documents contrary to the law of People’s Committees of districts and People’s Committees of wards.

Article 7. Organizational structure, working regulations, tasks, and entitlements of People’s Committees of districts

1. The organizational structure of a People’s Committee of a district includes the President of the People’s Committee of the district; Vice Presidents of the People’s Committee of the district; the General Commander of the Military Command of the district; the Head of the Public Security Office of the district; specialized agencies of the People’s Committee of the district; other administrative agencies and public service providers of the People’s Committee of the district. A type-I People’s Committee of a district shall have no more than 3 Vice Presidents, and a type-II People’s Committee of a district shall have no more than 2 Vice Presidents.

Presidents of People’s Committees of districts and Vice Presidents of People’s Committees of districts shall be officials holding positions of managers or leaders of People’s Committees of districts.

2. Working regulations of People’s Committees of districts:

a) Heads of People’s Committees of districts shall be responsible for their operations, ensuring democratic centralism;

b) Presidents of People’s Committees of districts shall be heads of People’s Committees of districts, taking responsibility before the People’s Council of the City, the People’s Committee of the City, the President of the People’s Committee of the City, and the law regarding the implementation of tasks and entitlements of the People’s Committees of districts.

Presidents of People’s Committees of districts shall appoint, dismiss, mobilize, transfer, send on secondment, provide commendation, impose disciplinary actions, and suspend the work of Presidents of People’s Committees of wards, Vice Presidents of People’s Committees of wards, and heads and vice heads of specialized agencies of People’s Committees of districts; recruit and manage officials and public employees under their scope of management according to the law; sign documents of People’s Committees of districts;

c) Vice Presidents of People’s Committees of districts shall assist Presidents of People’s Committees of districts in implementing work as assigned by People’s Committees of districts and take responsibility before Presidents of People’s Committees of districts regarding assigned tasks. When the President of the People’s Committees of a district is absent, 1 Vice President authorized by the President shall represent the President to administrate and settle the work of the People’s Committee of the district.

3. People’s Committees of districts shall have the following tasks and entitlements:

a) Implement tasks and entitlements of budget estimate units affiliated with the People’s Committee of the City according to the Law on State Budget;

b) Propose investment guidelines for public investment programs and projects using the state budget to the People’s Committee of the City; participate in providing feedback on investment guidelines of projects under the jurisdiction of competent authorities and individuals prescribed by the Law on Public Investment requiring participation of People’s Councils of districts; implement public investment programs and projects and relevant planning in their areas according to management decentralization;

c) Stipulate the organizational apparatus and specific tasks and entitlements of specialized agencies of People’s Committees of districts in conformity with actual situations of the state management in urban areas of the City;

d) Assume responsibility for the effectiveness and efficiency of the operations of the state administrative system from the district level to the grassroots level, ensuring the consistency and coherence of the administrative affairs; implement administrative reform and the reform of official works and officials in the local state administrative systems;

dd) Propose and cooperate with competent authorities in implementing tasks of national defense and security, solutions to the assurance of social order and safety, and combat against crimes and law violations in their areas according to management decentralization;

e) Implement tasks concerning the organization and assurance of the implementation of the Constitution, laws, government development, administrative boundaries, education, training, science, technology, culture, information, physical training, sports, health, labor, social policies, ethnic policies, religious policies, judicial administration, judicial assistance, environmental protection solutions, prevention and control of fires and explosions, preparation and management of natural disasters and epidemics, population management, and other tasks and entitlements according to the law in their areas;

g) Manage and use assigned offices, assets, working equipment, and state budget according to the law;

h) Inspect and settle complaints, denunciations, law violations, and citizen reception according to the law;

i) Implement tasks and entitlements authorized and decentralized by superior state authorities;

k) Decentralize and authorize People’s Committees of districts; authorize specialized agencies, other administrative agencies, and public service providers of People’s Committees of districts to implement tasks and entitlements of People’s Committees of districts according to the law;

l) Promulgate legislative documents to stipulate issues as assigned in the laws and resolutions of the National Assembly of Vietnam and implement the decentralization prescribed in Point k of this Clause. Suspend the partial or whole implementation or annulment of documents contrary to the law of specialized agencies of People’s Committees of districts and documents contrary to the law of People’s Committees of wards.

m) Make decisions on tasks requiring approval from People’s Councils of districts before any decision; present decisions on tasks under the jurisdiction of People’s Councils of districts to the People’s Committee of the City according to the law;

n) Implement other tasks and entitlements prescribed by the law in accordance with this Resolution.

Article 8. Organizational structure, working regulations, tasks, and entitlements of People’s Committees of wards; management of officials of wards and communes

1. The organizational structure of a People’s Committee of a ward includes the President of the People’s Committee of the ward; Vice Presidents of the People’s Committee of the ward; the General Commander of the Military Command of the ward; the Head of the Public Security Office of the ward; other officials working at the People’s Committee of the ward. A type-I or type-II People’s Committee of a ward shall have no more than 2 Vice Presidents, and a type-III People’s Committee of a ward shall have 1 Vice President.

Presidents of People’s Committees of wards and Vice Presidents of People’s Committees of wards shall be officials holding positions of managers or leaders of People’s Committees of wards.

2. Working regulations of People’s Committees of wards:

a) Heads of People’s Committees of wards shall be responsible for their operations, ensuring democratic centralism;

b) Presidents of People’s Committees of wards shall be heads of People’s Committees of wards, taking responsibility before Presidents of People’s Committees of districts and the law regarding the implementation of tasks and entitlements of People’s Committees of wards; directly manage and use officials according to regulations of the Government of Vietnam and authorization and decentralization of the People’s Committee of the City, the President of the People’s Committee of the City, People’s Committees of districts, and Presidents of People’s Committees of districts; sign documents of People’s Committees of wards.

c) Vice Presidents of People’s Committees of wards shall assist Presidents of People’s Committees of wards in implementing work as assigned by People’s Committees of wards and take responsibility before Presidents of People’s Committees of wards regarding assigned tasks. When the President of the People’s Committees of a ward is absent, 1 Vice President authorized by the President shall represent the President to administrate and settle the work of the People’s Committee of the ward.

3. People’s Committees of wards shall have the following tasks and entitlements:

a) Implement tasks and entitlements of budget estimate units affiliated with People’s Committees of districts according to the Law on State Budget;

b) Propose investment guidelines for public investment programs and projects using the state budget to People’s Committees of districts for presentation to authorities competent to decide on investment guidelines; participate in providing feedback on investment guidelines of projects under the jurisdiction of competent authorities and individuals prescribed by the Law on Public Investment requiring participation of People’s Councils of communes; implement public investment programs and projects according to management decentralization;

c) Propose and cooperate with competent authorities in implementing tasks of national defense and security, solutions to the assurance of social order and safety, and combat against crimes and law violations in their areas according to management decentralization;

d) Cooperate with Vietnamese Fatherland Front Committees of the same level in establishing Election Teams for deputies of the National Assembly of Vietnam and Election Teams for deputies of People’s Councils;

dd) Implement tasks and entitlements authorized and decentralized by superior state authorities;

e) Implement tasks of organizing and ensuring the implementation of the Constitution, the law, and documents of superior state authorities in their areas;

g) Decide on tasks requiring approval from People’s Councils of wards before any decisions; present decisions on tasks under the jurisdiction of People’s Councils of wards to People’s Committees of districts according to the law;

h) People’s Committees of wards do not have the authority to promulgate legislative documents;

i) Implement other tasks and entitlements prescribed by the law in accordance with this Resolution.

4. Officials working in wards and communes shall be included in the district-level payrolls for officials. The election, recruitment, management, and use of officials working in wards and communes shall comply with the law on election, recruitment, management, and use of officials of district-level or higher, jurisdiction, and management decentralization.

Chapter III

PILOT IMPLEMENTATION OF SPECIFIC REGULATIONS AND POLICIES ON DA NANG CITY DEVELOPMENT

Article 9. Investment management

1. The separation of projects on compensation, support, resettlement, and site clearance from public investment projects shall be carried out as follows:

a) The People’s Council of the City shall decide on the investment guidelines of a comprehensive project with project scales of group B concerning traffic according to the public investment laws and may decide on the separation of the compensation, support, resettlement, and site clearance as independent projects before approving the investment guidelines of the comprehensive project; decide on objectives, scales, total investment, capital source structure, and investment locations of projects on compensation, support, resettlement, and site clearance at the decision on investment guidelines of the comprehensive project.

b) The President of the People’s Committee of the City shall, based on the investment guidelines of the comprehensive project, decide on the investment and revision to projects on compensation, support, resettlement, and site clearance within the objectives, scales, total investment, capital source structure, and implementation locations of the comprehensive project.

In cases where revisions to projects on compensation, support, resettlement, and site clearance incur factors requiring revisions to the investment guidelines of the comprehensive project, the People’s Council of the City shall revise the investment guidelines of the comprehensive project before the President of the People’s Committee of the City revise projects on compensation, support, resettlement, and site clearance. Revisions to investment guidelines of the comprehensive project and projects on compensation, support, resettlement, and site clearance shall comply with public investment laws and other relevant laws;

c) Decisions on investment in projects on compensation, support, resettlement, and site clearance shall be the grounds for competent authorities to decide on the allocation of capital of annual public investment plans for implementation and for competent state authorities to issue notices on land appropriation and decisions on land appropriation;

d) The People’s Council of the City shall promulgate a list of public investment projects subject to separation of projects on compensation, support, resettlement, and site clearance from public investment projects under this Clause.

2. Public-private partnership investment projects (hereinafter referred to as “PPP projects”) shall be implemented as follows:

a) Aside from PPP investment fields under the Law on Public-Private Partnership Investment, the City may apply PPP investment to investment projects concerning sports, culture, and investment in the construction and business of market infrastructures;

b) The total investment for a PPP project on investment in the construction and business of market infrastructures shall not be less than 100 billion VND. The mandatory total investment of a PPP project concerning sports or culture shall be stipulated by the People’s Council of the City;

c) The People’s Committee of the City shall promulgate prices for services of lease of trading areas at markets for inclusion in investor selection bidding documents;

d) Procedures for implementing PPP projects prescribed in this Clause shall comply with public-private partnership investment laws and other relevant laws;

dd) The People’s Council of the City shall specify the contents of PPP projects concerning sports, culture, and investment in the construction and business of market infrastructures in pre-feasibility study reports, feasibility study reports, and standards of assessment of bids and PPP project contracts.

3. Public service providers assigned to manage and trade technical infrastructures of public-invested industrial clusters shall be entitled to the State’s land allocation and lease and may sub-lease land. The People’s Committee of the City shall stipulate financial regulations and the authority to determine and decide on lease prices and entities eligible for lease in conformity with the actual conditions of the City.

Article 10. Management of finance and state budget

1. In the first year of the period of budget stabilization, the Government of Vietnam shall consider requesting the National Assembly of Vietnam to decide on the appropriate regulation rate for the City Budget to ensure resources for the implementation of the socio-economic development objectives of the City.

2. The City shall implement the mechanism for creating salary reform sources as per regulation. After the City Budget has ensured sufficient salary reform sources and implemented policies on social security for the whole period of budget stabilization according to regulations of competent authorities, the People’s Council of the City may decide on the use of the residual salary reform sources of the City Budget for investment in socio-economic infrastructures subject to tasks concerning expenditures of the City Budget and expenditures on increased income in compliance with Clause 1 Article 15 of this Resolution.

3. The People’s Council of the City shall decide to apply the following to the City:

a) Fees and charges not prescribed in the list of fees and charges enclosed with the Law on Fees and Charges;

b) Adjustments to the collection rate of fees and charges decided by competent authorities regarding fees and charges in the mentioned list, except for legal fees, court fees, and other fees that must be transferred in full/100% of which must be transferred to the central government budget.

c) The pilot implementation of policies on fees and charges in the City prescribed in Points a and b of this Clause must have roadmaps appropriate to the capacity and development requirements of the City; create a favorable business environment for enterprises; ensure the consistency of the market and not obstruct the circulation of goods and services; reasonably regulate goods, services, and legal income of organizations and individuals in the City; ensure transparency, publicity, and state administrative reform.

4. The City Budget may retain 100% of the revenues increased from the adjustment to policies on fees and charges according to Points a and b Clause 3 of this Article to invest in socio-economic infrastructure subject to tasks concerning expenditures of the City Budget. Such revenues shall not be used to determine the percentage (%) of revenues distributed between the central government budget and the City Budget.

5. The City may take out loans by issuing local government bonds and taking out loans from domestic financial organizations, other domestic organizations, and foreign loans borrowed by the Government of Vietnam and on-lent to the City with a total loan balance not exceeding 80% of the retainable budget revenues of the City. The total loan balance and budget deficit of the City shall be annually decided by the National Assembly of Vietnam under the Law on State Budget.

6. Estimates of budget expenditures of People’s Committees of districts of the City and estimates of budget expenditures of People’s Committees of wards of districts may allocate the undistributed amount accounting for 2% to 4% of the total district or ward budget expenditures to make expenditures on preparation, management, and remedy for consequences of natural disasters, epidemics, emergencies, catastrophes, hunger safety, essential tasks of national defense and security, and other necessary tasks, ensuring that the total allocation of undistributed amounts of the budgets of districts and wards and local budget reserves do not exceed 2% to 4% of the total local budget expenditures.

Presidents of People’s Committees of districts and Presidents of People’s Committees of wards shall decide on expenditures from undistributed amounts; People’s Committees of wards shall submit biannual reports to People’s Committees of districts for summary and reports to the People’s Committee of the City for reports to the People’s Council of the City at the closest meeting.

7. The pilot implementation of financial policies on the implementation of measures to reduce greenhouse gas emissions (GHG emissions) following policies on carbon credit exchange and offsetting is as follows:

a) Carbon credits arising from programs and projects under policies on carbon credit exchange and offsetting funded by the City Budget may be traded with domestic and international investors. The People’s Committee of the City shall cooperate with the Ministries of Industry and Trade, Transport, Agriculture and Rural Development, Construction, Natural Resources and Environment, and Finance of Vietnam and relevant ministries and central authorities in determining the rate of contribution to the reduction of GHG emission and absorption in the City for the national objective of GHG emission reduction before carbon credit transactions.

b) The People’s Committee of the City shall promulgate procedures and decisions on the selection of investors. The City may wholly retain revenues from carbon credit transactions; such revenues shall not be used to determine the percentage (%) of revenues distributed between the central government budget and the City Budget.

c) The People’s Council of the City shall decide to use revenues from carbon credit transactions for programs and projects on responses to climate change and the development of a green economy, digital economy, and circular economy in the City.

Article 11. Management of planning for urban areas, natural resources, and environment

1. The Prime Minister of Vietnam shall, based on projects on planning for urban areas of the City and planning for the construction of specialized areas approved by the Prime Minister of Vietnam, decentralize the People’s Committee of the City to approve the local adjustments to the planning for urban areas of the City and the planning for the construction of specialized areas following the procedures stipulated by the Prime Minister of Vietnam and submit reports on the implementation results to the Prime Minister of Vietnam;

2. The conditions for issuance of construction permits with definite terms for public works, including houses, parking lots, and public restrooms on land managed by the State, are as follows:

a) The public works are in areas subject to subdivision planning, subdivision planning for the construction of specialized areas, detailed planning, or detailed planning for the construction of specialized areas approved and disclosed by competent state authorities that have yet to be implemented;

b) The scale of the public works conforms with construction standards, not overloading the infrastructure and ensuring urban scenery, safety for works and neighboring works, requirements for environmental protection, prevention and control of fires and explosions, and technical infrastructure safety; the existing duration of the public works complies with plans for the implementation of subdivision construction planning, subdivision planning for the construction of specialized areas, detailed planning, or detailed planning for the construction of specialized areas approved by competent state authorities;

c) When the existing duration of public works prescribed in construction permits with definite terms expires but the planning for construction is implemented, or upon requests of competent state authorities, investors shall demolish the works. If they fail to perform the demolition and pay all relevant costs, they shall be coerced to carry out the demolition. If the construction planning is not implemented after the construction permits expire, investors may continue to use the works until demolition requests from competent state authorities;

d) The People’s Council of the City shall stipulate the authority and procedure for issuing construction permits with definite terms.

3. Management Boards of hi-tech parks and industrial zones of Da Nang may appraise, approve, and approve adjustments to tasks and detailed construction planning projects within the scope of hi-tech parks, centralized information technology parks, and industrial zones; appraise and approve the results of the assessment of environmental impact reports under the jurisdiction of the People’s Committee of the City; issue, re-issue, adjust, and revoke environmental licenses under the jurisdiction of the People’s Committee of the City and People’s Committees of districts within the scope of hi-tech parks, centralized information technology parks, and industrial zones.

4. Land expropriation for the construction of items and works for establishing logistics centers shall comply with Article 79 of the Law on Land. Procedures for preparing the land expropriation shall comply with Clause 5 of this Article. Land expropriation, compensation, support, and resettlement shall comply with land laws.

5. The land expropriation of several projects in the City shall be performed as follows:

a) Regarding projects on construction of industrial zones, hi-tech parks, and centralized information technology parks with scales of 100 ha or more; specialized areas of the Free Trade Zone of Da Nang, logistics centers, national and local technical infrastructures, traffic infrastructures, and urban areas with scales of 50 ha or more subject to land expropriation by the State according to land laws; independent public investment projects on compensation and resettlement support prescribed in Clause 1 Article 9 of this Resolution, the People’s Council of the City shall, based on the district-level planning for land use and annual district-level plans for land use, promulgate a list of projects to be implemented before the inspection, survey, measurement, tally, and verification regarding the origin of land and property affixed to land following the procedures prescribed in this Clause;

b) State authorities competent to expropriate land according to the Law on Land shall, based on the list prescribed in Point a of this Clause, issue notices on the inspection, survey, measurement, tally, and verification of the origin of land and property affixed to land.

The mentioned notices shall be sent to each land user, notified on mass media, and listed at the headquarters of People’s Committees of communes and common living places in residential areas;

c) Organizations performing tasks of compensation and site clearance under land laws may, based on the notices prescribed in Point b of this Clause, implement the inspection, survey, measurement, tally, and verification of the origin of land and property affixed to land before competent state authorities issue land expropriation notices.

People’s Committees of communes shall cooperate with the organizations mentioned above in inspecting, surveying, measuring, tallying, and verifying the origin of land and property affixed to land.

Land users shall cooperate with the organizations mentioned above in inspecting, surveying, measuring land area, and preparing statistical reports on housing and property affixed to land to prepare schemes for compensation, support, and resettlement;

d) After the selection of investors for projects according to the law or public investment projects subject to investment decisions of competent state authorities regarding projects prescribed in Point a Clause 5 of this Article, state authorities competent to expropriate land under the Law on Land shall issue notices on land expropriation and use the results of the inspection, survey, measurement, tally, and verification of the origin of land and property affixed to land to implement Points b and c of this Clause to prepare schemes for compensation, support, and resettlement.

The preparation, appraisal, approval, and implementation of schemes for compensation, support, and resettlement and land expropriation decisions shall comply with land laws;

dd) The People’s Council of the City shall decide to use local budgets to implement contents prescribed in Point c of this Clause and stipulate procedures for implementing this Clause.

6. Regarding investors currently implementing projects on domestic solid waste treatment that voluntarily convert all of the projects’ technologies to domestic solid waste treatment with energy recovery, the People’s Committee of the City shall consider making decisions under the form of order placement for the volumes of solid domestic waste. The People’s Council of the City shall promulgate criteria, standards, conditions, norms, unit prices, and order placement prices concerning the ordered volume of solid domestic waste and take responsibility for ensuring the publicity, transparency, reasonableness, efficiency, and prevention of loss, waste, and negativity.

Article 12. Strategic investor attraction

1. List of prioritized professions, occupations, and projects prioritized for attracting strategic investors to the City:

a) Investment in the construction of innovative centers, data centers, and research and development centers (R&D) associated with training; investment in research and support for hi-tech transfer in information technology, artificial intelligence (AI), biotechnology, automation technology, new material technology, and clean energy with investment scales of at least 2.000 billion VND;

b) Investment in projects in the semiconductor integrated circuit industry, design technology, component manufacturing, integrated electronic circuit (IC), printed electronics (PE), new technology batteries, national defense industry, and lists and hi-tech products approved by the Prime Minister of Vietnam with investment scales of at least 4.000 billion VND;

c) Investment in the construction and business of the infrastructures of specialized areas of the Free Trade Zone of Da Nang according to planning approved by competent authorities, including Trade – Service Area with investment scales of at least 3.000 VND; Logistics Center associated with Lien Chieu Seaport with investment scales of at least 3.000 billion VND; Manufacturing Area with investment scales of at least 3.000 billion VND;

d) Investment in the development and business of inland waterway tourism with investment scales of at least 8.000 billion VND;

dd) Investment in the development of the comprehensive project on Lien Chieu Seaport with investment scales of at least 45.000 billion VND.

2. Strategic investors shall have written commitments to comply with the obligations and responsibilities prescribed in Clauses 7 and 8 of this Article; written commitments to train and develop personnel sources, satisfy conditions for national defense and security assurance, and protect the environment under the laws of Vietnam, and shall:

a) Have a charter capital of at least 500 billion VND when implementing investment projects prescribed in Point a Clause 1 of this Article and experience in investment in projects in equivalent fields with an investment capital of at least 1.000 billion VND; or

b) Have a charter capital of at least 1.000 billion VND when implementing investment projects prescribed in Points b and c Clause 1 of this Article and experience in investment in projects in equivalent fields with an investment capital of at least 2.000 billion VND; or

c) Have a charter capital of at least 2.000 billion VND when implementing investment projects prescribed in Point d Clause 1 of this Article and experience in investment in projects in equivalent fields with an investment capital of at least 2.000 billion VND; or

d) Have a charter capital of at least 9.000 billion VND when implementing investment projects prescribed in Point dd Clause 1 of this Article and experience in investment in projects in equivalent fields with an investment capital of at least 25.000 billion VND.

3. Strategic investors or competent state authorities shall, based on the list of prioritized professions and occupations for attracting strategic investors prescribed in Clause 1 of this Article, propose investment projects according to the following regulations:

a) Regarding projects concerning AI technologies, semiconductor circuit technologies, and semiconductor integrated circuit industry prescribed in Points a and b Clause 1 of this Article with requests for the State’s land lease, strategic investors shall be entitled to land leased by the State through auction of land use rights or investor selection bid and investment guidelines approval or investor approval by competent authorities not through auction of land use rights or investor selection bidding. Investment procedures shall comply with investment laws. The determination of land prices and financial obligations shall comply with land laws and relevant laws;

b) Regarding projects prescribed in Clause 1 of this Article not subject to Point a of this Clause, authorities competent to approve investment guidelines shall perform procedures for approving investment guidelines following investment laws and Clause 4 of this Article.

4. Procedures for registering the implementation of projects and selecting strategic investors for projects not specified in Clause 4 Article 29 of the Law on Investment shall be performed as follows:

a) Competent investment registration agencies of the City shall, based on decisions on approval for investment guidelines of projects prescribed in Point b Clause 3 of this Article, disclose information on projects, preliminary requirements for capacity and experience of investors, and conditions for determining strategic investors on Vietnam E-Procurement System;

b) Investors shall, based on the disclosed information as prescribed in Point a of this Clause, prepare and submit applications for project implementation. An application includes project implementation registration documents; profile of the investor's legal status, capacity, and experience; documents proving the satisfaction of conditions prescribed in Clause 2 of this Article, and other relevant documents (if any);

c) After the time limit for project implementation registration, competent investment registration agencies of the City shall perform the preliminary assessment of the capacity and experience of investors applied for project implementation. Competent persons shall, based on the results of the mentioned preliminary assessment, decide on the selection of investors according to one of the following cases specified in Points d, dd, and e of this Clause;

d) In case there is only 1 investor that has applied and meets all of the preliminary requirements for capacity and experience or there are many investors but only 1 meets the preliminary requirements, such an investor shall be approved under investment laws;

dd) In case there are 2 or more investors meeting the preliminary requirements for capacity and experience, 1 of which is determined to meet the conditions for strategic investors as prescribed in Clause 2 of this Article, that strategic investor shall be approved under investment laws;

e) In case there are 2 or more investors meeting the preliminary requirements for capacity and experience, 2 of which are determined to meet the conditions for strategic investors as prescribed in Clause 2 of this Article, competent state authorities may apply bidding laws to organize the selection of investors among those meeting conditions for strategic investors;

g) The People’s Committee of the City shall elaborate on the disclosure forms of information on projects to attract strategic investors, including preliminary requirements for capacity and experience of investors and applications for project implementation.

5. Strategic investors may receive:

a) Inclusion of deductible costs to the determination of income taxable for R&D equal to 150% of the actual cost for such operation when determining income subject to corporate income tax. Actual R&D costs shall be determined under accounting laws.

b) Prioritization in customs procedures under customs laws and tax procedures under the law on duties for imports and exports of investment projects implemented by the strategic investors in the City upon satisfaction of conditions for prioritization policies of customs and tax laws, except for conditions for import-export turnover.

6. Strategic investors implementing projects concerning AI technologies, semiconductor circuit technologies, semiconductor integrated circuit industry, information technology, innovation, and research and development associated with training may select the form of the State’s land lease under one-off arrangements. The determination of land prices and financial obligations regarding the State’s land lease under one-off arrangements shall comply with land laws and relevant laws.

7. Strategic investors shall:

a) Implement projects following contents prescribed in decisions on approval for investment guidelines, decisions on investor approval, or certificates of investment registration;

b) Regarding investment projects prescribed in Points a, b, and c Clause 1 of this Article, disburse investment within 5 years; regarding investment projects prescribed in Point d Clause 1 of this Article, disburse investment within 7 years from the issuance date of decisions on approval for investment guidelines, decisions on investor approval, or certificates of investment registration. During the period mentioned above, strategic investors are forbidden from transferring projects;

c) Regarding investment projects prescribed in Point dd Clause 1 of this Article, disburse investment within 10 years from the date of on-site handover of land or water surfaces. Strategic investors are forbidden from transferring projects for 10 years from the issuance date of decisions on investor approval;

d) Provide financial support for the provision of occupational training for affected workers in the project areas; prioritize the employment of local workers for the projects; perform their commitments to applying and transferring advanced, new, and high technologies (if any).

8. During the implementation of investment projects, if strategic investors fail to meet conditions for capital, disbursement progress, and other conditions for strategic investors, they shall not receive the incentives prescribed in this Resolution. Investors shall be responsible for consequences due to improper performance of their commitments under laws.

Article 13. Establishment of Free Trade Zone of Da Nang

1. Establishment of the Free Trade Zone of Da Nang associated with Lien Chieu Seaport. A free trade zone is a specialized area with determined geographical boundaries established for the pilot implementation of regulations and policies to attract investment, finance, trade, tourism, and high-quality services.

2. The Free Trade Zone of Da Nang shall have specialized areas prescribed in the decision on the establishment of the Free Trade Zone of Da Nang of the Prime Minister of Vietnam, including manufacturing areas, logistics centers, trade-service areas, and other specialized areas according to the law. Specialized areas of the Free Trade Zone of Da Nang shall be separated from outside areas via solid fences, ensuring the customs inspection, supervision, and control by customs authorities and the state management of corresponding fields by relevant agencies according to the law. The relations of goods trading and exchange between specialized areas of the Free Trade Zone of Da Nang and outside areas are import and export relations according to customs, tax, and import and export laws.

3. The authority and procedures for establishing the Free Trade Zone of Da Nang and its specialized areas shall be as follows:

a) The Prime Minister of Vietnam shall decide on the establishment, adjustment, and expansion of the boundaries of the Free Trade Zone of Da Nang. Procedures for establishing, adjusting, and expanding the boundaries of the Free Trade Zone of Da Nang shall be implemented similarly to the procedures for establishing, adjusting, and expanding the boundaries of economic zones according to the law;

b) The People’s Committee of the City shall, based on the decisions on the establishment, adjustment, and expansion of the boundaries of the Free Trade Zone of Da Nang approved by the Prime Minister of Vietnam, organize the formulation, appraisal, and approval for the local adjustment to the master planning for the City within the boundaries of the Free Trade Zone of Da Nang, ensuring consistency after receiving the written consensus from the Ministry of Construction of Vietnam;

c) The People’s Committee of the City shall approve the investment guidelines of projects on investment in the construction and business of the infrastructures of specialized areas of the Free Trade Zone of Da Nang. Procedures for approving investment guidelines shall be implemented similarly to the procedures for approving investment guidelines of projects under the jurisdiction of provincial People’s Committees according to investment laws. During the implementation of procedures for investment guideline approval, the People’s Committee of the City shall decide on the collection of feedback from relevant ministries and central authorities and the investment guideline approval under its jurisdiction.

4. Land policies applicable to the Free Trade Zone of Da Nang:

a) Land expropriation for the construction of items and works for establishing the Free Trade zone of Da Nang shall comply with Article 79 of the Law on Land. Procedures for preparing the land expropriation shall comply with Clause 5 Article 11 of this Resolution. Land expropriation, compensation, support, and resettlement shall comply with land laws;

b) Where the proposed location of the Free Trade Zone of Da Nang is undetermined in the planning or plans for land use of the City or upon adjustments to the approved scale and location, the People’s Committee of the City shall summarize relevant matters for presentation to the People’s Council of the City for approval, assurance of the limit for land use criteria allocated by competent authorities, and addition to district-level annual land use plans and updates to the upcoming period of planning and plans for land use of the City and district-level authorities;

c) Investors selected for investment in the construction and business of the infrastructures of specialized areas of the Free Trade Area of Da Nang shall be entitled to land leased by the People’s Committee of the City and have rights and obligations similar to investors with land leased by the State for the implementation of projects on investment in the construction and business of the infrastructures of industrial zones under land laws;

d) Investors sub-leasing land in specialized areas of the Free Trade Zone of Da Nang shall have rights and obligations similar to sub-lessees of land associated with infrastructures in industrial zones according to land laws.

5. Polices on investment incentives in the Free Trade Zone of Da Nang:

a) Operational terms of projects on investment in the construction and business of the infrastructures of specialized areas of the Free Trade Zone of Da Nang and projects of investors sub-leasing land in the Free Trade Zone of Da Nang shall be applied similarly to investment projects in economic zones under investment laws;

b) Foreign investors establishing economic organizations in the Free Trade Zone of Da Nang shall not be required to have investment projects and implement procedures for issuing and adjusting certificates of investment registration before establishing the economic organizations.

Foreign investors shall implement procedures for establishing economic organizations similar to those applicable to domestic investors under enterprise laws and other laws corresponding to each type of economic organization. Business registration agencies or other competent authorities shall, based on laws corresponding to each type of economic organization, inspect compliance with market access conditions for professions and occupations under market access restrictions applicable to foreign investors under investment laws.

After their establishment, economic organizations implementing investment projects shall carry out investment procedures under investment laws;

c) Incentives and land levy exemption or reduction periods for projects on investment in the construction and business of the infrastructures of specialized areas of the Free Trade Zone of Da Nang shall be applied similarly to those applicable to projects on investment in the construction and business of the infrastructures of specialized areas in economic zones;

d) Incentives and application periods of incentives for corporate income tax for investment projects in the Free Trade Zone of Da Nang shall be applied similarly to incentives for investment projects in economic zones according to the law;

dd) Tax for goods and services traded and provided in specialized areas of the Free Trade Zone of Da Nang; between domestic areas and foreign countries with specialized areas of the Free Trade Zone of Da Nang shall be applied following export duty, import duty, value-added tax, and excise tax laws similarly to those applicable to non-tariff zones in economic zones;

e) Aside from the investment incentives prescribed in this Clause, investment projects in specialized areas of the Free Trade Zone of Da Nang shall also be entitled to investment incentives applicable to investment projects in economic zones under tax laws, land laws, credit laws, accounting laws, and relevant laws;

g) Regarding investment projects meeting the conditions for different investment incentives in the same period, investors may apply the highest incentives.

6. Enterprises with investment projects in specialized areas of the Free Trade Zone of Da Nang shall be entitled to prioritization mechanisms under customs laws for export and import operations in the City when meeting the conditions for applying prioritization mechanisms according to customs, tax, and finance laws and relevant laws, excluding conditions for import-export turnover.

7. The People’s Council of the City shall, based on the capacity for balancing the City Budget and conformity with relevant planning, decide to invest or support the investment in the construction of technical and social infrastructure works inside and outside the Free Trade Zone of Da Nang to promote the establishment and development of manufacturing and business operations in the Free Trade Zone of Da Nang.

The management, use, and handling of work assets generated from the state budget capital in the Free Trade Zone of Da Nang shall comply with laws applicable to industrial zones and specialized areas in economic zones.

8. Management Boards of hi-tech parks and industrial zones of Da Nang shall carry out the state management directly to the Free Trade Zone of Da Nang and implement the following tasks and entitlements:

a) Issue, adjust, and revoke certificates of investment registration and decisions on investment guideline approval and carry out other entitlements of investment registration agencies according to investment laws for investment projects in the Free Trade Zone of Da Nang;

b) Appraise, approve, and approve adjustments to tasks and projects on detailed planning for the development of construction investment projects under the jurisdiction of People’s Committees of districts; appraise, approve, and approve adjustments to tasks and projects on detailed planning for construction and subdivision planning for the construction of specialized areas under the jurisdiction of the People’s Committee of the City in the Free Trade Zone of Da Nang. Procedures for implementing the contents prescribed in this Point shall be applied similarly to procedures for appraising, approving, and approving adjustments of the People’s Committee of the City;

c) Appraise and approve designs, technical-economic reports, and feasibility study reports, issue construction permits, and inspect the testing of construction investment projects under the jurisdiction of the specialized construction work-managing ministries and the People’s Committee of the City; concerned procedures shall be applied similarly to procedures under the jurisdiction of specialized construction work-managing ministries and the People’s Committee of the City corresponding to each task;

dd) Appraise and approve the results of the appraisal of environmental impact reports under the jurisdiction of the Ministry of Natural Resources and Environment of Vietnam and the People’s Committee of the City within specialized areas of the Free Trade Zone of Da Nang; application procedures are similar to procedures under the jurisdiction of the Ministry of Natural Resources and Environment of Vietnam and the People’s Committee of the City corresponding to each task.

Issue, re-issue, adjust, and revoke environmental licenses under the jurisdiction of the Ministry of Natural Resources and Environment of Vietnam, the People’s Committee of the City, and People’s Committees of districts within specialized areas of the Free Trade Zone of Da Nang; application procedures are similar to procedures under the jurisdiction of the Ministry of Natural Resources and Environment of Vietnam and the People’s Committee of the City corresponding to each task.

dd) Issue, re-issue, renew, and revoke work permits; confirm foreign workers not eligible for work permits for foreigners; approve demands for the use of foreigners for each job position that Vietnamese people cannot handle of enterprises in specialized areas under their management; receive and process applications for registration of internship contracts for less than 90 days from enterprises in specialized areas under their management. Procedures for implementing the contents prescribed in this Point shall be applied similarly to procedures approved for relevant fields by the Department of Labor – War Invalids and Social Affairs of the City under its jurisdiction;

e) Issue certificates of origin to goods manufactured in specialized areas of the Free Trade Zone of Da Nang when the authorization conditions applicable to Management Boards of industrial zones and economic zones stipulated by the Ministry of Industry and Trade of Vietnam are met.

9. State management responsibilities of ministries, central authorities, and the People’s Committee of the City regarding the Free Trade Zone of Da Nang:

a) The Government of Vietnam shall, within the scope of authority assigned under law, consider promulgating documents stipulating contents not prescribed in this Article or extending the decentralization and authorization for Management Boards of hi-tech parks and industrial zones of Da Nang to settle inadequacies arising during the management and development of the Free Trade Zone of Da Nang, ensuring publicity, transparency, and simplification of administrative procedures. Regarding cases exceeding authority, the Government of Vietnam shall request the Standing Committee of the National Assembly of Vietnam to consider issuing decisions;

b) Ministries, ministerial agencies, and governmental agencies shall take charge and cooperate with the People’s Committee of the City in supervising the decentralization and authorization for Management Boards of hi-tech parks and industrial zones of Da Nang for the implementation of tasks and entitlements prescribed in this Article; direct, instruct, and inspect contents within their assigned state management functions; settle or request competent authorities to settle issues arising during the implementation and monitoring of the implementation of the law within the assigned state management scope;

c) The People’s Committee of the City shall promulgate regulations on functions, tasks, and entitlements and regulations on procedures for implementing work under the jurisdiction of Management Boards of hi-tech parks and industrial zones of Da Nang and supervise the implementation of such regulations. Regarding inadequacies arising during the implementation, the People’s Committee of the City shall promulgate or submit reports to the Government of Vietnam for the promulgation of regulations prescribed in Point a of this Clause.

10. Other state management contents shall be implemented as follows:

a) The state management of visas, entry, exit, temporary residence, and stays of foreigners, fire safety, and assurance of social security, order, and safety shall comply with industrial zone laws;

b) The state management of fields concerning planning for construction, environmental protection, and other relevant fields not prescribed in this Article shall comply with economic zone laws.

Article 14. Investment in development of semiconductor circuits, AI, information and communications, scientific and technological management, and innovation

1. Support for activities concerning innovation, entrepreneurship, semiconductor circuits, and AI in the City shall be stipulated as follows:

a) Startups, semiconductor circuit enterprises, and AI enterprises with taxable income from innovative entrepreneurship operations in the City and scientific and technological organizations, innovative entrepreneurship support centers, and intermediaries supporting innovative entrepreneurship with taxable income from operations concerning support for innovative entrepreneurship in the City shall be exempted from CIT for 5 years. Where enterprises are subject to the global minimum tax, they shall pay taxes according to relevant regulations;

b) Individuals and organizations with income from transferring shares, contributed capital, and rights to contribute to the capital of startups, semiconductor circuit enterprises, or AI enterprises in the City that have yet to offer stock quotations to the public under stock laws shall be exempted from PIT and CIT; the period of tax exemption is 5 years from the capital contribution by individuals or organizations to startups, semiconductor circuit enterprises, or AI enterprises in the City;

c) Specialists, scientists, talented persons, and individuals engaging in innovative entrepreneurship or fields concerning design, manufacturing, packaging, semiconductor circuit testing, or artificial intelligence working at startups, scientific and technological organizations, innovative entrepreneurship support centers, intermediaries supporting innovative entrepreneurship, semiconductor circuit enterprises, and AI enterprises in the City shall have their income from salaries or wages exempted from PIT for 5 years.

d) Non-refundable support from the City Budget for developing innovative entrepreneurship projects includes: costs of the organization of the selection of projects; costs of hiring specialists; direct labor wages; services of supporting innovative entrepreneurship; costs of using technical facilities, incubation facilities, and co-working areas; costs of incubation, development research, and completion of technologies and pilot manufacturing of products of innovative entrepreneurship;

dd) The People’s Council of the City shall stipulate prioritized fields; criteria, conditions, procedures, and contents of operations concerning innovative entrepreneurship and innovative entrepreneurship support and operations in fields concerning design, manufacturing, packaging semiconductor circuit testing, and AI of entities prescribed in Points a, b, and c of this Clause; procedures, conditions, quantity, contents, and support rates according to Point d of this Clause.

2. Controlled testing of new technological solutions:

a) The People’s Committee of the City shall decide on the term-based controlled testing of new technologies, products, services, and business models in hi-tech parks, centralized information technology parks, innovative entrepreneurship support centers, and innovative space invested in by the City Budget;

b) An implementation term of the controlled testing shall be up to 3 years and may be renewed once; a renewed term is up to 3 years;

c) Ministries and ministerial agencies shall provide feedback on contents requested for counseling by the People’s Committee of the City;

d) The People’s Council of the City shall elaborate on criteria and conditions for selection and procedures for registering, appraising, and licensing the controlled testing.

3. Entitlements and responsibilities of the People’s Committee of the City regarding the controlled testing of new technological solutions:

a) Instruct, control, and supervise the testing processes and rights, obligations, and responsibilities of agencies, organizations, and individuals during the controlled testing and decide on agencies that instruct and control the testing;

b) In necessary cases, consult with ministries and ministerial agencies responsible for carrying out the state management of sectors and fields relevant to the contents of the testing regarding subjects and scope proposed for controlled testing and issues arising during the testing;

c) Submit annual reports to the Government of Vietnam and the People’s Council of Vietnam on the situation and results of the controlled testing.

4. Agencies instructing and controlling the testing shall have the following entitlements and responsibilities:

a) Provide counseling on the development, addition, and adjustment to guidelines on the implementation of laws for the testing;

b) License and promulgate separate testing regulations for each new technology, product, service, or business model allowed to be tested;

c) Regularly and irregularly inspect the testing; assess the application of measures to control risks of testing organizations and enterprises during the testing; promptly detect and prevent risks of abusing or losing control during the testing;

d) Request testing organizations and enterprises to provide reports and explanations regarding arising issues; request additions to risk control measures or testing suspension or request the People’s Committee of the City to decide to terminate or renew the testing or narrow or extend the testing scope;

dd) Submit reports to the People’s Committee of the City on the testing processes annually or upon request; submit reports on testing results and propose management regulations conformable with testing results at the end of the testing or when benefits, risks, and management requirements for tested technologies, products, services, and business models have been clarified during the testing.

5. Organizations, enterprises, and individuals engaging in controlled testing, guiding and controlling agencies, and guiding and controlling persons shall be exempted from administrative and disciplinary responsibilities; and exempted from civil responsibilities in case of causing damage to the State during the controlled testing due to objective reasons even though testing regulations and processes are adequately implemented. In case of causing damage to other organizations or individuals, organizations, enterprises, and individuals engaging in testing shall compensate for the damage under the law. The People’s Council of the City shall consider partially supporting the compensation funding using the City Budget based on the nature and severity of damage and the capacity for balancing the budget of the City.

Where the agencies or persons guiding and controlling the testing know about the risks of the testing but fail to adopt conformable measures to prevent and limit the damage, or organizations, enterprises, or individuals engaging in the testing know about the risk but fail to provide information or reports to competent state authorities promptly and fail to adopt conformable measures to prevent and limit the potential damaged shall be ineligible for the responsibility exemption prescribed in this Clause.

6. The investment, management, utilization, and handling of scientific and technological infrastructure assets serving innovative entrepreneurship are stipulated as follows:

a) Innovative spaces, co-working areas, and technical-physical facilities of incubation facilities and shared technical equipment, research and development equipment, office devices, and information technology infrastructures supporting projects and startups invested in by the City Budget are scientific and technological infrastructure assets;

b) The People’s Council of the City shall decide to let innovative entrepreneurship organizations and individuals and organizations and individuals supporting innovative entrepreneurship lease scientific and technological infrastructure assets directly for operations without going through auctions.

The People’s Council of the City shall stipulate entities and criteria eligible for direct lease of scientific and technological infrastructure assets for operations without going through auctions;

c) The People’s Council of the City shall stipulate the contents, support rate, support time, beneficiaries, and procedures for funding support from the City Budget for entities using scientific and technological infrastructures;

d) The People’s Council of the City shall decide to invest, upgrade, expand, develop, and utilize scientific and technological infrastructure assets using the City Budget.

The People’s Council of the City shall elaborate on the forms and procedures for assigning and handling scientific and technological infrastructure assets;

dd) The People’s Committee of the City, state management authority of scientific and technological infrastructure assets, shall decide to assign scientific and technological infrastructure assets to eligible units and approve schemes to manage, utilize, and handle scientific and technological infrastructure assets.

Entities eligible for the assignment of scientific and technological infrastructure assets include: public service providers of the Department of Science and Technology of the City and Management Boards of hi-tech parks and industrial zones of Da Nang.

7. Regulations and policies on the development of semiconductor circuits and AI:

a) The People’s Council of the City shall decide on the investment, upgrade, expansion, development, and utilization of information infrastructure assets using the City Budget to attract investment and develop semiconductor circuits and AI; elaborate on the forms and procedures for asset assignment, receiving units, asset utilization, regulations on the management and use of revenues from the asset utilization, and handling of information infrastructure assets;

b) The People’s Council of the City shall decide to lease information infrastructure assets not through auctions to strategic partners in fields of semiconductor circuits and AI; may carry out the direct contracting for the procurement of specific equipment from strategic partners in fields of semiconductor circuits and AI; stipulate preferential policies, contents, support rates for beneficiaries, and procedures for supporting the use of information infrastructure assets for the development of semiconductor circuits and AI;

c) The People’s Council of the City shall, based on the capacity for balancing the budget of the City, consider issuing decisions on support using the City Budget to strategic investors and strategic partners in the fields of semiconductor circuits and AI without exceeding 5% of the total cost of the procurement of manufacturing support equipment, cost of relocating assets, lines, equipment, and technologies, and cost of new investment projects; provide partial support for the cost of hiring personnel with high qualifications to work at enterprises that are strategic partners in the fields of semiconductor circuits and AI in the City; stipulate support procedures;

d) The People’s Council of the City shall decide on programs and projects eligible for support from the City Budget for the costs of training and advanced training for people studying majors concerning semiconductor circuits and AI; stipulate recruitment criteria and standards and support policies on benefits concerning income and staying costs for specialists and scientists working in fields concerning semiconductor circuits and AI in the City;

dd) The People’s Committee of the City, state management authority of information infrastructure assets, shall decide to assign information infrastructure assets to eligible units and approve schemes to manage, utilize, and handle information infrastructure assets;

e) The People’s Council of the City shall take responsibility for deciding on regulations and policies on support for strategic investors and strategic partners in fields concerning semiconductor circuits and AI prescribed in this Clause, ensuring efficiency, publicity, and transparency.

Article 15. Policies on salaries and income

1. The City shall implement the mechanism for creating salary reform sources as per regulation. After the City Budget has ensured salary reform sources and policies on social security for the whole budget stabilization period according to regulations of competent authorities, the People’s Council of the City shall, aside from implementing expenditures on increased income according to the current law on financial autonomy mechanisms for administrative agencies and public service providers, decide to allocate the City Budget for expenditures on increased income for officials and public employees under the management of the City based on work efficiency without exceeding 0,8 times the base salary fund for officials and public employees under its management.

2. The People’s Council of the City shall decide on the income of specialists, scientists, and talented persons of the City.

Chapter IV

IMPLEMENTATION AND PROVISIONS

Article 16. Implementation

1. The Government of Vietnam shall:

a) Implement this Resolution; direct relevant agencies to cooperate with local governments in the City in reforming administrative procedures, shortening the settlement time of issues that have not been decentralized to the City;

b) Direct and instruct the organization of urban governments and the pilot implementation of specific regulations and policies on the development of the City prescribed in this Resolution; promptly resolve difficulties during the remedy of violations following the conclusions of competent authorities, especially in fields concerning land;

c) Promulgate Decrees stipulating the organization and operation of People’s Committees of districts and responsibilities of Presidents of People’s Committees of districts; organization and operation of People’s Committees of wards and responsibilities of Presidents of People’s Committees of wards; election, recruitment, management, and use of officials working at People’s Committees of districts and officials working in wards and communes; formulation of estimates, compliance, and settlement of district budgets and ward budgets;

d) Request the Standing Committee of the National Assembly of Vietnam or the National Assembly of Vietnam to consider issuing decisions under their jurisdiction on issues arising during the pilot implementation;

dd) Implement preliminary reviews of the pilot implementation of specific regulations and policies applicable to the City and submit reports to the National Assembly of Vietnam at the meeting at the end of 2027; implement final reviews of the pilot implementation of specific regulations and policies applicable to the City and submit reports to the National Assembly of Vietnam at the meeting at the end of 2029;

e) Promptly promulgate regulations and policies under its jurisdiction to make conformable adjustments and additions to regulations to settle inadequacies arising during the management and development of the City.

2. The People’s Council of the City, People’s Committee of the City, and President of the People’s Committee of the City, within their scope of tasks and entitlements, shall:

a) Implement this Resolution and other relevant laws;

b) Promulgate specific regulations for the organization of urban governments and pilot implementation of specific regulations and policies according to this Resolution and guidelines of the Government of Vietnam; carry out specific decentralization to local governments in districts and wards in conformity with the urban management and organization and actual local capacity;

c) Implement the preliminary and final reviews of the pilot implementation of specific regulations and policies prescribed in this Resolution and submit reports to the Government of Vietnam following Clause 1 of this Article;

d) The People’s Council of the City shall supervise the implementation of this Resolution under the law;

dd) Regarding issues with different contents that are unregulated by laws and Resolutions of the National Assembly of Vietnam, to meet the urgent requirements for attracting strategic investors and mobilizing domestic and foreign resources for investment in socio-economic development, the People’s Committee of the City shall submit reports to the Government of Vietnam for presentation of regulations and policies to competent authorities for presentation to the National Assembly of Vietnam for consideration and decision. During the interval between two meetings, provide presentations for the Standing Committee of the National Assembly of Vietnam for consideration and decision and submit reports to the National Assembly of Vietnam at the closest meeting.

The development and promulgation of documents concretizing policies prescribed in this Point shall be performed under simplified procedures.

3. The National Assembly of Vietnam, Standing Committee of the National Assembly of Vietnam, Vietnam Fatherland Front, Ethnic Council, Committees of the National Assembly of Vietnam, Delegation of the National Assembly of the City, and deputies of the National Assembly of Vietnam shall, within their tasks and entitlements, supervise the implementation of this Resolution.

Article 17. Implementation provisions

1. This Resolution comes into force as of January 1, 2025.

Resolution No. 119/2020/QH14 dated June 19, 2020 of the National Assembly of Vietnam shall be annulled from the effective date of this Resolution.

2. The pilot implementation of specific regulations and policies on the development of the City prescribed in Chapter III of this Resolution shall be carried out for 5 years.

After the pilot implementation time prescribed above, the implementation of specific regulations and policies on the development of the City prescribed in Chapter III of this Resolution shall be carried out as follows:

a) Where promulgated decisions on policies, projects, and other subjects decided by competent authorities to comply with regulations and policies prescribed in this Resolution are not expired, such policies, projects, and other subjects may continue to comply with the promulgated decisions;

b) Where tax exemption periods for entities prescribed in Points a, b, and c Clause 1 Article 14 of this Resolution have not expired, they shall continue to be implemented until their expiry date.

3. Projects prescribed in Article 12 and Article 13 of this Resolution with approved investment guidelines, approved investors, or issued certificates of investment registration during the effective period of pilot policies prescribed in Chapter III of this Resolution may receive investment incentives according to Article 12 and Article 13 of this Resolution until the end of their implementation time.

4. In case of different regulations on the same issue between this Resolution and other laws and resolutions of the National Assembly of Vietnam promulgated before the effective date of this Resolution, this Resolution shall prevail. In case other legislative documents promulgated after the effective date of this Resolution stipulate regulations and policies with more benefits or are more convenient than those prescribed in this Resolution, the People’s Council of the City shall decide on the application.

Article 18. Transitional provisions

Documents of local governments in districts and wards promulgated before July 1, 2021 may continue to be applied if they are not replaced or annulled by competent authorities.

Where documents of People’s Councils of districts and wards promulgated before July 1, 2021 are no longer conformable, the People’s Council of the City shall annul such documents.

This Resolution is approved by the 15th National Assembly of the Socialist Republic of Vietnam at the 7th meeting on June 26, 2024.

 

PRESIDENT OF THE NATIONAL ASSEMBLY Tran Thanh Man