New Economic Zone to be Set Up in Ha Giang Province - Vietnam Briefing News
Jan. 14 – The government has announced that it will open a new national border gate economic zone in Ha Giang Province to further trade with China.
The Thanh Thuy economic zone will be an important import-export venue for the northern region spanning 28,700 hectares including the communes of Thanh Thuy, Phuong Tien, Thanh Duc, Xin Chai, Lao Chai; Phong Quang (Vi Xuyen district) and Phuong Do.
It will consist of a non-tariff zone, an export processing zone, an industrial zone, and a recreational park with office and apartment areas. Construction of the EZ will begin from this year until 2020. The first phase will end in 2015 and basic infrastructure will be built together with activities to call for investment while the next phase will be done from 2016 to 2020.
Nhan Dan reports that businesses in the zone will qualify for a preferential tax rate of 10 percent for 15 years. Companies will also exempted from corporate income tax for four years and a 50 percent savings on corporate income tax in the next nine years.
Goods imported and exported from the zone will be not be charged value added tax. The zone also offers a 50 percent reduced personal income tax rate for both local and foreign employees.
Ha Giang Province is located northeast of Vietnam and shares a border with China. It is one of the poorest areas in the country with most businesses engaged in either agriculture or forestry. The government has been working to develop its manufacturing industry.