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Investment in Long An Province, Vietnam

Long An Province located in the Lower Mekong Delta Basin, next to Ho Chi Minh City and shares an international border with Cambodia. Long An province has an area of 4,355 Square Kilometers.  The population is approximately 1,400,000 with up to approximately 800,000 being of working age and part of the labor pool.

Why Long An?

Logistically, Long An offers a gateway connecting to Ho Chi Minh City and provinces of the Lower Mekong Delta Basin.  National Highway No. 1A and No. 50 link the provinces.  There are 20 industrial parks in Long An, all are located near the main roadways and waterways which simplifies shipping.

Long An government offers the incentives below to domestic companies, companies with foreign invested capital and companies with foreign owned capital.  Runckel & Associates has visited the Industrial Parks in Long An (more on business trip Journal to Long An Province) and continues to maintain close relations with this province and other province authorities, industrial park operators, construction companies, lawyers, accountants, etc. that support projects involving new factory location as well as major outsourcing initiatives.  We understand the province's strength and weakness and can help your company choose an industrial park that best meets your requirements.

 

Directory of Industrial Parks 

in Long An, Vietnam

 

 

 

Incentives offered to domestic companies, companies with foreign invested capital 

and companies with foreign owned capital:

Investment incentives granted by the Long An government are as follows: 

1. For domestic enterprises and enterprises with foreign invested capital investing in selected industrial zones:

1.1. Corporate income tax rate of twenty percent to enterprises producing industrial goods in industrial zones shall be applied for a period of ten years commencing from the time when the project commences its production or business activities and shall be twenty-eight percent for the subsequent years.

1.2. For industrial zone production enterprises (enterprises producing industrial goods which are established and operate in industrial zones). Shall be exempt from corporate income tax for four years commencing from the time when their operations start to earn profits, and shall be granted a fifty percent reduction for the five subsequent years (applied for projects that have average total of employees per a year at least fifty peoples) or for the three subsequent years (applied for projects that have average total of employees per a year less than fifty peoples).

1.3. In case of investing in industrial zones of Due Hoa District: Corporate income tax rate of fifteen (15) percent shall be applied for a period of twelve years from the time when the project commences its production or business activities and shall be twenty eight percent for the subsequent years. Enterprises shall be exempt from corporate
income tax for five years from the time when businesses starts to earn profits, and shall be granted 50 percent reduction of the amount to be paid for the eight subsequent years (with projects using an average of the year of at least twenty employees) or for the seven subsequent years (with projects using an average of the year of under twenty employees).  

1.4. For industrial zone service enterprises (enterprises which are established and operate in industrial zones and which provide infrastructure services in industrial zones or services for industrial production):

- Industrial zone service enterprises shall pay corporate income tax at the rate of twenty eight percent and shall be exempted from corporate income tax for one year commencing from the time  

  when their operations start to earn profits.

- Preferential tax rates, exemptions from and reduction of corporate income tax shall be apply to high-tech service enterprises stipulated in Item 1.1,1.2 and 1.3 of this article.

1.5. Enterprises investing in new production lines, expansion of investment scale, renewal of technology, improvement of ecologic environment, capacity shall be exempt from corporate income tax for one year and shall be granted fifty percent reduction of the amount to be paid for the four subsequent years given to the extra income brought about from this part of investment.  

1.6. Enterprises investing in new production lines, expansion of investment scale, renewal of technology, improvement of ecologic environment and capacity in industrial parks of Duc Hoa district shall be exempt from corporate income tax for three years and shall be granted fifty percent reduction of the amount to be paid for the five subsequent years given to the extra income brought about from this part of investment.  

2. For domestic enterprises and enterprises with foreign owned capital investing in construction and operation of infrastructure facilities of selected industrial zones

         2.1. Corporate income tax at the rate of twenty percent to enterprises investing in infrastructure development of industrial zones shall be applied for a period of ten years from the time when the project commences its production or business activities and shall be twenty percent for the subsequent years.  

2.2. Enterprises shall be exempt from corporate income tax for two years from the time when business starts to earn profits, and shall be granted fifty percent reduction of the amount to be paid for the five subsequent years (with projects using an average of the year of at least 50 employees) or shall be granted 50 percent reduction for the seven subsequent years (with projects using an average of the year of under 50 employees).                            

2.3. For enterprises to invest in construction and operation of infrastructure facilities of industrial zones in Duc Hoa district, corporate income tax at the rate of 15 percent shall be applied for a period of 12 years from the time when the project commences its production or business activities and shall be twenty-eight percent for the subsequent years. Three years exemption from corporate income taxes from the time when the project commences its production or business activities and fifty percent reduction of the amount to be paid for the five subsequent years (with projects using an average of the year of at least twenty employees) or for the seven subsequent years (with projects using an average of the year of under twenty employees). Reduction of fifty percent of land rent and exemption from land rent for a haft of implement duration of the project, thus land rental are calculated to base on lowest land rent tariff.

        3. Incentive in import  

  3.1. For enterprises with foreign owned capital:

- Production raw materials, materials, components shall be exempt from import duties for five years after commencement of production.

- All of goods imported to form fixed assets shall be exempt from import duties.

- Raw materials, spare parts, accessories and materials imported for export-oriented production shall be exempt from import duties.

3.2. For domestic enterprises:

-         Import-duty exemption for all machineries, equipments to form fixed assets, that have not domestically produced yet or already produced but quality's demands not to meet.

        4. Carry forward of losses: 

Foreign enterprises and domestic enterprises, which suffer losses during their operations after tax finalization with the tax office, shall be permitted to carry their losses forward to the following years.

 

Such losses may be set off against taxable income. The period for carrying forward losses shall not exceed five years.

 


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