Vietnam PM Issues Financial Mechanism for Border Gate Economic Zones

Prime Minister Nguyen Tan Dung has recently issued a decision on financial mechanism for border gate economic zones (EZ).

 

Accordingly, enterprises and individuals who invest in the zones will be offered many priorities of tax, land rentals and some others.

 

Newly-licensed projects will enjoy priority tax level of 10 per cent within 15 years and exempted from income tax for four years. They will be also given 50 per cent-reduction of tax in the next nine years from the first year when their investors have taxable income.

 

The Vietnamese and foreigners working at the EZ will receive 50 per cent-cut of income tax.

 

The decision will take effect from May 1 this year

 

Vietnam will build comprehensive infrastructure, management models, mechanisms and policies for nine border gate economic zones, including: Mong Cai, Lao Cai, Lang Son, Treo Bridge, Bo Y, Moc Bai, An Giang, Dong Thap and a special economic commercial zone, namely Lao Bao.

 

This is part the development plan for the country’s border gate economic zones until 2020, approved by Prime Minister Nguyen Tan Dung.

 

Under the plan, Vietnam will have 30 border gate economic zones by 2020, raising the total export – import commodity and service turnover via borders with neighboring countries to US$42-43 billion. (Local sources)