Incentives for Companies Investing in Border Zones - Vietnam Briefing News
Mar. 11 – Vietnam has announced that companies and individuals that invest in border gate economic zones (EZ) and non-tariff areas are qualified for a series of incentive policies effective May 1.
Projects that invest in these areas will be given tax, land rental and finance incentives. According to the decree, state budget will also be used to aid large infrastructure construction projects in the border gate economic zones and non-tariff areas. Projects investing in important infrastructure and public works in the border gate EZs will be listed among Government projects calling for official development assistance capital sources, reports Vietnam Net.
These projects will also be allowed to issue revenue bonds. For newly-approved projects there will be a priority tax level of 10 percent within 15 years and an income tax exemption of four years. This will give investors a 50 percent tax reduction in the next nine years starting from the year that investors gain taxable income.
Income tax will be reduced by 50 percent for local and foreign workers employed at the border gate EZs. Commodities and services that are produced, consumed in, imported and exported from the areas will not be meted a value added tax. This exemption will also be applied to commodities and services moved from local market to the tax-free areas.
Projects invested in the border gate EZs and tax-free areas will be rental free for the first 11 years. Those projects encouraged by the government will be exempt from land rental, while other projects may receive 15 years exemption.
Vietnam is planning to develop 30 border gate EZs by 2020 and total commodity and service export-import revenue through border gates with neighboring countries are forecast to reach US$42-43 billion by 2020.
The border gate areas are expected to boost tourism to as much as 7.8 to 8 million tourists by 2020.