Quang Ngai petitions for more incentives for VSIP

May 19, 2016 | 09:27

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The People’s Committee of Quang Ngai has just sent a document to the Ministry of Planning and Investment and the Ministry of Finance asking for more incentives for Vietnam Singapore Industrial Park (VSIP), investor of VSIP Quang Ngai.

According to the document signed on May 12 by Pham Nhu So, Deputy Chairman of the committee, VSIP should enjoy heightened corporate tax incentives because Quang Ngai is a poor region.

“Dung Quat economic zone is located in a region that is especially poor from a socio-economic standpoint and the highest available incentives apply to the zone. Although the zone attracted more than 100 projects, besides the Dung Quat refinery and some heavy industrial projects, it is difficult to attract investment into industrial park infrastructure and in light industries,” the document said.

“In this context, VSIP invested in building VSIP Quang Ngai in 2012, which as of now has attracted 11 projects with a combined registered capital of $166 million. The province highly appreciated this. And yet, VSIP’s income from renting infrastructure to investors did not enjoy any corporate income tax incentives, as the activity is classified as real estate renting,” it said.

The committee thus requested government agencies to provide VSIP with more incentives. “The current corporate income tax policy is not encouraging enough to industrial park infrastructure investors in poor regions,” he said.

In Vietnam, industrial park infrastructure is classified as real estate. Besides corporate income tax, investors in industrial park infrastructure have also bemoaned the lack of credit incentives and the complicated payment procedures of land rental fees to the government.

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