New investment incentives and advantages in the Southeast Economic Zone
The Southeast Economic Zone (Nghe An) spreads over the coastal area of Nghi Loc and Dien Chau districts and borders Cua Lo Town; borders Vinh City expansion area, 7 km from Vinh airport; has National Highway 1A running along the entire length of the economic zone; has Cua Lo seaport with a capacity of 1.5 million tons/year (will increase capacity to 13 million tons/year in 2015). With the two decisions just approved by the Government and applied by the People's Committee of Nghe An province, investors investing in the Southeast Economic Zone will enjoy special incentives.
(Baonghean) -The Southeast Economic Zone (Nghe An) spreads over the coastal area of Nghi Loc and Dien Chau districts and borders Cua Lo Town; borders Vinh City expansion area, 7 km from Vinh airport; has National Highway 1A running along the entire length of the economic zone; has Cua Lo seaport with a capacity of 1.5 million tons/year (will increase capacity to 13 million tons/year in 2015). With the two decisions just approved by the Government and applied by the People's Committee of Nghe An province, investors investing in the Southeast Economic Zone will enjoy special incentives.
The Southeast Economic Zone (EZ) has the following functional areas: Tho Loc Industrial Park with an area of 1,300 hectares - an industrial park for processing agricultural, forestry and seafood products; production of high-grade construction materials, assembly of office equipment; Nam Cam Industrial Park expansion: area of 1,500 hectares - an industrial park for processing agricultural, forestry and seafood products; production of construction materials; beer, wine and soft drinks, assembly, textiles, plastics, consumer goods, sports equipment, office equipment; high-tech supporting industry; Duty-free zone: area of 650 hectares, attached to Cua Lo seaport, including 4 main areas - Free port area, trade and service area, export processing zone and bonded warehouse area.
The Economic Zone has 3 important areas: tourist areas, urban areas and vocational training centers. The tourist areas have a total area of 1,181 hectares, including coastal tourism: Bai Lu, Nghi Thiet, Dien Thinh, Dien Trung and Xuan Duong Lake eco-tourism. The new urban areas are divided into the Northern area (No. 1): area of 393.8 hectares, expected population of 60,000 people; the Southwest urban area (No. 2) area of 250.2 hectares, population of about 38,000 people; the Southeast urban area (No. 3) area of 102.9 hectares, expected population of 15,000 people. Vocational training center: area of 143.7 hectares, function of training all occupations serving the economic zone and industrial park.
Investing in the Southeast Economic Zone, investors will enjoy special incentives. Recently, there have been 2 decisions approved by the Government and applied by the People's Committee of Nghe An province, namely Decision No. 21/2010/QD-TTg and Decision No. 02/2010/QD-UBND of Nghe An province - supplementing the planning content and investment incentives: tax policy, land policy, site clearance support policy and some other incentives.
Regarding tax, investment projects in the Southeast Economic Zone enjoy a corporate income tax rate of 10% applied for 15 years from the date the project commences business operations; corporate income tax exemption for 4 years from the date of taxable income and 50% for the next 9 years. Enjoy tax incentives applicable to areas with particularly difficult socio-economic conditions. If the project is in the high-tech sector, large-scale projects of important significance will enjoy a 10% income tax rate throughout the project implementation period. In addition, investment projects in the Southeast Economic Zone are also exempt from import tax for 5 years from the date of production for production materials, components and semi-finished products that must be imported but cannot be produced domestically or are produced at substandard quality.
Land incentive policy: Investment projects in construction and business of infrastructure of functional industrial parks and projects in functional industrial parks that have not invested in infrastructure construction in the Southeast Economic Zone are exempted from land rent for 11 years, and exempted from land rent for 15 years for projects in the investment incentive list.
Regarding support for site clearance and leveling: investors who level the ground, the provincial budget supports 50% of the cost of leveling based on the design, estimate approved by the competent authority and according to actual settlement data inspected by the competent authority, but not exceeding 15 billion VND/100 hectares. For projects investing in functional areas but not yet leveled (also based on the above support), but support does not exceed 5 billion VND for projects with a total investment of 300 billion VND or more.
In addition, enterprises are entitled to preferential credit forms of the State according to the provisions of current laws on development investment credit. Domestic and foreign organizations and individuals are allowed to invest in building houses for sale or lease, invest in building infrastructure of functional areas for lease, sublease, or transfer the right to use land with built infrastructure in the economic zone according to the corresponding provisions of the law on land... Vietnamese people residing abroad are allowed to buy houses attached to the right to use land in the economic zone. Foreigners permanently residing in Vietnam and foreign investors are allowed to buy houses and lease land in this economic zone.
Thus, the investment advantage in the Southeast Nghe An economic zone is huge and the investment incentive policy is also higher than that currently applied in many other economic zones of other provinces.
Hoang Chinh
