6:22:47 PM | 10/11/2016
The An Giang Economic Zone Authority has worked with 12 domestic and foreign investors seeking investment opportunities in industrial parks and border-gate economic zones in the year to date. This result shows that focused infrastructure investment for industrial zones and favourable investment attraction policies are important factors to make An Giang province a fascinating destination for domestic and international investors.
A report from the An Giang Economic Zone Authority showed that the province now has several completed centralised industrial parks such as Binh Hoa, Binh Long and Xuan To; Tinh Bien Trade Zone, and Vinh Xuong Commercial - Industrial Zone. To date, Binh Hoa and Binh Long industrial parks house 25 investors. Binh Long Industrial Park have two operational projects and two commissioning projects with a total registered investment capital of VND1,488 billion, of which VND901.1 billion has been disbursed. Binh Hoa Industrial Park has 12 projects with a total registered investment capital of VND2,823 billion. Expanded Binh Hoa Industrial Park granted investment certificates to three projects valued VND5,149 billion. Industrial and economic zones in An Giang province are giving priority to such industries as garment, health, household plastics, mechanical engineering, agricultural processing and seafood.
To complete infrastructure in industrial and economic zones and foster investment promotion, the An Giang Economic Zone Authority has stepped up the construction and completion of industrial zone development plans like the expanded section for Binh Long Industrial Park, a resettlement area and a worker housing area for Binh Long Industrial Park; the expanded section for Binh Hoa Industrial Park, a resettlement area and a worker housing area for Binh Hoa Industrial Park; the expanded section for Hoi An Industrial Park, a resettlement area and a worker housing area for Hoi An Industrial Park; the detailed construction plan for Vam Cong Industrial Park, a resettlement area and a worker housing area for Vam Cong Industrial Park; and An Giang Border Gate Economic Zone Construction Master Plan to 2030.
The An Giang Economic Zone Authority proposed the Provincial People’s Committee to ask the Government of Vietnam for allocating investment capital for infrastructure development in expanded Binh Hoa Industrial Park, because the rentable area is nearly filled up; funding infrastructure construction in the Border Gate Economic Zone in the 2016 - 2020 period such as technical infrastructure in Khanh Binh Border Gate Trade - Service Zone; joint control stations and national border gates of Khanh Binh, Tinh Bien and Vinh Xuong; and attracting investment capital for infrastructure construction in Hoi An, Vam Cong and expanded Binh Long industrial parks. The authority also asked central authorities to speed up the investment and construction of traffic projects like bridges and roads leading to border gate economic zones and accelerate the construction progress of Vam Cong, Tan An, Chau Doc and bridges to create favourable conditions for travelling and transportation to border gate economic zones.
Open investment policy
Not only focusing on infrastructure investment, the An Giang Economic Zone Authority has also introduced investment incentive policies to pull investors to An Giang province particularly in the current context of extensive integration. Mr. Nguyen Minh Phong, Director of the An Giang Economic Zone Authority, said that the signing of Trans-Pacific Partnership (TPP) and the tendency of liberalising trade with ASEAN countries have opened up great prospects of investment attraction in industrial zones in Vietnam in general and in An Giang province in particular. Therefore, in addition to tapping advantages of available agricultural and aquatic resources, abundant labour resources and stable labour costs, An Giang province has carried out outstanding tax and land rent policies for investors. Accordingly, investors are exempted from lifetime land rents if they invest in certain sectors placed investment priority. They will be granted 15 years, 11 years, or at least seven years of land rent exemption when they invest in centralised industrial parks. They will be exempted from corporate income tax for at most four years, granted a 50 per cent reduction in the next nine years, and granted a preferential corporate income tax of 10 per cent in 15 years if they invest in border gate economic zones. They will be exempted from corporate income tax in two years, granted a 50 per cent reduction in the next four years, and subjected to a preferential corporate income tax of 17 per cent in 10 years if they invest in industrial zones.
The An Giang Economic Zone Authority is always willing and ready to support enterprises to settle emerging difficulties when they carry out their projects or do business. To create breakthroughs in attracting investment capital into industrial and border gate economic zones, the authority will introduce more solutions to improve the investment environment, particularly those relating to public administration reform and investment promotion.