"It's difficult on both fronts..."
The "dilemma" here concerns the project "Construction of a banana farm and packaging plant, managing bananas for export in Yen Thanh" by Globe Farm Vietnam Co., Ltd.
The investor has submitted an application to the Nghe An Customs Department requesting tax exemption for imported goods used to create fixed assets for a project in an investment-incentive sector. The imported items are machinery, equipment, and components used for a banana plantation.
Comparing this with the list of investment incentive sectors issued with Decree 108/2006/ND-CP dated September 22, 2006, of the Prime Minister detailing and guiding the implementation of some articles of the Investment Law: Item 1, "Establishing a banana plantation in Yen Thanh district," does not fall under the investment incentive sector. However, Item 2, "Construction of a preservation and packaging plant," is eligible for investment incentives because it falls under the sector of "Investment in post-harvest agricultural product preservation, preservation of agricultural, aquatic, and food products" as stipulated in item 21, Part II, List B, Appendix 1 issued with the Decree. Therefore, the question of whether the imported goods used to create fixed assets in Globe Farm Vietnam Co., Ltd.'s project in Yen Thanh are eligible for investment incentives remains unanswered.
The aforementioned issue has prompted the Nghe An Customs Department to issue a document requesting relevant authorities and agencies to consider and develop appropriate solutions. Many people have commented that the case of Globe Farm Vietnam Co., Ltd. is "difficult on both sides...".
Hoang Vinh
