Investment incentives in industrial zones
INVESTMENT INCENTIVE POLICY ON LAND
The State is responsible for carrying out the land acquisition, land compensation and land clearance for investment projects in infrastructure construction procedure of industrial parks.
The users of land located in industrial parks, including cases of land lease, are granted a certificate of land use rights.
IMPORT/EXPORT TAX INCENTIVE POLICY
The investment projects in industrial production are exempted from import tax of equipment, machinery and transport equipment (used in technological lines) which are considered fixed assets of enterprises, and shuttle buses which have not been domestically manufactured yet or already manufactured but did not meet the quality requirements. Such import duty exemption for the imported goods as above is also applied to cases of the project expansion or technology innovation. Especially, investment projects in Van Phong Economic Zone or in industrial parks located outside Van Phong Economic Zone which are on the list of specially encouraged investment fields are exempted from import tax for five years. The exemption is counted from the operation start of production of raw materials, supplies, components and semi-finished products which cannot be domestically produced.
TAX INCENTIVE POLICY FOR INDUSTRIAL PARKS
(LOCATED OUTSIDE VAN PHONG ECONOMIC ZONE)
Service establishments in industrial parks pay the corporation tax rate of 20 % during the first ten years since their business operation (28% in the next following years), and they are also granted two-year exemption from corporation tax since they receive taxable income, and offered 50% reduction of corporation tax for the next six years.
Manufacturing establishments in industrial parks pay the corporation tax rate of 15 % during the first twelve years since their business operation (28% in the next following years), and they are also granted three-year exemption from corporation tax since they receive taxable income, and offered 50% reduction of corporation tax for the next seven years.
Business establishments invested in infrastructure development in industrial parks, pay the corporation tax rate of 10 % during the first fifteen years since their business operation (28% in the next following years), and they are also granted four-year exemption from corporation tax since they receive taxable income, and offered 50% reduction of corporation tax for the next seven years.
If the businesses in the industrial park face a loss after the tax finalization with the department of taxation, the loss will be transferred and deducted from the taxable income of subsequent years. The allotted time for loss transferring does not exceed five years.
Appendix I
LIST OF FIELDS OF INVESTMENT INCENTIVES
(issued with Decree No. 108/2006/ND-CP by the Government on September 22, 2006)
A. List of fields of special investment incentives:
I. Production of new materials, new energy, high-tech products, biotechnology, information technology; mechanical engineering
1. Production of composite materials, light construction materials, rare materials
2. Production of high-quality steel, alloys, special metal, sponge iron, steel.
3. Investment in construction of facilities using solar energy, wind power, biogas, geothermal energy, tidal power.
4. Production of medical equipment for the technology analysis and extraction technology in medicine; orthotic devices, wheelchairs and special devices for the disabled.
5. Application of advanced technology, biotechnology to produce medicines for humans to meet GMP standard; production of antibiotic materials.
6. Production of computers, communications equipment, telecommunications, internet and key information technology products.
7. Production of semiconductors and high-tech electronic device; production of software products, digital information content; providing software services, information technology research, training the human resources of information technology
8. Manufacturing and designing mechanical precision equipment; producing machinery and equipment for checking and controlling the safety of industrial production procedure; industrial robots
II. Growing and processing of products of farming, agro-forestry, and fisheries; salt production; production of artificial seed, new plant varieties and animal breeds
9. Planting and caring for forests.
10. Doing agricultural farming, growing forestry and fishery products on uncultivated land and unexploited waters.
11. Fishing in offshore waters.
12. Producing artificial seed, new plant varieties and animal breeds with high economic efficiency.
13. Manufacturing, exploiting and refining salt.
III. Using high-tech and modern techniques; protection of ecological environment; high-tech research, development and incubation
14. Application of high and new technology not been applied in Vietnam yet; application of biotechnology.
15. Pollution treatment and environmental protection; production of equipment for environmental pollution treatment, equipment to monitor and analyze environment
16. Collection and treatment of waste water, waste gas and solid waste; recycling and reuse of waste.
17. Research, development and incubation of high technology.
IV. Labor Intensive:
18. The project regularly employs from 5,000 or more employees.
V. Construction and development of infrastructure and important projects:
19. Investment in infrastructure construction and business in industrial zones, export processing zones, hi-tech parks, economic zones and important projects granted by the Prime Minister
VI. Development of education and training, medical health, fitness and sports
20. Investment in building centers for drug addiction rehab and smoking cessation.
21. Investment in the establishment of centers being responsible for hygiene practices and disease prevention.
22. Investment in establishment of geriatric centers, focused relief operation, disabled and orphan centers
23. Investment in construction of training and high performance sports training centers, sports training for the disabled; building sport centers with training facilities meeting requirements to organize international tournaments.
VII. The manufacture and other service sectors:
24. Investment in research and development (R & D) which is occupied 25% or more of the revenue.
25. Maritime rescue services.
26. Investment in construction of apartment buildings for workers currently working in industrial parks, export processing zones, hi-tech parks, economic zones; investment in building student dormitories and housing for those who have priority from social policies
B. List of investment incentive fields:
I. Production of new materials, new energy, high-tech products, biotechnology, and information technology; mechanical engineering
1. Production of soundproofing, high heat proofing and power insulation materials; synthetic materials to replace wood; refractory materials; plastic construction material; glass fibers; special cement
2. Production of colored metals; metal processing
3. Manufacturing of molds for metal and non-metal products
4. Investment in building new power plants and network of electricity distribution and transmission.
5. Production of medical equipment and device, construction of pharmaceutical warehouse, stocks of medicines for the prevention of natural disasters, catastrophes, dangerous diseases.
6. Production of equipment for testing toxic substances in food products.
7. Development of petrochemical industry.
8. Manufacture of coke and charcoal.
9. Manufacture of pesticides; disease prevention and treatment drugs for animals including aquatic ones; veterinary medicine
10. Medicinal materials and medicines against social diseases; vaccines; biological products; pharmaceutical drugs; herbal medicines
11. Investment in building centers of biological testing and evaluation of the validation and application of drug process; investment in pharmaceuticals meeting the standards of good practice in manufacturing, maintenance, testing, clinical testing, growing, harvesting and pharmaceutical processing.
12. Development of pharmaceutical materials and production of drugs from medicinal plants; research projects, which prove the scientific based characters of traditional medicines and standards for testing traditional medicines; survey and statistics of medicinal materials; collection, inheritance and application of traditional medicines, seeking and exploiting new pharmaceutical materials.
13. Production of electronic products.
14. Manufacture of machinery, equipment and components in the field of oil and gas exploration, mining, energy, cement; production of heavy lifting equipment; production of machine tools for metal product making, metal processing equipment .
15. Investment in manufacturing electrical appliances of medium and high-voltage, large-sized generators.
16. Investment in production of diesel engines; production of building and repairing ships; equipment and spare parts for freighters and fishing vessels; production of machinery and spare parts of dynamic, hydraulic, and pressure engines.
17. Production of equipment, vehicles, construction machinery; technological equipment for transportation; locomotives and train carriages.
18. Investment in manufacturing machine tools, machinery, equipment, spare parts and machines for agriculture and forestry, food processing machinery, irrigation equipment.
19. Investment in production equipment and machinery for textile, garment and leather industries.
II. Growing and processing of products of farming, agro-forestry, and fisheries; salt production; production of artificial seed, new plant varieties and animal breeds
20. Growing medicinal plants
21. Investment in preservation of agricultural products after harvesting, preservation of agricultural, fishery and food products.
22. Manufacture of bottled and canned juices
23. Producing and refining food for cattle, poultry and fisheries.
24. Technical Services for industrial crops and forest trees, livestock, fisheries, protection of plants and animals.
25. Production, multiplication and breeding of crops and livestock.
III. Using high-tech and modern techniques; protection of ecological environment; high-tech research, development and incubation
26. Production of equipment to react and handle the oil spill.
27. Production of equipment for waste treatment.
28. Investment in building technical establishments and projects such as laboratories and experimental stations in order to apply new technologies in production; investment in establishment of research institutions.
IV. Labor Intensive:
29. The investment projects regularly employ from 500 to 5,000 employees.
V. Construction and development of infrastructure:
30. Construction of infrastructure for production and business of cooperatives, and for the sake of the rural community life.
31. Investment in infrastructure business and industrial production inside the industrial clusters, and clusters of rural villages.
32. Construction of water plants, water supply systems for living and industry, construction of drainage system.
33. Building and upgrading bridges, roads, airports, airlines, ports, railway stations, bus stations, parking lots; and opening more railways.
34. Building infrastructure for concentrated residential areas in Appendix II issued with this Decree.
VI. Development of education and training, medical health, fitness and sport, national culture:
35. Investment in building infrastructure of education and training centers; school construction, private education and training centers at all levels from early childhood, primary and secondary education, professional education, vocational education to higher education.
36. The establishment of private hospitals.
37. Building fitness and sports centers, training housing, clubs; establishment of producing facilities, repairing equipment and facilities to practice sports.
38. Foundation of the national culture housing; bands of dancing and singing traditional music; theaters, studios, film-coated printing establishments, movie theaters; producing and repairing traditional musical instruments; maintenance and conservation of museums, the national culture housing and art culture schools.
39. Investment in construction of national tourist resorts, ecotourism parks, cultural theme parks with sports, recreation and entertainment activities
VII. Development of traditional crafts:
40. Organizing and developing traditional jobs which produce art handicrafts and process agricultural products and other cultural products.
VII. The manufacturing and other service sectors:
41. Providing connectivity services, internet access and applications, the areas where people can use public telephone service specified in Appendix II issued with this Decree.
42. Developing of public transportation including transportation by ships, airplanes; transportation by rail; passenger transportation by vehicles over 24 seats; domestic passenger transportation by modern and high speed ships; transportation by containers.
43. Investing in moving production establishments out of the urban areas.
44. Investment in building new markets of rank I, exhibition centers.
45. Production of children toys.
46. Investment in activities related to capital mobilization and loan by the People's Credit Fund.
47. Legal consultancy, advisory services on intellectual property and technology transfer.
48. Production of pesticide materials.
49. Manufacture of basic chemicals, fine chemicals, specialized chemicals and dyes.
50. Production of materials for detergents and additives for the chemical industry.
51. Direct manufacture of paper, paperboards and artificial boards from the raw material of domestic agriculture and forestry; pulp production.
52. Weaving and finishing textile products; producing silk and various fibers; leather tannery.
53. Production investment projects in industrial zones granted by the Prime Minister
APPENDIX II
LIST OF AREAS OF INVESTMENT INCENTIVES
(Issued with Decree No. 108/2006/ND-CP by the Government on September 22, 2006)
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No
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Province
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Areas with special socio-economic difficulties
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Areas with socio-economic difficulties
|
|
32
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Khanh Hoa
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Khanh Vinh, Khanh Son districts
Truong Sa island district, and other islands of province
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Van Ninh, Dien Khanh, Ninh Hoa districts, Cam Ranh town
|
|
55
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Other regions
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The high-tech zones, economic zones granted investment incentives according to the Prime Minister’s Approval
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Economic zones are established by the Prime Minister’s Approval
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