10:33:12 PM | 16/2/2012
The Long An Provincial People's Committee recently held a seminar on the investment environment and opportunities in the province. Authorities of Long An satisfactorily answered questions related to tax incentives, investment environment, and prioritised fields. Many Japanese companies attended the meeting.
Mr Pham Van Ranh, Vice Chairman of Long An People’s Committee, said Vietnam and Japan have similarities in culture. Many Japanese companies are major investors and trade partners of Vietnam and this relationship has positively contributed to mutual social and economic development and created a peaceful and prosperous environment for the entire region.
Mr Ranh also appreciated Japan’s effective cooperation in supporting Vietnam’s economic development, poverty reduction, human resource training and efforts to make the "Strategic Partnership for peace and prosperity in Asia” stable and sustainable. Japan is also one of the largest investors in Long An province.
Blessed with a convenient location and serving as a gateway to Ho Chi Minh City with its sound investment strategy, Long An province is now attracting the most foreign direct investment (FDI) in the Mekong Delta region. Specifically, to date Long An has attracted 407 foreign-invested projects with total registered capital of more than US$3.453 billion. Japan ranked fourth in projects (30) and fifth in capital (US$137 million) out of 30 countries and territories investing in Long An. Singapore is now the largest investor in the province. “Hopefully in the near future, Japan will become the ‘champion investor’ in Long An,” said Mr Ranh.
He said what Long An province has attracted from Japanese investors is not commensurate with the potential and advantages of Long An, and the human resources and technology of Japan. “To promote investment and develop the economy, Long An is determined to build a very good investment environment in order to attract as much foreign investment as possible into new technology fields and projects. This is the field of interest by Japanese investors. Besides, the province gives priority to investment projects for infrastructure, environmental treatment and other fields to create a ripple effect on other economic sectors,” said Mr Ranh.
Mr Wada Kisaburo, President of Japan Sakkai Trade Promotion Association, said that Long An province in general and Tan An City in particular are developing very quickly, especially in industry. He hoped Sakkai small and medium enterprises will have the chance to do business here in the future.
In 2011, the Government of Vietnam licensed 208 Japanese enterprises to invest in Vietnam. This was the largest annual figure to date. Japanese companies are also very interested in Long An. “Not limited to the exchange of activities, companies of the two countries will have specific steps for investment cooperation in the coming time," said Wada Kisaburo.
An official from the Japanese Consulate General in Ho Chi Minh City said Long An, with its convenient location and sound policies, is attracting more and more investment. Together with the enthusiastic support of local authorities, more foreign investors are coming, particularly Japanese.
As the first beer company in Long An, Sapopro Co., Ltd noted the good points in the investment environment in Long An province. “Long An is a large market adjacent to Ho Chi Minh City and has a very convenient traffic system. As a brewery, Sapopro needs to import wheat and the company faces no difficulty with this. When it built the brewery, the company received much support of Long An province. The single-window administrative procedure mechanism enabled the company to put into use its factory at the earliest possible date. In addition, as not many Japanese companies had come to Long An province, the company recruited good personnel very conveniently. Particularly, local workers are very experienced and can speak Japanese quite well. And, Sapopro selects employees with working experience in Japan to assign to important posts.”
At the meeting, Japanese businesses were very interested in the investment environment, preferential policies on taxes, land rent in industrial parks, and prioritised fields in Long An province. All questions were satisfactorily answered by authorities.
Concerning tax issues, an official from the Long An Tax Department said companies have to pay three kinds of tax: Direct tax, indirect tax and asset tax. Tax payment procedures in Long An province are the same as in other places in the country, but six poor districts receive special incentives. “If any company is concerned about tax issues, it can contact tax authorities for detailed answers and instruction. The Tax Department will provide best support to investors,” said the official.
With respect to land rent policy, an official from the Long An Industrial Zone Authority said the smallest area to be leased is 200 square metres and the largest one depends on investment needs. Rents are variable from place to place. The lowest rental is around US$45 per square metre in 49 - 50 years and the highest is US$105 per square metre.
However, the rates and the rent terms may be changed. Payment methods are also very flexible for investors. All conditions and terms are negotiable.
Only Trans Asia Industrial Park is allowed to attract industries likely to cause pollution, while other industrial parks strictly prohibit this.
Ha Linh