Taiwan Trade Centre (TAITRA) in Ho Chi Minh City, under the Taiwanese Ministry of Economy organised the seminar “Introducing investment environment in Vietnamese industrial zones” at Legend Hotel, Ho Chi Minh City, aiming to assist Taiwanese businesspeople exploring the investment environment in Vietnam.
From March 25-27, 2007, Mr Zeng Tiansi, Vice Chairman of External Trade Development Council, led a Taiwanese business delegation to Ho Chi Minh City and Hanoi. The visiting group consisted of more than 120 members of 85 leading companies in chemical, IT, electronics, mould casting, food processing, medical equipment, auto parts, pharmaceutical, metallurgy, furniture, logistics, garment, textile and construction. This is the largest single Taiwanese business delegation to Vietnam in recent times. During the Vietnam visit, the group toured Hoa Lac Hi-Tech Park in Hanoi, Chu Lai Open Economic Zone and Saigon Hi-tech Park, and worked with authorities in Ho Chi Minh City and Quang Nam Province.
At the meeting, Mr Nguyen Dinh Mai, Deputy Director of Saigon Hi-tech Park, introduced the economic potential of Ho Chi Minh City and regional areas like Binh Duong and Dong Nai provinces. Mr Mai stressed that Ho Chi Minh City is able to connect human supply chains with two high tech parks for four industries of microelectronics, information technology, biotechnology, and nano technology. Saigon Hi-tech Park is currently witnessing the construction of the US$1-billion Intel chip assembly and testing factory. He also mentioned preferential treatment for foreign investors in Vietnam, and investment licensing duration. Finally, the Chinese community, with more than 500,000 people in the city, and more and more Vietnamese people fluent at Chinese, are an advantage of Taiwanese investors in the city.
Mr Le Phuoc Thanh, Vice Chairman of Quang Nam Province People’s Committee, presented the potential of Chu Lai Open Economic Zone in particular and central Vietnam as a whole. At present, investors in this region are encountering difficulty with the infrastructure system. However, this is a prospective area because it is near sea routes, airports and favourable road links to Laos, Cambodia and Thailand. The Government set up Chu Lai Open Economic Zone in Quang Nam Province, closely connected with Dung Quat oil refinery complex in Quang Ngai Province. To date, Chu Lai houses 139 registered projects with total investment capital of US$13 billion, mainly in infrastructure, Chu Lai Airport, seaports, industrial zone human resource training, and recreation. Furthermore, Hoi An ancient town and My Son champa tower complex, where the Chinese community is living, are becoming places of interest for tourists as well as tourism companies.
Thanh also introduced several investment incentive policies of Vietnam for foreign investors like a life-time 10 per cent discount on corporate income tax for key projects, total tax exemption for the first four years, 5 per cent discount on personal income tax for the first nine years, and import tax exemption on commodities which will become fixed assets. Foreign investors are also exempted from taxes on materials and components in the first five years, free land rental for 11 years, and flexible land rentals from then on. Additionally, they are financially supported to build houses for their workers, train workers, and advertise and broadcast on local mass media. Customs officers arrive at the companies to conduct customs procedures without collecting any fees.
For more than a decade, Taiwan has been among the largest foreign investors in Vietnam. Recent successful events like hosting the APEC Summit in late 2006 and admission to the WTO in early 2007 attract more Taiwanese to the country to seek business and investment opportunities. With detailed plans, preferential policies and an easy investment environment, Vietnam and Taiwan are expected to reap milestone achievements in economic exchange and cooperation.
Kim Bao
Vietnamese
