Industrial Zones Attractive Destination for FDI Businesses

 

In 2015, the Thai Nguyen Industrial Zones Authority hopes to draw over 20 projects with a combined registered capital of US$500 million. Tenants in industrial zones are expected to rake in US$15 billion of revenue, earn export value of US$13 billion, pay VND400 billion to the State coffers, and create 30,000 jobs in 2015. Remarking on the province’s top place in FDI attraction in the country, the Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said Thai Nguyen is one of provinces utilising local advantages and creating breakthrough development to attract FDI. In 2012, Thai Nguyen ranked 44^th out of 63 provinces and cities by FDI value. In December 2013, with the arrival of two gargantuan projects invested by Samsung, Thai Nguyen climbed to the 17^th position. In 2014, the province licensed Samsung Group to start its second investment phase for its high-tech complex and confirmed its role and effort in supporting FDI attraction. According to the Foreign Investment Agency (FIA), the province has licensed 75 FDI projects with a total investment capital of US$6.9 billion, ranked 10^th among 63 provinces and cities with FDI in Vietnam. In recent years, especially in 2013 and 2014, licensed FDI value in industrial zones surged, making Thai Nguyen province the most attractive destination for foreign investors in Vietnam.

 

The investment attraction into industrial zones has helped increase tax revenue in 2014, particularly from Samsung Group. As of December 31, 2014, Thai Nguyen province collected VND4,777 billion of tax revenue, VND525 billion higher than the forecast and VND1 trillion higher than the value in 2013. Of the sum, domestic tax revenue was VND4,035 billion and export and import tax revenue was VND742 billion. High-source tax revenue included corporate income tax, personal income tax and land rent. An official from the Provincial People's Committee said tax mainly came from foreign-led investment projects, particularly Samsung Group and tenants in Yen Binh and Diem Thuy industrial parks.