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APPENDIX
(Promulgated with Decision No. 50/2004/QD-UB dated March 10, 2004 of the
People's Committee of Danang City)
I. LIST OF FIELDS WITH SPECIAL INVESTMENT ENCOURAGEMENT
- Production or processing with 80% or more of the products for
export
- Processing of agricultural products, forest products (excluding timber)
or aquatic products from domestic raw materials, with 50% of the products for
export
- Production of plant and animal breeds with high quality and economic
efficiency
- Agricultural farming, forestation, aquaculture
- Production of high-quality steel, alloys, non-ferrous metals,
special metals, steel blanks and sponge iron, metal for industries
- Manufacture of machinery, equipment and component packs for the
exploitation of petroleum, mining and energy; manufacture of large-size
lifting equipment; manufacture of machine tools for metal processing; metal
working machinery
- Production of medical equipment for analysis technology and medical
extraction technology
- Production of equipment for checking contaminants in foodstuff
- Production of new materials, and rare and precious materials and the
application of new biotechnologies: new technologies for manufacture of
information and telecommunication equipment
- Production of information technology products
- Hi-tech industries
- Investment in research and development (R&D) accounting for 25% of the
revenue
- Manufacture of waste treatment equipment
- Production of materials for antibiotics
- Pollution treatment and environmental protection, waste treatment
- Investment under BOT, BTO or BT contracts
II. LIST OF FIELDS WITH INVESTMENT ENCOURAGEMENT
- Development of 5-star hotels and tourist resorts
- Exploration, exploitation and processing of deep underground minerals
- Production or processing with 50% or more of products for export
- Production or processing with 30% or more of the products for export and
with the use of large percentages of domestic raw materials and materials
(valued at 30% or more of the production cost)
- Regularly employing over 500 persons
- Processing of farm produce, forest products (except domestic natural
wood), aquatic products from domestic material sources
- Preservation of food; post-harvest preservation of farm produce
- Development of petro-chemical industry; construction and operation of
oil and gas pipelines, depots, ports
- Manufacture of precision tools, safety checking and inspection
equipment; manufacture of molds for metal and non-metal products
- Manufacture of medium and high-voltage electrical equipment
- Manufacture of diesel engines using advanced technology and techniques:
manufacture of dynamic and hydraulic machines and spare parts, compressors
- Manufacture of automobile and motorcycle spare parts: manufacture and
assembly of construction equipment, machinery and vehicles; manufacture of
technical equipment for transport services
- Shipbuilding: manufacture of ship engines, equipment and spare parts for
freighters, fishing vessels
- Manufacture of information and telecommunications equipment
- Manufacture of electronic and informatics components and equipment
- Manufacture of agricultural equipment spare parts, machines, irrigation
and drainage equipment
- Manufacture of garment and textile equipment
- Production of assorted raw materials for insecticides
- Production of various insecticides, plant protection drugs, and
veterinary drugs with domestic added value of more than 40%
- Production of base chemicals, pure chemicals, dyes, special-use
chemicals
- Production of raw materials for cleansers, chemical additives
- Production of special-type cement, composite materials, sound-proofing,
electrical-insulated and heat resistant materials, wood substitute composite
materials, refractory materials, construction plastic, glass fibers
- Production of light construction materials
- Production of paper pulp
- Production of silk, assorted yarns and special fabrics for industrial
use
- Manufacture of high-class raw materials for production of export
footwear and garments
- Manufacture of high-quality packings for export goods
- Manufacture of medical equipment for analytical technology and
extracting technology in medicine
- Production of drug raw materials, and medicines for treatment of human
diseases meeting the GMP international standards
- Improvement and development of energy sources
- Public transportation
- Construction and renovation of bridges, roads, airports, harbors,
railway stations, vehicle terminals, railways
- Construction of water plants, water supply and drainage systems
- Construction-commercial operation of the infrastructure of industrial
parks, export processing zones and hi-tech parks
- Technical services for agriculture, forestry and fishery.
INCENTIVES ON TAX
1. Incentives on corporate income tax
1.1. For Hoa Khanh, Hoa Cam and Lien Chieu Industrial Zones:
|
Industrial Zone Enterprises
|
Rate of Exported Products (%)
|
Tax rate (%)
|
Years of tax exemption
|
Consecutive years of 50% tax reduction
|
|
- Manufacturing
|
<50
|
10 (*)
|
4
|
4
|
|
15
|
4
|
4
|
|
>=50
|
10
|
4
|
4
|
|
- Services
|
|
15
|
4
|
4
|
1.2. For Danang and Danang Aquatic Products Service Industrial Zones:
|
Industrial Zone Enterprises
|
Rate of Exported Products (%)
|
Tax rate (%)
|
Years of tax exemption
|
Consecutive years of 50% tax reduction
|
|
- Manufacturing
|
<50
|
15 (*)
|
2
|
3
|
|
15
|
2
|
0
|
|
>=50-<80
|
10 (*)
|
4
|
4
|
|
15
|
2
|
3
|
|
>=80
|
10
|
4
|
4
|
|
- Services
|
|
20
|
1
|
2
|
* For projects which belong to the list of encouraged investment projects
and / or assign its asset to Vietnamese State without any compensation after
expiry of operation.
* Besides, from 20th March 2003, projects also enjoy amendment incentives
provided by Danang People?s Committee as follows:
- In 13 years if total implemented capital from 15 million USD or over.
- In 10 years if total implemented capital from 10 million USD to 15
million USD.
- In 7 years if total implemented capital up to 10 million USD.
* Note: These incentives are applied throughout the duration of investment
projects.
2. Incentives for withholding tax
- Tax rate of 3% of the profit transferred. This rate is applied for all
the Export Processing Zone and Industrial Zone Enterprises.
3. Incentives on corporate income tax for reinvestment
Enterprises which reinvest their profit and other legal incomes from
investment operation in Vietnam shall be entitled to a refund of 50 and 100
percentage of profits tax already paid provided that the following conditions
are satisfied:
- The reinvest is made in a sector where investment is encouraged.
- The reinvest capital is used for 3 years or more.
- The legal capital stated in the Investment License has been fully
contributed.
4. Investment preferences on export and import
Enterprises shall be entitled to exemption from import duties in respect
of the following:
- Equipment, machinery and specific means of transportation imported into
Vietnam for the purpose of forming the fixed assets of the enterprises.
- Raw materials, supplies imported for the purpose of making equipments,
and machinery which form part of the technological process or making parts,
spare parts, support structures, molds and accessories of the above
equipments and machineries.
- Construction materials that cannot be produced in Vietnam imported for
the purpose of forming the fixed assets.
- Enterprise producing goods for export shall be permitted to temporarily
defer payment of import duties in respect of raw materials imported for
manufacturing goods for export in a time regulated by the State.
- Goods, luggage and foreign currency imported into processing zones or
processing enterprises from overseas and exported overseas from processing
zones or processing enterprises will be exempt from export and import duties.
5. Land Rental Incentives:
- Land rental in Hoa Khanh, Hoa Cam and Lien Chieu Industrial Zones is
applied with a very preferential price.
- Exemption from land rental: Foreign investors is completely exempted
from land rental (including Industrial infrastructure charge applied for Hoa
Khanh, Hoa Cam and Lien Chieu Industrial Zones) during the time of carrying
out basic construction and 7 years from the date of finishing construction.
* Besides, from 20th March 2003, projects also enjoy amendment incentives
provided by Danang People?s Committee as follows:
- In 13 years if total implemented capital from 15 million USD or over.
- In 10 years if total implemented capital from 10 million USD to 15
million USD.
- In 7 years if total implemented capital up to 10 million USD.
* Note: In case of not implementing invested capital as stipulated above,
time of land rental exemption will not be over 50% of those incentives.
Source: Da Nang city - industries & investments, Vietnam (Danang website)
http://www.danang.gov.vn
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