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The Nhon Hoi Economic Zone |
As part of the Central Key Economic Zone, the Nhon Hoi Economic Zone, which is located in Binh Dinh Province, together with the Chu Lai Open Economic Zone (in Quang Nam province) and the Dung Quat Economic Zone (in Quang Ngai province), form a driving force for socioeconomic development in the whole central region and Tay Nguyen (the Central Highlands). The Government released an official decision to establish the Nhon Hoi Economic Zone on June 14, 2005. Since then Binh Dinh has promulgated many preferential policies to attract investment in the Nhon Hoi Zone.
The chairman of the provincial People’s Committee, Vu Hoang Ha, said that Vietnamese and foreign organizations and individuals are both allowed to carry out investment projects in the Nhon Hoi Economic Zone (except projects in the fields that are forbidden by the Vietnamese law and projects that have an adverse impact on national security, culture and society or cause serious environmental pollution). “We especially encourage foreign investors to invest in construction of infrastructure for the non-tariff areas and the Nhon Hoi port,” he said.
Those who invest in the Nhon Hoi Economic Zone are offered preferences that apply to areas where socioeconomic conditions are especially difficult, according to the Law on Foreign Investment in Vietnam, the Law to Encourage Domestic Investment, the Enterprise Income Tax Law, and other tax preferences under international treaties to which Vietnam is a signatory. Specially, all investment projects of domestic and foreign organizations and individuals, which are based in the Nhon Hoi Economic Zone, have to pay the enterprise income tax at the preferential rate of 10 percent for the first 15 years of operation. These projects will not have to pay the enterprise income tax for four years since they begin to have taxable incomes and will be offered a 50 percent discount for the ensuing nine years. They will not have to pay any import tax for those kinds of materials that are not available in Vietnam for the first five years of production. High-income earners, both Vietnamese and foreigners, who work in the Nhon Hoi Economic Zone, will be offered a 50-percent discount of the personal income tax.
Apart from general preferences that are indicated in the regulation that applies to the operation of economic zones, investors in the Nhon Hoi Economic Zone will be offered some specific preferences. Specially, investment projects in the field of high technology, which meet the conditions mentioned at Clause 2, Article 5 of the regulation on Hi-tech Zones that was promulgated as enclosure to Decree 99/2003/ND-CP dated August 28, 2003 of the Government, and large-scale projects that have important meanings to socioeconomic development in Binh Dinh province as approved by the Prime Minister, will have to pay the enterprise income tax at the preferential rate of 10 percent till the end of the projects.
In addition, Binh Dinh province applies the one-price policy to all Vietnamese and foreign organizations and individuals that are doing businesses in the Nhon Hoi Economic Zone when they buy goods, services and pay land rent.
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