DECISION

GRANTING APPROVAL FOR MECHANISM AND POLICIES ON DAK NONG ALUMINUM SMELTING PLANT

THE PRIME MINISTER

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on Investment dated November 29, 2005;

Pursuant to the Law on Enterprise income tax dated June 03, 2008 and Law on amendments to the Law on Enterprise income tax dated June 19, 2013;

Pursuant to the Government’s Decree No. 108/2006/ND-CP dated September 22, 2006 providing instructions on the implementation of a number of articles of the Law on Investment;

Pursuant to the Government’s Decree No. 218/2013/ND-CP dated December 26, 2013 providing instructions on the implementation of the Law on Enterprise income tax;

Pursuant to Notice No. 138/TB-VPCP dated April 01, 2014 on conclusions from the Prime Minister in the Standing Government’s meeting dated March 12, 2014;

At the request of the Minister of Planning and Investment (Official Dispatch No. 5230/BKHDT-KTCN dated July 23, 2013), the Minister of Industry and Trade (Official Dispatch No. 4827/BCT-CNNg dated June 04, 2013 and Official Dispatch No.3025/BCT-CNNg dated April 15, 2014); the Minister of Finance (Official Dispatch No. 7690/BTC-DT dated June 14, 2013), the Minister of Science and Technology (Official Dispatch No.1248/BKHCN-DTG dated April 11, 2014) 

DECISION

Article 1. Granting approval for mechanism and policies on Dak Nong Aluminum Smelting Plant as follows:

1. Dak Nong Aluminum Smelting Plant Project (hereinafter referred to as Aluminum Smelting Project or the Project) is defined as the projects enjoying special investment incentives.

2. Enterprise income tax and import tax incentives:

a) Enterprise income tax

- Tax exemption for four years since taxable income is in place;

- 50% tax reduction for the next nine years;

- 10% tax for 30 years.

b) Import tax: the Project is exempted from import tax on goods imported as fixed assets for the Project; goods imported as raw material and semi-finished products used to serve production by the Project according to applicable regulations on import and export taxation;

3. Land incentives:

a) Aluminum Smelling Project may lease land from the State and is eligible for land levy exemption according to regulations of law on projects eligible for special incentives.

b) Based on Dak Nong Province’s industrial zone planning approved by the Prime Minister, People’s committee of Dak Nong Province shall be responsible for allocating adequate land area for the investor to carry out the Project.  Compensations or subsidies on site clearance are prescribed in applicable regulations on lands.

4. Subsidies on investment and construction of technical infrastructure:

a) The State shall provide subsidies on infrastructure outside the site: roads, power supply, water supply, information communication according to applicable regulations.

b) Dak Nong Province shall provide subsidies on the work items inside the site according to applicable policies of the province and local supports.

5. Electricity price:

a) Electricity price:

- Electricity price of VND 1,052/kWh (excluding VAT) applies for the first ten years since the Project is put into operation. Electricity price shall be subject to changes of VND – USD exchange rate.

- After this period, electricity price shall be applied on the principle of market price with due account taken of characteristics of the aluminum smelting industry in order to ensure the Project recovers costs and receives reasonable profits.

The Project's investor shall be responsible for investing in a 220 KV transformer, encouraging investment in a 700 MW transformer ensuring adequate supply to the Project when upgraded to 450,000 tonnes/year, avoiding wasteful investment and take maximum advantage of technology; EVN must carry out comprehensive investment in 220 KV loop power grid to the transformer, sign the contract for supply of electricity and ensure stable supply of electricity to the Project. 

b) Aluminum: VINACOMIN must provide the long-term and stable supply of aluminum and ensure quality and quantity meet demands of the Project according to agreed price.

6. High technologies and new technologies

Approve addition of the Project’s technologies and products to the list of high technologies and the list of hi-tech products enclosed with the Prime Minister’s Decision No. 49/2010/QD-TTg dated July 19, 2010;

Article 2. Responsibilities of relevant ministries and local agencies for the Project

1. The Ministry of Industry and Trade

- Preside over and cooperate with relevant ministries and agencies in providing guidance to EVN and VINACOMIN and the Project’s investor on the execution of this Decision;

- Organize examination and approval for the plan for supply of electricity to the Project;

- Preside over and cooperate with relevant ministries and agencies in studying and adding the group of customers in connection with aluminum smelting at 200 KV voltage level to the structure of electricity retail price and making the submission to the Prime Minister for consideration and decision;

- Be responsible for organizing, instructing and cooperating with People’s committee of Dak Nong Province in inspecting and supervising the implementation of this Decision;

2. The Ministry of Science and Technology shall preside over and cooperate with the Ministry of Industry and Trade and the Ministry of Finance in fulfilling procedures on supplements to the list of hi-tech products as prescribed;

3. People’s committee of Dak Nong Province

- Cooperate and support the investor in compensations, site clearance, infrastructure, human resources for investment, implementation and development of the Project;

- Balance local budgets for subsidies as prescribed in Point b, Clause 4, Article 1, this Decision;

- Monitor and inspect the implementation of the Project within competence; Perform state administration on activities in connection with the Project in localities according to applicable regulations;

Article 3. Effect

1. This Decision takes effect since the signing date.

2. Ministers, heads of ministerial-level agencies, heads of governmental agencies, and presidents of People’s committees of Dak Nong and Lam Dong provinces, heads of agencies, units and organizations in connection with the Project shall be responsible for executing this Decision./.