Suoi Dau IZ: A Meeting Point for Investors

3:26:23 PM | 7/8/2005

Within the development strategy for the development of industrial parks (IPs) and export processing zones (EPZs) of Vietnam, the Suoi Dau industrial zone SUDAZI is making its contributions to accelerating the growth of the industrial sector, increasing export goods, creating jobs, promoting the development of production and service establishments and serving as a basis for the development of industrial-urban areas. With its convenient position, SUDAZI has become an attractive investment place for enterprises.

Complete infrastructure facilities

Transport system: The road system in Khanh Hoa province includes main roads linked with the national highway 1A and other roads which have been planned and built to facilitate communication.

Electricity supply: The province will supply adequate electricity with 110kV transformation station with 25MVA, which will be upgraded to 50MVA with two generator units.

Water supply: The province will supply adequate quality water for daily life and production activities in the IZ with a capacity of 10,000 cubic metres per day.

The waste water treatment system: Waste water treatment stations of each factory and plant will be connected with the station for waste water treatment for the whole IZ, which is controlled and examined closely.

Meeting all services

SUDAZI can meet all requirements of investors for post and telecommunication services, investment consultancy, factory and bonded warehouses building, labourer recruitment, import, export and forwarding, banking and insurance, technology transfer, tax and customs services, as well as other services required by investors.

Reasonable land rent

Investors in SUDAZI will be able to re-rent land for a maximum of 45 years for areas of at least 5,000 square metres. After the signing of contracts on re-renting land, investors will have to pay a deposit of US$3,000 per hectares. When projects are licensed and contracts on land re-rental are completed, deposits will be reduced for land rent which investors will have to pay in the first time instalment. If before six months, investors announce their postponement of their project, the Khanh Hoa Trade and Investment Company (TIC) will keep 50 per cent of deposits. If after six months investors are yet to implement their projects, TIC will keep all deposits as compensations for losses due to land keeping and other relevant procedures.

Land rent, including infrastructure use fees:

Five year instalment: US$3 per square metres for five years,
One year instalment: US$17 per square metre for 45 years

- This land rent excludes value added tax of ten per cent or may be adjusted according to the State’s regulations,

- Apart from this land rent, investors will not have to pay any fees relating to land rent in SUDAZI, except fees for electricity, water supply, waste water and solid waste treatment, and post and telecommunication services.

Tax incentives

Investors of projects supplying goods and services for export, which are valued at more than 30 per cent of production value of enterprises, and projects on farm-produce and seafood processing, high-tech development and application, and manufacturing products from local materials, legal consultancy, marketing and trade promotion, and improvement of the ecological environment will enjoy a corporate income tax rate of 20 per cent. Moreover, those projects which meet one of two conditions; having value of goods and services for export equal to more than 30 per cent of enterprises’ production value or at least 500 employees in a year will be imposed with a tax rate of 15 per cent. Also, investors in SUDAZI will be exempted from tax payment for between three and four years and enjoy a reduction of 50 per cent for the next seven years after they are profitable.

Those enterprises operating in Vietnam under the Law on Foreign Investment will enjoy the lowest corporate income tax rate of ten per cent applying to areas in difficulties. At the same time, they will be exempted from tax payment for between four and eight years and get their payment reduced by 50 per cent for between two and four following years. They will be imposed with a tax rate of three per cent for their profit remitted abroad. They will get their tax refunded for incomes used for re-investment, which meet the two following conditions: contributing adequate legal capital as in investment licences and their re-investment capital is used for at least three years.