The southern province of Binh Duong has so far attracted 2,713 foreign-invested projects with a total capital of around 25 billion USD, including 16 billion USD distributed to 1,635 projects that are underway in industrial parks (IP).

According to deputy head of the Binh Duong Committee for Industrial Park Management Board Bui Minh Tri, the FDI projects, mostly small and medium ones, have employed over 360,000 locals.

Since early this year, more than 618 million USD of FDI has been invested in the construction of factories in IPs, he added.

Meanwhile, Director of the provincial Department of Planning and Investment Nguyen Thanh Truc revealed that the province has nearly fulfilled the yearly target in FDI attraction, adding that a total of over 1.1 billion in FDI has been licenced to be poured into 126 new and 68 underway projects.

The number of new projects located in IPs across the provinces stands at 99, worth 709 million USD, and 46 underway projects were added 276 million USD in investment capital, Truc said.

So far, the province has constructed 28 IPs covering over 9,000 hectares. In the next five years, the number of IPs is expected to increase to 34 on 14,790 hectares.

A 300 hectare IP in Bau Bang district will also be built to host firms in the support industry for the apparel sector, as part of efforts to take advantage of investment flow after the Trans-Pacific Partnership is signed.

Currently, the province, one of the major industrial hubs in the south, is prioritising FDI projects utilising high technology and located in IPs to ensure environmental protection, said Tri./.

Vietnam News Agency

The Dutch Government will give financial support to the implementation, operation and maintenance of the water drainage and wastewater treatment project in the southern province of Binh Duong as stipulated in an agreement signed on July 22. 

The 12 million EUR project will benefit 219 small production facilities and nearly 19,400 local households in Tan Binh commune (Di An town), part of An Phu and Binh Chuan commune (Thuan An town), Thai Hoa commune and part of Tan Phuoc Khanh commune (Tan Uyen town). 
Its aim is to ensure the local environment and to improve water quality for the Dong Nai river system – the main source of water for over 12 million people in Binh Duong and Dong Nai provinces and Ho Chi Minh City .
According to Simon Van Der Burg, Consul General of the Netherlands in Ho Chi Minh city , the completion of the wastewater collection and treatment system will do some good for local people’s health and business operations.
Tran Thanh Liem, Chairman of the provincial People’s Committee, noted that the province has paid due attention to improving local livelihoods and protecting the environment, especially in densely-populated urban areas.
However, the province needs support from foreign nations and international financial organisations due to its limited capital, he highlighted. The aid will be provided under the Facility for Infrastructure Development ORIO, which is funded by the Dutch Ministry of Foreign Affairs.

The northern province of Vinh Phuc has attracted US$3.43 billion in foreign direct investment (FDI) with 222 projects as of mid-July, 2016, according to the provincial Investment Promotion Agency. 

Although ranking third among the locality’s largest foreign investors, Japan takes the lead in capital disbursement, business operation efficiency and contribution to local budget. Japan is running 26 projects valued at over US$786 million in Vinh Phuc.
Since their establishment in Vietnam, Honda Motor Co., Ltd and Toyota Motor Vietnam Co., Ltd have contributed more than US$6 billion to the state budget while creating jobs for thousands of locals with stable incomes.
Meanwhile, Nidec Nissin Vietnam, Maruichi Sun Steel JSC, Exedy Vietnam Co., Ltd and Kohsei Multipack Vietnam Co., Ltd also show good performance.
Vinh Phuc province has recently granted an investment certificate to Japan’s Sumitomo Corporation to develop infrastructure of the 213-hectare Thang Long Vinh Phuc industrial park. Once completed, the park will attract 79 secondary investment projects from Japan with a total registered capital of US$1.5 billion and draw 25,000 local workers.
In a bid to lure more investments, the province has paid heed to improving the local business climate, attracting resources for development while building essential infrastructure. Enhancing vocational training quality, mapping out plan for urban development and facilitating administrative procedures for investors are also given top priority. Furthermore, the province has held talks with FDI businesses to promptly tackle their difficulties.

 

VGP – The Ministry of Finance has issued Circular No. 83/2016/TT-BTC guiding the implementation of the investment incentive programs under the provisions of the Law on Investment and Decree No. 118/2015/ND-CP specifying and guiding the implementation of several articles of the Law on Investment.

The Circular defines the preferential implementation on corporate income tax, import tax and non-agricultural land use tax.

New projects meeting demands on preferential corporate tax based on the Law No. 14/2008/QH12, dated June 3, 2008, on enterprise income tax, the Law No. 32/2013/QH13, dated June 19, 2013, on amending and supplementing some articles of the Law on Corporate Income Tax and the Law No. 71/2014/QH13 dated November 26, 2014 on amendments to the tax Law will enjoy the preferential corporate tax.

New projects in economic zones and high-tech industrial parks will also enjoy the preferential tax in accordance with regulations on corporate income tax.

Projects in preferential sectors and industries or launched in disadvantaged socio-economic development areas will be applied with preferential import tax.

Imported goods to create fixed assets and materials, equipment and accessories which have not been produced domestically (excepts projects on automobile manufacturing and assembling , motorcycles , air conditioners, electric heaters , refrigerators , washing machines , electric fans , dishwasher , DVD , stereo , electric irons , kettles , hair dryers  and drying hands) will be exempted from import tax within five years.

Investment projects in hotels , offices, apartments , houses , commercial centers , technical services , supermarkets , golf courses , resorts , sports , amusement parks , clinics and treatment , training , culture , finance , banking , insurance , audit and consulting services will enjoy first import tax for equipment in the list of the Appendix II in Decree No. 87/2010/ND-CP detailing a number of articles of the Law on Import Duty and Export Duty.

Projects in special sectors and realized in disadvantaged socio-economic development areas,  having capital of more than VND6,000 billion and minimal disbursement of VND6,000 billion within three years since the issuance of the license day or hiring more than 500 local workers will be eligible for non-agricultural land use tax.

The Circular will take effect on August 1, 2016.

By Thuy Dung
VGP News