Friday, August 17, 2007

Vietnam's government mulls more incentives for investors

Ha Noi (VNA) – A draft decree on industrial, processing and economic zones is being finalised with the aim of offering more preferential incentives to projects invested in the zones.

The decree proposes the application of preferential treatment to projects in industrial, processing and economic zones that are to be based in disadvantaged areas.

Apart from current preferential policies that have been applied for hi-tech parks, hi-end projects in industrial, processing and economic zones will also be provided with preferential taxes.

The decree also maps out a plan to slash income tax by 50 percent for those working in hi-tech parks and economic zones to include both Vietnamese and foreign nationals.

According to experts from the Overseas Investment Department under the Ministry of Planning and Investment, the new incentives will create a momentum to draw more foreign investment.

It is estimated that industrial zones will have attracted a total of more than 5,700 projects by the end of this year, including 2,700 by foreign investors with a total capital investment of over 26 billion USD. The remaining is forecast to be invested by domestic investors with a total investment capital of more than 152,000 billion VND.

An additional 22 industrial zones are expected to be set up by the year end, bringing the total number of industrial zones across the country to 164 on a total land area of close to 34,000 hectares.

The establishment of eight economic zones (EZs) has been given the go ahead, including Nghi Son, Vung Ang and Chan May-Lang Co EZs in the northern central, Chu Lai, Dung Quat, Nhon Hoi and Van Phong EZs in the central coastal region, and Phu Quoc and Nam An Thoi island complex in the southern region.-Enditem