Thai Nguyen approves incentives for Samsung

 Accordingly, the investors receive incentives and investment assistance so that they can fulfill their commitment to meeting the criteria required for a hi-tech enterprise. These criteria have been approved by the Ministry of Science and Technology.

While the SEVT2 project is being set up, investors are offered 50 percent exemption in their corporate income tax payments for the three years, once their tax exemption limit expires under the Law on Corporate Income Tax.

The investor will have to pay only 50 percent land rental fee in Yen Binh IP, for 70ha of area or its equivalent. 

Annually, the land rental fee will be lesser or equivalent to the tax figure paid by the company to the State.

According to Thai Nguyen province, the SEVT2 project aims to lead research and development in mobile devices, electronics, telecommunications and high-end technology. 

It also intends to spearhead the manufacture and assembly of mobile phones, laptops, digital cameras and smart televisions. 

The 3 billion USD project will be located near the company’s first factory which came into operation in March this year with the total investment capital of 2 billion USD in Yen Binh IP. 

The 70ha plant is expected to initially recruit 20,000 workers, a number that will be later increased to 30,000. The two factories are expected to create jobs for around 100,000 local residents. 

The first plant of Samsung in Vietnam is situated in the northern province of Bac Ninh. It has a total capital of approximately 1.5 billion USD. It launched its first products in April 2009. Samsung Bac Ninh manufactures 13 to 15 million tonnes of products monthly and over 90 percent of them are meant to be exported