Investment promotion conference in Nam Dinh, Thai Binh

This is announced at a press briefing on July 30, held by the Vietnam Chamber of Commerce and Industry (VCCI) in co-ordination with the Central Enterprises Bloc and the people’s committees of Nam Dinh and Thai Binh provinces.

 

According to VCCI Chair Vu Tien Loc, this is the first conference on investment promotion in the country in the post - economic recession period in Asia as well as in the world as a whole. So, the conference aims to take one step ahead of an ’investment wave’ from enterprises at home and abroad.

 

He said that the conference would have a participation of around 500 delegates representing some foreign embassies in Vietnam whose countries have had good investment ties with Vietnam and several international organisations such as the World Bank and the Asian Development Bank, and ministries and branches, provinces and cities which are able to cooperate and help Nam Dinh and Thai Binh provinces, as well as investors, economic groups, associations and enterprises operating in the two provinces.

 

There will also be many other sideline activities during the conference such as the meetings among enterprises so that they can exchange information on cooperation and investment, the field trips to industrial parks and potential economic areas of the two provinces, he added.

 

In response to a question about whether there is still any more competition between Nam Dinh and Thai Binh provinces when both provinces together hold a conference on investment promotion,  Loc stressed that what investors take special interest in now is the linkage with enterprises in neighbouring provinces in each region so that input and output are available for their business and production activities.

 

They also pay much attention to supporting industries. So, when they examine a investment prospect, they will take a general outlook in the whole area or a group of provinces into consideration. Therefore, if any investor pours money into Thai Binh province, Nam Dinh province will also benefit from it and vice versa.

 

 

 

- Land and water surface rents during the construction under the project approved by a competent authority shall be exempted in the event the project has many items or independent construction periods, exemption of land rents shall be considered for each separate item or each independent construction period; in the event it is impossible to calculate each separate item or each independent construction period, the construction time shall be calculated in accordance with the item with the largest capital proportion.

 

- Exemption of land and water surface rents shall start right from the date the construction is completed.and the project is put into operation, specifically:

 

+ Three years for the projects in the List of investment encouragement, at the new production and business facilities of the economic organisation which moves out under the planning or due to environmental pollution.

 

+ Seven years for the investment projects in the locality with difficult socio-economic conditions; projects in the List of special investment encouragement.

 

+ Eleven years for the investment projects in the List of investment encouragement in the localities with socio-economic conditions.

 (In accordance with the stipulations of the Vietnamese government)

 

 

- The secondary investor in the industrial park which sends workers for further training or organises vocational training for the workers with permanent residence in Nam Dinh province, working at the enterprise shall be supported by the provincial budget for one single time at VND 1 million for each worker with vocational certificate issued by the training units, with training contract and labour contract for two years or more; with social and health insurance premiums already paid in accordance with the laws.

 

- Foreign investors which carry out investment project outside industrial parks shall be supported only once by the provincial budget when they send workers for further training in new technology and working permanently in the enterprise, with social and health insurance premium already paid in accordance with the laws (with contract, training certificate and approved project) with VND 700,000 for each person.

 

- These investors shall enjoy a 50 percent reduction of advertisement cost on Nam Dinh Newspaper and Nam Dinh Province Radio and Television Station in 2 years but this shall not exceed 50 times (if invested in the industrial park), or 40 times (if invested outside the industrial park) on each kind of mass media, from the first advertisement. Advertisement area on the newspaper shall not occupy more than 1/4 page. The length of time for each advertisement on the Radio and Television Station shall not longer than 2 minutes.

 

- Foreign investors shall enjoy clean water selling price, waste collection fee and other services fees as determined by the local authorities n the same way as other domestic enterprises.

 

 

 

- The projects which belong to the area of investment encouragement shall be supported with VND 20,000 per square metre for floor space clearing and VND 40,000 per square metre for projects using hi-tech facilities.

 

- The projects which belong to the area of investment encouragement shall be supported with VND 700,000 to 1,200,000 for training for each worker.

 

- Land rents: Land rents shall be applied in accordance with the lowest level frame stipulated by the government and shall be in keeping with the actual situation in the locality.

 

- Tax policy: The current tax policies shall be applied in such a way as to serve the best interests of businesses.

 

- The province and service branches shall over construction costs for technical infrastructures (communication road, the power and water supply and drainage system…).

 

  

 

Any industrial park developers in Nam Dinh province will enjoy up to 15 billion dong ($842,696) from the local state budgets, used for land clearance and construction of waste water treatment facilities.

 

Industrial park developers have different options of contributing land rentals to the local government, either by annual payment or by a lump-sum of 50 years’ payment. The rentals for industrial park development are only a half of the existing regulated ones and they will be kept stable for at least five years. Industrial park developers do not have to pay rentals for the planned land areas used to build apartments and other welfare utilities for workers.

 

Industrial park developers in Nam Truc, Truc Ninh, Vu Ban, Y Yen and My Loc districts and Nam Dinh City will be exempt from paying land rentals for seven years as of the operating date. Those in Hai Hau, Nghia Hung, Xuan Trung and Giao Thuy will be given an 11 year land rental exemption period.

 

Industrial’ park developers will be given a SO per cent discount for advertising themselves on Nam Dinh newspapers, radio and television stations for two years, but the frequencies can not exceed SO in each of the media. Each of the advertisement size can not exceed one quarter of a newspaper page and each of the TV ad can not last longer than two minutes.

 

Supporting tenants in loca1lndustrlal parks and Investors outside loca1lndustrlal parks:

 

 

Investors outside local industrial parks must not pay land and water surface rentals during the period of construction. Investors

 

outside local industrial parks will be exempt from paying land and water surface rentals for a certain period of time in the following cases: for three years if their projects are classified in the list of encouraged investments; for seven years if their projects are located in underprivileged socio-economic regions or if the projects are classified in the list of specially encouraged investments; and for II years if the projects are classified in the list of encouraged investments for underprivileged socio-econimic regions.

  

 

. Investors will be entitled to a 10 per cent CIT rate for 15 years if they invest in hi-tech sector, research and development, manufacturing software and building water supply and sewage systems, power plants, bridges, roads, railway, airports, seaports and other important infrastructure network approved by the prime minister. In cases where the projects are of hi-tech sector and of large investment scale, investors can enjoy 10 per cent CIT for a longer period of time but the duration can not exceed 30 years.

 

. Investors in education and training, health care, culture, sports and environment must pay only a 10 per cent CIT for the entire cycle of their projects.

 

 

’An industrial park enterprise’s worker who is sent to vocational training courses will be given a subsidy of VNDI million ($56.8) from the local budget. The worker must have worked under a signed labour contract with the enterprise for at least two years and he has a good record of paying social and health care insurance.

 

A worker of a foreign invested enterprise outside local industrial park who is sent to vocational training courses will be given a subsidy of 700,000 million dong ($39.7) from the local budget

 

 

Industrial park enterprises and enterprises outside industrial parks will be given a 50 per cent discount for advertising themselves on Nam Dinh newspapers, radio and television stations for two years, but the frequencies can not exceed 50 and 40 respectively in each of the media. Each of the advertisement size can not exceed one quarter of a newspaper page and each of the TV ad can not last longer than two minutes.

 

Foreign-invested enterprises are entitled to having a level-playing field with local enterprises when paying fees for clean water, waste collection and other services.