13.1 Legislation
The FIL and the LELI constitute the principal legal base for the establishment and operation of EPZs and IZs. Guiding the laws is Decree No.36/CP issued by the Government on 24 April 1997, publishing the Regulations on EPZs, IZs and High-Tech Zones (HTZs), and then Circular No. 08/KHDT issued by the Ministry of Industry on 29 July 1997, providing guidance for implementation of the list of industries which are encouraged or limited or prohibited from investing in the zones.
For HTZs alone, the Government recently issued Decree No.99/2003/ND-CP on 28 August 2003, providing the regulations of the HTZs, which replaces the regulations on HTZs in the said Decree No.36/CP.　

13.2 Features of EPZs, IZs and HTZs
EPZs and IZs mean the zones with specific boundaries and without any inhabitant, being established by the Government or the Premier, and containing EPZ and IZ enterprises. Having the same features, HTZs as defined in Decree No.99 however is a multi functional economic and technical zone to be established to carry out research and development (R & D) and application of high technology, training of highly technical personnel, and to manufacture and trade in high-tech products. It is noted that EPZs, bonded warehouses and dwelling buildings may be located in an HTZ.
Under the FIL, EPZs, Izs and HTZs are not typical vehicles for foreign investment, however, the EPZs and IZs play an important role in attracting foreign investment in Vietnam. That is why they are described herein. The purpose of EPZs and IZs is to provide an efficient and single base for manufacturing, processing and assembling products (for export only in the case of EPZs). Foreign capital projects are encouraged to locate in the zones by the assurance of modern infrastructure, such as good transportation and utility services, as well as the availability of necessary services.
In principle, an investment in development of an EPZ, IZ and HTZ must follow the same procedures and be governing by the same regulations as applicable to foreign investment in the zones as well as in rest of the country. To attract more investments in infrastructures, a number of preferential treatments and/or incentives are provided to foreigners who invest in developing EPZs and IZs, among them the easier licensing, longer duration and tax incentives.　

13.3 Advantages of Locating in EPZs, IZs and HTZs
The application procedures for a new enterprise inside EPZs, Izs or even HTZs are similar to the same applicable to the rest of the country, but quite easier in consideration and licensing.
Bearing the same VAT, but investors in EPZs, Izs and HTZs enjoy profit tax incentives more favourable than those offered to investors outside.
As far as EPZs are concerned, manufacturing operations therein will pay only 10% corporate income tax, after four year tax exemption commencing from the date profits are first making. Service operations will bear a rate of 15% with two year tax holiday. As for IZs, corporate income tax rates applicable to enterprises therein vary from 10%, 15% to 20%. The rate of 10% together with two year holiday and two year reduction is given to producers with export rate of more than 80%. The rate of 15% is applicable to producers having export rate of less than 80%. Service operations in IZs will bear the tax rate of 20%.
Investors in EPZs, IZs and HTZs enjoy also the modern infrastructure and the availability of utility services and others. But, instead of these, they bear a higher price for the use of land and infrastructures, and are often required to pay the land and infrastructure rental for the entire duration. This reflects the other side of the EPZs, IZs and HTZs.
Further advantages are seen for enterprises investing in HTZs that they will enjoy up to 8 years of corporate income tax exemption, and the tax rate of 10% for the rest years.
For the enterprises in EPZs, CEPT tariff will be applicable in case they export the products to domestic market provided that the products contain at least 40% elements originating from ASEAN countries.　

13.4 Some conditions should be aware about when investing in IZs
Investment in the following industries in IZs will be limited or discouraged:
(i) Production of ordinary construction materials (cement, brick, ceramic pipes and components for drainage systems. etc);
(ii) Cigarette production (excluding for export.);
(iii) Beer and alcohol production (excluding for export);
(iv) Production of paint and detergent materials (excluding for export); and
(v) Handicrafts and small-scale production industries (hand-made items made of bamboo, art work, etc

And investment in the following industries in IZs will be prohibited:

(i) Nuclear power;
(ii) Production of radioactive materials;
(iii) Production of industrial explosives;
(iv) Production of harmful chemicals (as stipulated by the State's list); and
(v) Production of leathers and dyeing materials