Ben Tre Calls for Investors

3:26:39 PM | 8/7/2005

Ben Tre Calls for Investors


Ben Tre is open to investment. Investors will have maximum interests in cheap labour, stable supply of materials, low land rental and full support of the local authorities. In addition to one-stop shop formalities, investors can have additional preferential treatment in land rental, enterprise income tax and land clearance. This article explains the preferential treatment given to specific sectors.


Coconut sector


Investors involved in the coconut processing industry will be supported by the Development Fund in banking interest rates for investment in fixed property and short-term credits for export. Small units and households producing coconut fibre for local enterprises will be exempted from tax. Projects with new products will be supported with 50 per cent of expenses in the transfer of equipment and technology (no more than VND500 million), 100 per cent of interest rates in credits for equipment, technology and training of enterprises using 15 workers upwards. Investors can also be supported by 30 per cent of expenses (no more than VND30 million each) in registration of quality management systems ISO 9001:2000, HACCP and TQM.


Vietnamese businesses


Vietnamese businesses will receive enterprise tax rates of 15-20 per cent with exemption from 3 to 5 years and a 50 per cent reduction for 6-12 following years. Enterprises using 20-50 workers will have tax exemptions for four years, and a 50 per cent reduction for 9-11 following years and will be exempt from paying personal income tax for 5-12 years. They also have financial support for training of households and workers grade of 3/7. Projects in industrial and handicraft development centres and high quality species centres will be supported in expenses for building power transformers, roads, and canals. Support to other projects of priority will also be considered. In particular, enterprises with year-on-year increases in income tax will have bonuses of between 20-50 per cent of the increased amount.


Foreign businesses


Foreign businesses will receive land rental of US$0,03-0,18 per sq. metre a year, river and lake surface of US$75 and sea surface US$150 per sq. kilometres a year. They will be exempted from paying land rental for 11-13 years and will receive substantial reductions in the following years. Projects that export 50 per cent of their output will be supported by 50 per cent of the cost of land clearance. They will have a tax rate of 10 per cent, exempt for the first five years and 50 per cent reduction for four following years after making profit. BOT projects will be exempted as currently applied by the government for a further four years and will receive a 50 per cent reduction for 9 following years.  Projects with increased capital will be exempted from paying the increased amount in income tax. Those employing over 200 workers and training workers of grade 3/7 will be considered for financial support for the training provided.


Investment in Giao long IZ


Investors will have land rental (infrastructure included) of US$0,5 per sq. metre a year, with exemption of land rent for four years after signing contracts and a 50 per cent reduction for two following years. A 60 per cent reduction will be applied to investors paying the rental for the whole life of the projects, other reductions depend on the size of projects and workforce and frequencies of the payment. First projects in the IZ will be exempted from land rental. Vietnamese enterprises will receive income tax rates of 20 per cent and foreign enterprises 10 per cent. New projects will have income tax exemption for two more years and a 50 per cent reduction four following years (in priority list), one year exemption and 50 per cent reduction for two following years (outside priority list).  Enterprises employing over 500 workers will be exempted from land rent. Foreign enterprises employing over 200 workers will be supported in training of skilled workers. The province will also support 50-100 per cent of interest rates for 24 months for investment of equipment in the first 15 projects. In particular, a one-stop shop policy and single prices will be applied to service, power and water supply and communications infrastrucure in Giao Long IZ.

  • Hoa Binh