The industry plays an important position and a leading role in the economy and is considered the foundation for the industrialisation and modernisation of the country. Therefore, Khanh Hoa province has planned and operated several industrial parks to promote its strengths for the development of the industry of the province.
Presently, the province of Khanh Hoa has five industrial zones established under the permit of the Government. The 152-ha Suoi Dau Industrial Zone Cam Lam district, which has infrastructure construction completed in both phases, has a net rentable area of 91.6 ha, in which 64.3 ha have been leased, or 69 percent. To date, the industrial park has attracted 45 projects with a total investment capital of US$133 million, including 20 foreign-financed projects. As of August 2009, the Suoi Dau Industrial Zone reported to house over 30 operating enterprises, which create around 9,000 jobs, make annual turnover of over VND2,000 billion and pay VND7.4 billion of taxes to the State Budget. In the future, the Suoi Dau Industrial Zone will continue to encourage the investment in food processing, export seafood processing, electronics, engineering, manufacturing and consumer goods production, etc.
Four remaining industrial parks are under construction and detailed planning. They are calling for investments. Particularly, the 207.9 ha Ninh Thuy Industrial Park in Ninh Hoa district is building the infrastructure and is expected to complete the first phase of construction on 113 ha in June 2010, aiming for supporting industries and services for shipbuilding industry. The 233 ha Cam Ranh Industrial Park in Cam Ranh town is the multi-sector industrial park for the shipbuilding industry, supporting industries for shipbuilding, machinery, automobile manufacturing. The Van Phong Economic Zone Management Board granted it an investment certificate in March 2009. Currently, the investor is submitting the detailed plan with scale of 1:2000 to authorities for approval. Particularly, the North Cam Ranh Industrial Park in the town of Cam Ranh (140 ha) will prioritise investments in the engineering, garment, consumer goods, and construction material production.
The investor is submitting the detailed planning, scale 1:2000, of the 144.42 ha Van Thang Industrial Zone in Van Ninh district to responsible authorities. The management board of this industrial park said this will serve green industries.
Investment incentive policies for industrial parks
Local industrial zones with difficult socio-economic conditions, in addition to incentives stipulated by the laws, shall enjoy the preferential investment policies as follows:
Corporate income tax: Enterprises which establish new investment projects will be applied the tax rate of 20 percent in 10 consecutive years starting from the first year with revenues from tax-preference activities, and will be exempted corporate income tax in the first two years and reduced tax payable by a half in four consecutive years since the first year with taxable income from the tax-preference investment projects. If the enterprises suffer losses, the losses will be transferred to the following year and will be deducted from taxable income. The tax transfer is only applied within the first five years dating from the following year of the loss-making year.
Import tax: Enterprises are exempt from import tax in five straight years starting from the date of production, applied to raw materials, components and semi-finished products which cannot be domestically produced. They are also free from import taxes on equipment, machinery, transport vehicles which create fixed assets, vehicles for transporting employees which cannot be locally produced or fail to meet production requirements.
Quoc Viet
Vietnamese
