Loc Son IP in Lam Dong Province: Rolls out Red Carpet for Investors

3:26:20 PM | 8/7/2005

Loc Son IP in Lam Dong Province: Rolls out Red Carpet for Investors

Located near the junction of national road 20 to Da Lat and national road 55 to Binh Thuan province, 120 km from Phan Thiet City, 100 km from Da Lat Airport and 180 km from Ho Chi Minh City, Loc Son Industrial Park (IP) is an ideal place for investors thanks to its convenient location, perfect infrastructure and transport system, and preferential policies.

Loc Son IP has lured 15 projects to date, of which, four projects are operational, two are building infrastructure and two have received investment licenses. With a total area of 185 hectares, it is connected to the 220 KV national grid that can fully and stably provide electricity to all factories, and equipped with an international standard telecommunication system, state-of-the-art parking, warehouses capable of receiving large vehicles, and a modern water drainage system.

When operating in Loc Son IP, domestic enterprises will be exempt from the land leasing fee for the first 3-5 years and a 30 per cent reduction will be applied for the seven following years for projects meeting one of the two regulations or both two regulations stipulated in the government’s Decision 51. Foreign-invested enterprises will enjoy no land-leasing fee for 11 years since their projects become operational.

FDI enterprises will be imposed with a corporate income tax of only 10 per cent during their projects’ duration, exempted from corporate income tax in the first four years of profitability and a 50 per cent reduction in the four following years. They also do not have to pay land leasing fees during their infrastructure construction period nor for the next 11 years, and will enjoy a 100 per cent corporate income tax refund if they reinvest and a 3 per cent tax for remittance abroad.

Loc Son IP is home to a diversified range of industries in Lam Dong province such as tea processing, coffee, agricultural products, foodstuff, fruit, garment and textiles, aluminum, construction materials, electronic equipment, leather and footwear, and others.

Land leasing fees and fees for using infrastructure in Loc Son IP:

-Land leasing fee: US$0.25 sq m/year

-Infrastructure fee: US$0.15 sq m/year

The land leasing and infrastructure fees remain stable for five years, and may be changed after five years but cannot exceed 15 per cent.

  • Xuan Long