SOME POLICIES ON INVESTMENT INCENTIVES IN PHU BAI INDUSTRIAL ZONE
Thua Thien Hue province encourages all organizations, individuals that belong to internal economic bodies, have foreign investment capital invest in Industrial Zones
1 - Land incentives:
- The projects of construction and business infrastructure in Industrial Zones are rented land with unit price by 0,25% land price issued annual by Provincial People’s Committee (PPC) and will be exempted from payment of original land rent for 11 years since construction completion and going into operation.
- For the Industrial Zones with infrastructure:
+ Phu Bai IZ: price of re-renting land of the first and second phases: 0,5 USD/m2/year; fee of using infrastructure: 0,15 USD/m2/year.
+ Phong Dien IZ: price of re-renting land: 0,5 USD/m2/year; fee of using infrastructure: 0,15 USD/m2/year.
2 - Tax incentives:
- Corporate Income Tax: Projects invested in Tu Ha IZ, Huong Tra district; Phong Dien IZ, Phong Dien district; La Son IZ, Phu Loc district; Phu Da IZ, Phu Vang district; Quang Vinh IZ, Quang Dien district: the tax rate is 20% in 10 years and tax exemption for 2 years; reduced 50% of tax payable in the next four years for new enterprises.
- Import tax: The project is exempted from import tax of goods to create fixed assets for goods imported under the provisions of Article 16, Decree 149/2005/ND-CP of the Government on December 8th, 2005. Where the import of equipment used must comply with the relevant provisions of the law of Vietnam.
3 - United price policy:
Apply united price policy as expenses for: clean water, raw water; garbage collecting, construction expense and other expenses under the jurisdiction decision of the provincial People’s Committee.
4 - Support the projects of construction and business infrastructure in IZ:
- On transport: PPC supports 60% of the value estimate to build roads to the fence of Industrial Zones: Tu Ha in Huong Tra district, Phu Da in Phu Vang district, Quang Vinh in Quang Dien district, Phong Dien in Phong Dien district, La Son in Phu Loc district.
- Regarding electricity, water and telecommunications:
+ Electricity, water, telecommunications serving production: PPC directs the entire sector investment to the fence of the project.
+ Electricity in construction phase of the project: Funding for implementation of the project will be paid by investors in advance and the province refunds 100% immediately after project construction and installation.
5- Support compensation, site clearance and resettlement for projects of construction and business infrastructure in Industrial Zone:
- Compensation and support for land: For Tu Ha IZ, Huong Tra district; Phong Dien IZ, Phong Dien district; Son La IZ, Phu Loc district; Phu Da IZ, Phu Vang district; Quang Vinh IZ, Quang Dien district: Investors advance funding to implement and are deducted from fees of using land, land rent payable to the state. The difference between the amount of advance exceeds the amount of land use, land rent payable, the province supported 50% of the difference.
- Infrastructure of resettlement: The province supports overall investment in infrastructure of resettlement. In cases where investors had advance funding to build infrastructure of resettlement shall be repaid as soon as completion of resettlement.
Investment procedures are only carried out at the Provincial Industrial Zones Authority with the mechanism: “One door” “Onthe spot”.
