Post on 22-Jan-2021
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Kien Giang - Investment incentive policies
INVESTMENT INCENTIVE POLICIES
A. LIST OF INVESTMENT INCENTIVE SECTORS AND INVESTMENT
INCENTIVE AREAS
B. INVESTMENT INCENTIVE POLICIES
INVESTMENT INCENTIVE POLICIES
A. LIST OF INVESTMENT INCENTIVE SECTORS AND INVESTMENT
INCENTIVE AREAS
I. List of investment incentive sectors: (Appendix I, issued in attachment with
Decree No. 118/2015/ND-CP dated 12/11/2015).
a) Special investment incentive sectors
1. Production of supporting industrial products according to decisions of the
Prime Minister.
2. Production of renewable energy, clean energy, energy from waste disposal.
3. Production of composite materials, light construction materials and rare and
precious materials.
4. Planting, tending, nurturing, protecting and developing forests.
5. Farming, processing and preserving agricultural, forestry and aquatic products.
6. Production, multiplication and hybridization of plant varieties, livestock breeds,
forestry tree seeds and aquatic breeds.
7. Off-shore fishing combined with application of advanced fishing methods and
tools; Fishery logistic services; constructing ship-building facilities.
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8. Construction and trading of infrastructure of industrial zones, export-processing
zones, hi-tech parks and functional areas in economic zones.
9. Investment in the development of water plants, power plants, water supply and
drainage systems; Bridge, road, railway; aviation port, seaport, river port;
airports, railway stations and other infrastructure works of special importance as
decided by the Prime Minister.
10. Development of public passenger transportation in urban areas.
11. Investment in construction, management and operation of markets in rural
areas.
12. Construction of social housing, resettlement areas.
13. Collection, treatment, recycling and reuse of concentrated waste.
....
b) Investment incentive sectors
1. Production of products on the list of key mechanical products under the Prime
Minister’s decisions.
2. Production of energy-saving products.
3. Production of products with a value added of 30% or more (according to the
guidance of the Ministry of Planning and Investment).
4. Production of machinery tools, machines, equipment, spare parts, machines for
agricultural, forestry, fishery, salt production, food processing machines and
irrigation equipment which are not listed in the list of sectors with special
investment preferences.
5. Production and refining of feed for animal, poultry and aquatic products.
6. New construction, renovation and upgrading of slaughter facilities; preservation
and processing of centralized poultry and cattle industry.
7. Construction and development of centralized raw material areas to serve for
processing industry.
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8. Seafood exploitation.
9. Construction and development of infrastructure for industrial clusters.
10. Construction of apartment buildings for workers in industrial zones, export
processing zones, hi-tech parks and economic zones; construction of student
dormitories and dwelling houses for social policy beneficiaries; investment in the
construction of functional urban centers (including kindergartens, schools,
hospitals) for workers.
11. Investment in trade fair centers, logistics centers, warehouses, supermarkets,
trading centers.
12. Investment in construction of cemeteries, cremation services, electrical
cremation services.
II. List of investment incentive locations: (Appendix II, issued in attachment with
Decree No. 118/2015/ND-CP dated 12/11/2015).
1. Locations with specially-difficult socio-economic conditions including districts
of Kien Luong, Hon Dat, Tan Hiep, Chau Thanh, Giong Rieng, Go Guao, An Bien,
An Minh, Vinh Thuan, Kien Hai, U Minh Thuong, Giang Thanh, Phu Quoc and Ha
Tien Town.
2. Locations with difficult socio-economic conditions: Rach Gia City.
B. INVESTMENT INCENTIVE POLICIES
I. INDUSTRIAL ZONES (IZs)
Incentive Policies
Contents
1. Preferences on land leasing fee
1.1. Exempting the land leasing fee for the whole land leasing duration
For investment projects in the list of sectors, industries with special investment
preferences according to the regulations of the law.
1.2. Exempting the land leasing fee for basic construction duration
For not exceeding 3 years from the date of having decision on land leasing
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1.3. Exempting the land leasing fee
- Exempting the leasing fee of land, water surface for the whole leasing duration
for projects in the list of sectors with special investment preferences;
- 15 (fifteen) years for projects in the list of investment preference sectors;
- 11 (eleven) years for the remaining projects.
2. Preferences on tax rate, corporation income tax
2.1. To have corporation income tax exempted according to the regulations of the
law on tax
Income of enterprises from new investment projects in agricultural, aquatic product
processing sectors.
2.2. Preferential tax rate of 10% applied for 15 years
Income of enterprises from implementing the new investment projects shall be
given with the preferential corporation income tax rate.
2.3. Tax exemption for 04 years and reduction of 50% of tax for the next 09 years.
Income of enterprises implementing new projects shall be given with preferential
corporation income tax rate.
3. Preferences on import tax
3.1. Exemption of import tax
For import goods to create fixed assets of the project according to the regulations
of law on investment.
4. Support for labor training
4.1. Maximum support of 03 million VND/person/training course
Rural labor shall be supported for short-term vocational training cost (preliminary
vocational training and vocational training for less than 3 months).
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II. SUPPORT FOR EXPORT AGRICULTURAL, AQUATIC PRODUCT
PROCESSING INDUSTRY
Conditions for receiving support
- New investment projects, expansion, changes of advanced technologies, modern
equipments;...
- Project investments must have advanced, modern, energy-saving and
environmentally-friendly technologies.
List of projects with investment priorities, encouragements
- Processing rice for export; processing vegetables, fruits and vegetables for
export; processing canned fruits; processing starch.
- Processing frozen aquatic products for export; canned products of all kinds;
processing dry products for export.
Support duration and limitation
- Interest support duration for 3 (three) years from the date that the project is
completed and put into official operation.
- Support of 50% of interest in the first year; 40% of interest for second year; 30%
of interest for third year.
- Loan support limit at maximum shall not exceed 50 billion VND/project.
- Supporting policies will be provided until 2020.
III. PREFERENCES ON TAX
Preferential tax rate
Contents
1. Corporation income tax preferences
1.1. Preferential tax rate
a) Preferential tax rate of 10% for 15 (fifteen) years.
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- Income from implementing new investment projects in areas with especially-
difficult socio-economic conditions; economic zones established under the
Decision of the Prime Minister.
- Income from implementing new investment projects in the fields of: Scientific
research and technology development; high technology applications given with
priorities for development and investment; environmental protection; production of
products in the list of industrial products given with priorities for development;....
b) Preferential tax rate of 17% for 10 (ten) years.
- Income from implementing new investment projects in locations with difficult
socio-economic conditions.
- Income from implementing new investment projects: high-ranking steel
production; energy-saving product production; production and processing of feed
for poultries, livestock, aquatic products etc.
c) Preferential tax rate of 10% during operation duration
- Income from socialization activities in education-training, vocational training,
health, culture, sports and environment.
- Income from implementing social housing investment-trading products for
selling, leasing to objects as regulated in Article 53 of Housing Law.
- Income from planting, tending and protecting forests; Income from cultivation,
husbandry, production and processing of agricultural, aquatic products in locations
with difficult socio-economic conditions etc.
d) Time for applying the preferential tax rate
To be calculated continuously from the first year that the enterprise has income
from new investment project that receives the tax preferences.
1.2. Preferences on time for tax exemption, tax reduction
a) Tax exemption for four years, tax reduction of 50% for the next nine years.
- Corporation income from implementing investment project as regulated in point
a, part 1.1 above.
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- Corporation income from implementing new investment project in socialization
sector in locations with difficult or especially-difficult socio-economic conditions.
b) Tax exemption for two years, tax reduction of 50% for the next four years.
Corporation income from implementing new investment project as regulated in
point b, part 1.1 mentioned above and corporation income from implementing new
investments into industrial zone (except industrial zone located in location with
favourable socio-economic conditions).
c) Duration for tax exemption, tax reduction
To be calculated continuously from the first year that the enterprise has income
from new investment project that receives the tax preferences.
2. Import tax, export tax
Goods imported for creating fixed assets of the project with investment
encouragement shall have import tax exempted.
IV. PREFERENCES ON LAND
Supporting policies
Contents
1. Unit price for land rental, unit price for hiring land for constructing underground
works and unit price for hiring water surface.
1.1.Land rental unit price (Including land with coastal surface within the scope of
1,000 meters from existing shore forward).
a)
- Locations with difficult socio-economic conditions (except industrial zones,
industrial complexes), land rental price for:
+ Market land: 1.5%;
+ Commercial, service land: 1.25%;
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+ Land for non-agricultural business and production: 1% (which is not market land
and commercial, service land) .
- Locations with especially-difficult socio-economic conditions and industrial
zones, industrial complexes, then the land rental price is as follows:
+ Market land: 1.25%;
+ Commercial, service land: 1.0%;
+ Land for non-agricultural production and business: 0.75% (which is not market
land and commercial, service land) .
Non-agricultural land group
b)
- For locations with difficult socio-economic conditions, the land rental price is
0.75% (except industrial zones, industrial complexes);
- For locations with especially-difficult socio-economic conditions and industrial
complexes, industrial zones, the land rental price is 0.5%.
Agricultural land group
1.2. Unit price for hiring land for constructing underground works.
a)
- For annual payment of land rental price, the land rental price shall be defined of
15% of land rental unit price for space with annual rental price payment for the
same using purpose;
- For one-time payment of land rental price, the land rental price shall be defined
of 15% of land rental unit price for space with one-time payment method of land
rental price for the whole rental duration for the same using purpose and land using
duration.
Land rental for constructing underground works (which are not underground parts
of works constructed on ground).
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b)
Land rental amount to be paid for the exceeding area shall be according to the
regulations for land leased by the State for constructing underground works (which
are not underground parts of works constructed on ground).
Land rental for constructing underground works which are closely linked to
underground part of the works constructed on ground
1.3. Rental unit price for water surface
- For projects using fixed water surface: VND 30/m2/year;
- For projects using unfixed water surface: VND 100/m2/year.
Water surface rental unit price (including land with coastal water surface
exceeding the scope of 1,000 m from existing coast forward).
1.4. Modified duration
Modification of land rental unit price, water surface rental unit price is for a stable
duration of 05 years.
2. Exemption of land rental price, water surface rental price
2.1. Exemption of land rental price, water surface rental price for the whole rental
duration.
- Investment projects in sectors with special investment preferences invested in
locations with especially-difficult socio-economic conditions;
- Projects using the land fund to construct the houses for workers of industrial
parks;
- Land for constructing water supply works; land for constructing infrastructure to
be shared in industrial park, industrial cluster etc;...
2.2.Exemption of land rental price, water surface rental price for basic construction
duration
At maximum, not exceeding 3 years since the date of having decision on leasing
land, water surface.
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2.3. Exemption of land rental price, water surface rental price after duration with
land rental price, water surface rental price exemption in basic construction
duration.
- 3 (three) years for projects in the List of sectors with investment preferences; for
new production and business facilities of economic organizations to be dislocated
according to the plan, dislocated due to environmental pollution;
- 7 (seven) years for projects invested into locations with difficult socio-economic
conditions;
- 11 (eleven) years for projects invested in locations with especially-difficult socio-
economic conditions; projects in the list of sectors with special investment
preferences; projects in the list of sectors with investment preferences invested in
locations with difficult socio-economic conditions;
- 15 (fifteen) years for projects in the List of sectors with investment preferences
invested in locations with especially-difficult socio-economic conditions; projects
in the list of sectors with special investment preferences invested in locations with
difficult socio-economic conditions.
V. POLICIES ENCOURAGING ENTERPRISES TO INVEST INTO
AGRICULTURE AND RURAL DEVELOPMENT
Incentive policies
Contents
I. PREFERENCES ON LAND
1. Exemption, reduction of land use
1.1. Exemption of land use fee
Investor having agricultural project with special investment preferences if having
land handed over by the state.
1.2. Reduction of 70% of land use fee to be paid to State Budget.
Investor having agricultural project with investment preferences if having land
handed over by the state.
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1.3. Reduction of 50% of land use fee to be paid to State Budget.
Investor having agricultural project with investment encouragements if having land
handed over by the state.
2. Exemption, reduction of land rental fee, water surface rental fee
2.1. Being entitled to rent with lowest price according to the land rental price frame
regulated by Provincial People’s Committee.
Investor having agricultural project with investment preferences, agricultural
project with investment encouragement if hiring land, water surface from the State.
2.2. Exemption of land rental fee, water surface rental fee from the date of
construction completion to put the project into operation
Investor having agricultural project with special investment preferences.
2.3. Exemption of land rental fee, water surface rental fee for 15 years since the
construction completion date to put the project into operation.
Investor having agricultural project with investment preferences.
2.4. Exemption of land rental fee, water surface rental fee for 11 years since the
construction completion date to put the project into operation.
Investor having agricultural project with investment encouragements.
3. Support for hiring land, water surface
3.1. Support of 20% of land, water surface rental fee according to the land, water
surface price frame issued by local government for the first 5 years from the date
of basic construction completion.
Investor having agricultural project with special investment preferences if hiring
land, water surface from households, individuals to carry out investment project.
Capital contribution by land use right for projects without land recovery.
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Encouraging enterprise having agricultural project with special investment
preferences, agricultural project with investment preferences, agricultural project
with investment encouragement to accumulate land to form material zone through
household, individual form.
4. Land use fee exemption, reduction when changing land use purpose
4.1. Exemption of land use fee when changing the land use purpose to implement
the project.
The investor having agricultural project with special investment preferences
located in the plan approved by the State competent authority.
4.2. Reduction of 50% of land use fee when changing the land use purpose to
implement the project.
The investor having agricultural project with investment preferences located in the
plan approved by the State competent authority.
II. INVESTMENT SUPPORT
1. Support in human resource training, market development and application of
science and technology
1.1. Support of 70% of domestic vocational training cost
- Each labor shall be supported for one time for training course and training
duration for receiving support shall not exceed 6 months.
- In case the investor employs full-time labour who has not had vocational training
and is living in specialized forest for training and employing shall be supported for
direct training cost for one time at the enterprise with the amount of 3 million
VND/3 months/labour.
1.2
- Supporting 50% of enterprise cost for enterprise and product on means of media;
- Supporting 50% of cost for participating in domestic fairs, exhibitions;
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- Reducing 50% of costs for accessing market information and service fee from
trade promotion agencies of the State.
Supporting for costs for advertisement, participation of domestic fairs, exhibitions,
accessing market information and service cost.
1.3
- Supporting 70% of costs for implementing the research project to create new
technology.
- Supporting 30% of cost for new investment to implement trial production project.
Supporting cost for implementing research topics; new investments for
implementing trial production project.
1.4
Total support amount for one project shall not exceed 10% of total investment
capital of project and shall not exceed 1 billion VND.
Supports shall be provided according to the investment project.
2. Support for investment and aquaculture of seafood on sea
Conditions for receiving supports
Support limitation
- Located in the plan approved by the state competent authority or approved for
investment by provincial people’s committee if such plan has not yet been
approved.
- Project with scale of at least 5 ha or more than 10 cages of more than 100
m3/cage or more.
- Ensuring requirements on environmental protection according to the regulations
of law on environmental protection.
- The investor is required to use at least 30% of local labour.
- Support of 100 million VND for 100 m3 of aquaculture cage;
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- Support of 40 million VND for 100 m3 of cage.
3. Investment support for facilities to dry rice, maize, potato, cassava, aquatic by-
products, coffee processing
Conditions for support
Support limitation
- Capacity of rice, maize, potato, cassava drying facilities must reach at least 150
tons of product/day; and the capacity of aquatic by-product drying must be at least
50 tons of product/day; coffee processing following wet method must reach at least
5,000 tons of product/year.
- Project located in the plan approved by the state competent authority or approved
for investment by provincial people’s committee if such plan has not yet been
approved.
- Ensuring requirements on environmental protection according to the regulations
of law on environmental protection.
- The investor is required to use at least 30% of local labour and 60% of local rice,
maize, potato, cassava, aquatic by-product material.
- Supporting 2 billion VND/project for rice, maize, potato, cassava drying; aquatic
by-product drying for constructing infrastructure in terms of traffic, power, water,
workshop and equipment purchasing.
- Supporting 3 billion VND/project of coffee processing following wet method for
constructing infrastructure in terms of traffic, power, water, workshop, solid waste
treatment and equipment purchasing.
VI. MECHANISM FOR SUPPORTS, INVESTMENT PREFERENCES FOR
HOUSE CONSTRUCTION
Incentive policies
Contents
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1. Exemption of land use fee, land rental fee
To be exempted from land use fee, land rental fee.
For the land area handed over, leased by the state, including land fund for
constructing commercial trading works approved by the competent authorities
within the scope of social housing construction project.
2. Exemption, reduction of VAT, Corporation Income Tax
Reduction of 70% of VAT rate, corporation income tax rate.
In case of investing in constructing social housing project for lease only.
3. Borrowing investment preference capital
Entitled to borrow investment preference capital for the minimum duration of 15
years and not exceeding 20 years.
In case of investing in constructing social housing project for lease only.
3.2. Lending Limit
- Maximum lending limit of 80% of total investment capital of project or
borrowing method and not exceeding 80% of guarantee asset value for the loan;
- Maximum lending limit of 70% of total investment capital of project or
borrowing method and not exceeding 70% of guarantee asset value for the loan.
- For constructing social housing project for lease only.
- For constructing social housing project selling.
3.3. Lending duration
- Minimum lending duration is 15 years and not exceeding 20 years from the date
of first disbursement.
- Minimum lending duration is 10 years and not exceeding 15 years from the date
of first disbursement.
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- Minimum lending duration is 05 years and not exceeding 10 years from the date
of first disbursement.
- For constructing social housing project for lease only.
- For constructing social housing project for lease and sale.
- For constructing social housing project for sale.
VII. INCENTIVE, SUPPORT POLICIES FOR ENVIRONMENTAL
PROTECTION ACTIVITIES
Incentive Policies
Contents
I. PREFERENCES, SUPPORTS IN INFRASTRUCTURE AND LAND
1. Support in investing and constructing infrastructure works
State supports the investment and construction of works, components of technical
infrastructure works (traffic road, power, water supply, drainage) out of scope of
project to connect with the combined technical infrastructure system in the region.
2. Preferences on land use fee, land rental fee
2.1. Exemption of land use fee, land rental fee
Land area used for constructing environmental protection works shall be given
with special preferences, supports for constructing centralized domestic wastewater
treatment system; solid waste treatment; waste treatment etc.
2.2. Reduction of 50% of land use fee, land rental fee and entitled to delay in
payment of land use fee, land rental fee but delayed time must not exceed 5 years
from the land handover date.
The land area used for constructing the environmental protection works shall be
given with preferences, supports for constructing the environmental protection
infrastructure system in traditional trade industrial areas, clusters; constructing
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vocational training centre for training environmental protection human resources
etc.
II. PREFERENCES, SUPPORTS IN TAX, CHARGES
1. Preferences on corporation income tax
Enterprise operating in environmental protection, technology transfer to serve for
solid waste treatment, environmentally-friend technology; import of machines,
equipment, means, materials directly used for collection, storage, transportation,
recycling, treatment of solid waste; centralized domestic wastewater treatment;
clean energy, renewable energy production; etc.
2. Preferences on import tax, export tax
2.1. Exemption of import tax.
Machines, equipment, means, tools, materials imported for collection, storage,
transportation, recycling, treatment of solid waste and also applied for cases of
project scale expansion, replacement and innovation of technology.
2.2. Exemption of export tax.
Products from solid waste recycling activities; energy collected from solid waste
disposal etc. if for export.
3. Exemption of environmental protection fee
Enterprise that implements the environmental protection project with special
preferences, supports for hazardous solid waste; treatment and improvement of
storage lake; etc. and shall be given with preferences, support for centralized
domestic wastewater treatment; production of clean energy, renewable energy; etc.
VIII. OTHER INVESTMENT INCENTIVE POLICIES
1. Reducing 50% of income tax for people with taxable income, including
Vietnamese and foreigners who are working in economic zones.
2. Cost for investment, construction, operation or leasing apartments and social
infrastructure structure works to serve for workers working at industrial zones,
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economic zones is reasonable cost deducted for calculating taxable income of
enterprise with investment project in industrial zones, economic zones.
3. Foreigners and Vietnamese people settled in foreign country who work, invest
and do business in Phu Quoc and their family members shall be granted with visa
with validity for many times and time suitable for working duration in economic
zones; entitled for definite residence, temporary residence.
4. Given with priorities by the State to borrow capital for investing or given with
support in interest rate after investment, guarantee for receiving investment credit
from investment credit capital of the State.