Hai Duong Province Offering Preferential Polices to Attract Investment
In its socio-economic development for the 2001-2005 period, Hai Duong province has set a target of an annual growth rate of between nine and ten per cent in gross product value with an increase of between 13 and 14 per cent per year in industrial production and between nine and ten per cent in services. Thanks to its suitable incentive policies and mechanisms, alongside the effective implementation of these policies for socio-economic development, so far, the province has been on a fast track to achieve these targets.
The province has developed a frame of prices for land compensation for each locality, offering incentives to encourage enterprises to invest in local industrial parks and craft villages. Incentives offered by the province include an exemption of land rent for ten years and a 50 per cent reduction for the next ten years, a subsidy from the provincial budget, equal to 100 per cent of corporate incomes for the first two years and a reduction of 50 per cent for the next two years. Also, investors can get soft loans, receive post-investment interest subsidy, with a 10 per cent reduction of loan and financial leasing interests. In particular, if enterprises invest in farm-produce and food processing, creating jobs for many local people, they will receive a subsidy of 30 per cent of the interest of the bank loans for capital construction.
Furthermore, the province will train skilled workers and technicians to meet the demand of investors. The province will provide investors with a subsidy equal to 50 per cent of the cost for each local worker trained in
Thanks to the openness and incentives in its mechanisms and policies, four years’ after the implementation of a programme to attract and use investment capital for the 2001-2005 period, Hai Duong province has attracted many investors. So far, investors from 18 countries and territories have invested in the province with 70 projects. Fifty per cent of the land in six local industrial parks have been leased to investors. In particular, the occupied area has reached 80 per cent in the Nam Sach industrial park and 60 per cent, in Dai An industrial park.
Hai Duong has created favourable conditions for its investors, thus helping its industrial sector and its economy as a whole to achieve their development targets early.