Investment Preferences

The People’s Committee of Binh Dinh Province commits to have all investment preferences as regulated by the Central Government implemented. Details are as follows:

Land and water surface rent rate  

Land:

The annual land rent rate shall be equal to 0.5% of the land price based on land use purposes, promulgated by the Provincial People’s Committees in accordance with the Government’s Decree No.188/2004/ND-CP dated 16 Nov 2005 on methods of determining land prices and assorted-land price brackets.

For land of urban centers, commercial or service centers, traffic hubs, concentrated population quarters, which may yield special profits: Max rent rate not exceeding four times of the above land rent rate.

For land in areas facing socio-economic difficulties, areas facing particular socio-economic difficulties; land used for agricultural production, forestry, aquaculture or salt production, land used as ground for production and/or business activities of projects in the domains entitled to investment encouragement or special investment encouragement: Min rent rate not lower than half the above rent rate.

The Chairman of the Provincial People's Committee shall decide on the higher or lower land rent rates.

Water surface:

VND10 - 100 million/km2/year for project using fixed water surface;

VND50 - 250 million/km2/year for project using unfixed water surface.

Land and water surface rent

(Decree No.142/2005/ND-CP dated 14 Nov 2005 of the Government on collection of land and water surface rent)      

·  7-year exemption for project in areas with difficult socio-economic conditions or included in the List of specially encouraged projects;

·  11-year exemption for project in areas with specially difficult socio-economic conditions, project included in the List of encouraged projects implemented in areas with difficult socio-economic conditions;

·  15-year exemption for project included in the List of encouraged projects implemented in areas with specially difficult socio-economic conditions;

·  Whole exemption for project included in the List of specially encouraged projects implemented in areas with specially difficult socio-economic conditions.

Corporate income tax (CIT) or Business Income Tax (BIT)

(Decree No.164/2003/ND-CP dated 22 Dec 2003 of the Government making detailed provisions for implementation of the Law on Corporate Income Tax and Decree No.152/2004/ND-CP dated 6 Aug 2004 of the Government on amendment of and addition to a number of articles of Decree 164/2003/ND-CP)    

Exemption or reduction subject to sector, area or number of employees.

Min: Exemption for 2 years, 50% reduction for next 2 years 

Max: Exemption for 4 years, 50% reduction for next 9 years

(Details in Chapter V Decree 164/2003/ND-CP of the Government)

As per Decree 164/2003:

Districts of Hoai An, Phu My, Phu Cat, Tay Son: Section B

Districts of An Lao, Vinh Thanh, Van Canh: Section C

Investment Assistance

Assistance with expenses for labour training: 

Enterprises shall be assisted with at least 50% of expenses to train technical workers or upskill local employees working under long-term contracts for investment projects in Binh Dinh. 

Assistance in trade promotion: 

Investors shall be assisted with part of expenses for participating in trade fairs and exhibitions at home or abroad in accordance with the list of assisted products issued periodically; the investors shall be assisted in trademark registration and brand building and be awarded for export achievement.

Assistance in technical infrastructure: 

Investors shall be supplied with power and water (where waterwork available) or assisted in searching underground water source, and for projects in small scale industrial zones, assisted in treatment of waste water and provision of telecom services as far as the project boundary. 

Assistance in information provision: 

Investors shall be provided, free of charge, with guidelines and necessary information for investigation and formulation of investment project except for payable charges as stipulated by law.

Time limits to handle procedures: 

Time limits to handle and facilitate procedures for project formulation and implementation being stipulated specifically.

Time for issuance of investment licence:

Registration: From 2 to 5 days from the date of receipt of complete documents (Gov’t regulation: 15 days)

Evaluation of projects within the provincial authority: From 5 to 10 days from the date of receipt of complete documents (Gov’t regulation: 30 days ).

Reward for investment promotion merit: 

Any organization or individual who has merit in promoting and attracting investment into the Province shall be rewarded with 0.2% of the total invested capital of the project in addition to the reward as currently regulated by the Government.

For investment in Nhon Hoi EZ, the reward rate varies between VND30 and 200 million subject to the scale of investment project:

- For projects with investment from USD1 million to under USD5 million: VND30 million;

- For projects with investment from USD5 million to under USD10 million: VND50 million;

- For projects with investment from USD10 million to under USD20 million: VND100 million;

- For projects with investment from USD20 million or higher: VND200 million.

Undertakings of BinhDinhProvince:

BinhDinhProvince assures the stable implementation of its policies to encourage investment and shall, in case of any change of the provincial policies which may cause disadvantage(s) to investors, provide adequate assistance so that they could enjoy preferences during the remaining time.

BinhDinhProvince commits itself to maintain a responsible and co-operative attitude towards all investors and continue its process of administrative procedure renovation so that investment projects could be implemented smoothly in the Province.