Investment Current

 

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Source: http://en.investinlongan.vn

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Long Hau industrial zone in Can Giuoc district - a bright sport in FDI attraction in Long An (Source: VNA)

According to Can, the province has stepped up investment promotion both inside and outside Vietnam, targeting big groups.

It has also implemented administrative reform well, improved the business and investment climate, and increased its ranking on the provincial competitiveness index, especially in the fields of investment, land, taxation, customs, and labour.

In addition, Long An has regularly organised dialogues with investors to help them deal with difficulties and speed up the implementation of projects, while at the same time working to build a convenient, open, and transparent business and investment environment.

Attention has been paid to intensifying tax inspections over foreign-invested enterprises to detect violations early in order to ensure equality in tax declaration and payment for businesses.

Since the beginning of the year, Long An has granted investment licences to 51 projects worth 193.8 million USD. Moreover, 91.1 million USD has been added to 50 existing projects in the period. To date, the province has attracted 928 FDI projects with a total registered capital of over 5.9 billion USD, mainly in the fields of garment and textiles, footwear, and food processing.

Taiwan (China) ranks first in both the number of projects and capital amongst the 37 nations and territories investing in the locality, with a total of 192 projects worth 1 billion USD. It is followed by the Republic of Korea, Japan, China, and Singapore.

The export turnover for FDI enterprises enjoyed an average growth of 27.6 percent per year during 1996-2016, with the value hitting 2.6 billion USD last year. The number of foreign-invested exporters rose from 18 in 1996 to 300 at the last count.

Nguyen Van Tieu, Director of the provincial Department of Planning and Investment, said that FDI enterprises have made significant contributions to the locality's industrial production and exports. Their contributions to the State budget have increased year after year, but only accounted for 22 percent of the province's total budget collection in 2017. 

The figure has yet to meet the enterprises' potential in terms of development investment, he said.

He added that FDI enterprises currently employ some 126,000 labourers, equal to nearly half of the locality's total labourers./.

Source: VNA​

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Vice Chairman of the provincial People's Committee – Mr. Nguyen Van Duoc, Vice Chairman of the provincial Fatherland Front Committee – Mr. Le Van Hung reward typical enterprises

From early 2017 to now, the province has nearly 2,200 newly registered enterprises with registered capital of VND 31,580 billion. Up to now, Long An has more than 10,000 enterprises operating with a total registered capital of over VND 243,000 billion.

At present, the provincial People's Committee launches the emulation movement "Long An enterprises: integration and development" in the period 2017 – 2020. Accordingly, the province continues to improve the investment and business environment and support enterprises to enhance competitiveness and operating quantity. By 2020, the Provincial Competitiveness Index (PCI) strives to be in the top 10, the social investment rate/GRDP reaches 40-42%, 70% of laborers are trained, 150,000 jobs are created within 5 years, one enterprise/135 people, and filling at least 80% of industrial clusters and increasing the occupancy rate of industrial parks.

To timely encourage and recognize the contributions of enterprises, the provincial People's Committee rewarded 138 enterprises, including 9 golden trophies for outstanding enterprises, 14 emulation flags and 115 certificates of merit.

Vice Chairman of the provincial People's Committee – Mr. Nguyen Van Duoc is speaking at the conference

Speaking at the conference, Mr. Nguyen Van Duoc noted and praised the outstanding results, positive contributions of the business community to the overall development of the province. In the coming time, enterprises should actively study and apply advanced technologies in production in order to increase the productivity, thoroughly save costs to keep reasonable prices, and improve qualifications, skills and productivity, and pay special attention to raising incomes of laborers.

Reported by TV

Translated by Lan Vy

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The delegation of Long An province visits and works in Hyogo province, Japan (2012)

In addition, through visits, business trip, two-way investment and trade promotion activities between Long An and some localities in Japan, the two parties have initially agreed to promote cooperation on many fields. Accordingly, the Japanese side would support investors and scientists to improve cultivation processing techniques for key agricultural products and train and to train high-quality human resources in the agricultural section of the province, etc.   

The current trend of international integration, the establishment and development of friendly relations between Long An and the localities in Japan, together with the above positive results, is an important foundation for strengthening the solidarity and friendship between the authorities and people of Long An with Japan, following the chain of friendship activities that Long An province has been implementing in 2018 in order to commemorate the 45^th anniversary of the establishment of diplomatic relations between Vietnam and Japan.

Reported by Truong Hoang Giang

Translated by Lan Vy ​

​- ​From 01/01/2016, the regular corporate income tax of 20%.

- The tax rate of 17% applied 10 years for the project in areas with difficult socio-economic conditions, include: Kien Tuong town; Tan Thanh district, Duc Hoa district, Thanh Hoa district.

- The tax rate of 10% applied 15 years for the project in areas with special difficult socio-economic conditions, include: Duc Hue district, Moc Hoa district, Vinh Hưng district, Tan Hung district and Long An border Economic zone.

Vietnam Law No. 67/2014/QH13 dated November 26, 2014 of the National Assembly on Investment (Vietnam investment law) - Download

I. Incentives for invest in industrial parks of Long An province.

a. Tax exemption for 2 years, reduction of 50% of tax for the next 4 years for incomes from performing new investment projects when invest in all industrial park in Long An.

b. Tax exemption for 4 years, reduction of 50% of tax for the next 9 years for the project specified in Decree No. 118/2015/ND-CP date 12/11/2015.

c. Other incentives:

- Goods imported to create fixed assets of investment projects in domains entitled to import duty preferences or in geographical areas entitled to import duty incentives.

- Exemption from import duties for goods imported in Decree No. 87/2010/ND-CP dated August 13, 2010 of the Government detailing a number of articles of the Law on Import Duty and Export Duty. .

II. Incentives for invest in the economic zone of Long An province

(Pursuant to Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance))

a. Corporate income tax incentives

- Tax rate of 10% within 15 years

- Exemption 4 years, 50% tax rate in the next 09 years.

b. Personal income tax incentives

Vietnamese and foreigners directly working or involved in production and business activities in border-gate economic zones, having incomes from their jobs and production and business activities in border-gate economic zones and being liable to personal income tax under the Personal Income Tax Law are eligible for 50% reduction of payable tax amounts.

c. Value-added tax incentives

Commodities and services ineligible for the value-added tax rate of 0% prescribed in Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance.

d. Export duty and import duty incentives

Commodities exported, imported in border-gate economic zones are exempt by Decision 72/2013/QD-TTg date 26/11/2013 and Circular 109/2014/TT-BTC dated 15/08/2014 of the Ministry of Finance.

e. Land rent and water surface rent incentives

Investment projects in border-gate economic zones are exempt from land rent and water surface rent under the Government's Decree No. 142/2005/ND-CP of November 14, 2005, on the collection of land rents and water surface rents, and Decree No. 121/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of Decree No. 142/2005/ND-CP of November 14, 2005.

f. Land use levy incentives

Investors who wish to use land in border-gate economic zones as production and business grounds and choose the form of land allocation with land use levy payment, will be allocated land by the State and pay land use levy; enjoy land use levy exemption and/or reduction under the Government's Decree No. 198/2004/ND-CP of December 3, 2004, and Decree No. 44/2008/ND-CP of April 9, 2008, on the collection of land use levy and Decree No. 120/2010/ND-CP of December 30, 2010, amending and supplementing a number of articles of Decree No. 198/2004/ND-CP of December 3, 2004..

Source: ​Long An Economic Zone Authority (LAEZA)​

The scene of the meeting

Currently, the Republic of Korea ranks second amount 37 countries and territories with investment projects in the province, including 173 projects and total investment capital of US$ 666 million.

At the meeting, the Vice Chairman of the provincial People's Committee introduced the general investment environment in Long An province with investors. A number of areas have been proposed for investment cooperation such as: industry (supporting industry, electronic components production, farm tools production, etc.), agriculture (cooperating in cultivation, processing, and preserving agricultural products for domestic and export demands, developing high-tech agricultural areas, etc.), services (logistics, logistic services associated with Long An port, urban and real estate development near Ho Chi Minh City), cooperating in training skilled labor, labor export.

Mr. Nguyen Van Duoc (left) gave souvenir to Korean businesses

The Korean investment delegation consisted of many businesses in the fields as: online business, development of logistics network, mobile phone accessories, construction advanced wastewater treatment facilities, production of environmental machinery and equipment, etc. in accordance with projects calling for investment in the province. The enterprises expressed their desire to contact and learn about investment opportunities in the province.

Taking photo with Korean business delegation

The Vice Chairman of the provincial People's Committee – Nguyen Van Duoc affirmed that the province would create the best conditions for businesses to invest in Long An province. Long An – Friendly and efficient investment destination.

Reported by TV

Translated by Lan Vy

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http://en.investinlongan.vn

 Source: http://en.investinlongan.vn

​​Pursuant to the Law on Corporate Income Tax dated June 3, 2008 and the Law amending and supplementing some articles of the Law on Corporate Income Tax dated June 19, 2013;

• Pursuant to the Law amending and supplementing some articles of the Law on tax dated November 26, 2014;
• Pursuant to Decree No. 12/2015 / ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing some articles of the Law on tax and amending and supplementing some articles of the Decree on taxes;
• Pursuant to Circular No. 96/2015 / TT-BTC guiding the corporate income tax in Decree No. 12/2015 / ND-CP of the Government dated 12/02/2015 detailing the implementation of the Law on Amendments and supplementing some articles of the Law on taxes and amendments to some articles of the Decree on tax and amending and supplementing some articles of Circular No. 78/2014 / TT-BTC dated 18/6 / 2014, Circular No. 119/2014 / TT-BTC dated 25/08/2014 of Circular No. 151/2014 / TT-BTC dated 10/10/2014 of the Ministry of Finance.

II.Content

LONG AN (according to the list of regions preferential Corporate Income Tax issued with Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government)

• Areas with difficult social and economic conditions: Kien Tuong town; Duc Hue, Moc Hoa, Tan Thanh, Duc Hoa, Vinh Hung, Tan Hung.

1.     Preferential tax rates

The preferential rate of 10% for a period of fifteen years (15 years) applies to:

a) Income from implementation of enterprise projects new investments in: a region with economic conditions - particularly difficult social provisions in the Annex issued with Decree No. 218/2013 / ND-CP economic zones, high-tech parks including the information technology area focus was established by decision of the Prime Minister.

b)The income of the business from the implementation of new investment projects in the following fields: scientific research and technological development; high-tech applications in the list of high-tech investment and development priorities in accordance with the Law on High Technology; High-technology incubators, business incubators, high-tech; venture capital for high-tech development in the list of high-tech development priorities in accordance with the law on high technology; construction investment - business incubators high technology business incubators tech; investment in the development of water plants, power plants, water supply and drainage systems; bridges, roads and railways; airports, seaports, river ports; airports, railway stations and infrastructure projects especially important due to the Prime Minister for decision; manufacturing software products; producing composite materials, construction materials, light, rare materials; producing renewable energy, clean energy, energy from waste disposal; biotechnology development.

c)Income from implementation of business projects in the fields of new environmental protection, including equipment manufacturing environmental pollution treatment, monitoring equipment and environmental analysis; pollution treatment and environmental protection; collection and treatment of waste water, waste gas and solid waste; recycling and reuse of wastes.

d) High-tech enterprises, agricultural enterprises high-tech applications in accordance with the Law on high technology.

đ)Income from implementation of business projects of new investment in the manufacturing sector (excluding projects produced goods subject to excise tax, mining projects) meets one of two criteria:

• The project has an investment capital registered for the first time a minimum of 6 (six) trillion dongs, disburse no more than 3 years from the time of initial investment permitted under the investment law and A total minimum turnover of 10 (ten) trillion dongs /year at the latest after 3 years from the year the revenue from investment projects (4th slowest year since revenues have now reached total sales minimum fee of 10 (ten) trillion dongs /year).
• The project has an investment capital registered for the first time a minimum of 6 (six) trillion, disburse no more than 3 years from the time of initial investment permitted under the investment law and frequent use of over 3,000 employees at the latest after 3 years from the year the revenue from investment projects (4th slowest year since business revenue to achieve conditions of use regularly average number of employees 3,000 per year on labor).

e)Income from implementation of business projects in the manufacturing sector, excluding commodity production projects excise tax and mining projects, capitalized at a minimum investment of 12 (twelve) trillion, use of technology must be evaluated in accordance with the Law on high technology, science and technology law, shall disburse the total registered capital not exceeding 5 years from the date are permitted to invest in accordance with the law on investment.

g) Income from implementation of enterprise projects new investment product manufacturer on the list of products supporting industry development priorities to meet one of the following criteria:

• Industrial products supporting high technology as stipulated by the Law on high technology;
• Industrial products supporting product manufacturing industries: textile - apparel; Leather - Footwear; electronics and information technology; automotive production and assembly; mechanical engineering that these products as of 01 May 01, 2015 which cannot be manufactured or produced but must meet the technical standards of the European Union (EU) or equivalent.

The preferential rate of 10% during the operation applies to:

a)  Income from the operation of the business socializing in the field of education - education, vocational training, health, culture, sports and the environment, judicial assessment (hereinafter referred to as the field socialize).

b)  15% tax rate on corporate income from farming, livestock production and processing in the field of agriculture and fisheries in regions other than areas with socio-economic conditions or areas with difficult conditions special socio-economic difficulties."

c) The income of the publishing activities of the Publisher under the provisions of the Law on Publication.

d)  Income from print activities (including advertising in print) of the press agency under the provisions of the Press Law.

e) The income of the business from implementing investment projects - social housing business to sell, lease or lease-purchase for the objects defined in Article 53 of the Housing Law.

f)   Income from business: planting, care and protection; income from crops, livestock, aquaculture, agro-processing, fisheries in areas of socio-economic difficulties; Forestry farming conditions in areas with difficult socio-economic; Production, human and plant breeding animals; Manufacturing, mining and production of refined salt unless specified in Clause 1, Article 4 of Decree No. 218/2013 / ND-CP; Investment preservation of agricultural products after harvesting, preservation of agricultural, fisheries and food, including direct investment to preserve investment for rental or storage of agricultural products, fisheries and food. "

g)  The income of the cooperative activities in the field of agriculture, forestry, fisheries and salt not in the economic - social problems and economic areas - especially social difficulties.

The preferential rate of 20% in ten years (10 years) applies to:

a)  The income of the enterprise from the project implementation of new investment in a region with economic conditions - social difficulties specified in Annex issued with Decree No. 218/2013 / ND-CP .

b) The income of the business from the implementation of new investment projects: the production of high quality steel; producing energy-saving products; manufacturing machinery and equipment for production of agriculture, forestry, fishery and salt; irrigation equipment manufacturing; production and refining of animal feed, poultry and seafood; development of traditional industries (including construction and development of traditional industries in producing handicrafts, processed agricultural products and foodstuffs, cultural products).

Enterprises to implement new investment projects in the field of geographical tax incentives provided for in this Clause from January 01, 2016 the tax rate of 17%.

The preferential rate of 20% during operation (from 01/01/2016 to apply the tax rate of 17%) to be applied to people's credit funds, banks and cooperative financial Organizations microfinance.

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For the People's Credit Fund, cooperative banks and micro finance institutions established in areas with new economic conditions - particularly difficult social provisions in Annex issued with Decree No. 218/2013 / ND-CP of the Government after the expiration of the tax rate of 10% specified in Clause 1 of this Article, to apply the tax rate of 20%; from 01/01/2016 to apply the tax rate of 17%.

2.      Incentives for tax holidays and tax reduction

Tax exemption for four years, 50% of the tax payable in the next nine years to:

a)  Income from implementation of business projects prescribed in Clause 1 of Article 19 of Circular No. 78/2014 / TT-BTC (as amended and supplemented in Clause 1, Article 11 of Circular No. 96/2015 / TT-BTC) ".

b)  The income of the business from the implementation of new investment projects in the field of social mobilization carried out in areas with difficult socio - economic difficulties or exceptional difficulties specified in the Annex attached to Decree No. 218/2013 / ND-CP.

2.2   Tax exemption for four years, 50% of the tax payable in the next five years for the income of the business from the implementation of new investment projects in the field of social mobilization carried out in areas not in the list of areas economic conditions - social difficult or extremely difficult specified in Annex issued with Decree No. 218/2013 / ND-CP of the Government.

2.3  Tax exemption for two years and 50% of the tax payable in the next four years on income from investment projects implemented new provisions in Clause 4 of Article 19 of Circular No. 96/2015 / TT-BTC and income of the business from the implementation of new investment projects in Industrial parks (except industrial park located in the urban districts of special grade, grade I under the central and industrial park located in desk municipalities provincially type I).

3.      The case of other tax breaks

• Business activity in the manufacturing sector, construction, transport use from 10 to 100 women workers, including women workers of more than 50% of the 150 employees a regular or frequent use over 100 female workers that some female workers accounted for over 30% of their regular employees of the Corporate Income Tax reduction corresponding payable now with the amount actually spent more for female workers under the guidance of Item clause 2.9 Clause 2 of Article 6 of Circular No. 96/2015 / TT-BTC if separately accounted.
• Business Employers are ethnic minorities are reduced Corporate Income Tax payable corresponds to the amount actually spent more workers from ethnic minorities guidance at Item b, Point 2.9, Clause 2, Article 6 Circular No. 96/2015 / TT-BTC if separately accounted.

• Enterprises to implement technology transfer under the priority areas transferred to organizations and individuals in areas with difficult socio - economic difficulties 50% reduction of corporate income tax payable on the income from technology transfer.
• Source: http://dpi.longan.gov.vn​

Source: http://en.investinlongan.vn

Source: Long An Economic Zone Authority (LEAZA)