Bosch Vietnam fires off an incentives warning

July 31, 2012 | 14:53

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Bosch Vietnam wants more incentives to muscle up its investment in the country.

Bosch Vietnam’s plant in southern Dong Nai province, producing pushbelts used for autos should receive more incentives for its hi-tech scope, Bosch Vietnam director Vo Quang Hue said during Minister of Planning and Investment Bui Quang Vinh’s visit to the plant.

Moreover, Hue said it was Bosch’s first manufacturing plant in the sector and should have been granted with incentives as a new investment project. Bosch Vietnam has poured $100 million into the plant and achieved an export revenue of $170 million with production capacity of around 1.7 million products annually.

Bosch Vietnam has targeted at $322 million investment in Vietnam by 2015 but this investment plan could change if there were no corporate income tax incentives from the Vietnamese government.
“We are considering our investment extension. We may choose other locations such as Mexico for the next development step instead of Vietnam if there are no more incentives here,” said Hue.

He added that Bosch Asia-Pacific president had planned to visit Vietnam this month and more incentives for hi-tech sectors like Bosch’s plant would convince him to decide more investments in this country.

Vinh agreed that Bosch should be considered for more incentives.