Binh Duong Industrial Park

Binh Duong Industrial Park

1. INTRODUCTION

– Decision No. 196/TTg, dated 26/4/1993 by Prime Minister to approve Thalexim – Song Be province using land for investment in IP and service; and document No.204/BQL, dated on 03/09/1997 by Viet Nam Industrial Park Zone’s Board of Management. 

– Investment Certificate

– Decision No. 498/QĐ-CT, dated on 28/09/2007 by Binh Duong People’s Committee to adjust master plan in detail for Binh Duong Service and Industrial Park, Di An District, Binh Duong province.

2. STRUCTURE OF LAND USE

– Location: 12 km away from Sai Gon port and Tan Cang Port, 100 km from Vung Tau port, 15 km from Tan Son Nhat airport; border with North-South railway at West side, nearby Song Than Station; 15 km from Ho Chi Minh city, Bien Hoa, 100 km from Vung Tau.

– Total Investment: 16,562 billion VND

– Leasing Industrial land: 14,08 ha

– Infrastructure facilities: already

– Plant for Centralized wastewater treatment: daily capacity 1,200 m³

– Operative year: 1994. binh duong industrial park

– Total implementing capital: 19,432 billion VND

– Re-Leased land: 13,71 ha, filled land percentage 97,38%

– Land leasing Price (reference): 37,62 USD /m²_.

I. Projects in the field of industrial production:

1. Land rental (Pursuant to Decree No. 135/2016 / ND-CP dated September 9, 2016 and Decree No. 46/2014 / ND-CP dated May 15, 2014 of the Government):

Exemption of land and water surface rent for the entire land lease term for projects on construction of infrastructure for common use in industrial parks and industrial clusters according to the plan approved by competent authorities.

Exemption of land and water surface rent for 03 years since the project is completed and put into operation, for projects on the list of investment incentives under the provisions of Decree No. 118/2015/ND-CP dated November 12^th, 2015 of the Government; for new business establishments of economic organizations that are relocated according to planning or due to environmental pollution.

Exemption of land and water surface rent for 11 years for investment projects on the list of special investment incentives as prescribed in Decree No. 118/2015 / ND-CP dated November 12, 2015 of the Government.

2.  Corporate income tax

a) Preferential tax rate of 10% for 15 years and tax exemption for 04 years, 50% reduction of payable tax for the next 9 years for: (Clause 1, Article 15 and Clause 1, Article 16, Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government; Clause 1 Article 3 of Circular No. 212/2015 / TT-BTC dated December 31, 2015):

Income of enterprises from implementing new investment projects in the fields of: Scientific research and technological development; manufacturing software products; production of composite materials, light construction materials, and rare and precious materials; renewable energy production, clean energy, energy from waste destruction; biotechnology development;

Income of enterprise from implementing new investment projects in the field of environmental protection includes:

• Production of equipment to treat environmental pollution.
• Production and application of environmental protection inventions which are protected by the government in the form of invention patents or utility solution patents.
• Production of eco-friendly products labeled with Vietnam’s Green Label by the Ministry of Natural Resources and Environment; products from recycling and waste treatment certified by competent state agencies.
• Production of certified gasoline, diesel fuel and biofuel; Biochar; energy from wind, sunlight, tides, geothermal and other forms of renewable energy.
• Manufacture of machinery, equipment and means used directly in the collection, transportation and treatment of wastes; environmental monitoring and analysis; renewable energy production; Treatment of environmental pollution; respond and handle environmental incidents.
• Manufacture of equipment for environmental monitoring and analysis
• Treatment of pollution and environmental protection; Collection and wastewater and exhaust gas treatment; centralized solid waste collection, transportation and treatment; Recycling and reusing waste; daily-life wastewater treatment with capacity of 2,500m3 of wastewater or more one day for urban areas of grade IV or higher; treatment and improvement of polluted environmental areas in public areas; response and handling of oil spills, chemical incidents and other environmental incidents; building technical infrastructure for environmental protection in industrial parks and clusters of trade villages; cremation service, electric cremation; environmental damage assessment; environmental health assessment; assessment of the environment for goods, machinery, equipment, and technology.
• High-tech enterprises, agricultural enterprises that apply high technology.
• An enterprise’s income from implementing new investment project in the manufacturing sector (except for projects on production of goods subject to special consumption tax, mineral exploitation projects) meets one of the following two criteria:

+ Projects with minimum investment capital of VND 6 trillion, disbursed no more than 3 years after being granted investment licenses and having minimum total revenue of VND 10 trillion per year at least 03 year since the revenue was generated.

+ Project with minimum investment capital of VND 6 trillion, disbursed within 03 years after being granted investment licenses and employing more than 3,000 employees at least 03 year since the revenue was generated.

b) The tax rate of 17% in 10 years and tax exemption in 2 years and 50% reduction of tax payable in the next 04 years are applicable to: (Clause 3, Article 15 and Clause 3, Article 16, Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government):

• Enterprise’s income from new investment projects: High-class steel production; manufacturing energy-saving products; manufacture of machinery and equipment for agricultural, forestry, fishery and salt production; manufacture of irrigation equipment; feed production and refining for livestock, poultry and aquatic animals; developing traditional professions.

The approval criteria, application conditions, tax calculation method and other regulations related to tax incentives are specified in Decree No. 218/2013 / ND-CP dated December 26, 2013 of the Government and Decree No. 12/2015 / ND-CP dated February 12, 2015 of the Government. binh duong industrial park

Enterprises having investment projects to develop investment projects which are operating in the eligible fields and areas for corporate income tax incentives in accordance with the provisions of Decree No. 218/2013 / ND-CP dated December 26, 2013 of The Government on expanding production scale, increasing capacity, and innovating production technology. If one of the three criteria specified in this Clause is met, it may be selected to enjoy tax incentives according to projects that are operating for the remaining period (if any) or tax exemption or reduction for the additional income from expansion investment. The tax exemption or reduction period for the additional income due to the expansion investment specified in this Clause is equal to the tax exemption or reduction period applicable to new investment projects in the same areas or sectors with corporate income tax incentives.

3. Import tax (Pursuant to Decree No. 134/2016 / ND-CP dated September 1, 2016 of the Government):

Tax exemption for imported goods to create fixed assets of incentive beneficiaries under the law on investment, including:

• Machines; equipment, components, detachable parts, spare parts for synchronous assembly or synchronous use with machinery or equipment; raw materials and supplies used to manufacture machinery or equipment or to manufacture components, detachable parts, and spare parts.
• Specialized means in the technological line directly used for production activities of the project;
• Construction materials cannot be produced domestically.