Dong Nai Portal

1.     The State’s Investment Policies:

 

The Foreign Investment Law in Vietnam has been modified and supplemented by the National Assembly of the Socialist Republic of Vietnam three times from May 9 to June 9, 2000.

 

Vietnam’s Government has promulgated list of 11 kinds of especially encouraged investment projects, 34 kinds of encouraged investment projects and 4 kinds of prohibited investment projects (enclosed appendix)

 

The investment period is 50 years (extended if needed)

 

Imported goods intended for production of fixed assets or of exported goods will be exempted from imported tax.

 

Vietnam’s government protects investors’ assets with the highest responsibility.

 

The procedure of issuing investment license is conducted simply and conveniently, between 1 and 15 days.

Investing in Izs, investors will be supplied with the whole infrastructure.

Investors are entitled to recruit Vietnamese or foreign labourers in accordance with Vietnam Labour Law

 

Investors are entitled to increase capital, transfer capital, divide, separate, merge business, change business targets of projects, open affiliates, open representative office and  reinvest from profits.

 

2. List of specially encouraged investment sectors

 

Producing, processing for export at least eighty (80) per cent of products;

 

Processing agricultural, forestry (except for wood) and aquaculture products from domestic material sources for export of at least fifty (50) per cent of products;

 

Producing various kinds of new strains with high quality and high economic efficiency;

 

Cultivation of agricultural, forestry and aquaculture products;

 

Manufacturing new materials and precious and rare materials; applying new bio-technology and new technology for manufacturing communications and telecommunications equipment;

High-tech industry;

 

Investment in research and development (R&D)

 

Producing equipment for waste treatment;

 

Producing materials for antibiotic drugs;

 

Treatment of pollution and protection of environment; treatment of waste;

 

Investment under BOT, BTO and BT contracts

 

Production of high-quality steel, alloy, non-ferrous metal, and special metal, steel billet and sponge iron; refine steel;

 

Manufacturing machine tools for metal processing, metallurgy equipment;

 

Producing communications and telecommunications equipment   

 

Manufacturing electronic and biotechnological spare parts and equipments

 

3. List of encouraged investment sectors

 

·           Producing, processing for export at least fifty (50) per cent of products;

 

·          Producing, processing for export at least thirty (30) per cent of products and using many domestic raw materials and materials (with a value of at least thirty (30) per cent of total production costs);

 

·         Regularly using a great number of employees and effectively using natural resources in Vietnam

 

·          Processing agricultural, forestry (except for wood) and aquaculture products

 

·          Preserving foodstuffs; post-harvest preservation of agricultural products;

Probing, exploiting and processing minerals

 

·          Development of petrol-chemical industry; construction and operation of oil and gas pipelines, oil storage and ports;

 

Manufacturing equipment in exploiting Petroleum and gas complex, mines, energy; manufacturing large-sized facilities for lift on/lift off

 

·          Manufacturing precision mechanical equipment, equipment for safety examination and control; manufacturing jig and dies for metal and non-metal products;

 

·          Manufacturing high and medium voltage electric devices;

 

·          Manufacturing diesel engines with advanced techniques and technology; manufacturing dynamic and hydraulic machinery, parts and compressing machines;

 

·          Manufacturing automobile and motorcycle parts; manufacturing and assembly of equipment, vehicles and machinery for construction; technical equipment for transportation;

 

·          Building ships; manufacturing equipment and parts for transportation ships and fishing ships;

 

·          Manufacturing agricultural and forestry equipment, parts and machines, irrigation equipment

 

·          Producing various types of materials for pesticides;

 

·          Producing basic chemicals of various kinds, purified chemicals and dyes; various kinds of specialized chemicals;

·          Producing materials for cleansing chemicals and additives for chemical industry

 

·          Producing special cement, composite materials, and sound, electricity and heat insulating materials, and wood-substitute synthetic materials, fire-proof materials, construction plastic and fibreglass;

 

·          Manufacturing light construction materials;

 

·          Producing paper pulp;

 

·          Producing silk and fibres of various kinds; special fabric for industry;

 

·          Producing high-quality raw materials for manufacturing footwear and garments for export;

·          High-quality packages for exports;

 

·          Producing medicine equipment in analysis and extraction technologies in medicine,

 

·          Producing medicine materials; producing medicines for human with international GMP standard;

 

·          Public passenger transportation;

 

·          Construction and upgrading of bridges, roads, airports, ports, railway stations, bus stations and railways;

 

·          Construction of water plants and water supply and drainage systems;

 

·          Construction and operation of infrastructure facilities of industrial zones, export processing zones and high-tech zones;

 

4.  List of sectors in which investment will not be license

Projects which are prejudicial to national security, defence and public interests;

    Projects which are detrimental to historical and cultural relics, fine customs and traditions of Vietnam;

 

    Projects which may adversely affect the ecological environment; projects for treatment of toxic wastes brought into Vietnam from abroad;

 

    Projects for production of toxic chemicals or utilizing toxic agents prohibited under an international treaty.

             

    Preferential corporate income tax and profits remittance tax rates are applied to businesses inside and outside Izs, EPZs, and high-tech zones.

a.     corporate income tax and time for tax exemption and reduction 

- High – tech businesses

 

In IZs: tax rate of 10 percent and time for tax exemption: 8 years

 Export Processing businesses

 

In IZs: tax rate of 10 percent; time for tax exemption: 4 years, reduce 50 percent for the subsequent 4 years.

Export businesses > 80%of the products

 

In IZs: tax rate of 10 percent  time for tax exemption: 4 years, reduce 50 percent for the  subsequent 4 years

 

Outside IZs: tax rate of 10 percent  (for 15 years) Tax reduction: reduce 50 percent for 4 years

Export businesses > 50% and < 80%

 

In IZs: tax rate of 15 percent; time for tax reduction: 2 years, reduce 50% for subsequent 3 years

Outside IZs; tax rate of 15 percent; time for tax reduction: 2 years, reduce 50% for subsequent 3 years

Export businesses <50%

 

In Izs: tax rate of 15 percent; time for tax reduction: 2 years

 

Outside Izs: tax rate of 25 percent

 

- Businesses of service and of other kinds:

 

In Izs: Businesses of IZ service: 20%. Tax exemption: 1 year; Businesses of EPZ service: 15%. Tax exemption:  2 years

 

Outside Izs: 25%

 

b. Profit remittance tax:

 

In Izs: 3%

 

Outside IZs: 3% - capital >  US$10mil: 5% - capital > 5 and < US$10mil: 7% - capital < US$5mil