BINH DUONG INDUSTRIAL PARK【29 INDUSTRIAL PARKS】

Binh Duong Industrial Park is gaining momentum and is always interested by the Binh Duong’s government, devoting a lot of resources to its implementation. With the goal of turning Binh Duong province into one of the major industrial development localities of the country in the 2021-2025 period, Binh Duong is further strengthening the land fund for industrial park development, promptly catching up in terms of FDI outflows. Specifically, Binh Duong has a total of 29 industrial parks and is distributed in many different areas. Join HomeNext to find out notable points when choosing industrial parks and the policies that support foreign investors in Binh Duong.

I. List of 29 industrial parks in Binh Duong

#1. Industrial parks in Thuan An

– Dong An Industrial Park

Investor: Hung Thinh Trading-Production-Construction Joint-stock Company

Location: Binh Hoa Ward, Thuan An,  Binh Duong province

Land area: 138,7 ha

Scope of operation: Textile (without dyeing), apparel, leather-footwear; Electricity, electronics; Assembly of machines, equipment; Processing agricultural-forestry products like tea, cashew, coffee, animal feed, furniture, paper; Building materials and hi-class pottery items; Chemicals and cosmetics.

– Viet Huong Industrial Park

Investor: Viet Huong Joint Stock Company

Location: The 11th kilometer, Binh Duong Avenue, Thuan An, Binh Duong province

Land area: 137,9 ha

Scope of operation: Textile, garment, footwear; Fire art and handicraft items; Manufacture of household appliances; Manufacture of toys; Assembly of electronic products.

Viet Huong industrial park

– Vietnam Singapore Industrial Park 1 (VSIP 1) 

Investor: Becamex IDC Corporation and Sembcorp Development.

Location: No. 8 Huu Nghi ave, VSIP Building, Thuan An Town, Binh Duong province

Land area: 500 ha

Scope of operation: Precision engineering & automotive component; Electrical & electronics; Pharmaceutical & Healthcare; Food & Beverage; Supporting industries & others.

Vietnam Singapore Industrial Park 1

#2. Industrial parks in Di An

– Binh An Industrial Park

Investor: Binh Thang Investment and Development Stock Company

Location: Binh Thang ward, Di An, Binh Duong province

Land area: 26 ha

Scope of operation: Apparel; Materials for apparel; Paper packaging.

– Binh Duong Industrial Park

Investor: Thanh Le General Import-Export Trading Corporation – One member Ltd

Location: An Binh, Di An, Binh Duong province

Land area: 24 ha

Scope of operation: Leather-footwear, apparel, packaging, textile (without dyeing); Manufacture, assembly of electronic components, equipment, machines; land, workshops for rent.

– Song Than Industrial Park 1

Investor: Thanh Le Import Export – Trading General Company – One member limited liability

Location: Di An ward, Di An City, Binh Duong province

Land area: 180,33 ha

Scope of operation: Manufacture of machines, equipment; assembly and manufacture of transport vehicles, machines in construction; Processing of agroforestry products; Light industries (including apparel, electricity and electronics).

 The image of Song Than industrial park 1 in Di An

– Song Than Industrial Park 2

Investor: Dai Nam Joint Stock Company

Location: Tan Dong Hiep ward, Di An City, Binh Duong province

Land area: 533,84 ha

Scope of operation: Textile, garment, footwear; Household electrical appliances; Fine-art handicrafts from bamboo, rattan and furniture products; Building materials; Food and foodstuff processing; glasswares, pottery items; Power plants with a capacity of 75MW.

The image of Song Than industrial park 2 in Di An

– Tan Dong Hiep A Industrial Park

Investor: The Dapark Construction and Real Estate Trading Joint-Stock Corp

Location: Tan Dong Hiep, Tan Binh and Dong Hoa ward, Di An town, Binh Duong province

Land area:50,44 ha

Scope of operation: Manufacture of machines, industrial and household electrical appliances; Electronics, informatics, telecommunications; Light industries of toys, artificial jewelry products, pottery items and glasswares; Warehouses; Food processing; Manufacture and assembly of, clocks, optical devices; Processing of fire-art wooden products for export, manufacture of office groceries, home decoration items; Manufacture of plastic, metal products and household appliances

– Tan Dong Hiep B Industrial Park

Investor: Phu My Limited Company

Location: Tan Dong Hiep ward, Di An, Binh Duong province

Land area: 162,92 ha

Scope of operation: manufacture of machines, industrial and household electrical appliances; Electronics, informatics, telecommunications; Light industries of toys, artificial jewelry products, pottery items and glasswares; Warehouses; Food processing; Manufacture and assembly of watches, clocks, optical devices; Processing of fire-art wooden products for export, manufacture of office groceries, home decoration items; Manufacture of plastic, metal products and household appliances.

#3. Industrial parks in Thu Dau Mot 

– Dai Dang Industrial Park

Investor: Dai Dang Investment and Construction Ltd., Co

Location: Plot F1-CN, Dai Dang IP, Thu Dau Mot city, Binh Duong province

Land area: 274,36 ha

Scope of operation: Woodwork processing and home decoration; Mechanical assembly; Processing of agricultural products; Electricity, electronics; Apparel, packaging, leather-footwear; Assembly, repair of agro-forestry and transport machines.

 Dai Dang industrial park, Thu Dau Mot

– Dong An 2 Industrial Park

Investor: Investment and Industrial Development Corporation (Becamex IDC Corp)

Location: Hoa Phu ward, Thu Dau Mot city, Binh Duong province

Land area: 205,38 ha

Scope of operation: Manufacture of electronic components; Industrial manufacture on contract; Processing of consumer and food products; Mechanism and building materials.

Dong An 2 industrial park, Thu Dau Mot

– Kim Huy Industrial Park

Investor: Kim Huy Industrial Park Development Co., Ltd

Location: Phu Tan Ward, Thu Dau Mot City, Binh Duong province

Land area: 213,63 ha

Scope of operation: Apparel, hi-class feather-footwear; Manufacture and assembly of mechanical products; Processing of hi-class furniture products; Some other industries are not causing environmental pollution.

– Mapletree Logistics Park

Investor: Mapletree Vietnam Management Consultancy Co., Ltd

Location: Hoa Phu Ward, Thu Dau Mot City, Binh Duong province

Land area:74,87 ha

Scope of operation: Trial production combined with training of senior experts, software parks, biological parks and high-tech services, etc.

Mapletree logistics park, Binh Duong

– Song Than 3 Industrial Park

Investor: Dai Nam Joint Stock Company

Location: Binh Duong Industrial Service and Residential Complex, Phu Tan Ward, Thu Dau Mot city, Binh Duong province

Land area: 533,85 ha

Scope of operation: Food and foodstuff processing; Manufacture of pharmaceutical and cosmetic products; Manufacture of consumer goods, household appliances, packaging products (paper, plastic, aluminum, steel), woodwork processing, printing, extraction of gas and plant growth substances; Manufacture and assembly of electronic-electrical equipment, bicycles and their components; Agricultural machines; Building materials; Fine-art handicrafts, services.

– VIET R.E.M.A.X Industrial Park

Investor: Viet R.E.M.A.X Company

Location: Hoa Phu Ward, Thu Dau Mot City, Binh Duong province

Land area: 133,29 ha

Scope of operation: Clean manufacturing industries, Electricity – Electronics, Chemicals – Pharmaceuticals, etc.

– Phu Gia Industrial Park

Investor: Ho Chi Minh General Import Export and Investment Joint Stock Company (IMEXCO)

Location: Phu Hoa ward, Thu Dau Mot city, Binh Duong province

Land area: 133.29 ha

Scope of operation: Construction and business in industrial park infrastructure, residential area; house trading, leasing office and warehouse for business; trading, processing and manufacturing agricultural products, seafood products, fine arts and crafts, etc.

#4. Industrial parks in Ben Cat

– Ascendas – Protrade Industrial Park

Investor: Ascendas – Protrade Ltd. Company

Location: An Tay Commune, Ben Cat District, Binh Duong Province

Land area: 494,94 ha

Scope of operation: Electricity and electronics; Health care products, pharmaceutical products and food (no processing of fresh seafood); Precision mechanics; Industrial and automotive parts; Auxiliary industry; Light, clean industry (no projects of weaving, dyeing and processing of paper); New building materials (no projects of traditional construction materials such as baked brick, concrete casting).

– Mai Trung Industrial Park

Investor: Mai Trung Investment and Construction private company

Location: An Tay commune, Ben Cat District, Binh Duong province

Land area: 50,55 ha

Scope of operation: Processing of fine-art and indoor furniture items; Assembly of mechanical products; Processing of food and agricultural products; Electricity and electronics; Apparel and leather-footwear; Light industry and packaging; Assembly, repair of agro-forestry and transport machines. 

– My Phuoc 3 Industrial Park

Investor: Investment and Industrial Development Corporation (Becamex IDC Corp.)

Location: Thoi Hoa commune and My Phuoc bourg, Ben Cat district, Binh Duong province

Land area: 987,12 ha

Scope of operation: Electricity, industrial electricity and domestic electricity; Electronics, information technology, media, telecommunications and television, high-technology; Manufacture of motorcycles, automobiles, tractors, equipment and spare parts, spare part assembly; Engineering, precision engineering; Spinning, weaving, garments; Leathers, faux leather, leather shoes (no animal skins and hides); Plastics; Ceramics, glass, crystal; Processing of food; Processing of agricultural and forest products; Production of pharmaceuticals, cosmetics, agricultural, veterinary pharmaceuticals; Rubber, tires and high-tech rubber products (no processing of fresh latex); Production of industrial gases; Production of furniture, interior decorative items, building materials; Production of construction steels, steel pipes; Production of sports instruments, toys, jewelry; Packaging, prepress, printing, paper (no pulp); Production of optical instruments, medical instruments.

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 My Phuoc 3 – Welcome gateway

– My Phuoc Industrial Park

Investor: Investment and Industrial Development Corporation (Becamex IDC Corp.)

Location: My Phuoc Bourg, Ben Cat District, Binh Duong province

Land area: 376,92 ha

Scope of operation: Manufacture of machines, industrial and household electrical appliances; Electronics, informatics, telecommunications; Light industries of toys, artificial jewelry products, pottery items and glasswares; Warehouses; Food processing; Manufacture and assembly of clocks, optical devices; Manufacture of fine-art wooden products for export, manufacture of office groceries, home decoration items; Manufacture of plastic, metal products and household appliances.

– My Phuoc 2 Industrial Park

Investor: Investment and Industrial Development Corporation (Becamex IDC Corp.)

Location: My Phuoc Bourg, Ben Cat District, Binh Duong province

Land area: 470,29 ha

Scope of operation: Food processing industry; Processing of agricultural and forest products; Garments; Textiles and dyeing; Production of furniture; Industry electronics, industrial electricity and electrical appliances; Industrial machinery manufacturing mechanical construction; Industrial production of pharmaceuticals, agricultural chemicals and veterinary drugs; Industrial production of plastic; Industry footwear; Industrial Paper & Packaging (no pulp); Industrial production of sports instruments; Production of optical instruments, medical instruments; Industrial production of construction materials.

– Rach Bap Industrial Park

Investor: Dau Tieng Rubber One Member Company Limited

Location: An Dien commune, Ben Cat District, Binh Duong province

Land area: 278,6 ha

Scope of operation: Processing of agroforestry products, especially ones from rubber; Apparel; Manufacture of fine-art wooden items for export, office groceries; Light industries of toys, textile (without dyeing), leather-footwear (without tanning); Manufacture of machines, electrical equipment and components; Manufacture and repair of machines in construction; Manufacture of household plastic products.

Rach Bap Industrial Park, Ben Cat

– Thoi Hoa Industrial Park

Investor: Investment and Industrial Development Corporation (BECAMEX IDC CORP.)

Location: Thoi Hoa commune, Ben Cat District, Binh Duong province

Land area: 202,4 ha

Scope of operation: Apparel (without textile, dyeing), footwear-leather (without tanning), manufacture of paper packaging products (not including paper powder); Electronics, electricity and machinery; Manufacture of building materials, pottery items, household wooden products, household appliances, office groceries; Processing of forestry-fishery products.

– Viet Huong 2 Industrial Park

Investor: Viet Huong Investment Development Joint Stock Company

Location: Hamlet 2, An Tay commune, Ben Cat District, Binh Duong province

Land area: 250 ha

Scope of operation: Dyeing, textile, garment, footwear-leather, tanning; Electronics, electricity and machinery; Manufacture of building materials, pottery items, household wooden products, household appliances, office groceries; Processing of forestry-fishery products.

#5. Industrial parks in Tan Uyen

– Vietnam Singapore Industrial Park 2 (VSIP 2)

Investor: Becamex IDC Corporation and Sembcorp Development.

Location: No. 8 Avenue, Thong Nhat, Tan Uyen Ward, Binh Duong Province

Land area: 330,12 ha

Scope of operation: Precision engineering & automotive component; Electrical & electronics; Pharmaceutical & Healthcare; Food & Beverage; Supporting industries & others.

VSIP 2 in Tan Uyen, Binh Duong

– Nam Tan Uyen Industrial Park

Investor: Nam Tan Uyen Industrial Park joint Stock Company

Location: Hamlet 4, Khanh Binh commune, Tan Uyen District, Binh Duong province

Land area: 620,49 ha

Scope of operation: Processing of agricultural products, production of cattle and poultry food; Processing industries serving agricultural development, mechanical engineering, farm machinery and equipment, fertilizers, rubber products; Production of consumer goods for domestic trade and export, such as garments, wood processing, household appliances, plastic products, all kinds of packaging; Production of building materials, such as mining of kaolin, production of ceramic tiles, interior decoration materials, structural frames, roofing, cover sheets.

Nam Tan Uyen Industrial Park

– Tan Binh Industrial Park

Investor: TAN BINH JOINT STOCK COMPANY

Location: Tan Binh Commune, North Tan Uyen District, Binh Duong Province

Land area: 352.5 ha

Scope of operation: Investment, construction and trading of technical infrastructure of industrial parks; accommodation, leasing of offices, factories, warehouses, wharves …

– Dat Cuoc Industrial Park (KSB)

Investor: Binh Duong Mineral and Construction Joint-Stock Company.

Location: Dat Cuoc commune, Tan Uyen district, Binh Duong province

Land area: 212,84 ha

Scope of operation: Production of paper and pulp; tanning industry; industries with washing, bleaching, dyeing; manufacturing industries with plating; manufacture of chemicals: basic chemicals, batteries – batteries, detergents, dyes, inks….

 Dat Cuoc Industrial Park (KSB)

 #6. Industrial park in Bau Bang

– Bau Bang Industrial Park

Investor: The Corporation of Investment and Industrial Development (BECAMEX IDC).

Location: Lai Uyen commune, Ben Cat District, Binh Duong province

Land area: 2000 ha

Scope of operation: Electricity, industrial electricity and domestic electricity; Electronics, computer science, information communications and telecommunications; Processing of food, food products and agroforestry products; Manufacture machinery, automobiles, equipment and spare parts; Engineering and precision engineering with plating; Ceramics, glass, crystal; Production of industrial gases; Production of steel types…..

II. Points to notice when choosing an industrial zone in Binh Duong

 #1. Environment impact

When renting a manufacturing plant in industrial parks in Binh Duong, foreign investors need to send the manufacturing process to the management of the industrial park for checking the environmental impact first. Because the production process can have negative impacts that adversely affect the environment, some objects and projects specified in Appendix II to Decree No. 18/2015/ND-CP of the government must carry out procedures for environmental impact assessment. This procedure must be performed during the project preparation phase. 

So, investors or foreign enterprises should consider having a line of business in accordance with the planning and development of the export processing zone – industrial park; has high gray matter content, high technology, clean technology that does not pollute the environment.

 #2. Price policy

For large-scale and global corporations, land rental is not a big problem for them as it accounts for a small proportion of the capital structure. However, it is noticeable problem for small and medium investors. An industrial park with a long-term rental policy at a stable price level would be the best option for investors. 

The rental costs that the investor should pay attention to include: land rent, factory rent, management fees, electricity and water supply charges, wastewater treatment charges, etc. In addition, the investor needs to concern the infrastructure. The infrastructure within the industrial zone includes a residential area, national highway or expressway, airport and seaport, main trunk system, backup power supply system, etc. 

However, an industrial park that has a complete infrastructure system usually has the rent is equal to the market price, so investors should consider choosing newly formed industrial zones with plans to complete specific infrastructure in the future.

 #3. Professional support services

When entering the Vietnamese market, one of big concerns of the investors is complicated procedures. Industrial parks in Binh Duong such as support services related to licenses, compliance procedures for administration – personnel, EIA (Environment Impact Assessment), Investment Registration Certificate (IRC), etc. will help the enterprises save lots of time. 

Investment procedures in industrial zones (Source: vivabcs.com.vn)

III. Preferential policies to attract investment in Binh Duong province

#1. Projects in the field of industrial production

• The land rental

(Pursuant to Decree No. 135/2016 / ND-CP dated September 9, 2016 and Decree No. 46/2014 / ND-CP dated May 15, 2014 of the Government):

Exemption of land and water surface rent for the entire land lease term for projects on construction of infrastructure for common use in industrial parks and industrial clusters according to the plan approved by competent authorities.

Exemption of land and water surface rent for 03 years since the project is completed and put into operation, for projects on the list of investment incentives under the provisions of Decree No. 118/2015/ND-CP dated November 12th, 2015 of the Government; for new business establishments of economic organizations that are relocated according to planning or due to environmental pollution.

Exemption of land and water surface rent for 11 years for investment projects on the list of special investment incentives as prescribed in Decree No. 118/2015 / ND-CP dated November 12, 2015 of the Government.

Workers at a factory in southern Binh Duong Province (Source: vietnamnet)

• Corporate income tax

a) Preferential tax rate of 10% for 15 years and tax exemption for 04 years, 50% reduction of payable tax for the next 9 years for (Clause 1, Article 15 and Clause 1, Article 16, Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government; Clause 1 Article 3 of Circular No. 212/2015 / TT-BTC dated December 31, 2015):

Income of enterprises from implementing new investment projects in the fields of: Scientific research and technological development; manufacturing software products; production of composite materials, light construction materials, and rare and precious materials; renewable energy production, clean energy, energy from waste destruction; biotechnology development;

Income of enterprise from implementing new investment projects in the field of environmental protection includes:

• Production of equipment to treat environmental pollution.
• Production and application of environmental protection inventions that are protected by the government in the form of invention patents or utility solution patents.
• Production of eco-friendly products labeled with Vietnam’s Green Label by the Ministry of Natural Resources and Environment; products from recycling and waste treatment certified by competent state agencies.
• Production of certified gasoline, diesel fuel and biofuel; Biochar; energy from wind, sunlight, tides, geothermal and other forms of renewable energy.
• Manufacture of machinery, equipment and means used directly in the collection, transportation and treatment of wastes; environmental monitoring and analysis; renewable energy production; Treatment of environmental pollution; respond and handle environmental incidents.
• Manufacture of equipment for environmental monitoring and analysis
• Treatment of pollution and environmental protection; Collection and wastewater and exhaust gas treatment; centralized solid waste collection, transportation and treatment; Recycling and reusing waste; daily-life wastewater treatment with a capacity of 2,500m3 of wastewater or more one day for urban areas of grade IV or higher; treatment and improvement of polluted environmental areas in public areas; response and handling of oil spills, chemical incidents and other environmental incidents; building technical infrastructure for environmental protection in industrial parks and clusters of trade villages; cremation service, electric cremation; environmental damage assessment; environmental health assessment; assessment of the environment for goods, machinery, equipment, and technology.
• High-tech enterprises, agricultural enterprises that apply high technology.
• An enterprise’s income from implementing a new investment project in the manufacturing sector (except for projects on production of goods subject to special consumption tax, mineral exploitation projects) meets one of the following two criteria:

Projects with minimum investment capital of VND 6 trillion, disbursed no more than 3 years after being granted investment licenses and having minimum total revenue of VND 10 trillion per year at least 03 year since the revenue was generated.

Project with minimum investment capital of VND 6 trillion, disbursed within 03 years after being granted investment licenses and employing more than 3,000 employees at least 03 year since the revenue was generated.

b) The tax rate of 17% in 10 years and tax exemption in 2 years and 50% reduction of tax payable in the next 04 years are applicable to (Clause 3, Article 15 and Clause 3, Article 16, Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government):

Enterprise’s income from new investment projects: High-class steel production; manufacturing energy-saving products; manufacture of machinery and equipment for agricultural, forestry, fishery and salt production; manufacture of irrigation equipment; feed production and refining for livestock, poultry and aquatic animals; developing traditional professions.

The approval criteria, application conditions, tax calculation method and other regulations related to tax incentives are specified in Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government and Decree No. 12/2015 / ND-CP dated February 12, 2015 of the Government.

Enterprises having investment projects to develop investment projects which are operating in the eligible fields and areas for corporate income tax incentives in accordance with the provisions of Decree No. 218/2013 / ND-CP dated December 26, 2013 of The Government on expanding production scale, increasing capacity, and innovating production technology. If one of the three criteria specified in this Clause is met, it may be selected to enjoy tax incentives according to projects that are operating for the remaining period (if any) or tax exemption or reduction for the additional income from expansion investment. The tax exemption or reduction period for the additional income due to the expansion investment specified in this Clause is equal to the tax exemption or reduction period applicable to new investment projects in the same areas or sectors with corporate income tax incentives.

• Import tax (Pursuant to Decree No. 134/2016 / ND-CP dated September 1, 2016 of the Government):

Tax exemption for imported goods to create fixed assets of incentive beneficiaries under the law on investment, including:

Machines; equipment, components, detachable parts, spare parts for synchronous assembly or synchronous use with machinery or equipment; raw materials and supplies used to manufacture machinery or equipment or to manufacture components, detachable parts, and spare parts. Specialized means in the technological line directly used for production activities of the project; Construction materials cannot be produced domestically.

#2. Housing investment project for industrial park workers and low-income housing in urban areas

• Exemption from land use levy, land rental (Pursuant to the Decree No. 46/2014 / ND-CP dated May 15, 2014 of the Government). Enterprises are exempt from land use levy and land rental for the entire lease term.
• Corporate income tax 

(Clause 1, Article 15, Decree No. 218/2013 / ND CP dated December 26, 2013 of the Government)

The tax rate of 10% is applied to the enterprise’s income from implementing projects on social housing investment and business for sale, for lease, or for lease purchase with the subjects specified in Article 53 of the Law on Housing.

Social houses specified in this Clause are houses built by the State or organizations and individuals of all economic sectors and meet criteria for housing, selling prices and rental prices, rental purchase price, the objects, the conditions to be purchased, leased or buy a social house in accordance with the law on housing and the income determination is subject to the 10% tax rate. This Clause does not depend on the time of signing the sale, lease or lease-purchase social housing contract.

• Import tax 

(Pursuant to the Government’s Decree No. 134/2016 / ND-CP dated September 1, 2016)

Import tax exemption for imported goods to create fixed assets for enterprises according to regulations.

#3. Projects in the fields of education – training, vocational education, healthcare, culture, physical training and sports, environment, judicial assessment

Pursuant to (Decree No. 59/2014 / ND-CP dated June 16, 2014 amending and supplementing Decree No. 69/2008 / ND-CP dated May 30, 2008 of the Government)

• Land rent exemption or reduction:

The socializing establishment may be leased with annual rental payment by the State or leased land with one-off rental payment for the entire lease term and may be considered for land rental exemption or reduction depending on the area as follows:

For communes and towns: land rent exemption for the entire land lease term.

For communes and wards: the number of years with land rental exemption is calculated by 50% of the land lease period.

Conditions and procedures for land rental exemption and reduction are specified in Decision No. 44/2016 / QD-UBND dated November 1, 2016 of the Binh Duong People’s Committee.

• Corporate income tax 

(Clause 2, Article 15 of the Government’s Decree No. 218/2013 / ND-CP dated December 26, 2013)

Projects with income from socialization are subject to a 10% corporate income tax during their operation. Newly established projects are eligible for tax exemption for 4 years from the time they have taxable income and 50% reduction of payable tax amounts for the next 5 years.

• Incentives on credit and capital mobilization:

It is stipulated in Article 9, Article 10 of Decree No. 69/2008 / ND-CP dated May 30, 2008 of the Government.

• Import tax

Import tax exemption for imported goods to create fixed assets for enterprises according to regulations (Pursuant to Decree No. 134/2016 / ND-CP dated September 1, 2016 of the Government).

#4. Incentive policies for projects on manufacturing supporting industrial products on the List of supporting industrial products prioritized for development

• Corporate income tax:

Corporate income tax rate 10% for 15 years (Clause 1, Article 13, Law on Corporate Income Tax No. 14/2008 / QH12 of the National Assembly and Clause 5, Article 1, Law on Book 71/2014 / QH13 amending and supplementing a number of articles of tax laws)

• Import tax:

Import tax exemption for imported goods to create fixed assets in accordance with the Law on Import Tax and Export Tax and its guiding documents.

• Market development support:

It is prioritized to participate in provincial trade promotion programs, national trade promotion programs.

Partly support the cost of trademark registration, participation in domestic and foreign trade fairs and exhibitions and funding for market information access.

• Support for application and transfer (Article 5, Decree No. 111/2015 / ND-CP dated November 3, 2015 of the Government)

Organizations and individuals transferring supporting manufacturing technology products on the List of supporting industry products prioritized for development are entitled to incentives from the law on technology transfer and other incentives under the current regulations.

Technology application and transfer activities to manufacture supporting industry products on the List of supporting industries prioritized for development supported by the Supporting Industry Development Program are as follows:

+ Projects and schedule on cooperation between manufacturing enterprises and units having technologies applied in technology transfer shall be partially funded;

+ The cost of manufacturing and testing supporting industry products on the List of supporting industry products prioritized for development is supported up to 50%.

+ The State shall support up to 75% of the cost of technology transfer for a material production project using more than 85% of the raw materials that are products of the deep processing of domestic minerals, including metal ores, non-metal ores and petrochemical products for the production of supporting industrial products.

• Support for human resource development: (Article 6, Decree No. 111/2015 / ND-CP dated November 3, 2015 of the Government)

Human resource training for supporting industry:

+ Project of manufacturing supporting industry products on the List of supporting industry products prioritized for development is supported with funds from the Program on Supporting Industry Development for Human Resource Training;

+ Individuals directly performing the tasks of the Supporting Industry Development Program are given priority in training to improve their domestic and foreign qualifications according to state training programs.

Institution of Human resource training for supporting industries:

+ The State encourages organizations and individuals to invest, enter into joint ventures and cooperation to build human resource training facilities direct for production of supporting industrial products;

+ Institutions of Human resource training for the production of supporting industrial products are funded and supported by science and technology funds, training and other funds;

The State encourages the existing universities, research institutes and training institutions to participate in the training of human resources for the supporting industry.​

• Incentives for small and medium-sized enterprises: (Clause 2, Article 12 of Decree No. 111/2015 / ND-CP dated November 3, 2015 of the Government)

In addition to general incentives, small and medium-sized enterprises who manufacture supporting industry products on the List of supporting industry products prioritized for development are also entitled to the following incentives:

Investment credit: enterprises can borrow up to 70% of investment capital in credit institutions on the basis of guarantees of credit guarantee institutions for small and medium–sized enterprises as prescribed if the following conditions are met:

+ Total value of assets mortgaged or pledged at a credit institution in accordance with the law at least 15% of the value of the loan, after excluding the value of the mortgaged or pledged property for other loans;

+ At least 20% equity capital participating in an investment project, after deducting the equity amount arranged for other projects;

+ At the time of request for the guarantee, there are no outstanding debts to the state budget, bad debts at credit institutions or other economic organizations.

Land and water surface rental:

+ To enjoy exemption or reduction of land and water surface rental according to the provisions of the land law;

+ In case of a special project or large-scale project that brings socio-economic efficiency, which is in need of higher support than the specified support as above, the Ministry of Finance shall coordinate with the Ministry of Planning and Investment to submit to the Prime Minister. The Prime Minister makes a decision on the basis of the proposal of the Provincial People’s Committee where the land is located in accordance with the land law.

• Subjects of incentives, Procedures to confirm incentives and other regulations

This is detailed in the Government’s Decree No. 111/2015 / ND-CP dated November 3, 2015.

#5. Incentives for science and technology enterprises

• Corporate income tax (Decree No. 80/2007 / ND-CP dated May 19, 2007 of the Government regulating science and technology enterprises and Consolidated Document No. 03 / VBHN-BKHCN dated January 06 ,2015 guiding the implementation of Decree No. 80/2007 / ND-CP)

Scientific and technological enterprises are entitled to the corporate income tax rate of 10% for 15 years from the first year that science and technology enterprises have revenues from science and technology activities;

Science and technology enterprises are exempted from corporate income tax for 04 years and 50% reduction of payable tax amounts for the next 9 years from the first year that science and technology enterprises have taxable income.

• Condition for certification as a scientific enterprise and other incentives

It is detailed in the Government’s Decree No. 80/2007 / ND-CP dated May 19, 2007 on science and technology enterprises and the Consolidated Document No. 03 / VBHN-BKHCN dated January 6, 2015 guiding the implementation of Decree No. 80/2007 / ND-CP.

#6. Incentives for high-tech enterprises; enterprises manufacturing products on the List of high-tech products encouraged for development; high-tech agricultural enterprises; hi-tech application enterprises on the list of high technologies given priority for investment and development

 (Law on High Technology No. 21/2008 / QH12 dated November 13, 2008)                  

• Incentive policy

Enjoy the highest incentives in accordance with the laws on land, corporate income tax; value added tax, export and import tax; To be considered for the support of training, research and development and trial production funds from the National High-Tech Development Program’s funding.

• Condition for certification as a high-tech enterprise and other incentives

It is detailed in the Law on High Technology No. 21/2008 / QH12 dated November 13, 2008.

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