Juicy carrots for zone investors

The province acts as a conduit for goods travelling between China and Vietnam

According to the proposal, investors developing hi-tech and service projects in Van Don and Mong Cai could enjoy corporate income tax exemptions during 15 and 20 years, respectively. The highest incentive in the current legal framework allows investors enjoy only four years of exemption and 50 per cent of reduction in the following nine years.

Moreover, the time for land leasing for service and urban projects could be extended up 99 and 120 years, respectively instead of 70 years. The provincial committee also proposes to reduce 70 per cent of personal income tax for Vietnamese and foreigners working in the zones, 20 per cent higher than the current maximum.

To put some icing on the cake, Quang Ninh People’s Committee proposes the government exempt import tax for materials and equipment from other countries for up to 20 years.

All these incentives are much higher than the current highest ones regulated by law.

Pham Minh Chinh, secretary of Communist Party Committee of Quang Ninh, said the incentives would help turn Van Don and Mong Cai into special economic and administrative zones.

“The goal is creating the most favourable business climate for investors and reduce the interference of the State in market,” said Chinh.

Quang Ninh People’s Committee, in its proposal, said the incentives would ensure to attract enough capital for developing the zones. According to the provincial committee, the current incentives can ensure to mobilise $2 billion each year, while the demand is $3.65 billion.

“We need measures to mobilise an additional $1.65 billion each year,” the committee said in its proposal.

Van Don Economic Zone, close to the world heritage Halong Bay,  covers 2,171 square kilometres and has been planned to become an international trade centre and a high-class tourism and entertainment centre to serve the development of the northern key economic region. Meanwhile, Mong Cai is one of the largest border gates between Vietnam and China.

In recent years, Quang Ninh, especially Van Don economic zone has appeared on the radar screen of many foreign investors.

Genting Group, an Asia’s well-known leisure and hospitality company, is studying possibility for building an integrated gambling and resort complex in Van Don zone.

Bulgaria’s Nove Holdings also expressed interest in building an expressway linking Hanoi and Mong Cai. Beside that, the investor also wanted to develop an entertainment park in Van Don Economic Zone.

Chinh said investors would be carefully selected to make sure only investors with a strong financial ability invest in the zones.